Chapter 1 State Tax Officials

44-1-1. Tax administrator — Appointment.

There shall be a tax administrator within the department of revenue appointed by the director of revenue with the approval of the governor.

History of Section. P.L. 1939, ch. 660, § 70; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-1-1 ; P.L. 2006, ch. 246, art. 38, § 10.

Cross References.

Applicability of chapter to department of labor and training, § 28-42-50 .

Comparative Legislation.

State division and officials:

Conn. Gen. Stat., § 12-1 et seq.

Mass. Ann. Laws ch. 14, § 1 et seq.; ch. 58, § 1 et seq.

44-1-2. Powers and duties of tax administrator.

The tax administrator is required:

  1. To assess and collect all taxes previously assessed by the division of state taxation in the department of revenue and regulation, including the franchise tax on domestic corporations, corporate excess tax, tax upon gross earnings of public service corporations, tax upon interest bearing deposits in national banks, the inheritance tax, tax on gasoline and motor fuels, and tax on the manufacture of alcoholic beverages;
  2. To assess and collect the taxes upon banks and insurance companies previously administered by the division of banking and insurance in the department of revenue and regulation, including the tax on foreign and domestic insurance companies, tax on foreign building and loan associations, deposit tax on savings banks, and deposit tax on trust companies;
  3. To assess and collect the tax on pari-mutuel or auction mutuel betting, previously administered by the division of horse racing in the department of revenue and regulation;
  4. [Deleted by P.L. 2006, ch. 246, art. 38, § 10];
  5. To assess and collect the monthly surcharges that are collected by telecommunication services providers pursuant to § 39-21.1-14 and are remitted to the division of taxation;
  6. To audit, assess, and collect all unclaimed intangible and tangible property pursuant to chapter 21.1 of title 33;
  7. To provide to the department of labor and training any state tax information, state records, or state documents they or the requesting agency certify as necessary to assist the agency in efforts to investigate suspected misclassification of employee status, wage and hour violations, or prevailing wage violations subject to the agency’s jurisdiction, even if deemed confidential under applicable law, provided that the confidentiality of such materials shall be maintained, to the extent required of the releasing department by any federal or state law or regulation, by all state departments to which the materials are released and no such information shall be publicly disclosed, except to the extent necessary for the requesting department or agency to adjudicate a violation of applicable law. The certification must include a representation that there is probable cause to believe that a violation has occurred. State departments sharing this information or materials may enter into written agreements via memorandums of understanding to ensure the safeguarding of such released information or materials; and
  8. [Expires December 31, 2021.]  To preserve the Rhode Island tax base under Rhode Island law prior to the December 22, 2017, Congressional enactment of Public Law 115-97, The Tax Cuts and Jobs Act, the tax administrator, upon prior written notice to the speaker of the house, senate president, and chairpersons of the house and senate finance committees, is specifically authorized to amend tax forms and related instructions in response to any changes the Internal Revenue Service makes to its forms, regulations, and/or processing which will materially impact state revenues, to the extent that impact is measurable. Any Internal Revenue Service changes to forms, regulations, and/or processing which go into effect during the current tax year or within six (6) months of the beginning of the next tax year and which will materially impact state revenue will be deemed grounds for the promulgation of emergency rules and regulations under § 42-35-2.10 . The provisions of this subsection (8) shall sunset on December 31, 2021.

History of Section. P.L. 1939, ch. 660, § 70; G.L. 1956, § 44-1-2 ; P.L. 1960, ch. 52, § 19 (unconstit.); revived and reenacted, P.L. 1961, ch. 3, § 1; P.L. 1965, ch. 68, § 1; P.L. 1986, ch. 287, art. 23, § 4; P.L. 2003, ch. 429, § 2; P.L. 2005, ch. 117, art. 15, § 1; P.L. 2006, ch. 246, art. 38, § 10; P.L. 2007, ch. 73, art. 4, § 3; P.L. 2012, ch. 424, § 2; P.L. 2012, ch. 483, § 2; P.L. 2018, ch. 47, art. 4, § 14.

Compiler’s Notes.

P.L. 2012, ch. 424, § 2, and P.L. 2012, ch. 483, § 2 enacted identical amendments to this section.

Effective Dates.

P.L. 2018, ch. 47, art. 4, § 14, provides that the amendment to this section by that act takes effect on July 1, 2018, and the amendment shall sunset by its own terms on December 31, 2021.

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

Cross References.

Pari-mutuel betting tax, collection, § 41-4-8 .

NOTES TO DECISIONS

Standing to Seek Declaratory Judgment.

Whether decision holding that city police and firefighters’ pensions are exempt from the state personal income tax, applies by analogy to exempt all state employees, municipal employees and/or their respective beneficiaries who are recipients of pensions, annuities or retirement allowances and also certain pensions held in employees trust from the state income tax law was a question that could not serve as a proper basis for an advisory opinion; the tax administrator, however, because of the duty imposed upon him to collect all taxes due the state and as guardian of the public interest that all such taxes be collected, had standing to seek a response to the question by invoking the pertinent provisions of the Uniform Declaratory Judgments Act, § 9-30-1 et seq. In re Advisory Opinion to Governor, 483 A.2d 1078, 1984 R.I. LEXIS 625 (R.I. 1984).

44-1-3. Delegation of power to collect fees.

The tax administrator has the discretionary power to authorize any agency of the state, whether regulatory or otherwise, to collect certain fees when the collection involves or includes the function of regulation or when the convenience of the general public is affected.

History of Section. P.L. 1939, ch. 660, § 70; G.L. 1956, § 44-1-3 .

44-1-4. Rules and regulations.

The tax administrator is authorized and empowered to make rules and regulations, as the administrator may deem necessary for the proper administration and enforcement of the tax laws of this state.

History of Section. G.L. 1938, ch. 28, § 14; P.L. 1947, ch. 1875, § 1; G.L. 1956, § 44-1-4 .

Cross References.

Powers of administrator in collection of sales and use taxes, § 44-19-23 .

NOTES TO DECISIONS

In General.

The tax administrator was not authorized to promulgate and enforce a rule clearly contrary to the intent of the legislature. Petrarca v. Tax Adm'r, 113 R.I. 449 , 322 A.2d 621, 1974 R.I. LEXIS 1199 (1974).

Collateral References.

Imprisonment for debt: constitutional provision against imprisonment for debt as applicable to nonpayment of tax. 48 A.L.R.3d 1324.

44-1-5. Repealed.

History of Section. P.L. 1912, ch. 769, § 5; G.L. 1923, ch. 38, § 5; G.L. 1938, ch. 28, § 5; G.L. 1956, § 44-1-5 ; Repealed by P.L. 1965, ch. 68, § 2.

44-1-6. Additional collection powers — Nonresident contractors.

  1. Any person doing business with a nonresident contractor shall withhold payment of an amount of three percent (3%) of the contract price until thirty (30) days after the contractor has completed the contract and has requested the tax administrator, in writing, to audit the records for the particular project, a receipted copy of the request to be furnished to the person holding the funds. The tax administrator shall, within thirty (30) days after receipt of the request, furnish to the nonresident contractor and to the person holding the funds either a certificate of no tax due or a certificate of sales and use tax or income tax withheld, or both, due from the nonresident contractor.
  2. Upon receipt of a certificate of no tax due, the person holding the payment may pay the nonresident contractor. Upon receipt of a certificate of taxes due, the person may pay to the contractor out of the amount withheld the excess over the amount of taxes stated in the certificate together with the interest and penalties assessed. If the tax administrator furnishes neither certificate to both parties within thirty (30) days after receipt of a written request for the making of the audit, the person holding the payment may immediately pay the payment withheld to the nonresident contractor under the terms of the contract free from any claims of the tax administrator against either the person holding the payment or the nonresident contractor for payment of sales or use taxes or income taxes withheld, or both.
  3. In the event the tax administrator serves upon the contractor and the person holding the payment a certificate showing the taxes due within a thirty (30) day period, the person holding the payment shall deposit with the tax administrator the amount stated in the certificate which is not in excess of three percent (3%) of the contract price, taking a receipt for the amount, and is free from any claim of the nonresident contractor for that amount or of the tax administrator for sales and use taxes or income taxes withheld, or both, arising out of the materials, equipment, and services used in performance of the contract of the nonresident contractor on that project.
  4. As used in this section, “a nonresident contractor” is one who does not maintain a regular place of business in this state. “A regular place of business” means and includes any bona fide office (other than a statutory office), factory, warehouse, or other space in this state at which the taxpayer is doing business in its own name in a regular and systematic manner, and which is continuously maintained, occupied, and used by the taxpayer in carrying on its business through its regular employees regularly in attendance. A temporary office at the site of construction shall not constitute a regular place of business.

History of Section. P.L. 1974, ch. 229, § 2.

44-1-7. Interest on delinquent payments.

  1. Whenever the full amount of any state tax or any portion or deficiency, as finally determined by the tax administrator, has not been paid on the date when it is due and payable, whether the time has been extended or not, there shall be added as part of the tax or portion or deficiency interest at the rate as determined in accordance with subsection (b) of this section, notwithstanding any general or specific statute to the contrary.
  2. Each January 1 the tax administrator shall compute the rate of interest to be in effect for that calendar year by adding two percent (2%) to the prime rate, which was in effect on October 1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent (21%) per annum nor be less than eighteen percent (18%) per annum.
  3. “Prime rate” as used in subsection (b) of this section means the predominant prime rate quoted by commercial banks to large businesses as determined by the board of governors of the Federal Reserve System.
  4. Notwithstanding any provisions of the general laws to the contrary, the tax administrator shall waive interest and penalty on the taxable portion of each Paycheck Protection Program loan taxed pursuant to §§ 44-11-11(a)(1)(iv) , 44-14-11 , and 44-30-12(b)(8) and forgiven during tax year 2020 provided that the tax on that portion is paid in full on or before March 31, 2022. The tax administrator shall make available suitable forms with instructions for making tax payments on the taxable portion of such forgiven Paycheck Protection Program loans.

History of Section. P.L. 1974, ch. 151, art. 1, § 1; P.L. 1981, ch. 293, § 1; P.L. 1982, ch. 9, art. 4, § 1; P.L. 1984, ch. 289, § 1; P.L. 1993, ch. 138, art. 67, § 1; P.L. 2006, ch. 157, § 2; P.L. 2006, ch. 246, art. 21, § 2; P.L. 2006, ch. 631, § 2; P.L. 2007, ch. 73, art. 4, § 3; P.L. 2021, ch. 162, art. 6, § 10, effective July 6, 2021.

Compiler’s Notes.

P.L. 2006, ch. 157, § 2, and P.L. 2006, ch. 631, § 2, enacted identical amendments to this section.

This section was amended by three acts (P.L. 2006, ch. 157, § 2; P.L. 2006, ch. 246, art. 21, § 2; P.L. 2006, ch. 631, § 2) passed by the 2006 General Assembly. Since the acts are not in conflict with each other, this section is set out as amended by all three acts.

Effective Dates.

P.L. 2006, ch. 157, § 3, provides that the amendment to this section by that act takes effect upon passage [June 21, 2006] and is repealed effective August 15, 2010.

P.L. 2006, ch. 631, § 3, provides that the amendment to this section by that act takes effect upon passage [July 14, 2006] and is repealed effective August 15, 2010.

P.L. 2006, ch. 246, art. 21, § 4, provides that the amendment to this section by that act takes effect on October 1, 2006.

44-1-7.1. Interest on overpayments.

  1. Each January 1 the tax administrator shall compute the rate of interest to be in effect for that calendar year by reference to the prime rate, which was in effect on October 1 of the preceding year. The term “prime rate” shall mean the predominant prime rate quoted by commercial banks to large businesses as determined by the board of governors of the Federal Reserve System.
  2. Notwithstanding any general or specific statute to the contrary, overpayments of state taxes or surcharges that are remitted to the tax division pursuant to § 39-21.1-14 , shall bear interest at the prime rate as defined in § 44-1-7.1(a) from the date the tax or the surcharge that is referenced in this provision was paid, or from the date including any extensions of the date the tax became due, whichever of the dates occurs later.
  3. If any overpayment of state tax is refunded within ninety (90) days after the last date prescribed (or permitted by extension of time) for filing the return of the tax, or within ninety (90) days after the return is in fact filed, no interest shall be allowed under this section on the overpayment.
  4. For the purposes of this section, if any overpayment of state tax results from a carry-back of a net operating loss, the overpayment is deemed not to have been made prior to the close of the taxable year in which the net operating loss arises.
  5. If any overpayment of a surcharge referenced in subsection (b) of this section is refunded within ninety (90) days after notification of overpayment of the surcharge, no interest shall be allowed under this section on the overpayment.

History of Section. P.L. 1982, ch. 159, § 1; P.L. 1983, ch. 104, § 1; P.L. 1984, ch. 289, § 1; P.L. 2006, ch. 246, art. 21, § 3; P.L. 2007, ch. 73, art. 4, § 3; P.L. 2008, ch. 475, § 14.

44-1-8. Taxes and fees as debt to state.

Every tax, excise, or fee including any penalty, interest, or other charge payable to the tax administrator shall, from the time the tax, excise, or fee becomes due and payable, also become a debt to the state.

History of Section. G.L. 1938, ch. 28, § 12; P.L. 1942, ch. 1239, § 2; G.L. 1956, § 44-1-8 .

44-1-9. Extension of time for filing of reports.

The tax administrator may grant a reasonable extension of time for the filing of any return, report, or statement, provided by law to be made to the tax administrator.

History of Section. G.L. 1938, ch. 28, § 15; P.L. 1947, ch. 1875, § 1; G.L. 1956, § 44-1-9 .

44-1-10. Compromise or abatement of uncollectible or excessive taxes.

Whenever the tax administrator determines that any tax, excise, fee, penalty, interest, or other charge payable to the tax administrator is un-collectible, illegal, or excessive, in whole or in part, the tax administrator may, with the approval of the director of revenue, compromise, abate, or cancel the charge, as the circumstances may warrant.

History of Section. G.L. 1938, ch. 28, § 10; P.L. 1942, ch. 1239, § 2; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-1-10 ; P.L. 2009, ch. 295, § 1; P.L. 2009, ch. 296, § 1.

44-1-11. Refund or credit for overpayments.

Whenever an erroneous payment or any payment in excess of the correct amount of any tax, excise, fee, penalty, interest, or other charge is made to the tax administrator, the general treasurer shall, after certification by the tax administrator with the approval of the director of administration, refund the erroneous payment or overpayment, or the tax administrator may credit the erroneous payment or overpayment against any tax then or thereafter due, as the circumstances may warrant.

History of Section. G.L. 1938, ch. 28, § 10; P.L. 1942, ch. 1239, § 2; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-1-11 .

NOTES TO DECISIONS

Applicability.

This section requires a refund when a taxpayer has prepaid a tax and is subsequently successful in challenging the legality of that tax. Dart Indus. v. Clark, 657 A.2d 1062, 1995 R.I. LEXIS 139 (R.I. 1995).

This section does not provide for an alternative independent method of seeking a tax refund; taxpayer seeking a refund must first follow the administrative requirements of § 44-11-20 . International Packaging Corp. v. Mayer, 715 A.2d 636, 1998 R.I. LEXIS 260 (R.I. 1998).

Collateral References.

Effect of delay in receipt or negotiation of refund check in determining right to interest under § 6611 of the Internal Revenue Code (26 USCA § 6611). 145 A.L.R. Fed. 437.

44-1-11.1. Set-off for delinquent taxes — Trust funds.

If the tax administrator determines that any person, firm, corporation, partnership, or other entity doing business with the state or a state agency has neglected or refused to pay over to the tax administrator trust fund taxes as defined in § 44-19-35 or 44-30-76 and/or has failed to file tax returns for those trust funds, the tax administrator shall notify the state controller of the delinquency. The state controller, upon certification of the amount of the tax delinquency by the tax administrator, shall set-off the amount of the tax delinquency against any payment due that person or entity, and the tax administrator shall credit that amount against the tax due.

Provided, that the tax administrator may not seek set-off until time that a delinquency determination for the trust funds has been directed to the person or entity. Provided, further, that if a person or entity assessed a deficiency determination for the trust funds has requested a hearing on the assessment within the applicable statutory period, no request for set-off may be made while the matter is pending in hearing or from any appeal.

History of Section. P.L. 1991, ch. 6, art. 25, § 1.

44-1-12. Reports under oath — False statements.

Every return, report, or statement provided by law to be made to the tax administrator may be required by the tax administrator to be made under oath or affirmation, or the tax administrator may require that the return, report, or statement contain, or be verified by, a written declaration that it is made under the penalties of perjury; and whoever signs or issues any report or statement containing, or verified by, a written declaration is guilty of perjury if the report or statement is willfully false.

History of Section. G.L. 1938, ch. 28, § 11; P.L. 1942, ch. 1239, § 2; G.L. 1956, § 44-1-12 .

Cross References.

Perjury, penalty, § 11-33-2 .

44-1-13. Notice to administrator of constitutional or construction questions in court.

Whenever in any proceeding in court, by appeal or otherwise, the constitutionality or construction of any tax statute or the validity of the assessment of any tax is in question, the court before which the proceeding is pending shall not proceed with the hearing until notice, as the court may direct, has been given to the tax administrator of the pending of the proceeding, so that the tax administrator may appear and be heard with reference to the proceeding.

History of Section. P.L. 1912, ch. 769, § 8; G.L. 1923, ch. 38, § 8; G.L. 1938, ch. 28, § 8; impl. am. P.L. 1939, ch. 660, § 70; G.L. 1956, § 44-1-13 .

NOTES TO DECISIONS

Applicability.

This section, when it is looked at in conjunction with the other portions of chapter 1 of title 44, is relevant only when the challenge being made concerns a tax that may be due the state, not a municipality. Maggiacomo v. Di Vincenzo, 122 R.I. 615 , 410 A.2d 1332, 1980 R.I. LEXIS 1430 (1980).

In a suit involving consumers (yet-to-be class certified) asserting that a computer business improperly collected a tax from them on service contracts they purchased along with a new computer, the Rhode Island Superior Court had subject matter jurisdiction over the action as their claims were being asserted under the Rhode Island Deceptive Trade Practices Act, R.I. Gen. Laws § 6-13.1-5.2(a) , and common-law negligence, and did not present a tax aggrievement case. As a result, the motion to dismiss filed by the intervening tax administrator for the Rhode Island Division of Taxation was denied. Long v. Dell, Inc., 984 A.2d 1074, 2009 R.I. LEXIS 141 (R.I. 2009).

44-1-14. Disclosure of information to tax officials of federal government or other states, or to other persons.

Notwithstanding any other provision of law:

  1. The tax administrator may make available: (i) To the taxing officials of any other states or of the federal government for tax purposes only, any information that the administrator may consider proper contained in tax reports or returns or any audit or the report of any investigation made with respect to them, filed pursuant to the tax laws of this state; provided, that other states or the federal government grant like privileges to the taxing officials of this state; and/or (ii) To an officer or employee of the office of internal audit of the Rhode Island department of administration, any information that the administrator may consider proper contained in tax reports or returns or any audit or the report of any investigation made with respect to them, filed pursuant to the tax laws of this state, to whom disclosure is necessary for the purposes of fraud detection and prevention in any state or federal program.
  2. The tax administrator shall not permit any federal return or federal return information to be inspected by, or disclosed to, an individual who is the chief executive officer of the state or any person other than:
    1. To another employee of the tax division for the purpose of, and only to the extent necessary in, the administration of the state tax laws for which the tax division is responsible;
    2. To another officer or employee of the state to whom the disclosure is necessary in connection with processing, storage, and transmission of those returns and return information and solely for purposes of state tax administration;
    3. To another person for the purpose of, but only to the extent necessary in, the programming, maintenance, repair, testing, and procurement of equipment used in processing or transmission of those returns and return information; or
    4. To a legal representative of the tax division, personally and directly engaged in, and solely for use in, preparation for a civil or criminal proceeding (or investigation which may result in a proceeding) before a state administrative body, grand jury, or court in a matter involving state tax administration, but only if:
      1. The taxpayer is or may be a party to the proceeding;
      2. The treatment of an item reflected on the return is or may be related to the resolution of an issue in the proceeding or investigation; or
      3. The return or return information relates, or may relate, to a transactional relationship between a person who is or may be a party to the proceeding and the taxpayer that affects or may affect the resolution of an issue in a proceeding or investigation.

History of Section. G.L. 1938, ch. 28, § 10; P.L. 1943, ch. 1344, § 1; G.L. 1956, § 44-1-14 ; P.L. 1977, ch. 132, § 1; P.L. 2017, ch. 302, art. 5, § 7.

Collateral References.

Validity, construction, and effect of state laws requiring public officials to protect confidentiality of income tax returns or information. 1 A.L.R.4th 959.

What are matters “related solely to the internal personnel rules and practices of an agency” exempted from disclosure under Freedom of Information Act (5 USCS § 522(b)(2)). 28 A.L.R. Fed. 645.

44-1-14.1. Joint examinations of returns with other jurisdictions.

  1. The tax administrator may participate jointly with the secretary of the treasury of the United States or the secretary’s delegate, or with the proper tax officer of any territory, state, or its political subdivision or with any agent or agency designated under the laws of any territory, state, or its political subdivision in the examination, verification, assessment, audit, or other activity to determine the proper tax liability due on any tax return required to be filed with the administrator.
  2. The tax administrator may participate jointly with the tax officers in the examination, verification, assessment, audit, or other activity to determine the proper tax liability due on any tax return required to be filed with the Internal Revenue Service or with any territory, state, or its political subdivision to the extent that the tax of the federal government or of the territory, state, or its political subdivision is similar to a tax imposed by this state.
  3. A certificate by the tax administrator that the tax of the federal government or of the other territory, state, or its political subdivision is similar to a tax imposed by this state is prima facie evidence of the similarity.

History of Section. P.L. 1987, ch. 171, § 1.

44-1-15. Destruction of obsolete records — Preservation of corporate returns.

The tax administrator is authorized and empowered, in his or her discretion, to destroy tax returns, duplicate records, correspondence, and other papers and documents on file in the office of the administrator, relating to the assessment of taxes under this chapter, which bear a date not later than three (3) years prior to the date of the exercise of the authority granted by this section, except the records relating to public service corporations; provided, that the tax administrator has compiled in durable form as a part of his or her permanent records, all the essential information contained in any corporation tax returns destroyed under the provisions of this section pertaining to issued capital, dividends, value of shares returned, bonded and other indebtedness, total corporate value, corporate value in this state, basis of apportionment, exempt property, estimated value of physical property within and without this state, gross receipts, and in the case of public service corporations gross earnings returned, and in the case of banks, trust companies, and national banking associations the fair cash value of physical property and the names of shareholders whose shares are exempt from taxation.

History of Section. P.L. 1919, ch. 1768, § 1; G.L. 1923, ch. 38, § 9; G.L. 1938, ch. 28, § 9; P.L. 1939, ch. 659, § 2; impl. am. P.L. 1939, ch. 660, § 70; G.L. 1956, § 44-1-15 .

44-1-16 — 44-1-22. Repealed.

History of Section. P.L. 1912, ch. 769, § 7; P.L. 1919, ch. 1719, § 1; G.L. 1923, ch. 38, § 7; P.L. 1956, ch. 3756, §§ 1-6; P.L. 1958, ch. 161; P.L. 1962, ch. 83, § 1; Repealed by P.L. 1961, ch. 93, § 8 and P.L. 1965, ch. 68, § 2.

44-1-23. Release of tax liens.

  1. The tax administrator is authorized and empowered to release any lien on a taxpayer’s property by any law levying a tax to be assessed and collected by the tax administrator, whenever in his or her discretion the release of lien will not impair the state’s ability to collect the amount of the taxes and interest and penalties constituting the lien. The tax administrator, before giving any release of lien, may accept a tentative return from the taxpayer in the form the tax administrator may require, and accept payment of the tentative taxes, if any, disclosed by the return, plus interest and penalties, and the tax administrator may demand any security that the tax administrator may deem appropriate for the payment of the taxes and interest and penalties constituting the lien.
  2. The acceptance of any tentative return, the payment of any tentative taxes and interest and penalties, or the acceptance of any security, shall not impair the tax administrator’s right to collect from the taxpayer any unpaid portion of the taxes and interest and penalties nor affect the liability of the taxpayer to pay the taxes and interest and penalties.

History of Section. R.P.L. 1957, ch. 153, § 1.

44-1-24. Acquisition of property for delinquent state taxes.

  1. Whenever the tax administrator obtains a judgment against a person, firm, or corporation for taxes, including interest and penalties, owed to the tax administrator, and the real property of the person, firm, or corporation is being sold at a sheriff’s sale to satisfy the judgment, the state properties committee shall, if requested by the tax administrator, cause its agent or representative to attend the sale and bid on the real property but not more than the amount of the state’s judgment and its costs. If the state’s bid is the highest, the state properties committee shall acquire the real property and administer or dispose of it in accordance with chapter 6 of title 37.
  2. Whenever the tax administrator obtains a judgment against a person, firm, or corporation for taxes, including interest or penalties, owed to the tax administrator, and the personal property of the person, firm, or corporation, is being sold at a sheriff’s sale to satisfy the judgment, the state purchasing agent shall, if requested by the tax administrator, cause his or her agent or representative to attend the sale and bid on the personal property but not more than the amount of the state’s judgment and its costs. If the state’s bid is the highest, the purchasing agent shall acquire the personal property and administer or dispose of it in accordance with chapter 2 of title 37.

History of Section. P.L. 1959, ch. 135, § 1.

Collateral References.

Easement, servitude, or covenant as affected by sale for taxes. 7 A.L.R.5th 187.

44-1-25. Priority of state tax actions.

In any action to recover the amount of any tax assessed by the tax administrator, including interest and penalties, which the tax administrator has commenced in the superior court or which has been appealed to the superior court, the action shall, on the day to which it has been assigned for trial in the superior court by motion or agreement, take precedence for trial over all other cases on the trial calendar of the superior court for the day.

History of Section. P.L. 1959, ch. 136, § 1.

44-1-26. Reciprocal enforcement of tax liabilities between this state and other states.

  1. At the request of the tax administrator, the attorney general of this state may bring suit, in the name of this state or in the name of the tax administrator, in the appropriate court of any other state to collect any tax legally due this state; and any political subdivision of this state or its appropriate officer, acting in its behalf, may bring suit in the appropriate court of any other state to collect any tax legally due to that political subdivision.
  2. The courts shall recognize and enforce liabilities for taxes similar to the taxes imposed by this state and lawfully imposed by any other state, or its political subdivision, which extends a like comity to this state, and the authorized officer of any other state, or its political subdivision, may sue for the collection of the taxes in the courts of this state. A certificate by the secretary of state of the other state that the officer suing for the collection of the tax is authorized to collect the taxes is conclusive proof of the authority. A certificate by the tax administrator that the tax of the other state or its political subdivision is similar to a tax imposed by this state is prima facie evidence of the similarity.
  3. For the purposes of this section, the words “tax” and “taxes” include interest and penalties due under any taxing statute, and liability for the interest or penalties, or both, due under a taxing statute of another state, or its political subdivision, is recognized and enforced by the courts of this state to the extent that the laws of the other state permit the enforcement in its courts of liability for the interest or penalties or both, due under the tax laws of this state or any political subdivision of this state.

History of Section. P.L. 1965, ch. 44, § 1.

44-1-27. Uncollectible checks.

Whenever any taxpayer liable for the payment of any tax, interest, penalty, or other charge imposed under the provisions of any law administered by the tax administrator presents or causes to be presented a check to the tax administrator or to his or her agent or representative in payment of the tax, interest, penalty, or charge, and the check is returned as uncollectible, the tax administrator shall charge a fee of ten percent (10%) of the face amount of the check, plus any protest fees, to the taxpayer to cover the costs of its collection, which fee is in addition to any interest and penalty charge imposed under the provisions of the law; provided, that the amount of the fee imposed is not less than ten dollars ($10.00) nor exceed one hundred dollars ($100); and provided, further, that the tax administrator shall not charge the fee unless the tax administrator or his or her agent or representative has notified the taxpayer by mail that the check was returned as uncollectible and makes demand in the notice that full payment of the amount of the check be made within ten (10) days of the date of the giving of the notice, and the taxpayer fails to make the payment within the period.

History of Section. P.L. 1967, ch. 99, § 1.

44-1-28. Mailing as timely tax filing and payment.

  1. Generally.  Any report, claim, tax return, statement, or other document required or authorized to be filed with or any payment made to the state or to any political subdivision of the state which is:
    1. Transmitted through the United States mail, is deemed filed and received by the state or political subdivision on the date shown by the post office cancellation mark stamped upon the envelope or other appropriate wrapper containing it;
    2. Mailed but not received by the state or political subdivision or where received and the cancellation mark is illegible, erroneous, or omitted, is deemed filed and received on the date it was mailed if the sender establishes by competent evidence that the report, claim, tax return, statement, remittance, or other document was deposited in the United States mail on or before the date due for filing; and in cases of the non-receipt of a report, tax return, statement, remittance, or other document required by law to be filed, the sender files with the state or political subdivision a duplicate within thirty (30) days after written notification is given to the sender by the state or political subdivision of its non-receipt of the report, tax return, statement, remittance, or other document.
  2. Registered or certified mail; Certificate of mailing.  If any report, claim, tax return, statement, remittance, or other document is sent by United States registered mail, certified mail, or certificate of mailing, a record authenticated by the United States post office of the registration, certification, or certificate is considered competent evidence that the report, claim, tax return, statement, remittance, or other document was mailed, and the date of registration, certification, or certificate is deemed the postmarked date.
  3. Saturdays, Sundays and legal holidays.  If the date for filing any report, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, the filing is considered timely if performed on the next business day.

History of Section. P.L. 1969, ch. 205, § 1.

44-1-29. Collection by writ of execution.

  1. Whenever the full amount of any state tax or any portion or deficiency, as finally determined by the tax administrator, or any surcharge that is required to be remitted to the tax division pursuant to § 39-21.1-14 is not paid within thirty (30) days after the tax or penalty becomes due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth division of the district court for a writ of execution, setting forth the nonpayment of the tax, surcharge or penalty; and the court shall immediately appoint a time for a hearing and cause a reasonable notice of the meeting to be given to the adverse party, and at the time and place of the return of the notice shall proceed summarily to hear the parties.
  2. If upon the hearing it appears that the tax, penalty, or surcharge that is required to be remitted to the tax division pursuant to § 39-21.1-14 is unpaid, the court shall immediately issue an execution for the collection of the tax, penalty or surcharge, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the party as may be taken on execution, and the officer charged with the service of the execution shall serve the execution as commanded, and shall sell the property seized as property is sold when taken on execution in actions at law, or the court shall take other action as it may deem proper to enforce the payment of the tax by the appointment of the receiver of the property of the party or otherwise. A party aggrieved by a final order of the court may seek review of the order in the Supreme Court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. P.L. 1978, ch. 294, § 1; P.L. 1983, ch. 105, § 1; P.L. 2007, ch. 73, art. 4, § 3.

44-1-30. Repealed.

History of Section. P.L. 1980, ch. 275, § 4; P.L. 2004, ch. 6, § 57; Repealed by P.L. 2006, ch. 246, art. 38, § 11, effective July 1, 2006.

Compiler’s Notes.

Former § 44-1-30 concerned a report by the tax administrator to the speaker of the house of representatives.

44-1-31. Taxes and child support to be paid by electronic funds transfer.

  1. The tax administrator is authorized to provide by rule for the payment of any tax, including employer taxes, by electronic funds transfer where the tax required to be paid in connection with the filing of any return, report or other document with the division of taxation exceeds ten thousand dollars ($10,000). Provided, in all instances where a taxpayer is required to pay employment taxes to the Internal Revenue Service by electronic funds transfer, the taxpayer shall pay Rhode Island income tax withheld by electronic funds transfer.
  2. The tax administrator is authorized to provide by rule for the payment of child support and/or medical support received from any in-state, or interstate employers, making income withholdings, and from collections received from other state collection and disbursement units and foreign jurisdictions, by electronic funds transfer (EFT) when the child support and/or medical support is required to be paid in connection with a court or administrative order for support to the state’s central collection and disbursement.
  3. The tax administrator shall adopt rules and regulations necessary to implement this section including, but not limited to, rules and regulations:
    1. Coordinating the filing of tax returns with the payment of taxes by electronic funds transfer; and the payment of child support,
    2. Specifying the form, frequency, and content of electronic funds transfer messages and electronic date information in order to insure the proper receipt and crediting of the tax or child support payment.
  4. Payment of personal income taxes by individuals is not subject to the provisions of subsection (a) of this section; provided, that employers’ withholding of taxes is subject to the provisions of subsection (a) of this section.
  5. The tax administrator is authorized to provide by rule for payment of any surcharge that is required to be remitted to the tax division pursuant to § 39-21.1-14 .

History of Section. P.L. 1991, ch. 44, art. 31, § 1; P.L. 1999, ch. 379, § 1; P.L. 1999, ch. 386, § 1; P.L. 2002, ch. 225, § 2; P.L. 2007, ch. 73, art. 4, § 3.

44-1-31.1. Returns to be filed by paid tax return preparers electronically.

  1. Beginning January 1, 2009, the tax administrator is authorized to require that paid tax return preparers that prepared more than one hundred (100) Rhode Island tax returns in the prior year, shall file Rhode Island tax returns for their clients electronically with the Rhode Island Division of Taxation.
  2. This section shall apply to paid tax return preparers of Rhode Island personal and corporate income tax returns as well as paid preparers of other types of Rhode Island tax returns.
  3. If a paid tax return preparer is required by the tax administrator to file electronically in accordance with this section, the tax administrator may allow such preparer to bypass such requirement in a given instance where a client specifically requests that the return(s) not be filed electronically.
  4. If a paid tax return preparer fails to abide by such electronic filing requirement or otherwise causes clients’ Rhode Island tax returns to be filed falsely or improperly, the tax administrator may, after a hearing to show cause, preclude such preparer from preparing and filing Rhode Island tax returns with the Rhode Island Division of Taxation.
  5. The tax administrator is authorized to waive the electronic filing requirement in a given year for a paid tax return preparer who can show that filing electronically will cause undue hardship.

History of Section. P.L. 2008, ch. 137, § 1; P.L. 2008, ch. 190, § 1.

44-1-32. Hearing on application by taxpayer.

Any taxpayer aggrieved by the action of the tax administrator in determining the amount of any tax, any surcharge that is required to be remitted to the tax division pursuant to § 39-21.1-14 or penalty for which a hearing is not provided may apply to the tax administrator, in writing, within thirty (30) days after notice of the assessment is mailed to the taxpayer, for a hearing relative to the tax or penalty. The tax administrator shall, as soon as practicable, fix a time and place for the hearing and shall, after the hearing, determine the correct amount of the tax, interest, and penalty.

History of Section. P.L. 1993, ch. 459, § 17; P.L. 2007, ch. 73, art. 4, § 3.

NOTES TO DECISIONS

Procedure.

In a tax collection case in which two taxpayers appealed a superior court’s entry of summary judgment in favor of the Tax Administrator for the State of Rhode Island, they had not exhausted their administrative remedies. They could not simply wait to be sued for the income tax to then raise objection to the assessment or payment in the collection proceeding. Sullivan v. Reilly, 55 A.3d 207, 2012 R.I. LEXIS 106 (R.I. 2012).

44-1-33. Indemnification.

  1. The state shall indemnify the tax administrator for any recovery against him or her in his or her personal capacity arising out of any act or omission occurring within the scope of his or her duties as tax administrator; provided, that the act or omission was not the result of actual fraud, willful misconduct, or actual malice.
  2. The state shall also indemnify the associate directors for revenue services of the department of administration, within the division of taxation, child support enforcement, and motor vehicles, and their assigns or designees, for any recovery against him or her in his or her personal capacity arising out of any act or omission occurring within the scope of his or her duties; as such, provided, that the act or omission was not the result of actual fraud, willful misconduct, or actual malice.

History of Section. P.L. 1994, ch. 179, § 1; P.L. 2003, ch. 429, § 2.

44-1-34. Tax administrator to prepare list of delinquent taxpayers — Notice — Public inspection.

  1. Notwithstanding any other provision of law, the tax administrator may, on a quarterly basis,
    1. Prepare a list of the one hundred (100) delinquent taxpayers under chapter 44-30 who owe the largest amount of state tax and whose taxes have been unpaid for a period in excess of ninety (90) days following the date their tax was due.
    2. Prepare a list of the one hundred (100) delinquent taxpayers collectively under chapters 44-11, 44-12, 44-13, 44-14, 44-15, 44-17, 44-18, and 44-20, who owe the largest amount of state tax and whose taxes have been unpaid for a period in excess of ninety (90) days following the date their tax was due.
    3. Each list may contain the name and address of each delinquent taxpayer, the type of tax levied, and the amount of the delinquency, including interest and penalty, as of the end of the quarter. No taxpayer shall be included on such list if the tax assessment in question is the subject of an appeal.
  2. The tax administrator shall not list any delinquent taxpayer until such time as he or she gives the delinquent taxpayer thirty (30) days’ notice of intent to publish the taxpayer’s delinquency. Said notice shall be sent to the taxpayer’s last known address by regular and certified mail. If during said thirty (30) day period the taxpayer makes satisfactory arrangement for payment of the delinquent tax, the name of such taxpayer shall not be published as long as the taxpayer does not default on any payment agreement entered into with the division of taxation.
  3. Any such list prepared by the tax division shall be available to the public for inspection by any person and may be published by the tax administrator on the tax division website.

History of Section. P.L. 2003, ch. 376, art. 7, § 8; P.L. 2011, ch. 151, art. 19, § 18.

44-1-35. Outside collection agencies.

The tax administrator may retain by written contract collection agencies licensed under Rhode Island law, or licensed under the laws of another state or the District of Columbia, for the purpose of collecting from sources outside the state of Rhode Island taxes, interest and/or penalties assessed by the tax administrator.

History of Section. P.L. 2013, ch. 144, art. 9, § 5.

44-1-36. Contracts.

  1. Except as set forth in section (b) below, the division of taxation may enter into contracts with persons (defined herein as individuals, firms, fiduciaries, partnerships, corporations, trusts, or associations, however formed) to be paid on a contingent fee basis, for services rendered to the division of taxation where the contract is for the collection of taxes, interest, or penalty or the reduction of refunds claimed. Under such contracts the contingent fee shall be based on the actual amount of taxes, interest and/or penalties collected and/or the amount by which the claimed refund is reduced.
  2. The division of taxation may not enter into a contingent fee contract under which the person directly conducts a field audit.
  3. The division of taxation shall publish an annual report setting forth the number of contracts entered into under paragraph (a), the amount collected and the percentage of the contingency fee arrangement of each contract.

History of Section. P.L. 2015, ch. 141, art. 11, § 5.

44-1-37. Administrative penalties and attorney’s fees.

  1. Whenever a licensee and/or a taxpayer violates any provision of title 44 or the regulations promulgated thereunder, the tax administrator may, in accordance with the requirements of the administrative procedures act, chapter 35 of title 42:
    1. Revoke or suspend a license or permit issued by the division of taxation;
    2. Levy an administrative penalty in an amount not less than one hundred ($100) nor more than fifty thousand dollars ($50,000);
    3. Order the violator to cease such actions; and/or
    4. Any combination of the above penalties.
  2. The tax administrator is hereby authorized, and may in his or her discretion, recover the reasonable cost of legal services provided by in-house attorneys in the department of revenue and/or the division of taxation incurred in matters pertaining to administrative hearings, court hearings, and appeals. Nothing in this section shall limit the power of the tax administrator to retain outside legal counsel and to recover the costs of such legal counsel pursuant to other provisions of the general laws.
  3. Any monetary penalties assessed pursuant to this section shall be deposited in the general fund.

History of Section. P.L. 2017, ch. 302, art. 8, § 8.

44-1-38. Jeopardy determinations.

If the tax administrator believes that the collection of any amount of tax, interest, and/or penalty assessed in a notice of deficiency determination will be jeopardized by a delay that could render a person or entity judgment proof and/or frustrate the collectability of said determination, the tax administrator shall thereupon make a jeopardy determination of the amount of tax required to be collected, including interest and penalties, if any. Said jeopardy determination shall state briefly the facts upon which it is based. The amount of the tax, interest, and/or penalties so determined shall be due and payable immediately upon the mailing by the tax administrator of the notice of that jeopardy determination. Within thirty (30) days of the date of the mailing of the notice of the jeopardy determination, the taxpayer may bring an action in the sixth (6th) division district court appealing the jeopardy determination. Within twenty (20) days after the action is commenced, the district court shall make a determination of whether or not the making of the jeopardy assessment was reasonable under the circumstances.

History of Section. P.L. 2017, ch. 302, art. 8, § 8.

44-1-39. Information deemed state property.

For the purpose of determining taxpayer compliance, any and all information or data required to be generated or maintained pursuant to title 44 and/or the regulations promulgated thereunder, shall be deemed to be the property of the state of Rhode Island.

History of Section. P.L. 2017, ch. 302, art. 8, § 8.

44-1-40. Tax administrator to prepare list of licensed taxpayers — Notice — Public inspection.

  1. Notwithstanding any other provision of law, the tax administrator may, on a periodic basis:
    1. Prepare and publish for public distribution a list of entities and their active licenses administered under this title.
    2. Prepare and publish for public distribution a list of entities and licenses for the current year, as administered by a city or town under chapter 5 of title 3.
    3. Prepare and publish for public distribution a list of entities and licenses for the upcoming year, as administered by a city or town under chapter 5 of title 3.
    4. Each list may contain the license type, name, and address of each registered entity with a license.
  2. The tax administrator shall not list any taxpayers that do not have an active license.
  3. Any such list prepared by the tax division shall be available to the public for inspection by any person and may be published by the tax administrator on the tax division website.

History of Section. P.L. 2019, ch. 88, art. 3, § 10.

Chapter 2 Tax Officials Generally

44-2-1. Compensation of town assessors, clerks, and collectors.

Assessors shall receive the amount of compensation that the town allows; town clerks shall be paid for copying tax bills as for other copies; and collectors shall be paid for collecting at the rate of five percent (5%) unless they have agreed with the town for a smaller sum; which fees shall be paid out of the town treasury. In case of distraint of personal property or levy on land, the collectors shall have the same fees as sheriffs have in similar cases.

History of Section. G.L. 1896, ch. 50, § 4; G.L. 1909, ch. 62, § 4; G.L. 1923, ch. 64, § 4; G.L. 1938, ch. 48, § 1; G.L. 1956, § 44-2-1 .

Cross References.

Bond of tax collectors, § 45-4-13 .

Election and qualifications, § 45-4-1 et seq.

Oaths, power to administer, § 36-2-3 .

Comparative Legislation.

Assessors:

Conn. Gen. Stat., §§ 9-198, 12-121.

Mass. Ann. Laws ch. 41, § 24 et seq.

NOTES TO DECISIONS

Limitations on Compensation.

Collector who filed bond required by vote at annual meeting was limited to salary voted for at same meeting, where he made no protest, even though he had been paid commission in prior year. Wood v. School Dist., 28 R.I. 299 , 67 A. 65, 1907 R.I. LEXIS 45 (1907).

Limitation on compensation passed at the same meeting where collector was elected was a condition on the election and was accepted by the collector qualifying. Barber v. Adams, 33 R.I. 481 , 83 A. 262, 1912 R.I. LEXIS 118 (1912).

Limitation on compensation made some time after election of collector and after he had qualified by filing bond did not bind the collector. Barber v. Adams, 37 R.I. 323 , 92 A. 757, 1915 R.I. LEXIS 11 (1915).

44-2-2. Appropriations for tax officials’ association.

The general assembly may annually appropriate a sum as it may deem necessary, out of any money in the treasury not otherwise appropriated, to be expended under the supervision of the director of the department of revenue to defray the expenses of the meetings and the publications and other expenses of the Rhode Island tax officials’ association. The state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment of the sum appropriated, or so much of the sum as may be from time to time required, upon receipt by the controller of proper vouchers approved by the director of revenue.

History of Section. P.L. 1915, ch. 1231, § 1; P.L. 1922, ch. 2161, § 1; G.L. 1923, ch. 416, § 47; G.L. 1938, ch. 632, § 9; impl. am. P.L. 1939, ch. 660, §§ 65, 70; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-2-2 ; P.L. 1965, ch. 68, § 3; P.L. 1985, ch. 181, art. 61, § 17; P.L. 2008, ch. 98, § 35; P.L. 2008, ch. 145, § 35.

44-2-3. Penalty for violations or neglect of duty by tax officials.

Every officer who neglects or refuses to perform any duty imposed on the officer in this title, or who does not comply with the provisions in this title, or who in any wise knowingly violates any provisions in this title, shall be imprisoned not exceeding one year or fined not exceeding five hundred dollars ($500), which fine, if it is a state tax, shall be paid into the state treasury, or if a town tax, into the town treasury, or if a fire corporation tax, into the fire corporation treasury.

History of Section. G.L. 1896, ch. 50, § 2; G.L. 1909, ch. 62, § 2; G.L. 1923, ch. 64, § 2; G.L. 1938, ch. 49, § 1; G.L. 1956, § 44-2-3 .

Collateral References.

Personal liability of tax collector of state or its subdivision for illegal taxes collected. 14 A.L.R.2d 383.

Chapter 3 Property Subject to Taxation

44-3-1. Real and personal property subject to taxation.

All real property in the state, and all personal property belonging to the inhabitants of the state, whether individuals, partnerships or corporations, and all tangible personal property located in the state belonging to nonresidents, are liable to taxation unless otherwise specially provided.

History of Section. G.L. 1896, ch. 44, § 1; P.L. 1905, ch. 1246, § 2; G.L. 1909, ch. 56, § 1; G.L. 1923, ch. 58, § 1; G.L. 1938, ch. 29, § 1; G.L. 1956, § 44-3-1 .

Cross References.

Common trust funds, § 18-5-3 et seq.

Racetracks subject to tax, § 41-3-16 .

Comparative Legislation.

Taxable property:

Conn. Gen. Stat. § 12-40 et seq.

Mass. Ann. Laws ch. 59, § 2 et seq.

NOTES TO DECISIONS

Constitutionality.

Subjection of resident to tax on stock in a corporation organized under the laws of another state, notwithstanding that he is also subject to tax in such state, does not violate R.I. Const., Art. I, Sec. 2 . Dyer v. Osborne, 11 R.I. 321 , 1876 R.I. LEXIS 16 (1876).

Buildings.

Fraternity houses used as dormitories on Rhode Island University campus and free of mortgage were not taxable as buildings and improvements but were taxable as tangible personal property of the fraternity. Powers v. Harvey, 81 R.I. 378 , 103 A.2d 551, 1954 R.I. LEXIS 97 (1954).

Construction With Other Chapters.

Chapter 4 of this title designates place and person to whom property is taxable and must be construed in reference to this chapter, which determines what property is taxable. Edwards v. Cardarelli, 65 R.I. 236 , 14 A.2d 693, 1940 R.I. LEXIS 122 (1940).

Corporations.

Corporations are taxable on their personal property despite the use of the word “inhabitants.” Tripp v. Merchants' Mut. Fire Ins. Co., 12 R.I. 435 , 1879 R.I. LEXIS 48 (1879).

Intangible Personal Property.

Intangible personal property held in trust becomes susceptible to taxation only because under the doctrine of mobilia sequuntur personam, one of the two trustees to whom it belonged was an inhabitant of this state, who was taxed, and the other one was not an inhabitant of this state, who was not taxed. Bodell v. Cote, 105 R.I. 578 , 253 A.2d 598, 1969 R.I. LEXIS 790 (1969). (See § 44-3-2.1 .)

Computer software licensed by a nonresident corporation to an instate consumer which involves an intangible service element and is not “ready-to-execute” constitutes intangible personal property and is not subject to personal property taxation. Computer Assocs. Int'l v. East Providence, 615 A.2d 467, 1992 R.I. LEXIS 195 (R.I. 1992).

Municipal Real Property.

Land in Scituate owned by Providence as part of its waterworks is not exempt from taxes as this section says real property is taxable “unless otherwise specially provided” and there is no implied exemption. Providence v. Hall, 49 R.I. 230 , 142 A. 156, 1928 R.I. LEXIS 43 (1928).

In view of the mandate of this section that all real property is taxable unless otherwise specially provided, an exemption cannot be implied for municipally owned property used for a nongovernmental function. City of Providence v. Killoran, 447 A.2d 369, 1982 R.I. LEXIS 924 (R.I. 1982).

Nonresidents.

A person who has left the state and become a citizen of another state before the time the tax is assessed is not liable for any tax on his personal estate. Barber v. Potter, 8 R.I. 15 , 1864 R.I. LEXIS 2 (1864).

Resident guardian of nonresident ward appointed in another state was not subject to taxation on intangibles. Edwards v. Cardarelli, 65 R.I. 236 , 14 A.2d 693, 1940 R.I. LEXIS 122 (1940).

Restitution in General.

If a tax is determined to be void, an entire rebate is appropriate, but if the tax assessment is determined to be illegal, then the excessive tax paid is subject to a remittance. Where the trial justice properly concluded that the assessments were not void, the trial justice appropriately denied the plaintiffs a rebate of the entire tax paid. Oster v. Tellier, 544 A.2d 128, 1988 R.I. LEXIS 89 (R.I. 1988).

— Recovery for Illegal Tax.

Where the alternative relief sought by the plaintiffs is that recovery be allowed for the excess tax that was paid because not all classes of property liable to taxation were assessed at a single, uniform percentage of full and fair cash value, but the plaintiffs do not prove what portion of the tax paid constitutes an illegal or disproportionate tax, the plaintiffs are not entitled to a rebate of the entire tax. Oster v. Tellier, 544 A.2d 128, 1988 R.I. LEXIS 89 (R.I. 1988).

Ultimate Recipient Irrelevant.

Property in the hands of an executor or administrator is taxable even though destined ultimately to vest in an exempt heir or legatee. Estate of Wickes v. Stein, 107 R.I. 260 , 266 A.2d 911, 1970 R.I. LEXIS 768 (1970).

Void Versus Illegal Assessment.

Where the plaintiffs prove, not only that not all of the business tangible personal property in the city is assessed by the assessor, but that this is true also of household tangible personal property, the assessments on the business personalty of the plaintiffs are violative both of the equal protection clause of the United States Constitution, and the guarantee of R.I. Const., art. 1, § 2 , requiring that the burdens of the state be fairly distributed among its citizens, but absent proof by the plaintiffs to demonstrate that the assessor intentionally sought to commit fraud or injury or selectively to discriminate against particular businesses, the trial justice properly may determine that the assessment is illegal rather than void. Oster v. Tellier, 544 A.2d 128, 1988 R.I. LEXIS 89 (R.I. 1988).

Collateral References.

Availability of tax exemption to leasehold estates. 54 A.L.R.3d 402.

Books or records of title abstracts as subject to property taxes. 149 A.L.R. 1038.

Business or profession as “property” which may be taxed. 34 A.L.R. 719.

Business situs in state, taxation of intangibles of nonresidents having. 76 A.L.R. 822; 143 A.L.R. 361.

Business situs of intangibles in state other than domicil of owner as excluding tax at domicil. 79 A.L.R. 344.

Classification, as real estate or personal property, of mobile homes or trailers for purposes of state or local taxation. 7 A.L.R.4th 1016.

Construction and effect of will provisions relied on as affecting payment of real or personal property taxes or income taxes. 70 A.L.R.3d 726.

Debts due from United States under contracts other than loans, power of state to tax. 30 A.L.R. 1462.

Foreign corporation having chief place of business in the state, taxation of intangible property of. 104 A.L.R. 806.

Gambling devices, contraband, or other illegally held personal property, taxation of as violating constitutional provision for equality. 160 A.L.R. 1225.

Insurance, reserve value of policy, taxability of policyholders on. 13 A.L.R. 202; 78 A.L.R. 562.

Land acquired by taxing unit by eminent domain as subject to taxation by another taxing unit. 45 A.L.R.2d 548; 571.

Land trust certificates, validity of tax on. 100 A.L.R. 804.

Leasehold interest as real property within tax laws. 59 A.L.R. 701.

Margin, tax on stock or securities or commodities purchased on. 71 A.L.R. 1225.

Massachusetts trusts, legal nature of, for purposes of taxation. 88 A.L.R.3d 704.

Modern status of the Massachusettes or business trust. 88 A.L.R.3d 704.

Municipal property within territorial limits of another municipality as subject to taxation by the latter. 81 A.L.R. 1518; 99 A.L.R. 1143.

Navigable waters, rights in respect of, as franchise subject to taxation. 36 A.L.R. 1523.

Nursery stock as real or personal property for tax purposes. 125 A.L.R. 1415.

Perpetual lease or ground rent, taxation of land under. 55 A.L.R. 154.

Property tax, business situs of intangibles held in trust in state other than beneficiary’s domicile. 59 A.L.R.3d 837.

Property tax distinguished from other taxes. 103 A.L.R. 18.

Property taxation of computer software. 82 A.L.R.3d 606.

Public body, taxation of property owned by, but not devoted to public use. 3 A.L.R. 1439; 23 A.L.R. 248; 101 A.L.R. 787; 129 A.L.R. 480.

Real estate taxation of condominiums. 71 A.L.R.3d 952.

Requirement of full-value real property taxation assessments. 42 A.L.R.4th 676.

Royalties from patents, power of state to tax. 55 A.L.R. 931.

Separate assessment in taxation of air rights. 56 A.L.R.3d 1300.

Shares owned by a resident in a foreign corporation as subject of property tax. 43 A.L.R. 686; 48 A.L.R. 997.

Validity, construction, and effect of state statutes affording preferential property treatment to land used for agricultural purposes. 98 A.L.R.3d 916.

What property of electric, gas, water, telephone, or street railway company constitutes real property for taxation purposes. 57 A.L.R. 869.

44-3-2. “Personal property” defined.

“Personal property”, for the purposes of taxation, means all goods, chattels, and effects, wherever they may be, all ships or vessels, at home or abroad, except those that are exempt from taxation by the laws of the United States or of this state.

History of Section. G.L. 1896, ch. 45, § 10; P.L. 1905, ch. 1246, § 5; G.L. 1909, ch. 57, § 10; P.L. 1912, ch. 769, § 40; G.L. 1923, ch. 59, § 10; G.L. 1938, ch. 30, § 10; G.L. 1956, § 44-3-2 ; P.L. 1969, ch. 197, art. 7, § 4.

NOTES TO DECISIONS

Corporate Assets.

Fact that bank shares are taxed against the owner indicates that property of bank is not to be taxed to the bank under the name of capital stock or surplus capital. American Bank v. Mumford, 4 R.I. 478 , 1857 R.I. LEXIS 22 (1857). (See § 44-3-2.1 .)

Foreign Real Property.

Land trust certificates representing equitable interests in real estate in foreign state were not taxable as securities where holders had no control over the trustee, outside of principles of equity applicable to trust, and there was no provision for conversion into personal property except if an option to purchase was exercised by a lessee or the lessee was in default. Narragansett Mut. Fire Ins. Co. v. Burnham, 51 R.I. 371 , 154 A. 909, 1931 R.I. LEXIS 52 (1931). (See § 44-3-2.1 .)

Stock of Foreign Corporation.

Subjection to taxation of stock in a corporation organized under the laws of another state held by a resident taxpayer, although he is also liable for tax in the other state, does not violate R.I. Const., Art. I, Sec. 2 . Dyer v. Osborne, 11 R.I. 321 , 1876 R.I. LEXIS 16 (1876). (See § 44-3-2.1 .)

Rhode Island stockholder was not exempt from tax on shares in foreign corporation doing business within the state by reason of payment by such corporation to the state of incorporation of a tax in the nature of a franchise license tax. Rhode Island Hosp. Trust Co. v. Tax Assessors, 25 R.I. 355 , 55 A. 877, 1903 R.I. LEXIS 79 (1903). (See § 44-3-2.1 .)

44-3-2.1. Tax on intangible personal property prohibited.

Notwithstanding any other provisions of the general laws to the contrary, no city or town shall assess any tax on intangible personal property.

History of Section. P.L. 1969, ch. 197, art. 7, § 1.

NOTES TO DECISIONS

Computer Software.

Computer software licensed by a nonresident corporation to an instate consumer which involves an intangible service element and is not “ready-to-execute” constitutes intangible personal property and is not subject to personal property taxation. Computer Assocs. Int'l v. East Providence, 615 A.2d 467, 1992 R.I. LEXIS 195 (R.I. 1992).

44-3-2.2. Tax on certain vehicles and trailers prohibited.

Notwithstanding any other provisions of the general laws to the contrary, no city or town shall assess any tax under chapter 5 of title 44 on any vehicle or trailer, which is registered under chapter 3 of title 31 and taxed under chapter 34 of title 44. Any vehicle or trailer, which is not registered under chapter 3 of title 31, shall be assessed by a city or town in the same manner as other tangible personal property.

History of Section. P.L. 1978, ch. 341, § 4.

44-3-3. Property exempt.

  1. The following property is exempt from taxation:
    1. Property belonging to the state, except as provided in § 44-4-4.1 ;
    2. Lands ceded or belonging to the United States;
    3. Bonds and other securities issued and exempted from taxation by the government of the United States or of this state;
    4. Real estate, used exclusively for military purposes, owned by chartered or incorporated organizations approved by the adjutant general and composed of members of the national guard, the naval militia, or the independent, chartered-military organizations;
    5. Buildings for free public schools, buildings for religious worship, and the land upon which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so far as the buildings and land are occupied and used exclusively for religious or educational purposes;
    6. Dwellings houses and the land on which they stand, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling house is located, whichever is the greater, owned by, or held in trust for, any religious organization and actually used by its officiating clergy; provided, further, that in the town of Charlestown, where the property previously described in this paragraph is exempt in total, along with dwelling houses and the land on which they stand in Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling house is located, whichever is the greater, owned by, or held in trust for, any religious organization and actually used by its officiating clergy, or used as a convent, nunnery, or retreat center by its religious order;
    7. Intangible personal property owned by, or held in trust for, any religious or charitable organization, if the principal or income is used or appropriated for religious or charitable purposes;
    8. Buildings and personal estate owned by any corporation used for a school, academy, or seminary of learning, and of any incorporated public charitable institution, and the land upon which the buildings stand and immediately surrounding them to an extent not exceeding one acre, so far as they are used exclusively for educational purposes, but no property or estate whatever is hereafter exempt from taxation in any case where any part of its income or profits, or of the business carried on there, is divided among its owners or stockholders; provided, however, that unless any private nonprofit corporation organized as a college or university located in the town of Smithfield reaches a memorandum of agreement with the town of Smithfield, the town of Smithfield shall bill the actual costs for police, fire, and rescue services supplied, unless otherwise reimbursed, to said corporation commencing March 1, 2014;
    9. Estates, persons, and families of the president and professors for the time being of Brown University for not more than ten thousand dollars ($10,000) for each officer, the officer’s estate, person, and family included, but only to the extent that any person had claimed and utilized the exemption prior to, and for a period ending, either on or after December 31, 1996;
    10. Property especially exempt by charter unless the exemption has been waived in whole or in part;
    11. Lots of land exclusively for burial grounds;
    12. Property, real and personal, held for, or by, an incorporated library, society, or any free public library, or any free public library society, so far as the property is held exclusively for library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor generally, or for a nonprofit hospital for the sick or disabled;
    13. Real or personal estate belonging to, or held in trust for, the benefit of incorporated organizations of veterans of any war in which the United States has been engaged, the parent body of which has been incorporated by act of Congress, to the extent of four hundred thousand dollars ($400,000) if actually used and occupied by the association; provided, that the city council of the city of Cranston may by ordinance exempt the real or personal estate as previously described in this subdivision located within the city of Cranston to the extent of five hundred thousand dollars ($500,000);
    14. Property, real and personal, held for, or by, the fraternal corporation, association, or body created to build and maintain a building or buildings for its meetings or the meetings of the general assembly of its members, or subordinate bodies of the fraternity, and for the accommodation of other fraternal bodies or associations, the entire net income of which real and personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or asylums, a home or homes, a school or schools, for the free education or relief of the members of the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity, their wives, widows, or orphans, and any fund given or held for the purpose of public education, almshouses, and the land and buildings used in connection therewith;
    15. Real estate and personal property of any incorporated volunteer fire engine company or incorporated volunteer ambulance or rescue corps in active service;
    16. The estate of any person who, in the judgment of the assessors, is unable from infirmity or poverty to pay the tax; provided, that in the towns of Burrillville and West Greenwich, the tax shall constitute a lien for five (5) years on the property where the owner is entitled to the exemption. At the expiration of five (5) years, the lien shall be abated in full. Provided, if the property is sold or conveyed, or if debt secured by the property is refinanced during the five-year (5) period, the lien immediately becomes due and payable; any person claiming the exemption aggrieved by an adverse decision of an assessor shall appeal the decision to the local board of tax review and thereafter according to the provisions of § 44-5-26 ;
    17. Household furniture and family stores of a housekeeper in the whole, including clothing, bedding, and other white goods, books, and all other tangible personal property items that are common to the normal household;
    18. Improvements made to any real property to provide a shelter and fallout protection from nuclear radiation, to the amount of one thousand five hundred dollars ($1,500); provided, that the improvements meet applicable standards for shelter construction established, from time to time, by the Rhode Island emergency management agency. The improvements are deemed to comply with the provisions of any building code or ordinance with respect to the materials or the methods of construction used and any shelter or its establishment is deemed to comply with the provisions of any zoning code or ordinance;
    19. Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator;
    20. Manufacturer’s inventory.
      1. For the purposes of §§ 44-4-10 , 44-5-3 , 44-5-20 , and 44-5-3 8, a person is deemed to be a manufacturer within a city or town within this state if that person uses any premises, room, or place in it primarily for the purpose of transforming raw materials into a finished product for trade through any or all of the following operations: adapting, altering, finishing, making, and ornamenting; provided, that public utilities; non-regulated power producers commencing commercial operation by selling electricity at retail or taking title to generating facilities on or after July 1, 1997; building and construction contractors; warehousing operations, including distribution bases or outlets of out-of-state manufacturers; and fabricating processes incidental to warehousing or distribution of raw materials, such as alteration of stock for the convenience of a customer; are excluded from this definition;
      2. For the purposes of this section and §§ 44-4-10 and 44-5-38 , the term “manufacturer’s inventory,” or any similar term, means and includes the manufacturer’s raw materials, the manufacturer’s work in process, and finished products manufactured by the manufacturer in this state, and not sold, leased, or traded by the manufacturer or its title or right to possession divested; provided, that the term does not include any finished products held by the manufacturer in any retail store or other similar selling place operated by the manufacturer whether or not the retail establishment is located in the same building in which the manufacturer operates the manufacturing plant;
      3. For the purpose of § 44-11-2 , a “manufacturer” is a person whose principal business in this state consists of transforming raw materials into a finished product for trade through any or all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be principally engaged if the gross receipts that person derived from the manufacturing operations in this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to more than fifty percent (50%) of the total gross receipts that person derived from all the business activities in which that person engaged in this state during the taxable year. For the purpose of computing the percentage, gross receipts derived by a manufacturer from the sale, lease, or rental of finished products manufactured by the manufacturer in this state, even though the manufacturer’s store or other selling place may be at a different location from the location of the manufacturer’s manufacturing plant in this state, are deemed to have been derived from manufacturing;
      4. Within the meaning of the preceding paragraphs of this subdivision, the term “manufacturer” also includes persons who are principally engaged in any of the general activities coded and listed as establishments engaged in manufacturing in the Standard Industrial Classification Manual prepared by the Technical Committee on Industrial Classification, Office of Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as revised from time to time, but eliminating as manufacturers those persons, who, because of their limited type of manufacturing activities, are classified in the manual as falling within the trade rather than an industrial classification of manufacturers. Among those thus eliminated, and accordingly also excluded as manufacturers within the meaning of this paragraph, are persons primarily engaged in selling, to the general public, products produced on the premises from which they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and custom tailors, except, that a person who manufactures bakery products for sale primarily for home delivery, or through one or more non-baking retail outlets, and whether or not retail outlets are operated by the person, is a manufacturer within the meaning of this paragraph;
      5. The term “Person” means and includes, as appropriate, a person, partnership, or corporation; and
      6. The department of revenue shall provide to the local assessors any assistance that is necessary in determining the proper application of the definitions in this subdivision;
    21. Real and tangible personal property acquired to provide a treatment facility used primarily to control the pollution or contamination of the waters or the air of the state, as defined in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been constructed, reconstructed, erected, installed, or acquired in furtherance of federal or state requirements or standards for the control of water or air pollution or contamination, and certified as approved in an order entered by the director of environmental management. The property is exempt as long as it is operated properly in compliance with the order of approval of the director of environmental management; provided, that any grant of the exemption by the director of environmental management in excess of ten (10) years is approved by the city or town in which the property is situated. This provision applies only to water and air pollution control properties and facilities installed for the treatment of waste waters and air contaminants resulting from industrial processing; furthermore, it applies only to water or air pollution control properties and facilities placed in operation for the first time after April 13, 1970;
    22. Manufacturing machinery and equipment acquired or used by a manufacturer after December 31, 1974. Manufacturing machinery and equipment is defined as:
    23. Precious metal bullion, meaning any elementary metal that has been put through a process of melting or refining, and that is in a state or condition that its value depends upon its content and not its form. The term does not include fabricated precious metal that has been processed or manufactured for some one or more specific and customary industrial, professional, or artistic uses;
    24. Hydroelectric power-generation equipment, which includes, but is not limited to, turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers, protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The hydroelectric power-generation equipment must have been purchased after July 1, 1979, and acquired or used by a person or corporation who or that owns or leases a dam and utilizes the equipment to generate hydroelectric power;
    25. Subject to authorization by formal action of the council of any city or town, any real or personal property owned by, held in trust for, or leased to an organization incorporated under chapter 6 of title 7, as amended, or an organization meeting the definition of “charitable trust” set out in § 18-9-4 , as amended, or an organization incorporated under the not-for-profits statutes of another state or the District of Columbia, the purpose of which is the conserving of open space, as that term is defined in chapter 36 of title 45, as amended, provided the property is used exclusively for the purposes of the organization;
    26. Tangible personal property, the primary function of which is the recycling, reuse, or recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from, or the treatment of “hazardous wastes,” as defined in § 23-19.1-4 , where the “hazardous wastes” are generated primarily by the same taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order from the director of the department of environmental management certifying that the tangible personal property has this function, which order effects a conclusive presumption that the tangible personal property qualifies for the exemption under this subdivision. If any information relating to secret processes or methods of manufacture, production, or treatment is disclosed to the department of environmental management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b) , it shall not be open to public inspection or publicly disclosed unless disclosure is otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23;
    27. Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4 has been paid;
    28. Real and personal property of the Providence Performing Arts Center, a non-business corporation as of December 31, 1986;
    29. Tangible personal property owned by, and used exclusively for the purposes of, any religious organization located in the city of Cranston;
    30. Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited liability company that is formed in connection with, or to facilitate the acquisition of, the Providence YMCA Building;
    31. Real and personal property of Meeting Street Center or MSC Realty, Inc., both not-for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited liability company that is formed in connection with, or to facilitate the acquisition of, the properties designated as the Meeting Street National Center of Excellence on Eddy Street in Providence, Rhode Island;
    32. The buildings, personal property, and land upon which the buildings stand, located on Pomham Island, East Providence, currently identified as Assessor’s Map 211, Block 01, Parcel 001.00, that consists of approximately twenty-one thousand three hundred (21,300) square feet and is located approximately eight hundred sixty feet (860´), more or less, from the shore, and limited exclusively to these said buildings, personal estate and land, provided that said property is owned by a qualified 501(c)(3) organization, such as the American Lighthouse Foundation, and is used exclusively for a lighthouse;
    33. The Stadium Theatre Performing Arts Centre building located in Monument Square, Woonsocket, Rhode Island, so long as said Stadium Theatre Performing Arts Center is owned by the Stadium Theatre Foundation, a Rhode Island nonprofit corporation;
    34. Real and tangible personal property of St. Mary Academy — Bay View, located in East Providence, Rhode Island;
    35. Real and personal property of East Bay Community Action Program and its predecessor, Self Help, Inc; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
    36. Real and personal property located within the city of East Providence of the Columbus Club of East Providence, a Rhode Island charitable nonprofit corporation;
    37. Real and personal property located within the city of East Providence of the Columbus Club of Barrington, a Rhode Island charitable nonprofit corporation;
    38. Real and personal property located within the city of East Providence of Lodge 2337 BPO Elks, a Rhode Island nonprofit corporation;
    39. Real and personal property located within the city of East Providence of the St. Andrews Lodge No. 39, a Rhode Island charitable nonprofit corporation;
    40. Real and personal property located within the city of East Providence of the Trustees of Methodist Health and Welfare service a/k/a United Methodist Elder Care, a Rhode Island nonprofit corporation;
    41. Real and personal property located on the first floor of 90 Leonard Avenue within the city of East Providence of the Zion Gospel Temple, Inc., a religious nonprofit corporation;
    42. Real and personal property located within the city of East Providence of the Cape Verdean Museum Exhibit, a Rhode Island nonprofit corporation;
    43. The real and personal property owned by a qualified 501(c)(3) organization that is affiliated and in good standing with a national, congressionally chartered organization and thereby adheres to that organization’s standards and provides activities designed for recreational, educational, and character building purposes for children from ages six (6) years to seventeen (17) years;
    44. Real and personal property of the Rhode Island Philharmonic Orchestra and Music School; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
    45. The real and personal property located within the town of West Warwick at 211 Cowesett Avenue, Plat 29-Lot 25, which consists of approximately twenty-eight thousand seven hundred fifty (28,750) square feet and is owned by the Station Fire Memorial Foundation of East Greenwich, a Rhode Island nonprofit corporation;
    46. Real and personal property of the Comprehensive Community Action Program, a qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
    47. Real and personal property located at 52 Plain Street, within the city of Pawtucket of the Pawtucket Youth Soccer Association, a Rhode Island nonprofit corporation;
    48. Renewable energy resources, as defined in § 39-26-5 , used in residential systems and associated equipment used therewith in service after December 31, 2015;
    49. Renewable energy resources, as defined in § 39-26-5 , if employed by a manufacturer, as defined in subsection (a) of this section, shall be exempt from taxation in accordance with subsection (a) of this section;
    50. Real and personal property located at 415 Tower Hill Road within the town of North Kingstown, of South County Community Action, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
    51. As an effort to promote business growth, tangible business or personal property, in whole or in part, within the town of Charlestown’s community limits, subject to authorization by formal action of the town council of the town of Charlestown;
    52. All real and personal property located at 1300 Frenchtown Road, within the town of East Greenwich, identified as assessor’s map 027, plat 019, lot 071, and known as the New England Wireless and Steam Museum, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
    53. Real and tangible personal property of Mount Saint Charles Academy located within the city of Woonsocket, specifically identified as the following assessor’s plats and lots: Logee Street, plat 23, lot 62, Logee Street, plat 24, lots 304 and 305; Welles Street, plat 23, lot 310; Monroe Street, plat 23, lot 312; and Roberge Avenue, plat 24, lot 47;
    54. Real and tangible personal property of Steere House, a Rhode Island nonprofit corporation, located in Providence, Rhode Island;
    55. Real and personal property located within the town of West Warwick of Tides Family Services, Inc., a Rhode Island nonprofit corporation;
    56. Real and personal property of Tides Family Services, Inc., a Rhode Island nonprofit corporation, located in the city of Pawtucket at 242 Dexter Street, plat 44, lot 444;
    57. Real and personal property located within the town of Middletown of Lucy’s Hearth, a Rhode Island nonprofit corporation;
    58. Real and tangible personal property of Habitat for Humanity of Rhode Island—Greater Providence, Inc., a Rhode Island nonprofit corporation, located in Providence, Rhode Island;
    59. Real and personal property of the Artic Playhouse, a Rhode Island nonprofit corporation, located in the town of West Warwick at 1249 Main Street;
    60. Real and personal property located at 321 Main Street, within the town of South Kingstown, of the Contemporary Theatre Company, a qualified, tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;
    61. Real and personal property of The Samaritans, Inc., a Rhode Island nonprofit § 501(c)(3) corporation located at 67 Park Place, Pawtucket, Rhode Island, to the extent the city council of Pawtucket may from time to time determine;
    62. Real and personal property of North Kingstown, Exeter Animal Protection League, Inc., dba “Pet Refuge,” 500 Stony Lane, a Rhode Island nonprofit corporation, located in North Kingstown, Rhode Island;
    63. Real and personal property located within the city of East Providence of Foster Forward (formerly the Rhode Island Foster Parents Association), a Rhode Island charitable nonprofit corporation;
    64. Real and personal property located at 54 Kelly Avenue within the town of East Providence, of the Associated Radio Amateurs of Southern New England, a Rhode Island nonprofit corporation;
    65. Real and tangible personal property of Providence Country Day School, a Rhode Island nonprofit corporation, located in East Providence, Rhode Island and further identified as plat 406, block 6, lot 6, and plat 506, block 1, lot 8;
    66. As an effort to promote business growth, tangible business or personal property, in whole or in part, within the town of Bristol’s community limits, subject to authorization by formal action of the town council of the town of Bristol;
    67. Real and tangible personal property of the Heritage Harbor Foundation, a Rhode Island nonprofit corporation, located at 1445 Wampanoag Trail, Suites 103 and 201, within the city of East Providence;
    68. Real property of Ocean State Community Wellness, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code, located in North Kingstown, Rhode Island, with a physical address of 7450 Post Road, and further identified as plat 108, lot 83;
    69. Real and tangible personal property of St. John Baptist De La Salle Institute, d/b/a La Salle Academy, a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island denominated at the time this subsection was adopted as Plat 83 Lot 276 by the tax assessor for the city of Providence comprising approximately 26.08 acres of land along with all buildings and improvements that have been or may be made;
    70. Real and tangible personal property of The Providence Community Health Centers, Inc., a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island; and
    71. In the city of Central Falls and the city of Pawtucket, real property and tangible personal property located on or in  the premise acquired or leased by a railroad entity and for the purpose of providing boarding and disembarking of railroad passengers and  the supporting passenger railroad operations and services. For the purpose of this section, a railroad entity shall be any incorporated entity  that has been duly authorized by the Rhode Island  public utilities commission to provide passenger railroad services.
  2. Except as provided below, when a city or town taxes a for-profit hospital facility, the value of its real property shall be the value determined by the most recent full revaluation or statistical property update performed by the city or town; provided, however, in the year a nonprofit hospital facility converts to or otherwise becomes a for-profit hospital facility, or a for-profit hospital facility is initially established, the value of the real property and personal property of the for-profit hospital facility shall be determined by a valuation performed by the assessor for the purpose of determining an initial assessed value of real and personal property, not previously taxed by the city or town, as of the most recent date of assessment pursuant to § 44-5-1 , subject to a right of appeal by the for-profit hospital facility which shall be made to the city or town tax assessor with a direct appeal from an adverse decision to the Rhode Island superior court business calendar.

(i) Machinery and equipment used exclusively in the actual manufacture or conversion of raw materials or goods in the process of manufacture by a manufacturer, as defined in subdivision (20), and machinery, fixtures, and equipment used exclusively by a manufacturer for research and development or for quality assurance of its manufactured products;

(ii) Machinery and equipment that is partially used in the actual manufacture or conversion of raw materials or goods in process of manufacture by a manufacturer, as defined in subdivision (20), and machinery, fixtures, and equipment used by a manufacturer for research and development or for quality assurance of its manufactured products, to the extent to which the machinery and equipment is used for the manufacturing processes, research and development, or quality assurance. In the instances where machinery and equipment is used in both manufacturing and/or research and development and/or quality assurance activities and non-manufacturing activities, the assessment on machinery and equipment is prorated by applying the percentage of usage of the equipment for the manufacturing, research and development, and quality-assurance activity to the value of the machinery and equipment for purposes of taxation, and the portion of the value used for manufacturing, research and development, and quality assurance is exempt from taxation. The burden of demonstrating this percentage usage of machinery and equipment for manufacturing and for research and development and/or quality assurance of its manufactured products rests with the manufacturer; and

(iii) Machinery and equipment described in §§ 44-18-30(7) and 44-18-30(22) that was purchased after July 1, 1997; provided that the city or town council of the city or town in which the machinery and equipment is located adopts an ordinance exempting the machinery and equipment from taxation. For purposes of this subsection, city councils and town councils of any municipality may, by ordinance, wholly or partially exempt from taxation the machinery and equipment discussed in this subsection for the period of time established in the ordinance and may, by ordinance, establish the procedures for taxpayers to avail themselves of the benefit of any exemption permitted under this section; provided, that the ordinance does not apply to any machinery or equipment of a business, subsidiary, or any affiliated business that locates or relocates from a city or town in this state to another city or town in the state;

A “for-profit hospital facility” includes all real and personal property affiliated with any hospital as identified in an application filed pursuant to chapter 17 or 17.14 of title 23. Notwithstanding the above, a city or town may enter into a stabilization agreement with a for-profit hospital facility under § 44-3-9 or other laws specific to the particular city or town relating to stabilization agreements. In a year in which a nonprofit hospital facility converts to, or otherwise becomes, a for-profit hospital facility, or a for-profit hospital facility is otherwise established, in that year only the amount levied by the city or town and/or the amount payable under the stabilization agreement for that year related to the for-profit hospital facility shall not be counted towards determining the maximum tax levy permitted under § 44-5-2 .

History of Section. G.L. 1896, ch. 44, § 2; P.L. 1901, ch. 844, § 1; G.L. 1909, ch. 56, § 2; P.L. 1912, ch. 769, § 38; P.L. 1921, ch. 2052, § 1; G.L. 1923, ch. 58, § 2; G.L. 1938, ch. 29, § 2; P.L. 1947, ch. 1855, § 1; P.L. 1947, ch. 1920, § 1; G.L. 1956, § 44-3-3 ; P.L. 1960, ch. 186, § 1; P.L. 1961, ch. 69, § 1; P.L. 1966, ch. 242, § 3; P.L. 1966, ch. 245, § 1; P.L. 1966, ch. 262, § 1; P.L. 1967, ch. 191, § 1; P.L. 1970, ch. 60, §§ 1, 5; P.L. 1974, ch. 200, art. 1, § 3; P.L. 1975, ch. 75, § 1; P.L. 1975, ch. 291, § 1; P.L. 1976, ch. 131, § 1; P.L. 1977, ch. 182, § 16; P.L. 1979, ch. 290, § 1; P.L. 1979, ch. 307, § 1; P.L. 1979, ch. 335, § 1; P.L. 1980, ch. 401, § 1; P.L. 1982, ch. 199, § 1; P.L. 1982, ch. 451, § 1; P.L. 1983, ch. 207, § 2; P.L. 1983 (s.s.), ch. 337, § 1; P.L. 1985, ch. 363, § 2; P.L. 1985, ch. 515, § 1; P.L. 1986, ch. 198, § 48; P.L. 1986, ch. 267, § 1; P.L. 1986, ch. 400, § 2; P.L. 1987, ch. 147, § 1; P.L. 1988, ch. 52, § 1; P.L. 1988, ch. 84, § 94; P.L. 1990, ch. 65, art. 24, § 1; P.L. 1990, ch. 356, § 1; P.L. 1992, ch. 449, § 1; P.L. 1993, ch. 470, § 1; P.L. 1995, ch. 352, § 1; P.L. 1996, ch. 116, § 1; P.L. 1996, ch. 252, § 1; P.L. 1997, ch. 38, § 1; P.L. 1997, ch. 357, § 5; P.L. 1999, ch. 231, § 1; P.L. 2002, ch. 266, § 1; P.L. 2002, ch. 341, § 1; P.L. 2003, ch. 402, § 1; P.L. 2004, ch. 323, § 1; P.L. 2004, ch. 526, § 1; P.L. 2004, ch. 571, § 1; P.L. 2004, ch. 603, § 1; P.L. 2004, ch. 614, § 1; P.L. 2006, ch. 256, § 1; P.L. 2006, ch. 356, § 1; P.L. 2006, ch. 470, § 1; P.L. 2008, ch. 98, § 36; P.L. 2008, ch. 145, § 36; P.L. 2011, ch. 10, § 1; P.L. 2011, ch. 13, § 1; P.L. 2013, ch. 159, § 1; P.L. 2013, ch. 192, § 2; P.L. 2013, ch. 205, § 1; P.L. 2013, ch. 240, § 2; P.L. 2013, ch. 510, § 1; P.L. 2013, ch. 512, § 1; P.L. 2013, ch. 513, § 1; P.L. 2013, ch. 518, § 1; P.L. 2013, ch. 520, § 1; P.L. 2013, ch. 523, § 1; P.L. 2013, ch. 524, § 1; P.L. 2013, ch. 525, § 1; P.L. 2013, ch. 527, § 1; P.L. 2013, ch. 531, § 1; P.L. 2014, ch. 339, § 1; P.L. 2014, ch. 345, § 1; P.L. 2014, ch. 362, § 1; P.L. 2014, ch. 379, § 1; P.L. 2014, ch. 388, § 1; P.L. 2014, ch. 540, § 1; P.L. 2014, ch. 542, § 1; P.L. 2016, ch. 85, § 1; P.L. 2016, ch. 89, § 1; P.L. 2016, ch. 115, § 1; P.L. 2016, ch. 123, § 1; P.L. 2016, ch. 149, § 6; P.L. 2016, ch. 163, § 6; P.L. 2016, ch. 216, § 1; P.L. 2016, ch. 224, § 1; P.L. 2016, ch. 228, § 1; P.L. 2016, ch. 245, § 1; P.L. 2016, ch. 250, § 1; P.L. 2016, ch. 283, § 1; P.L. 2016, ch. 284, § 1; P.L. 2016, ch. 292, § 1; P.L. 2016, ch. 298, § 1; P.L. 2016, ch. 299, § 1; P.L. 2016, ch. 313, § 1; P.L. 2016, ch. 316, § 1; P.L. 2016, ch. 518, § 1; P.L. 2017, ch. 44, § 1; P.L. 2017, ch. 46, § 1; P.L. 2017, ch. 273, § 1; P.L. 2017, ch. 289, § 1; P.L. 2017, ch. 453, § 1; P.L. 2017, ch. 467, § 1; P.L. 2018, ch. 300, § 1; P.L. 2018, ch. 307, § 1; P.L. 2018, ch. 308, § 1; P.L. 2018, ch. 311, § 1; P.L. 2018, ch. 325, § 1; P.L. 2018, ch. 330, § 1; P.L. 2018, ch. 332, § 1; P.L. 2018, ch. 335, § 1; P.L. 2019, ch. 159, § 1; P.L. 2019, ch. 167, § 1; P.L. 2020, ch. 28, § 1; P.L. 2020, ch. 35, § 1; P.L. 2020, ch. 75, § 1; P.L. 2020, ch. 78, § 1; P.L. 2021, ch. 9, § 1, effective May 6, 2021; P.L. 2021, ch. 12, § 1, effective May 5, 2021; P.L. 2021, ch. 29, § 1, effective June 1, 2021; P.L. 2021, ch. 30, § 1, effective June 1, 2021; P.L. 2021, ch. 33, § 1, effective June 1, 2021; P.L. 2021, ch. 34, § 1, effective June 1, 2021; P.L. 2021, ch. 294, § 1, effective July 9, 2021; P.L. 2021, ch. 295, § 1, effective July 9, 2021; P.L. 2021, ch. 317, § 1, effective January 1, 2022; P.L. 2021, ch. 318, § 1, effective January 1, 2022.

Compiler’s Notes.

P.L. 2011, ch. 10, § 1, and P.L. 2011, ch. 13, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 159, § 1, and P.L. 2013, ch. 205, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 192, § 2, and P.L. 2013, ch. 240, § 2 enacted identical amendments to this section.

P.L. 2013, ch. 510, § 1, and P.L. 2013, ch. 523, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 512, § 1, and P.L. 2013, ch. 524, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 513, § 1, and P.L. 2013, ch. 525, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 518, § 1, and P.L. 2013, ch. 527, § 1 enacted identical amendments to this section.

This section was amended by fourteen acts ( P.L. 2013, ch. 159, § 1; P.L. 2013, ch. 192, § 2; P.L. 2013, ch. 205, § 1; P.L. 2013, ch. 240, § 2; P.L. 2013, ch. 510, § 1; P.L. 2013, ch. 512, § 1; P.L. 2013, ch. 513, § 1; P.L. 2013, ch. 518, § 1; P.L. 2013, ch. 520, § 1; P.L. 2013, ch. 523, § 1; P.L. 2013, ch. 524, § 1; P.L. 2013, ch. 525, § 1; P.L. 2013, ch. 527, § 1; P.L. 2013, ch. 531, § 1) passed by the 2013 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all fourteen acts.

This section was amended by seven acts ( P.L. 2014, ch. 339, § 1; P.L. 2014, ch. 345, § 1; P.L. 2014, ch. 362, § 1; P.L. 2014, ch. 379, § 1; P.L. 2014, ch. 388, § 1; P.L. 2014, ch. 540, § 1; P.L. 2014, ch. 542, § 1) passed by the 2014 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all seven acts.

P.L. 2014, ch. 339, § 1, and P.L. 2014, ch. 542, § 1 enacted identical amendments to this section.

P.L. 2014, ch. 345, § 1, and P.L. 2014, ch. 388, § 1 enacted identical amendments to this section.

P.L. 2014, ch. 362, § 1, and P.L. 2014, ch. 379, § 1 enacted identical amendments to this section.

This section was amended by nineteen acts ( P.L. 2016, ch. 85, § 1; P.L. 2016, ch. 89, § 1; P.L. 2016, ch. 115, § 1; P.L. 2016, ch. 123, § 1; P.L. 2016, ch. 149, § 6; P.L. 2016, ch. 163, § 6; P.L. 2016, ch. 216, § 1; P.L. 2016, ch. 224, § 1; P.L. 2016, ch. 228, § 1; P.L. 2016, ch. 245, § 1; P.L. 2016, ch. 250, § 1; P.L. 2016, ch. 283, § 1; P.L. 2016, ch. 284, § 1; P.L. 2016, ch. 292, § 1; P.L. 2016, ch. 298, § 1; P.L. 2016, ch. 299, § 1; P.L. 2016, ch. 313, § 1; P.L. 2016, ch. 316, § 1; P.L. 2016, ch. 518, § 1) passed by the 2016 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all nineteen acts.

P.L. 2016, ch. 85, § 1, and P.L. 2016, ch. 89, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 115, § 1, and P.L. 2016, ch. 123, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 149, § 6, and P.L. 2016, ch. 163, § 6 enacted identical amendments to this section.

P.L. 2016, ch. 216, § 1, and P.L. 2016, ch. 250, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 224, § 1, and P.L. 2016, ch. 292, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 228, § 1, and P.L. 2016, ch. 283, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 245, § 1, and P.L. 2016, ch. 284, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 298, § 1, and P.L. 2016, ch. 313, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 299, § 1, and P.L. 2016, ch. 316, § 1 enacted identical amendments to this section.

This section was amended by six acts ( P.L. 2017, ch. 44, § 1; P.L. 2017, ch. 46, § 1; P.L. 2017, ch. 273, § 1; P.L. 2017, ch. 289, § 1; P.L. 2017, ch. 453, § 1; P.L. 2017, ch. 467, § 1) as passed by the 2017 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by all six acts.

P.L. 2017, ch. 44, § 1, and P.L. 2017, ch. 46, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 273, § 1, and P.L. 2017, ch. 289, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 453, § 1, and P.L. 2017, ch. 467, § 1 enacted identical amendments to this section.

This section was amended by eight acts ( P.L. 2018, ch. 300, § 1; P.L. 2018, ch. 307, § 1; P.L. 2018, ch. 308, § 1; P.L. 2018, ch. 311, § 1; P.L. 2018, ch. 325, § 1; P.L. 2018, ch. 330, § 1; P.L. 2018, ch. 332, § 1; P.L. 2018, ch. 335, § 1) as passed by the 2018 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all eight acts.

P.L. 2018, ch. 300, § 1, and P.L. 2018, ch. 332, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 307, § 1, and P.L. 2018, ch. 325, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 308, § 1, and P.L. 2018, ch. 330, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 311, § 1, and P.L. 2018, ch. 335, § 1 enacted identical amendments to this section.

P.L. 2019, ch. 159, § 1, and P.L. 2019, ch. 167, § 1 enacted identical amendments to this section.

This section was amended by four acts ( P.L. 2020, ch. 28, § 1; P.L. 2020, ch. 35, § 1; P.L. 2020, ch. 75, § 1; P.L. 2020, ch. 78, § 1) as passed by the 2020 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all four acts.

P.L. 2020, ch. 28, § 1, and P.L. 2020, ch. 35, § 1 enacted identical amendments to this section.

P.L. 2020, ch. 75, § 1, and P.L. 2020, ch. 78, § 1 enacted identical amendments to this section.

This section was amended by ten acts ( P.L. 2021, ch. 9, § 1; P.L. 2021, ch. 12, § 1; P.L. 2021, ch. 29, § 1; P.L. 2021, ch. 30, § 1; P.L. 2021, ch. 33, § 1; P.L. 2021, ch. 34, § 1; P.L. 2021, ch. 294, § 1; P.L. 2021, ch. 295, § 1; P.L. 2021, ch. 317, § 1; P.L. 2021, ch. 318, § 1) as passed by the 2021 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all ten acts.

P.L. 2021, ch. 9, § 1, and P.L. 2021, ch. 12, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 29, § 1, and P.L. 2021, ch. 30, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 33, § 1, and P.L. 2021, ch. 34, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 294, § 1, and P.L. 2021, ch. 295, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 317, § 1, and P.L. 2021, ch. 318, § 1 enacted identical amendments to this section.

Delayed Effective Dates.

P.L. 2021, ch. 317, § 2, provides that the amendment to this section by that act takes effect on January 1, 2022.

P.L. 2021, ch. 318, § 2, provides that the amendment to this section by that act takes effect on January 1, 2022.

Effective Dates.

P.L. 2016, ch. 149, § 8, provides that the amendment to this section by that act takes effect upon passage [June 27, 2016], except as otherwise may be provided therein.

P.L. 2016, ch. 163, § 8, provides that the amendment to this section by that act takes effect upon passage [June 27, 2016], except as otherwise may be provided therein.

P.L. 2019, ch. 167, § 2, provides that the amendment to this section by that act takes effect on December 31, 2019.

Retroactive Effective Dates.

P.L. 2016, ch. 228, § 2 provides: “This act shall take effect upon passage [July 1, 2016] and shall apply retroactively to December 31, 2015.”

P.L. 2016, ch. 283, § 2 provides: “This act shall take effect upon passage [July 1, 2016] and shall apply retroactively to December 31, 2015.”

P.L. 2021, ch. 9, § 2, provides that the amendment to this section by that act takes effect upon passage [May 6, 2021] and shall apply retroactively to December 31, 2019.

P.L. 2021, ch. 12, § 2, provides that the amendment to this section by that act takes effect upon passage [May 5, 2021] and shall apply retroactively to December 31, 2019.

Applicability.

P.L. 2016, ch. 224, § 2 provides that the amendment to this section by that act takes effect upon passage [July 1, 2016], and shall apply to all taxes due and payable on and after July 1, 2018.

P.L. 2016, ch. 292, § 2 provides that the amendment to this section by that act takes effect upon passage [July 1, 2016], and shall apply to all taxes due and payable on and after July 1, 2018.

Cross References.

Bank subject to bank tax, exemption of intangibles, § 44-14-17 .

Credit union property, exemption, § 19-5-1 et seq.

Employees’ trust, exemption, § 28-17-3 .

Federal lands, exemption, §§ 42-1-4 , 42-2-2 .

Housing authority property, exemption, § 45-25-28 .

Kent county water district, exemption, § 39-16-13 .

Mount Hope bridge authority assets, exemption, § 24-13-24.

Municipal employees’ retirement system benefits, § 45-21-45 .

Redevelopment, property taken for, § 45-32-40 .

Retirement system benefits, exemption, § 36-10-32 .

School exemption, termination for noncompliance with regulations, § 16-38-11 .

Turnpike and bridge authority, exemption of property, § 24-12-31 .

Utility, property exempt, §§ 44-13-12 , 44-13-13 .

Utility taxed as public service corporation, exemption of securities, § 44-13-14 .

Waterworks, exemption, § 39-15-11 .

NOTES TO DECISIONS

Constitutionality.

Tax exemptions granted to religious societies, organizations and their property as is common practice are not in derogation of the religious freedom clauses of state and federal constitutions. General Fin. Corp. v. Archetto, 93 R.I. 392 , 176 A.2d 73, 1961 R.I. LEXIS 123 (1961).

The exemption to taxation granted for religious kindred associations is not in derogation of art. 1, Sec. 2 of the constitution specifying all laws should be made for the good of the whole and the burdens fairly distributed among its citizens, also Sec. 16 of such article prohibiting the taking of private property for public uses without just compensation. General Fin. Corp. v. Archetto, 93 R.I. 392 , 176 A.2d 73, 1961 R.I. LEXIS 123 (1961).

Airport Property.

Although state-owned real property, buildings, improvements, and tangible personal property attached to, contained in, or used in connection with property which is leased or rented for a term of 10 or more years is to be taxed to the lessee, R.I. General Laws § 44-4-4.1(5) excluded state property leased for purposes which were necessary to the operation of an airport; therefore, leasehold improvements by airlines under lease with Rhode Island Airport Corporation (RIAC) were tax exempt, since the lease provided that RIAC was owner of leasehold improvements, and lease did not extinguish exempt status. Delta Airlines, Inc. v. Neary, 785 A.2d 1123, 2001 R.I. LEXIS 251 (R.I. 2001).

Assessments for Improvements.

Religious societies are not exempt from payment of assessments for the laying out of a street under a special act. Second Universalist Soc'y v. Providence, 6 R.I. 235 , 1859 R.I. LEXIS 34 (1859).

Estates used for religious or educational purposes are not exempt from assessments made for the benefits conferred by street improvements, provided the assessments do not exceed the benefits. In re College Street, 8 R.I. 474 , 1867 R.I. LEXIS 8 (1867).

Brown University Professors.

Exemptions of the president and professors of Brown University do not extend to associate or assistant professors despite previous failure of officials to distinguish between grades of faculty. Weimar v. Newman, 78 R.I. 221 , 80 A.2d 887, 1951 R.I. LEXIS 61 (1951).

Charitable Bequests.

The exemption provided by this section does not attach to a testamentary bequest to a charitable institution until the property in question has been actually distributed to the legatee and such property, while it remains in the hands of the executor, is taxable. Estate of Wickes v. Stein, 107 R.I. 260 , 266 A.2d 911, 1970 R.I. LEXIS 768 (1970).

Conflicting Status Determinations.

When the public utility commission and the superior court, in interpreting § 39-1-2(7) (now (20)), arrive at opposite determinations concerning a limited partnership’s status as a public utility, the declaratory judgment of the commission is entitled to deference and is applicable for purposes of tax exemption determinations provided by this section. Pawtucket Power Assocs. Ltd. Partnership v. Pawtucket, 622 A.2d 452, 1993 R.I. LEXIS 72 (R.I. 1993).

Foreign Corporations.

A foreign corporation will be adjudged on the question of exemption by the laws of this state and not by its charter and the laws of the foreign state. Society for Preservation of New Eng. Antiquities v. Tax Assessors, 62 R.I. 302 , 5 A.2d 293, 1939 R.I. LEXIS 29 (1939).

Fraternal Organizations.

Corporation had burden of proving that it was a fraternal corporation and that its entire net income derived from exempted property was applied exclusively to charitable purposes. Knights of Columbus Bldg. Ass'n v. Gorham, 67 R.I. 423 , 24 A.2d 899, 1942 R.I. LEXIS 13 (1942).

Corporation organized under business corporation act which had neither objected to assessment nor protested against payment of taxes for fifteen years was not entitled to exemption as a fraternal corporation in absence of proof that entire net income was applied exclusively to charitable purposes. Knights of Columbus Bldg. Ass'n v. Gorham, 67 R.I. 423 , 24 A.2d 899, 1942 R.I. LEXIS 13 (1942).

Corporation organized under business corporation act, having capital stock, and whose articles of association did not restrict stockholders’ right to receive income, was not entitled to exemption as a fraternal corporation, even though its bylaws recited that purpose was to provide facilities for use of a fraternal organization. Knights of Columbus Bldg. Ass'n v. Gorham, 67 R.I. 423 , 24 A.2d 899, 1942 R.I. LEXIS 13 (1942).

Free Public Schools.

The exemption of “buildings for free public schools” does not extend to realty held by a religious corporation and used as a parochial school, even though instruction is gratuitous and open to all persons. St. Joseph's Church v. Assessors of Taxes, 12 R.I. 19 , 1878 R.I. LEXIS 4 (1878).

Government Bonds.

The cash market value of U.S. government bonds over and above their par value was not taxable. Rhode Island Hosp. Trust Co. v. Armington, 21 R.I. 33 , 41 A. 570, 1898 R.I. LEXIS 7 (1898).

Historical and Cultural Societies.

Paragraph (8) of this section is not applicable to historical and cultural society where special statute relating to it contains a tax exemption provision. Preservation Soc'y v. Assessor of Taxes, 104 R.I. 559 , 247 A.2d 430, 1968 R.I. LEXIS 684 (1968).

Hospitals.

Where corporation was established to support local hospital in charitable functions, real estate owned by corporation was free from city tax assessments where it leased commercially and all income was used to support and maintain hospital. Woonsocket Hosp. v. Lagace, 113 R.I. 95 , 318 A.2d 472, 1974 R.I. LEXIS 1143 (1974).

Even though a portion of the property owned by the hospital is leased to private entities, since the rental income is deposited in the general accounts and used for operating and maintenance expenses of the hospital, the entire property is exempt from taxation by virtue of the hospital charter. Rhode Island Hosp. v. City of Providence, 693 A.2d 1040, 1997 R.I. LEXIS 146 (R.I. 1997).

Where corporation’s corporate administrative offices were used to manage both hospital and non-hospital entities, the office equipment and furniture at the corporation’s administrative offices were not held exclusively for a hospital for the sick or disabled and, accordingly, were not exempt from taxation under R.I. Gen. Laws § 44-3-3(12). Lifespan Corp. v. City of Providence, 776 A.2d 1061, 2001 R.I. LEXIS 187 (R.I. 2001).

Libraries.

A library is not exempt as a public library if the privilege of using it is confined to the stockholders and their licensees. Providence Athenaeum v. Tripp, 9 R.I. 559 , 1870 R.I. LEXIS 23 (1870).

Railroads.

Railroads, although subject to strict regulation, are private corporations and not entitled to exemption. Providence & W. R.R. v. Wright, 2 R.I. 459 , 1853 R.I. LEXIS 20 (1853).

Religious and Educational Property.

The residence of a clergyman is not exempt from taxation as a building for religious worship even though one room is so used. St. Joseph's Church v. Assessors of Taxes, 12 R.I. 19 , 1878 R.I. LEXIS 4 (1878).

The exemption provided for buildings used for religious purposes applies even though such building is also used for incidental educational purposes not interfering with the religious purposes. St. Mary's Church v. Tripp, 14 R.I. 307 , 1883 R.I. LEXIS 69 (1883).

The words “so far as the same is used exclusively” are words of extent so that unless the property is used exclusively for religious and educational purposes it is not exempt from taxation. In re Pawtucket, 24 R.I. 86 , 52 A. 679, 1902 R.I. LEXIS 21 (1902).

Property owned and used as a vacation home was not exempt on the ground that it was used solely “for the aid or support of poor friendless children” where each child paid a weekly charge and property was not used exclusively for educational purposes. Girls' Friendly Soc'y v. Stafford, 46 R.I. 29 , 124 A. 470, 1924 R.I. LEXIS 40 (1924).

Corporation was not entitled to exemption as a public charitable institution devoted exclusively to educational purposes where the words “education” or “educational” did not appear in the charter and the premises involved were not in fact used exclusively for educational purposes. Society for Preservation of New Eng. Antiquities v. Tax Assessors, 62 R.I. 302 , 5 A.2d 293, 1939 R.I. LEXIS 29 (1939).

Building used partly as a residence for teachers was not exempt as an educational building. In re Pawtucket, 24 R.I. 86 , 52 A. 679, 1902 R.I. LEXIS 21 (1902); Sisterhood of Holy Nativity v. Tax Assessors, 73 R.I. 445 , 57 A.2d 184, 1948 R.I. LEXIS 13 (1948).

Where occupancy of residences on school grounds by faculty members and their families is for the benefit of the school rather than of the occupants — is intended to serve the ends for which the school is maintained, is adapted thereto and actually accomplishes that object — it becomes in itself an exclusively educational use. Order of St. Benedict v. Gordon, 417 A.2d 881, 1980 R.I. LEXIS 1710 (R.I. 1980).

Despite the fact that a school’s dormitory complex provides residences for certain faculty members and their families, this “incidental” use of the property does not defeat its tax-exempt status, for the use is itself exclusively educational. Order of St. Benedict v. Gordon, 417 A.2d 881, 1980 R.I. LEXIS 1710 (R.I. 1980).

State Property.

Building constructed by state under lease which provided that all buildings constructed by state belonged to the state was exempt from taxation. O'Reilly v. Clarke, 48 R.I. 407 , 137 A. 783, 1927 R.I. LEXIS 65 (1927).

Fraternity houses used as dormitories on Rhode Island University campus and fully paid for were not taxable as buildings and improvements but were taxable as tangible personal property of the fraternity. Powers v. Harvey, 81 R.I. 378 , 103 A.2d 551, 1954 R.I. LEXIS 97 (1954).

Property belonging to the Rhode Island Recreational Building Authority is not exempt from taxation under subsection (1) as a public instrumentality of the state. Rhode Island Recreational Bldg. Auth. v. East Greenwich Fire Dist., 505 A.2d 1139, 1986 R.I. LEXIS 414 (R.I. 1986).

Strict Construction.

Laws exempting property from taxation are to be strictly construed. Woonsocket Hosp. v. Quinn, 54 R.I. 424 , 173 A. 550, 1934 R.I. LEXIS 106 (1934); Knights of Columbus Bldg. Ass'n v. Gorham, 67 R.I. 423 , 24 A.2d 899, 1942 R.I. LEXIS 13 (1942).

In construing a section setting forth an exemption from taxation, the words used are to be given their plain meaning unless a contrary intention clearly appears; except where the language admits of ambiguity, the words of a statute cannot be interpreted or extended but must be applied literally. City of Providence v. Killoran, 447 A.2d 369, 1982 R.I. LEXIS 924 (R.I. 1982).

— Failure Over Time to Tax Property.

A right of exemption from taxation cannot be claimed merely because of the failure to tax property for a long period. City of Providence v. Killoran, 447 A.2d 369, 1982 R.I. LEXIS 924 (R.I. 1982).

— Resolution of Doubt or Ambiguity.

If doubt or ambiguity exists in a statute granting a tax exemption, such doubt must be resolved in favor of taxation. City of Providence v. Killoran, 447 A.2d 369, 1982 R.I. LEXIS 924 (R.I. 1982).

Utilities.

Rhode Island Legislature does not intend renewable energy systems to be exempt only if the various cities and towns enact ordinances; moreover, such an interpretation would cause an inconsistency with the statute that defines “manufacturer” because it expressly creates an exception for public utilities and certain non-regulated power producers. DePasquale v. Cwiek, 129 A.3d 72, 2016 R.I. LEXIS 5 (R.I. 2016).

Wind turbine was not subject to taxation because the manufacturing equipment exemption applied; an exception to the exemption did not apply here based on a sale of electricity from the turbine to a National Grid. Rather, the exception excluded from the exemption only those nonregulated power producers commencing commercial operation by selling electricity at retail or taking title to generating facilities on or after July 1, 1997. DePasquale v. Cwiek, 129 A.3d 72, 2016 R.I. LEXIS 5 (R.I. 2016).

Collateral References.

Acceptance of dedicated street, necessity of, to relieve it from taxation. 5 A.L.R. 1537.

Allowability of federal tax benefits to a private, racially segregated school or college. 7 A.L.R. Fed. 548.

Athletic fields, or property used for social or recreational purposes, exemption of. 143 A.L.R. 274.

Availability of tax exemption to property held on lease from exempt owner. 54 A.L.R.3d 402.

Bond or warrant of governmental subdivision as subject of taxation or exemption. 26 A.L.R. 547; 44 A.L.R. 510.

Boy Scout or Girl Scout organization, exemption of property of. 116 A.L.R. 378.

Cemetery, exemption as affected by use to which property is put or for which it is intended. 168 A.L.R. 285.

Chamber of commerce, exemption of. 152 A.L.R. 181.

Charitable organizations, exemption from taxation. 34 A.L.R. 634; 62 A.L.R. 328; 108 A.L.R. 284.

Common or public school entitled to exemption from taxation, what constitutes. 113 A.L.R. 715.

Consent to state taxation of federal property or instrumentalities as affecting exemption thereof under provision of state enabling act, constitution or statute. 168 A.L.R. 547.

Constitutional exemption from taxation as subject to legislative regulation respecting conditions of its assertion. 4 A.L.R.2d 744.

Conveyance, effect on exemption of real estate from taxation of reservation of option or conditions in, which may operate to defeat or extinguish title of exempt grantee. 98 A.L.R. 1372.

Cooperation or compact between states as to mutual tax exemptions. 134 A.L.R. 1417; 1423.

Declaratory judgment on question of exemption. 132 A.L.R. 1142; 11 A.L.R.2d 359.

Equitable title under executory contract for purchase of real property as sustaining exemption from taxation. 156 A.L.R. 1301.

Executory contract with exempt vendor, tax on property held under. 166 A.L.R. 595.

Extent of area within tax exemption extended to property used for educational, religious, or charitable purposes. 134 A.L.R. 1176.

Failure to claim exemption or delay in claiming exemption for past years, tax exemption as affected by. 115 A.L.R. 1484.

Fraternal or relief association, exemption of property of. 22 A.L.R. 907; 83 A.L.R. 773.

Fraternity house or dormitory of college, exemption of. 66 A.L.R.2d 904.

Government securities or property, state power to free from taxation, as affected by constitutional enumeration of subjects of tax exemption. 9 A.L.R. 436.

Hospital as within tax exemption provision not specifically naming hospitals. 144 A.L.R. 1483.

Labor organization, exemption of property from taxation. 23 A.L.R. 813; 172 A.L.R. 1070.

Lessee’s use of property for tax-exempt purposes as affecting exemption. 55 A.L.R.3d 422.

Municipally owned or operated stadium, auditorium, and similar property, exemption from taxation. 16 A.L.R.2d 1376.

Nursing homes as exempt from property taxation. 34 A.L.R.5th 529.

Particular educational, religious, or charitable institution, constitutionality of exemption of, from taxation. 2 A.L.R. 471.

Qualification of health care entities for federal tax exemption as charitable organization under 26 USCS § 501(c)(3). 134 A.L.R. Fed. 395.

Religious body or society, tax exemption, construction. 17 A.L.R. 1027; 168 A.L.R. 1222.

Religious, educational, charitable, or hospital organizations, recreational facilities and living quarters for personnel as within contemplation of tax exemptions extended to property of. 55 A.L.R.3d 349.

Religious, educational, or charitable body, publication or sale of literature, use of property or income for, as affecting tax exemption of. 154 A.L.R. 895.

Religious or charitable body, property which it has no right to hold, exemption of. 27 A.L.R. 1047.

Religious or charitable purpose, prospective use of property for as affecting exemption from taxation. 54 A.L.R.3d 9.

Remission, release or compromise of tax as an invalid exemption from taxation. 99 A.L.R. 1068; 28 A.L.R.2d 1425.

Sunday school association, exemption from taxation. 17 A.L.R. 1046; 168 A.L.R. 1222.

Time of acquisition of title by party entitled to exemption, tax exemption of real property as affected by. 54 A.L.R.2d 996.

Trust, extension of tax exemption to property held upon, by a charitable religious or similar body generally within benefits of exemption. 138 A.L.R. 116.

When is property owned by state or local governmental body put to public use so as to be eligible for property tax exemption. 114 A.L.R.5th 561.

Y.M.C.A. or Y.W.C.A., exemption from taxation. 17 A.L.R. 1047; 34 A.L.R. 1067; 81 A.L.R. 1453; 168 A.L.R. 1222.

44-3-3.1. Exemption of office equipment used for manufacturing or commercial purposes.

  1. The city or town council of any municipality may by ordinance wholly or partially exempt from taxation for a period of up to twenty-five (25) years any items of office equipment, which include, but are not limited to, computers, telephone equipment, and any other items of personal property used in an office and/or any leasehold improvements which are not exempt and are used for manufacturing or commercial purposes and may by ordinance establish the procedures for taxpayers to avail themselves of the benefit of any exemption permitted under this section.
  2. Nothing in this section shall be deemed to permit the exemption provided in this section to be available to any manufacturing or commercial business relocating from one city or town within the state to another.

History of Section. P.L. 1995, ch. 106, § 1.

44-3-4. Veterans’ exemptions.

    1. The property of each person who served in the military or naval service of the United States in the war of the rebellion, the Spanish-American war, the insurrection in the Philippines, the China-relief expedition, or World War I, and the property of each person who served in the military or naval service of the United States in World War II at any time during the period beginning December 7, 1941, and ending on December 31, 1946, and members who served in uniform during the Cold War between 1947 through 1991, including those members who did not serve in a declared war or conflict and the property of each person who served in the military or naval services of the United States in the Korean conflict at any time during the period beginning June 27, 1950, and ending January 31, 1955, or in the Vietnam conflict at any time during the period beginning February 28, 1961, and ending May 7, 1975, or who actually served in the Grenada or Lebanon conflicts of 1983-1984, or the Persian Gulf conflict, the Haitian conflict, the Somalian conflict, and the Bosnian conflict, at any time during the period beginning August 2, 1990, and ending May 1, 1994, or in any conflict or undeclared war and who was honorably discharged from the service, or who was discharged under conditions other than dishonorable, or who, if not discharged, served honorably, or the property of the unmarried widow or widower of that person, is exempted from taxation to the amount of one thousand dollars ($1,000), except in:
      1. Burrillville, where the exemption is four thousand dollars ($4,000);
      2. Cumberland, where the town council may, by ordinance, provide for an exemption of a maximum of twenty-three thousand seven hundred seventy-two dollars ($23,772);
      3. Cranston, where the exemption shall not exceed three thousand dollars ($3,000);
      4. Jamestown, where the town council may, by ordinance, provide for a tax credit or exemption to any veteran of the United States armed services regardless of their qualified service dates, who was honorably discharged or who was discharged under conditions other than dishonorable;
      5. Lincoln, where the exemption shall not exceed ten thousand dollars ($10,000); and where the town council may also provide for a real estate tax exemption not exceeding ten thousand dollars ($10,000) for those honorably discharged active duty veterans who served in Operation Desert Storm;
      6. Newport, where the exemption is four thousand dollars ($4,000);
      7. New Shoreham, where the town council may, by ordinance, provide for an exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);
      8. North Kingstown, where the exemption is ten thousand dollars ($10,000);
      9. North Providence, where the town council may, by ordinance, provide for an exemption of a maximum of five thousand dollars ($5,000);
      10. [As amended by P.L. 2015, ch. 168, § 1 ]. Smithfield, where the exemption is ten thousand dollars ($10,000);
      11. Warren, where the exemption shall not exceed five thousand five hundred dollars ($5,500) on motor vehicles, or ten thousand one hundred seventy-five dollars ($10,175) on real property;
      12. Westerly, where the town council may, by ordinance, provide an exemption of the total value of the veterans’ real and personal property to a maximum of forty thousand five hundred dollars ($40,500);
      13. Barrington, where the town council may, by ordinance, provide for an exemption of six thousand dollars ($6,000) for real property;
      14. Exeter, where the exemption is five thousand dollars ($5,000);
      15. Glocester, where the exemption shall not exceed thirty thousand dollars ($30,000);
      16. West Warwick, where the city council may, by ordinance, provide for an exemption of up to ten thousand dollars ($10,000);
      17. Warwick, where the city council may, by ordinance, provide for an exemption of a maximum of four thousand dollars ($4,000);
      18. [As added by P.L. 2016, ch. 238, § 1 ]. Charlestown, where the town council may, by ordinance, provide for an additional exemption to any veteran of the United States armed services, regardless of the veteran’s qualified service dates, who was honorably discharged, or to the unmarried widow or widower of that person who is not currently receiving this statutory exemption;
      19. [As added by P.L. 2016, ch. 268, § 1 ]. Charlestown, where the town council may, by ordinance, provide for an additional tax credit to any veteran of the United States armed services, regardless of the veteran’s qualified service dates, who was honorably discharged, or to the unmarried widow or widower of that person who is not currently receiving this statutory exemption;
      20. Narragansett, where the town council may, by ordinance, provide for an exemption of a maximum of twenty thousand dollars ($20,000) from the assessed value of real property, or twelve thousand dollars ($12,000) from the assessed value of a motor vehicle; and
      21. Tiverton, where the town council may provide, by ordinance as may be amended from time to time, a tax credit of two hundred dollars ($200) or greater.
    2. The exemption is applied to the property in the municipality where the person resides, and if there is not sufficient property to exhaust the exemption, the person may claim the balance in any other city or town where the person may own property; provided, that the exemption is not allowed in favor of any person who is not a legal resident of the state, or unless the person entitled to the exemption has presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which exemption is claimed, evidence that he or she is entitled, which evidence shall stand so long as his or her legal residence remains unchanged; provided, however, that in the town of South Kingstown, the person entitled to the exemption shall present to the assessors, at least five (5) days prior to the certification of the tax roll, evidence that he or she is entitled to the exemption; and, provided, further, that the exemption provided for in this subdivision to the extent that it applies in any city or town, shall be applied in full to the total value of the person’s real and tangible personal property located in the city or town; and, provided, that there is an additional exemption from taxation in the amount of one thousand dollars ($1,000), except in:
    3. Provided, that:
    4. There is an additional exemption from taxation in the town of:
    5. Lincoln. There is an additional exemption from taxation in the town of Lincoln for the property of each person who actually served in the military or naval service of the United States in the Persian Gulf conflict and who was honorably discharged from the service, or who was discharged under conditions other than dishonorable, or who, if not discharged, served honorably, or of the unmarried widow or widower of that person. The exemption shall be determined by the town council in an amount not to exceed ten thousand dollars ($10,000).
  1. In addition to the exemption provided in subsection (a) of this section, there is a ten-thousand dollar ($10,000) exemption from local taxation on real property for any veteran and the unmarried widow or widower of a deceased veteran of the military or naval service of the United States who is determined, under applicable federal law by the Veterans Administration of the United States, to be totally disabled through service-connected disability and who, by reason of the disability, has received assistance in acquiring “specially adopted housing” under laws administered by the veterans’ administration; provided, that the real estate is occupied as his or her domicile by the person; and, provided, that if the property is designed for occupancy by more than one family, then only that value of so much of the house as is occupied by the person as his or her domicile is exempted; and, provided, that satisfactory evidence of receipt of the assistance is furnished to the assessors except in:
    1. Cranston, where the exemption shall not exceed thirty thousand dollars ($30,000);
    2. Cumberland, where the town council may provide for an exemption not to exceed seven thousand five hundred dollars ($7,500);
    3. Newport, where the exemption is ten thousand dollars ($10,000) or ten percent (10%) of assessed valuation, whichever is greater;
    4. New Shoreham, where the town council may, by ordinance, provide for an exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);
    5. North Providence, where the town council may, by ordinance, provide for an exemption not to exceed twelve thousand five hundred dollars ($12,500);
    6. Westerly, where the town council may, by ordinance, provide for an exemption of a maximum of forty thousand five hundred dollars ($40,500);
    7. Lincoln, where the town council may, by ordinance, provide for an exemption of a maximum of fifteen thousand dollars ($15,000);
    8. Narragansett, where the town council may, by ordinance, provide for an exemption of a maximum of fifty thousand dollars ($50,000);
    9. Tiverton, where the town council may, by ordinance, provide for a tax credit of two hundred dollars ($200) or greater, as may be amended from time to time; and
    10. Jamestown, where the town council may, by ordinance, provide for a tax credit.
  2. In addition to the previously provided exemptions, any veteran of the military or naval service of the United States who is determined, under applicable federal law by the Veterans’ Administration of the United States to be totally disabled through service-connected disability may, by ordinance, passed in the city or town where the veteran’s property is assessed, receive a ten thousand dollar ($10,000) exemption from local taxation on his or her property whether real or personal and if the veteran owns real property may be exempt from taxation by any fire and/or lighting district; provided, that in the town of: North Kingstown, where the amount of the exemption shall be eleven thousand dollars ($11,000) commencing with the December 31, 2002, assessment; and for the town of Westerly, where the amount of the exemption shall be thirty-nine thousand dollars ($39,000) commencing with the December 31, 2005, assessment; and in the town of Cumberland, where the amount of the exemption shall not exceed forty-seven thousand five hundred forty-four dollars ($47,544); and the town of Narragansett, where the amount of the exemption shall not exceed twenty thousand dollars ($20,000) from the assessed value of real property or twelve thousand dollars ($12,000) from the assessed value of a motor vehicle; and in the city of Cranston, commencing with the December 31, 2016, assessment, where the exemption will not exceed two hundred fifty thousand dollars ($250,000) and be extended to the unmarried widow or widower of such veteran, and in the town of Tiverton, where, by ordinance, a tax credit of two hundred dollars ($200) or greater shall be applied to the qualified veteran’s property assessment tax bill.
  3. In determining whether or not a person is the widow or widower of a veteran for the purposes of this section, the remarriage of the widow or widower shall not bar the furnishing of the benefits of the section if the remarriage is void, has been terminated by death, or has been annulled or dissolved by a court of competent jurisdiction.
  4. In addition to the previously provided exemptions, there may by ordinance passed in the city or town where the person’s property is assessed, be an additional fifteen thousand dollars ($15,000) exemption from local taxation on real and personal property for any veteran of military or naval service of the United States or the unmarried widow or widower of person who has been or shall be classified as, or determined to be, a prisoner of war by the Veterans’ Administration of the United States, except in:
    1. Westerly, where the town council may, by ordinance, provide for an exemption of a maximum of sixty-eight thousand dollars ($68,000);
    2. Cumberland, where the town council may by ordinance provide for an exemption of a maximum of forty-seven thousand five hundred forty-four dollars ($47,544);
    3. Narragansett, where the town council may, by ordinance, provide for an exemption of a maximum of forty thousand dollars ($40,000);
    4. Tiverton, where the town council may, by ordinance, provide for a tax credit of six hundred dollars ($600) or greater; and
    5. Jamestown, where the town council may, by ordinance, provide for an exemption greater than fifteen thousand dollars ($15,000) of value or a tax credit that would offer an equivalent relief or benefit.
  5. Cities and towns granting exemptions under this section shall use the eligibility dates specified in this section.
  6. The several cities and towns not previously authorized to provide an exemption for those veterans who actually served in the Persian Gulf conflict may provide that exemption in the amount authorized in this section for veterans of other recognized conflicts.
  7. Bristol, where the town council of Bristol may, by ordinance, provide for an exemption for any veteran and the unmarried widow or widower of a deceased veteran of military or naval service of the United States who is determined, under applicable federal law by the Veterans’ Administration of the United States to be partially disabled through service-connected disability.
  8. In addition to the previously provided exemption, any veteran who is discharged from the military or naval service of the United States under conditions other than dishonorable, or an officer who is honorably separated from military or naval service, who is determined, under applicable federal law by the Veterans Administration of the United States to be totally and permanently disabled through a service-connected disability, who owns a specially adapted homestead that has been acquired or modified with the assistance of a special adaptive housing grant from the Veteran’s Administration and that meets Veteran’s Administration and Americans with disability act guidelines from adaptive housing or that has been acquired or modified using proceeds from the sale of any previous homestead that was acquired with the assistance of a special adaptive housing grant from the veteran’s administration, the person or the person’s surviving spouse is exempt from all taxation on the homestead. Provided, that in the town of Westerly where the amount of the above referenced exemption shall be forty-six thousand five hundred dollars ($46,500).
  9. The town of Coventry may provide, by ordinance, a one-thousand-dollar ($1,000) exemption for any person who is an active member of the armed forces of the United States.
  10. The town of Scituate may provide, by ordinance, in lieu of a tax exemption that grants to all disabled veterans with a one hundred percent (100%) service-connected disability, a tax credit in an amount to be determined from time to time by the town council.

(x) [As amended by P.L. 2015, ch. 179, § 1 ]. Smithfield , where the exemption is four thousand dollars ($4,000). Provided, effective July 1, 2016, the Smithfield town council may, by ordinance, provide for an exemption of a maximum of ten thousand dollars ($10,000);

(i) Central Falls , where the city council may, by ordinance, provide for an exemption of a maximum of seven thousand five hundred dollars ($7,500);

(ii) Cranston , where the exemption shall not exceed three thousand dollars ($3,000);

(iii) Cumberland , where the town council may, by ordinance, provide for an exemption of a maximum of twenty-two thousand five hundred dollars ($22,500);

(iv) Lincoln , where the exemption shall not exceed ten thousand dollars ($10,000);

(v) Newport , where the exemption is four thousand dollars ($4,000);

(vi) New Shoreham , where the town council may, by ordinance, provide for an exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);

(vii) North Providence , where the town council may, by ordinance, provide for an exemption of a maximum of five thousand dollars ($5,000);

(viii) Smithfield , where the exemption is four thousand dollars ($4,000);

(ix) Warren , where the exemption shall not exceed eleven thousand dollars ($11,000);

(x) Barrington , where the town council may, by ordinance, provide for an exemption of six thousand dollars ($6,000) for real property; of the property of every honorably discharged veteran of World War I or World War II, Korean or Vietnam, Grenada or Lebanon conflicts, the Persian Gulf conflict, the Haitian conflict, the Somalian conflict and the Bosnian conflict at any time during the period beginning August 2, 1990, and ending May 1, 1994, or in any conflict or undeclared war who is determined by the Veterans Administration of the United States of America to be totally disabled through service-connected disability and who presents to the assessors a certificate from the veterans administration that the person is totally disabled, which certificate remains effectual so long as the total disability continues;

(xi) Charlestown , where the town council may, by ordinance, create a tax dollar credit reduction to replace the tax assessment exemption, as so stated in all sections herein; and

(xii) Jamestown, where the town council may, by ordinance, provide for an exemption to any veteran of the United States armed services regardless of their qualified service dates, who was honorably discharged or who was discharged under conditions other than dishonorable, or to the unmarried widow or widower of that person who is not currently receiving this statutory exemption.

(i) Burrillville may exempt real property of the totally disabled persons in the amount of six thousand dollars ($6,000);

(ii) Cumberland town council may, by ordinance, provide for an exemption of a maximum of twenty-two thousand five hundred dollars ($22,500);

(iii) Little Compton may, by ordinance, exempt real property of each of the totally disabled persons in the amount of six thousand dollars ($6,000);

(iv) Middletown may exempt the real property of each of the totally disabled persons in the amount of five thousand dollars ($5,000);

(v) New Shoreham town council may, by ordinance, provide for an exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);

(vi) North Providence town council may, by ordinance, provide for an exemption of a maximum of five thousand dollars ($5,000);

(vii) The Tiverton town council may, by ordinance which may be amended from time to time, provide for a four-hundred-dollar ($400) tax credit or greater on the real property of each of the totally disabled persons;

(viii) West Warwick town council may exempt the real property of each of the totally disabled persons in an amount of two hundred dollars ($200);

(ix) Westerly town council may, by ordinance, provide for an exemption on the total value of real and personal property to a maximum of forty-six thousand five hundred dollars ($46,500); and

(x) Jamestown, where the town council may, by ordinance, provide for an additional tax credit or exemption on real and personal property to any veteran of the United States armed services regardless of their qualified service dates, who is considered one hundred percent (100%) totally disabled through a service connected disability and who was honorably discharged or who was discharged under conditions other than dishonorable, or to the unmarried widow or widower of that person who is not currently receiving this statutory exemption.

Warren, where its town council may, by ordinance, provide for an exemption not exceeding eight thousand two hundred fifty dollars ($8,250), of the property of every honorably discharged veteran of World War I or World War II, or Vietnam, Grenada or Lebanon conflicts, the Persian Gulf conflict, the Haitian conflict, the Somalian conflict and the Bosnian conflict, at any time during the period beginning August 2, 1990, and ending May 1, 1994, or in any conflict or undeclared war who is determined by the Veterans’ Administration of the United States of America to be partially disabled through a service-connected disability and who presents to the assessors a certificate that he or she is partially disabled, which certificate remains effectual so long as the partial disability continues. Provided, however, that the Barrington town council may exempt real property of each of the above named persons in the amount of three thousand dollars ($3,000); Warwick city council may, by ordinance, exempt real property of each of the above-named persons and to any person who served in any capacity in the military or naval service during the period of time of the Persian Gulf conflict, whether or not the person served in the geographical location of the conflict, in the amount of four thousand dollars ($4,000).

History of Section. P.L. 1989, ch. 542, § 92; P.L. 1989, ch. 509, § 1; P.L. 1992, ch. 160, § 1; 1992, ch. 195, § 1; P.L. 1993, ch. 157, § 1; P.L. 1993, ch. 163, § 1; P.L. 1993, ch. 252, § 1; P.L. 1993, ch. 334, § 1; P.L. 1993, ch. 337, § 1; P.L. 1994, ch. 33, § 1; P.L. 1994, ch. 51, § 1; P.L. 1994, ch. 124, § 1; P.L. 1994, ch. 159, § 1; P.L. 1994, ch. 219, § 1; P.L. 1994, ch. 252, § 1; P.L. 1994, ch. 320, § 1; P.L. 1994, ch. 360, § 1; P.L. 1994, ch. 406, § 1; P.L. 1995, ch. 284, § 1; P.L. 1995, ch. 305, § 3; P.L. 1995, ch. 351, § 1; P.L. 1995, ch. 362, § 1; P.L. 1996, ch. 23, § 1; P.L. 1996, ch. 25, § 1; P.L. 1996, ch. 71, § 1; P.L. 1996, ch. 80, § 1; P.L. 1996, ch. 376, § 1; P.L. 1997, ch. 182, § 1; P.L. 1997, ch. 246, § 1; P.L. 1997, ch. 277, § 1; P.L. 1997, ch. 335, § 1; P.L. 1998, ch. 357, § 1; P.L. 1999, ch. 9, § 1; P.L. 1999, ch. 19, § 1; P.L. 2000, ch. 475, § 1; P.L. 2001, ch. 308, § 1; P.L. 2001, ch. 348, § 1; P.L. 2002, ch. 27, § 1; P.L. 2002, ch. 31, § 1; P.L. 2002, ch. 93, § 1; P.L. 2002, ch. 98, § 1; P.L. 2003, ch. 21, § 1; P.L. 2003, ch. 27, § 1; P.L. 2003, ch. 93, § 1; P.L. 2003, ch. 428, § 1; P.L. 2004, ch. 161, § 1; P.L. 2004, ch. 176, § 1; P.L. 2005, ch. 15, § 1; P.L. 2005, ch. 30, § 1; P.L. 2005, ch. 170, § 1; P.L. 2005, ch. 423, § 1; P.L. 2006, ch. 89, § 1; P.L. 2006, ch. 151, § 1; P.L. 2006, ch. 257, § 1; P.L. 2006, ch. 279, § 1; P.L. 2007, ch. 91, § 1; P.L. 2007, ch. 184, § 1; P.L. 2007, ch. 216, § 1; P.L. 2007, ch. 352, § 1; P.L. 2007, ch. 398, § 1; P.L. 2007, ch. 461, § 1; P.L. 2007, ch. 465, § 1; P.L. 2008, ch. 79, § 1; P.L. 2008, ch. 83, § 1; P.L. 2010, ch. 199, § 1; P.L. 2010, ch. 241, § 1; P.L. 2013, ch. 161, § 1; P.L. 2013, ch. 207, § 1; P.L. 2013, ch. 259, § 1; P.L. 2013, ch. 348, § 1; P.L. 2014, ch. 225, § 1; P.L. 2014, ch. 330, § 1; P.L. 2015, ch. 168, § 1; P.L. 2015, ch. 179, § 1; P.L. 2016, ch. 238, § 1; P.L. 2016, ch. 248, § 1; P.L. 2016, ch. 268, § 1; P.L. 2016, ch. 279, § 1; P.L. 2016, ch. 312, § 1; P.L. 2016, ch. 320, § 1; P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2017, ch. 183, § 1; P.L. 2017, ch. 457, § 1; P.L. 2017, ch. 472, § 1; P.L. 2018, ch. 48, § 1; P.L. 2018, ch. 53, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1; P.L. 2018, ch. 185, § 1; P.L. 2018, ch. 209, § 1; P.L. 2019, ch. 158, § 1; P.L. 2019, ch. 165, § 1; P.L. 2021, ch. 408, § 1, effective July 14, 2021; P.L. 2021, ch. 409, § 1, effective July 14, 2021.

Compiler’s Notes.

P.L. 2010, ch. 199, § 1, and P.L. 2010, ch. 241, § 1, enacted identical amendments to this section.

P.L. 2013, ch. 161, § 1, and P.L. 2013, ch. 207, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 259, § 1, and P.L. 2013, ch. 348, § 1 enacted identical amendments to this section.

This section was amended by four acts ( P.L. 2013, ch. 161, § 1; P.L. 2013, ch. 207, § 1; P.L. 2013, ch. 259, § 1; P.L. 2013, ch. 348, § 1 ) passed by the 2013 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all four acts.

P.L. 2014, ch. 225, § 1, and P.L. 2014, ch. 330, § 1 enacted identical amendments to this section.

P.L. 2015, ch. 168, § 1, and P.L. 2015, ch. 179, § 1 both amended this section. Since the amendments are in conflict, subsection (a)(1)(x) is set out twice as amended by each act.

This section was amended by six acts ( P.L. 2016, ch. 238, § 1; P.L. 2016, ch. 248, § 1; P.L. 2016, ch. 268, § 1; P.L. 2016, ch. 279, § 1; P.L. 2016, ch. 312, § 1; P.L. 2016, ch. 320, § 1) passed by the 2016 General Assembly. P.L. 2016, ch. 238, § 1 and P.L. 2016, ch. 268, § 1 both amended this section concerning Charlestown, and those amendments are set out as (a)(1)(xviii) and (a)(1)(xix), respectively. Since the remaining changes are not in conflict with each other, the section is set out as amended by all six acts.

P.L. 2016, ch. 248, § 1, and P.L. 2016, ch. 279, § 1 enacted identical amendments to this section.

This section was amended by five acts ( P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2017, ch. 183, § 1; P.L. 2017, ch. 457, § 1; P.L. 2017, ch. 472, § 1) as passed by the 2017 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all five acts.

P.L. 2017, ch. 75, § 1, and P.L. 2017, ch. 99, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 457, § 1, and P.L. 2017, ch. 472, § 1 enacted identical amendments to this section.

This section was amended by six acts ( P.L. 2018, ch. 48, § 1; P.L. 2018, ch. 53, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1; P.L. 2018, ch. 185, § 1; P.L. 2018, ch. 200, § 1) as passed by the 2018 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by all six acts.

P.L. 2018, ch. 48, § 1, and P.L. 2018, ch. 53, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 65, § 1, and P.L. 2018, ch. 68, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 185, § 1, and P.L. 2018, ch. 209, § 1 enacted identical amendments to this section.

P.L. 2019, ch. 158, § 1, and P.L. 2019, ch. 165, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 408, § 1, and P.L. 2021, ch. 409, § 1 enacted identical amendments to this section.

Repealed Sections.

Former § 44-3-4 , (G.L. 1896, ch. 44, § 6; P.L. 1908, ch. 1566, § 1; G.L. 1909, ch. 56, § 6; P.L. 1909, ch. 392, § 1; G.L. 1923, ch. 58, § 6; P.L. 1927, ch. 1025, § 1; P.L. 1928, ch. 1227, § 1; P.L. 1930, ch. 1560, § 1; P.L. 1932, ch. 1867, § 1; G.L. 1938, ch. 29, § 6; P.L. 1944, ch. 1531, § 1; P.L. 1947, ch. 1921, § 1; P.L. 1949, ch. 2383, § 1; P.L. 1950, ch. 2560, § 1; G.L. 1956, § 44-3-4 ; P.L. 1969, ch. 78, § 1; P.L. 1969, ch. 197, art. 7, § 5; P.L. 1970, ch. 274, § 1; P.L. 1972, ch. 153, § 1; P.L. 1980, ch. 347, § 1; P.L. 1981, ch. 47, § 1; P.L. 1982, ch. 11, § 1; P.L. 1982, ch. 58, § 1; P.L. 1982, ch. 250, § 1; P.L. 1983, ch. 84, § 1; P.L. 1983, ch. 110, § 1; P.L. 1983 (s.s.), ch. 337, § 1; P.L. 1984, ch. 39, § 1; P.L. 1984, ch. 112, § 1; P.L. 1984, ch. 185, § 1; P.L. 1984, ch. 274, § 1; P.L. 1984, ch. 315, § 1; P.L. 1984, ch. 342, § 1; P.L. 1984, ch. 358, § 1; P.L. 1984, ch. 404, § 1; P.L. 1985, ch. 24, § 1; P.L. 1985, ch. 135, § 1; P.L. 1986, ch. 19, § 1; P.L. 1986, ch. 50, § 1; P.L. 1986, ch. 74, § 1; P.L. 1986, ch. 82, § 1; P.L. 1986, ch. 132, § 1; P.L. 1986, ch. 155, § 1; P.L. 1986, ch. 358, § 1; P.L. 1987, ch. 143, § 1; P.L. 1987, ch. 379, § 1), concerning the same subject matter, was repealed by P.L. 1989, ch. 542, § 91, effective July 10, 1989.

Applicability.

P.L. 2005, ch. 423, § 2, states that the amendments to this section by that act shall take effect upon passage and shall apply to taxes assessed on or after December 31, 2004.

NOTES TO DECISIONS

Constitutionality.

The exemption to taxation granted to veterans is not in derogation of art. 1, Sec. 2 of the constitution specifying all laws should be made for the good of the whole and the burdens fairly distributed among its citizens, nor is it in derogation of Sec. 16 of such article prohibiting the taking of private property for public uses without just compensation. General Fin. Corp. v. Archetto, 93 R.I. 392 , 176 A.2d 73, 1961 R.I. LEXIS 123 (1961).

Collateral References.

Exemption of war risk insurance. 55 A.L.R. 613; 73 A.L.R. 319; 81 A.L.R. 933; 104 A.L.R. 172; 112 A.L.R. 1130.

Military service as basis of exemption. 83 A.L.R. 1235.

Military service, construction and application of statutory and constitutional provisions, exempting property of persons in, or formerly in such service, from taxation. 149 A.L.R. 1485.

Soldiers’ and Sailors’ Civil Relief Act, provisions relating to taxation of property of military personnel. 32 A.L.R.2d 618.

Validity, construction and application of statutory and constitutional provisions exempting real property of persons in military service, or formerly in such service, from taxation. 7 A.L.R.7th 6.

Veterans of World War, state statutes relating to exemption from taxation of amount paid as pensions, war risk insurance, compensation, bonus, or other relief. 116 A.L.R. 1437.

44-3-4.1. Repealed.

History of Section. P.L. 1984, ch. 61, § 1; Repealed by P.L. 2006, ch. 257, § 2, and by P.L. 2006, ch. 279, § 2, effective July 3, 2006.

Compiler’s Notes.

Former § 44-3-4.1 concerned veterans’ exemptions in Glocester.

44-3-4.2. Conflicts eligible for veterans’ property tax relief.

  1. In addition to those wars and conflicts listed in subsection 44-3-4 (a)(1), any person who served in the military or naval service of the United States in the following places shall be entitled to the veteran exemptions in § 44-3-4 :
    1. Berlin: May 9, 1945 to October 2, 1990. Cold War/Show of Strength.
    2. Korea: June 27, 1950 to November 8, 1950. President Orders Intervention.
    3. Quemay and Matsu: August 23, 1956 to June 1, 1963. Show of Force and Escort.
    4. Lebanon: July 1, 1958 to November 1, 1958. Operation Bluebat, Peacekeeping.
    5. Vietnam: July 1, 1958 to July 3, 1965. Advisory/U.S. Troops Ordered to Undertake Offensive Position.
    6. Taiwan Straits: August 23, 1958 to January 1, 1959. Show of Force.
    7. Congo (Zaire): July 14, 1960 to September 1, 1962. Operation Newtape, U.N. Peacekeeping.
    8. Laos: April 19, 1961 to October 7, 1962. Counter Insurgency.
    9. Berlin: August 14, 1961 to June 1, 1963. Show of Strength.
    10. Cuba: October 24, 1962 to June 1, 1963. Missile Crisis.
    11. Congo: November 23-27, 1964. Operation Dragon, Red & Black Rescue.
    12. Vietnam Conflict & RVNCM: July 3, 1965 to March 8, 1973. U.S. Troops Ordered to Offensive Position.
    13. Dominican Republic: April 28, 1965 to September 21, 1966. Evacuation and Peacekeeping.
    14. Korea: October 1, 1966 to June 30, 1974. Treaty Commitment.
    15. Cambodia Thailand: March 29, 1973 to August 15, 1973. Bombing Campaign.
    16. Cambodia: April 11-13, 1975. Operation Eagle Pull, Evacuation.
    17. Vietnam: April 29-30, 1975. Operation Frequent Wind, Evacuation.
    18. Cambodia: May 5, 1975. Mayaguez Hostage Rescue.
    19. Sinai, Egypt: August 3, 1981 to present. Peacekeeping.
    20. Lebanon: June 1, 1983 to December 1, 1987. Peacekeeping.
    21. Grenada: October 23, 1983 to November 21, 1983. Operation Urgent Fury, Evacuation.
    22. Libya: April 12-17, 1986. Operation Eldorado Canyon.
    23. Persian Gulf: July 24, 1987 to August 1, 1990. Operation Earnest Will, Naval Escort.
    24. Panama: December 20, 1989 to January 31, 1990. Operation Just Cause.
    25. Persian Gulf: August 2, 1990 to November 30, 1995. Operation Desert Shield & Desert Storm.
    26. Operation Sharp Edge: August 5-25, 1990. Humanitarian, Liberia.
    27. Combined Task Force “Provide Comfort”: April 5, 1991 to July 31, 1993. Humanitarian-Northern Iraq & Turkey.
    28. Combined Task Force “Provide Comfort”: December 1, 1995 to December 31, 1996. Northern Iraq & Incirlik Air Base, Turkey.
    29. Joint Task Force Guantanamo Bay: November 22, 1991 to June 30, 1992. Humanitarian, Guantanamo Bay.
    30. Operation “Provide Hope”: February 1, 1992 to April 30, 1993. Humanitarian, Russia.
    31. Joint Task Force “Provide Relief”: August 18, 1992 to December 4, 1992. Humanitarian, Kenya & Somalia.
    32. Somalia: December 5, 1992 to March 31, 1995. Operation Restore Hope & United Shield.
    33. Joint Task Force “Provide Refuge”: February 11, 1993 to March 11, 1993. Humanitarian, Kwazalern, Republic of Marshall Islands.
    34. Joint Task Force 160 Operation “Sea Signal”: May 20, 1994 to April 15, 1996. Humanitarian, Guantanamo Bay.
    35. Joint Task Force “Distant Haven”: August 19, 1994 to October 31, 1994. Humanitarian, Surname.
    36. Joint Task Force “Safe Haven”: August 26, 1994 to March 3, 1995. Humanitarian, Panama.
    37. Joint Task Force 180, 190 & MNF Operations “Uphold and Restore Democracy”: September 10, 1994 to March 31, 1995. Humanitarian, Haiti.
    38. Joint Task Force “Support Hope”: July 20, 1994 to October 7, 1994. Humanitarian, Rwanda.
    39. Haiti: September 16, 1994 to March 31, 1995. Operation Uphold Democracy.
    40. El Salvador: January 1, 1981 to February 1, 1992. Advisory raining.
    41. Former Republic of Yugoslavia: November 20, 1995 to December 19, 1996 and December 20, 1996 to June 20, 1998. Operation Joint Endeavor & Guard.
    42. Wake Island, Mid-Pacific Joint Task Force “Prompt Return”: July 12, 1995 to August 10, 1995. Humanitarian, Wake Island, Mid-Pacific.
    43. Southwest Asia: December, 1995 ongoing. Operation Southern Watch, Maritime Intercept Operation, Operation Vigilant Sentinel, Operation Northern Watch, Operation Desert Thunder, Operation Desert Fox, Exercise Intrinsic Action, Exercise Iris Gold, Operation Desert Spring.
    44. Former Republic of Yugoslavia: December 20, 1995 — ongoing. Operation Joint Endeavor, Joint Guard and Force.
    45. Haiti: April 1, 1995 to January 31, 2000. Operation: UNMHI, U.S. For Haiti, USSPTG-Haiti.
    46. Liberia Joint Task Force “Assured Response”: April 8, 1996 to August 12, 1996. Humanitarian, Liberia.
    47. Kosova: March 24, 1999 — ongoing. Operation Allied Force, Joint Guardian.
  2. Persons who served in the military or naval service of the United States “Operation Noble Eagle”, “Operation Enduring Freedom”, “Operation Iraqi Freedom”; September 12, 2001 — ongoing are entitled to the veteran exemptions in § 44-3-4 .
  3. Persons who served in the military or naval service of the United States and have received the “Global War Expeditionary Medal” and the “Global War on Terrorism Medal” are entitled to the veteran exemptions in § 44-3-4 .

History of Section. P.L. 2006, ch. 2, § 1; P.L. 2006, ch. 3, § 1.

44-3-5. Gold star parents’ exemption.

  1. The property of every person whose son or daughter has served with the armed forces of the United States of America and has lost his or her life as a result of his or her service with the armed forces of the United States of America, providing the death was determined to be in the line of duty, shall be exempted from taxation to the amount of three thousand dollars ($3,000) in accordance with similar provisions of § 44-3-4 applying to honorably discharged veterans of the armed forces; provided, that there shall be but one exemption granted where both parents of the deceased son or daughter are living; provided:
    1. Cranston.  The city of Cranston may provide, by ordinance, an exemption from taxation not to exceed forty-five hundred dollars ($4,500);
    2. Warren.  The town of Warren may provide, by ordinance, an exemption from taxation not to exceed nine thousand seven hundred eighty-three dollars ($9,783);
    3. Cumberland.  The town of Cumberland may provide, by ordinance, an exemption not to exceed twenty-three thousand seven hundred seventy-two dollars ($23,772) for persons receiving a gold star exemption;
    4. North Providence.  The town of North Providence may provide, by ordinance, an exemption not to exceed five thousand dollars ($5,000) for persons receiving a gold star exemption;
    5. Smithfield.  The town of Smithfield may provide, by ordinance, an exemption not to exceed six thousand dollars ($6,000) for persons receiving a gold star exemption;
    6. Westerly.  The town of Westerly may provide, by ordinance, an exemption on the total value of real and personal property not to exceed forty-six thousand five hundred dollars ($46,500);
    7. Barrington.  The town of Barrington may provide, by ordinance, an exemption not to exceed six thousand dollars ($6,000) for real property for persons receiving a gold star exemption;
    8. Jamestown.  The town of Jamestown may provide, by ordinance, an exemption on the total value of real and personal property not to exceed five thousand dollars ($5,000);
    9. Lincoln.  The town of Lincoln may provide, by ordinance, an exemption not to exceed five thousand dollars ($5,000) for persons receiving a gold star exemption;
    10. West Warwick.  The town of West Warwick may provide, by ordinance, an exemption not to exceed two hundred twenty-five dollars ($225) for persons receiving a gold star exemption;
    11. Narragansett.  The town of Narragansett may provide, by ordinance, an exemption not to exceed twenty thousand dollars ($20,000) from the assessed value of real property, or twelve thousand dollars ($12,000) from the assessed value of a motor vehicle, for persons receiving a gold star exemption;
    12. Tiverton.  The town of Tiverton may provide, by ordinance, a tax credit of one hundred twenty dollars ($120) or greater for persons receiving a gold star exemption; and
    13. Charlestown.  The town of Charlestown may provide, by ordinance, a tax dollar credit reduction for persons receiving a gold star exemption.
  2. The adjustment shall be made to reflect the same monetary savings that appeared on the property tax bill that existed for the year prior to reevaluation of the real property. If any provision of this section is held invalid, the remainder of this section and the application of its provisions shall not be affected by that invalidity.

History of Section. G.L. 1938, ch. 29, § 6; P.L. 1949, ch. 2288, § 1; P.L. 1950, ch. 2560, § 1; G.L. 1956, § 44-3-5 ; P.L. 1983 (s.s.), ch. 337, § 1; P.L. 1984, ch. 139, § 1; P.L. 1984, ch. 342, § 1; P.L. 1984, ch. 315, § 1; P.L. 1984, ch. 358, § 1; P.L. 1985, ch. 24, § 1: P.L. 1986, ch. 50, § 1; P.L. 1986, ch. 132, § 1; P.L. 1994, ch. 320, § 1; P.L. 1995, ch. 284, § 1; P.L. 1995, ch. 362, § 1; P.L. 1996, ch. 23, § 1; P.L. 1996, ch. 25, § 1; P.L. 1996, ch. 71, § 1; P.L. 1996, ch. 80, § 1; P.L. 1996, ch. 223, § 1; P.L. 1997, ch. 335, § 1; P.L. 1999, ch. 9, § 1; P.L. 1999, ch. 19, § 1; P.L. 2002, ch. 32, § 1; P.L. 2002, ch. 308, § 1; P.L. 2003, ch. 22, § 1; P.L. 2003, ch. 39, § 1; P.L. 2004, ch. 161, § 1; P.L. 2004, ch. 176, § 1; P.L. 2005, ch. 15, § 1; P.L. 2005, ch. 30, § 1; P.L. 2005, ch. 423, § 1; P.L. 2006, ch. 89, § 1; P.L. 2006, ch. 151, § 1; P.L. 2007, ch. 398, § 1; P.L. 2007, ch. 461, § 1; P.L. 2008, ch. 79, § 1; P.L. 2008, ch. 83, § 1; P.L. 2013, ch. 259, § 1; P.L. 2013, ch. 348, § 1; P.L. 2016, ch. 312, § 2; P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2018, ch. 48, § 1; P.L. 2018, ch. 53, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1.

Compiler’s Notes.

P.L. 2013, ch. 259, § 1, and P.L. 2013, ch. 348, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 75, § 1, and P.L. 2017, ch. 99, § 1 enacted identical amendments to this section.

This section was amended by four acts (P.L. 2018, ch. 48, § 1; P.L. 2018, ch. 53, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1) as passed by the 2018 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by all four acts.

P.L. 2018, ch. 48, § 1, and P.L. 2018, ch. 53, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 65, § 1, and P.L. 2018, ch. 68, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2005, ch. 423, § 2, states that the amendments to this section by that act shall take effect upon passage and shall apply to taxes assessed on or after December 31, 2004.

NOTES TO DECISIONS

Constitutionality.

The exemption to taxation granted by this section is not in derogation of art. 1, Sec. 2 of the constitution specifying all laws should be made for the good of the whole and the burdens fairly distributed among its citizens, nor is it in derogation of Sec. 16 of such article prohibiting the taking of private property for public uses without just compensation. General Fin. Corp. v. Archetto, 93 R.I. 392 , 176 A.2d 73, 1961 R.I. LEXIS 123 (1961).

44-3-5.1. Exemptions in South Kingstown.

  1. The town council of the town of South Kingstown is hereby authorized, by ordinance, to exempt from taxation a specified dollar amount of real and/or personal property of qualified individuals, as defined in §§ 44-3-4 and 44-3-5 , who are residents of the town of South Kingstown and are:
    1. Veterans of war;
    2. Unmarried spouses of veterans of war;
    3. Veterans who are one hundred percent (100%) totally disabled through service connected disability;
    4. Gold star parents;
    5. Veterans who were prisoners of war.
  2. The exemptions granted shall be no less than the amounts allowed pursuant to §§ 44-3-4 and 44-3-5 .

History of Section. P.L. 2004, ch. 104, § 1; P.L. 2004, ch. 110, § 1.

44-3-5.2. Exemptions in Barrington.

  1. The town council of the town of Barrington is hereby authorized, by ordinance, to exempt from taxation a specified dollar amount of real and/or personal property of qualified individuals as defined pursuant to this section.
  2. A “qualified individual” means a town of Barrington resident who is:
    1. An honorably discharged veteran of the United States armed services, regardless of the veteran’s qualified service dates, or the unmarried widow or widower of the veteran;
    2. A veteran of the United States armed services who was not discharged, but has served honorably, or the unmarried widow or widower of the veteran;
    3. An honorably discharged, service-connected one hundred percent (100%) totally disabled veteran of the United States armed services, regardless of the veteran’s qualified service dates for as long as the service-connected total disability continues;
    4. A parent of a member of the United States armed services who lost his or her life in the line of duty;
    5. The unmarried widow or widower of a member of the United States armed services who lost his or her life in the line of duty; or
    6. A veteran who was a prisoner of war;

(b) The exemption granted shall be no less than the amounts allowed pursuant to §§ 44-3-4 and 44-3-5 .

History of Section. P.L. 2018, ch. 302, § 1; P.L. 2018, ch. 323, § 1.

Compiler’s Notes.

P.L. 2018, ch. 302, § 1, and P.L. 2018, ch. 323, § 1 enacted identical versions of this section.

44-3-6. General exemptions inapplicable to property used for manufacturing.

Notwithstanding any other provision of this chapter, real and personal property devoted to manufacturing purposes shall not be exempt from taxation except as provided by §§ 44-3-3(21) [now see § 44-3-3(20)], 44-3-3(23) [now see § 44-3-3(22)], 44-3-3.1 , 44-3-9 , and 44-5-38 .

History of Section. G.L. 1938, ch. 29, § 2A; P.L. 1946, ch. 1781, § 1; G.L. 1956, § 44-3-6 ; P.L. 1976, ch. 131, § 1; P.L. 1995, ch. 106, § 2.

Compiler’s Notes.

The reference to § 44-3-3(21) should now be a reference to § 44-3-3(20) and reference to § 44-3-3(23) should now be a reference to § 44-3-3(22) as a result of the 2003 amendment.

44-3-7. Repealed.

History of Section. G.L. 1938, ch. 29, § 2B; P.L. 1953, ch. 3151, § 1; G.L. 1956, § 44-3-7 ; Repealed by P.L. 1969, ch. 197, art. 7, § 6.

Compiler’s Notes.

Former § 44-3-7 concerned municipal bonds exempt from tax on intangibles.

44-3-8. Exemption of land planted to forestry.

  1. Whenever there shall have been planted one or more acres of land worth not more than twenty-five dollars ($25.00) per acre, in this state, to trees of any of the following kinds: chestnut, hickory, oak, maple, larch, pine, ash, catalpa, locust, basswood, beech, hemlock, spruce, tulip tree, cedar, sycamore, and walnut, in numbers not less than five hundred (500) to the acre, the owner of the plantation of trees may file with the tax assessors, in any city or town in which the plantation may be located, an affidavit showing that the owner has complied with the requirements of this chapter. Upon that proof, the plantation, including the trees and land on which they are growing in good condition, shall be exempted from all taxation whatsoever for a period of fifteen (15) years, the period of exemption to be counted from the time the land shall have been planted as stated in this subsection, or from the time it may have been necessary to replant the land, by reason of destruction by fire, if the land shall be replanted within one year after the destruction; provided, that the land is planted or replanted, as the case may be, and managed under a forest working plan approved by the head of the division of forest environment during the period of exemption from taxation.
  2. The provisions of this chapter shall not be construed so as to exempt from taxation more than three hundred (300) acres owned by any one person, corporation, limited partnership, or association.

History of Section. G.L. 1896, ch. 44, § 3; P.L. 1908, ch. 1581, § 1; G.L. 1909, ch. 56, § 3; G.L. 1923, ch. 58, § 3; G.L. 1938, ch. 29, § 3; impl. am. P.L. 1952, ch. 2973, § 4; G.L. 1956, § 44-3-8 .

44-3-9. Exemption or stabilizing of taxes on property used for manufacturing, commercial, or residential purposes.

    1. Except as provided in this section, the electors of any city or town qualified to vote on a proposition to appropriate money or impose a tax when legally assembled, may vote to authorize the city or town council, for a period not exceeding twenty (20) years, and subject to the conditions as provided in this section, to exempt from payment, in whole or in part, real and personal property which has undergone environmental remediation, is historically preserved, or is used for affordable housing, manufacturing, commercial, or residential purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the city or town, the city or town council determines that:
      1. Granting of the exemption or stabilization will inure to the benefit of the city or town by reason of:
        1. The willingness of the manufacturing or commercial concern to locate in the city or town, or of individuals to reside in such an area; or
        2. The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain or expand its facility in the city or town and not substantially reduce its work force in the city or town; or
        3. An improvement of the physical plant of the city or town which will result in a long-term economic benefit to the city or town and state; or
        4. An improvement which converts or makes available land or facility that would otherwise be not developable or difficult to develop without substantial environmental remediation; or
      2. Granting of the exemption or stabilization of taxes will inure to the benefit of the city or town by reason of the willingness of a manufacturing or commercial or residential firm or property owner to construct new or to replace, reconstruct, convert, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant, residential housing or commercial building investment by the firm or property owned in the city or town;
    2. Provided that should the city or town council make the determination in subparagraph (1)(i)(B) of this subsection, any exemption or stabilization may be granted as to new buildings, fixtures, machinery, or equipment for new buildings, firms or expansions, and may be granted as to existing buildings, fixtures, machinery and equipment for existing employers in the city or town.
  1. Cities shall have the same authority as is granted to towns except that authority granted to the qualified electors of a town and to town councils shall be exercised in the case of a city by the city council.
  2. For purposes of this section, “property used for commercial purposes” means any building or structures used essentially for offices or commercial enterprises.
  3. Except as provided in this section, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the city or town in which the property is located so long as the property is used for the manufacturing or commercial, or residential purposes for which the exemption or stabilized amount of taxes was made.
  4. Notwithstanding any vote of the qualified electors of a town and findings of a town council or of any vote and findings by a city council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the city or town in which the real or personal property is located, for the purpose of paying the indebtedness of the city or town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the city or town, and the interest on the indebtedness, and for appropriation to any sinking fund of the city or town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
  5. Nothing in this section shall be deemed to permit the exemption or stabilization provided in this section for any manufacturing or commercial concern relocating from one city or town within the state of Rhode Island to another.
  6. Renewable energy resources, as defined in § 39-26-5 , qualify for tax stabilization agreements pursuant to § 44-3-9(a) .

History of Section. G.L. 1896, ch. 44, §§ 4, 5; G.L. 1909, ch. 56, §§ 4, 5; P.L. 1916, ch. 1376, § 1; G.L. 1923, ch. 58, §§ 4, 5; G.L. 1938, ch. 29, §§ 4, 5; G.L. 1956, § 44-3-9 ; P.L. 1962, ch. 135, § 1; P.L. 1965, ch. 37, § 1; P.L. 1966, ch. 53, § 1; P.L. 1994, ch. 402, § 1; P.L. 1996, ch. 257, § 1; P.L. 1996, ch. 293, § 1; P.L. 1998, ch. 106, § 1; P.L. 2006, ch. 347, § 3; P.L. 2006, ch. 466, § 3; P.L. 2016, ch. 149, § 6; P.L. 2016, ch. 163, § 6.

Compiler’s Notes.

For tax exemption or tax stabilization on property used in the town of Johnston, See: P.L. 1999, ch. 101, § 1.

P.L. 2016, ch. 149, § 6, and P.L. 2016, ch. 163, § 6 enacted identical amendments to this section.

Effective Dates.

P.L. 2016, ch. 149, § 8, provides that the amendment to this section by that act takes effect upon passage [June 27, 2016], except as otherwise may be provided therein.

P.L. 2016, ch. 163, § 8, provides that the amendment to this section by that act takes effect upon passage [June 27, 2016], except as otherwise may be provided therein.

NOTES TO DECISIONS

Constitutionality.

Statute by which general assembly ratified acts of town council exempting property of certain corporations from taxation under authority of this section was not in violation of R.I. Const., Art. I, Sec. 2 , where a majority of taxpayers had authorized such exemption and the town council had approved. Crafts v. Ray, 22 R.I. 179 , 46 A. 1043, 1900 R.I. LEXIS 74 (1900).

Period of Exemption.

Period of exemption to manufacturing concern does not start to run until concern is actually located on land in the town, providing the concern acts promptly in locating in the town. Lonsdale Co. v. Taft, 34 R.I. 496 , 84 A. 795, 1912 R.I. LEXIS 74 (1912).

Theory of Exemption.

The theory of tax exemption to one who builds a factory is that a public benefit will accrue to the town and its inhabitants by the introduction of the business enterprise, and such exemption is not equivalent to giving a taxpayer’s money to the manufacturer. Crafts v. Ray, 22 R.I. 179 , 46 A. 1043, 1900 R.I. LEXIS 74 (1900).

Validity of Exemption.

Omission of property from taxation could not be justified where neither the electors nor the town council took any action pursuant to the statute. McTwiggan v. Hunter, 19 R.I. 265 , 33 A. 5, 1895 R.I. LEXIS 70 (1895).

Collateral References.

What constitutes manufacturing and who is a manufacturer under tax laws. 17 A.L.R.3d 7.

44-3-9.1. Woonsocket — Exemption or stabilizing of taxes on qualifying property located in designated districts in the city.

  1. Except as provided in this section, the city council of the city of Woonsocket may vote to authorize, for a period not exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from payment, in whole or in part, real and personal qualifying property, or to determine a stabilized amount, of taxes to be paid on account of the qualifying property located within a district designated by the city council, notwithstanding the valuation of the property or the rate of tax; provided, that after a public hearing, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the city, the city council determines that designation of the district and granting of the exemption or stabilization for qualifying property located in the city will inure to the benefit of the city by reason of the willingness of owners of qualifying property to replace, reconstruct, expand, or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, or to construct new buildings or facilities or acquire new machinery or equipment for use in such buildings or facilities, resulting in an increase in investment by such owners in the city.
  2. For purposes of this section, “qualifying property” means any building or structures used or intended to be used essentially for offices or commercial enterprises or for residential purposes.
  3. Except as provided in this section, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the city so long as that property is used or intended to be used for the manufacturing, commercial, or residential purposes for which the exemption or stabilized amount of taxes was made.
  4. Notwithstanding any vote and findings by the city council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the city, for the purpose of paying the indebtedness of the city and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the city, and the interest on the indebtedness, and for appropriation to any sinking fund of the city, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.

History of Section. P.L. 1991, ch. 109, § 1.

44-3-9.1.1. Woonsocket — Rehabilitation exemption for qualified residential structures in the city.

    1. The tax assessor of the city of Woonsocket is authorized to grant a rehabilitation exemption from taxation for certain qualified residential structures. A “qualified residential structure” is defined as a residential structure or structures which is or are certified by the building inspection services division of the city of Woonsocket as being eligible for exemption. Eligibility for the exemption may be provided if the following conditions are met:
      1. The property is strictly residential in nature, consisting of three (3) or more units on a single lot, and was acquired by the applicant at a date subsequent to its being certified as vacant by the building inspection services division. The building inspection services division will maintain a list of vacant properties, which will be updated monthly.
      2. All permits necessary for the completed renovations, which will make the building(s) meet minimum housing codes must be issued and provided to the tax assessor from the building inspection services division. An inspection of the structure by the building inspection services division, including the owner, contractor, electrical contractor, and minimum housing inspector, shall be done prior to the beginning of renovation.
    2. Upon furnishing to the city assessor proof that the requirements of subdivision (1) of this subsection have been met, the assessor shall certify to the applicant, in writing, that the property is eligible.
  1. Upon certification of eligibility, the property shall receive the following rehabilitation exemption:
    1. For both owner occupied and non-owner occupied, the assessment for the next tax year, hereinafter called “the base year,” shall be zero percent (0%) of the previous year’s valuation;
    2. If owner occupied, the assessment for the second year following certification shall be twenty percent (20%) of the base year’s valuation. If non-owner occupied, the assessment for the second year shall be fifty percent (50%) of the base year’s valuation;
    3. If owner occupied, the assessment for the third year following certification shall be forty percent (40%) of the base year’s valuation. If non-owner occupied, the assessment for the third year following certification shall be one hundred percent (100%) of the base year’s valuation plus the value of the improvements added to the original valuation;
    4. If owner occupied, the assessment for the fourth year following certification shall be sixty percent (60%) of the base year’s valuation;
    5. If owner occupied, the assessment for the fifth year following certification shall be eighty percent (80%) of the base year’s valuation;
    6. If owner occupied, the assessment for the sixth year following certification shall be one hundred percent (100%) of the base year’s valuation plus the value of the improvements added to the original valuation.
  2. If the city of Woonsocket implements property revaluation during the program, the original base year’s valuation shall be replaced by the new assessed valuation with the percentage adjustment made as specified.
  3. The rehabilitation exemption shall not apply to any of the following types of properties:
    1. Mixed commercial and residential use;
    2. Commercial and/or industrial use;
    3. Single- and two-family properties;
    4. Properties damaged by fire which are covered by insurance;
    5. Properties boarded or secured to protect mortgagor’s interest, and not due to disrepair.
  4. The rehabilitation exemption shall cease upon the occurrence of any one of the following conditions:
    1. Property is sold or title transferred at any time during the term of said exemption;
    2. Failure to complete permitted work within a timely manner as determined by the building inspector;
    3. In properties that were owner-occupied, if the owner moves out of the property, the property’s exemption changes to whatever status it would be if it were in the non-owner occupied status.

History of Section. P.L. 1996, ch. 49, § 1; P.L. 1996, ch. 67, § 1.

44-3-9.2. North Smithfield — Exemption or stabilizing of taxes on qualifying property used for manufacturing or commercial purposes.

  1. Except as provided in this section, the town council of the town of North Smithfield may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions provided in this section, to exempt from payment, in whole or in part, real and personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial firm or concern to locate in the town; or
      2. The willingness of a manufacturing or commercial firm or concern to expand facilities with an increase in employment; or
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant or commercial building investment by the firm or concern in the town.
  2. For purposes of this section, “real property used for commercial purposes” includes any building or structure used for offices or commercial enterprises including without limitation any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business and the land on which the building or structure is situated and not used for residential purposes.
  3. For purposes of this section, “personal property used for commercial purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  4. Except as provided in this section, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the town in which the property is located so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.
  5. Notwithstanding any vote and findings by the town council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the town of North Smithfield for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.

History of Section. P.L. 1993, ch. 2, § 1.

44-3-9.2.1. North Smithfield — Exemption or partial abatement of taxes for Rankin Estates.

The town council of the town of North Smithfield may vote, at a duly noticed public meeting, to grant a partial abatement of taxes for a sum total yearly abatement in the amount of fourteen thousand three hundred dollars ($14,300), for a period of seven (7) years from the date of master plan approval for a grand total of one hundred thousand one hundred dollars ($100,100) in abatements for the real property known as “Rankin Estates” which consists of property located in the town of North Smithfield laid out and designated as assessor’s plat 14, Lots 17, 19, 20, 29, 31-34, 36, 88, 93, 106, 107, 123, 125, 128, 135, 136, 139, 140, 141, 144, 145, 147, 159, 202, 242.

History of Section. P.L. 2014, ch. 427, § 1; P.L. 2014, ch. 463, § 1.

Compiler’s Notes.

P.L. 2014, ch. 427, § 1, and P.L. 2014, ch. 483, § 1 enacted identical versions of this section.

44-3-9.3. Burrillville — Exemption or stabilizing of taxes on qualifying property used for manufacturing, commercial or mixed-use purposes.

  1. Except as provided in this section, the town council of the town of Burrillville may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions as provided in this section, to exempt from payment, in whole or in part, real and personal property used for manufacturing, commercial or mixed-use purposes, or to determine a stabilized amount of taxes to be paid on account of such property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial firm or concern to locate in the town; or
      2. The willingness of a manufacturing or commercial firm or concern to expand facilities with an increase in employment; or
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing, commercial or mixed-use firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant, commercial or mixed-use building investment by the firm or concern in the town.
  2. For purposes of this section, “real property used for commercial or mixed-use purposes” includes any building or structure used for offices or commercial enterprises, including, without limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business, including mixed-use, and the land on which any such building or structure is situated and not used solely for residential purposes.
  3. For purposes of this section, “personal property used for commercial or mixed-use purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial or mixed-use purposes and used by such firm or concern in its commercial or mixed-use enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  4. Except as provided in this section, real and personal property, the payment of taxes on which has been so exempted or that is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the town in which the property is located so long as the property is used for the manufacturing, commercial or mixed-use purposes for which the exemption or stabilized amount of taxes was made.
  5. Notwithstanding any vote and findings by the town council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the town of Burrillville, for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.

History of Section. P.L. 1993, ch. 429, § 1; P.L. 2016, ch. 222, § 1; P.L. 2016, ch. 291, § 1.

Compiler’s Notes.

P.L. 2016, ch. 222, § 1, and P.L. 2016, ch. 291, § 1 enacted identical amendments to this section.

44-3-9.4. Middletown — Economic development tax incentive program — Assessed valuation exemptions or stabilizing of taxes.

  1. The town council of the Town of Middletown may, by ordinance, provide for a schedule of exemptions from assessed valuation for real and personal property of property owners or businesses which create jobs in the town and which qualify under such ordinance.
  2. The town council of the Town of Middletown may, by ordinance, provide for a schedule of exemptions from assessed valuation or determine a stabilized amount of taxes to be paid for real and personal property of property owners or businesses for any retrofit, expansion or renovation of specifically permitted uses under such ordinance and which qualify under such ordinance. The ordinance shall specify the kinds of retrofitting, expansion and renovation for which exemptions or stabilization will be permitted. The exemption shall be for a period of no more than five (5) years.
  3. The amount of the exemption or stabilization and the rules and regulations regarding the eligibility and qualification for the exemption or stabilization shall be provided by ordinance and the town council may, from time to time, by amendment to the ordinance, make those changes in the amount of exemption or stabilization or in the rules and regulations regarding eligibility and qualification for exemption as it deems necessary.

History of Section. P.L. 1996, ch. 6, § 1.

44-3-9.5. North Providence — Exemption or stabilizing of taxes on qualifying property used for manufacturing or commercial purposes.

  1. Except as provided in this section, the town council of the town of North Providence may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions as provided in this section, to exempt from payment, in whole or in part, real and personal property used for manufacturing, or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of such property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial firm or concern to locate in the town; or
      2. The willingness of a manufacturing or commercial firm or concern to expand facilities with an increase in employment; or
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant or commercial building investment by the firm or concern in the town.
  2. For purposes of this section, “real property used for commercial purposes” includes any building or structure used for offices or commercial enterprises including, without limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business, and the land on which any such building or structure is situated and not used for residential purposes.
  3. For purposes of this section, “personal property used for commercial purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  4. Except as provided in this section, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the town in which the property is located so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.
  5. Notwithstanding any vote and findings by the town council, the property shall be assessed for and shall pay that portion of the tax if any assessed by the town of North Providence for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.

History of Section. P.L. 2002, ch. 107, § 1.

44-3-9.6. Richmond — Exemption or stabilization tax on qualified property used for manufacturing or commercial purposes in the town Richmond.

  1. Except as provided in this section, the town council of the town of Richmond may vote to authorize, for a period not exceeding twenty (20) years, and subject to the conditions provided in this section, to exempt from payment, in whole or part, real and personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper of general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturer or commercial concern to locate in the town; or
      2. The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain or expand its facility in the town and not reduce its work force in the town; or
      3. An improvement of the physical plant of the town that will result in long-term economic benefits to the town and the state.
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial concern or property owner to construct new or to replace, reconstruct, convert, expand, retain or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, resulting in the maintenance of, or an increase in, the manufacturing or commercial property investment by the firm or property owner in the town.
  2. Should the town council make the determination in paragraphs (a)(1)(i) through paragraphs (a)(1)(iii), or subdivision (a)(2) of this section, an exemption or stabilization may be granted for existing buildings, property, machinery, or facilities owned by businesses already located in the town of Richmond on August 6, 2003.
  3. For the purposes of this section, “commercial property” means any structure or facility used essentially for offices or commercial enterprises.
  4. Except as provided in this section, property for which taxes have been exempted in whole or part, or stabilized pursuant to this section, shall not, during the period for which taxes have been exempted or stabilized, be further liable to taxation by the town so long as the property is used for the manufacturing or commercial purpose for which the exemption or stabilization was granted.
  5. Notwithstanding any vote of, or findings by the town council, the property shall be assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state, to the extent assessed upon or apportioned to the town, and the interest on the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
  6. Any application for tax exemption or stabilization submitted pursuant to this section shall be submitted before an application for development plan review is submitted to the Richmond Planning Board pursuant to Chapter 18 of the Code of Ordinances, as amended.
  7. Any tax exemption or stabilization granted by the town council pursuant to this section shall be applicable for a period beginning on the first day of the fiscal year in which the exemption or stabilization is granted.
  8. If a property owner whose property tax has been exempted or stabilized pursuant to this section becomes delinquent in the payment of its property taxes, or transfers ownership of its business, the town council shall have the authority to review and terminate the tax exemption or stabilization agreement.

History of Section. P.L. 2003, ch. 414, § 1.

44-3-9.7. South Kingstown — Exemption or stabilization of tax on qualified property used for manufacturing or commercial purposes in the town of South Kingstown.

  1. Except as provided in this section, the town council of the town of South Kingstown may vote to authorize, for a period not exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from payment, in whole or part, real and personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper of general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial concern to locate in the town; or
      2. The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain or expand its facility in the town and not reduce its work force in the town; or
      3. An improvement of the physical plant of the town that will result in long-term economic benefits to the town and the state.
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in, plant or commercial building investment by the firm or concern in the town.
  2. Should the town council make the determination in paragraphs (a)(1)(i) — paragraphs (a)(1)(iii), or subdivision (a)(2) of this section, an exemption or stabilization may be granted for existing buildings, property, machinery, or facilities owned by businesses already located in the town of South Kingstown on January 1, 2006.
  3. For the purposes of this section, “real property used for manufacturing or commercial purposes” includes any building or structure used for offices or commercial enterprises including without limitation any building or structure used for wholesale, warehouse, distribution, and/or storage business, used for service industries, or used for any other commercial business and the land on which the building or structure is situated and not used for residential purposes.
  4. For purposes of this section, “personal property used for manufacturing or commercial purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  5. Except as provided in this section, property for which taxes have been exempted in whole or part, or stabilized pursuant to this section, shall not, during the period for which taxes have been exempted or stabilized, be further liable to taxation by the town so long as the property is used for the manufacturing or commercial purpose for which the exemption or stabilization was granted.
  6. Notwithstanding any vote of, or findings by the town council, the property shall be assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state, to the extent assessed upon or apportioned to the town, and the interest on the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
  7. Any application for tax exemption or stabilization submitted pursuant to this section shall be submitted before an application for development plan review is submitted to the South Kingstown planning board, as applicable, or for other such permits and/or approvals that may be required from any other town board or commission.
  8. Any tax exemption or stabilization granted by the town council pursuant to this section shall be applicable for a period beginning on the first day of the fiscal year in which the exemption or stabilization is granted.
  9. If a property owner whose property tax has been exempted or stabilized pursuant to this section becomes delinquent in the payment of its property taxes, or transfers ownership of its business, the town council shall have the authority to review and terminate the tax exemption or stabilization agreement.

History of Section. P.L. 2006, ch. 351, § 1; P.L. 2006, ch. 475, § 1.

44-3-9.8. West Greenwich — Exemption or stabilization of tax on qualified property used for manufacturing or commercial purposes in the town of West Greenwich.

  1. Except as provided in this section, the town council of the town of West Greenwich may vote to authorize, for a period not exceeding twelve (12) years, and subject to the conditions provided in this section, to exempt from payment, in whole or part, real and personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper of general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial concern to locate in the town; or
      2. The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain or expand its facility in the town and not reduce its work force in the town; or
      3. An improvement of the physical plant of the town that will result in long-term economic benefits to the town and the state.
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in plant or commercial building investments by the firm or concern in the town.
  2. Should the town council make the determination in subsections (a)(1)(i) — (a)(1)(iii) or (a)(2) of this section, an exemption or stabilization may be granted for existing buildings, property, machinery, or facilities owned by businesses already located in the town of West Greenwich on January 1, 2011.
  3. For the purposes of this section, “real property used for manufacturing or commercial purposes” includes any building or structure used for offices or commercial enterprises, including, without limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage business, used for service industries, or used for any other commercial business and the land on which the building or structure is situated and not used for residential purposes.
  4. For purposes of this section, “personal property used for manufacturing or commercial purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  5. Except as provided in this section, property for which taxes have been exempted in whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes have been exempted or stabilized, be further liable to taxation by the town so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilization was granted.
  6. Notwithstanding any vote of or findings by the town council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the town for the purpose of paying the indebtedness of the town and the indebtedness of the state, or any political subdivision of the state, to the appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
  7. Any application for tax exemption or stabilization submitted pursuant to this section shall be submitted before an application for development plan review is submitted to the West Greenwich planning board, as applicable, or for other such permits and/or approvals that may be required from any other town board or commission.
  8. Any tax exemption or stabilization granted by the town council pursuant to this section shall be applicable for a period beginning on the first day of the fiscal year in which the exemption or stabilization is granted.
  9. If a property owner whose property tax has been exempted or stabilized pursuant to this section becomes delinquent in the payment of its property taxes, or transfers ownership of its business, the town council shall have the authority to review and terminate the tax exemption or stabilization agreement.

History of Section. P.L. 2012, ch. 409, § 1; P.L. 2012, ch. 417, § 1; P.L. 2019, ch. 86, § 1; P.L. 2019, ch. 87, § 1.

Compiler’s Notes.

P.L. 2012, ch. 409, § 1, and P.L. 2012, ch. 417, § 1 enacted identical versions of this section.

P.L. 2019, ch. 86, § 1, and P.L. 2019, ch. 87, § 1 enacted identical amendments to this section.

Severability.

P.L. 2012, ch. 409, § 2 provides: “If any provision of this act, or the application thereof to the town of West Greenwich or to any person or circumstances, is deemed invalid for any reason, the remainder of this act, or the application of such provision to said town or other persons or circumstances, shall not be affected thereby and, to this end, the provisions of this act are declared to be severable.”

P.L. 2012, ch. 417, § 2 provides: “If any provision of this act, or the application thereof to the town of West Greenwich or to any person or circumstances, is deemed invalid for any reason, the remainder of this act, or the application of such provision to said town or other persons or circumstances, shall not be affected thereby and, to this end, the provisions of this act are declared to be severable.”

44-3-9.9. Exemption or stabilizing of taxes on property used for manufacturing, commercial, or residential purposes in the Arctic Village redevelopment zone.

  1. Except as provided in this section, following the recommendation by the Arctic Village Redevelopment Agency of the proposed improvements, including consideration of a PILOT program, the town council of the town of West Warwick may vote to authorize, for a period not exceeding twenty (20) years, and subject to the conditions as provided in this section, to exempt from payment, in whole or in part, real and personal property, including taxes on property subject to taxation pursuant to chapter 34 of title 44 which has undergone environmental remediation or is historically preserved, or is used for manufacturing, commercial, including offices, retail and other commercial enterprises, or residential purposes in any zone created by § 44-18-30C or the Arctic Village redevelopment zone, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial concern, including office, retail and other commercial enterprises or any property owner, to locate in any zone created by § 44-18-30C or the Arctic Village redevelopment zone, or of individuals to reside in such an area; or
      2. The willingness of a manufacturing firm to locate in any zone created by § 44-18-30C or the Arctic Village redevelopment zone or to expand facilities in the Arctic Village redevelopment zone with an increase in employment or the willingness of a commercial or manufacturing concern to locate to or to retain or to expand its facility in the Arctic Village redevelopment zone; or
      3. Improvements to the physical plant in any zone created by § 44-18-30C or the Arctic Village redevelopment zone will result in a long-term economic benefit to the town and state; or
      4. Promoting improvements which convert, or make available, land or facility that would otherwise be not developable or difficult to develop without substantial environmental remediation in any zone created by § 44-18-30C or the Arctic Village redevelopment zone.
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial or residential firm or property owner to construct new or to replace, reconstruct, convert, expand, retain, or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase or maintenance in plant, residential housing, or commercial building investment by the firm or property, real or personal, owned in the Arctic Village redevelopment zone.
  2. Provided however, that should the town council make the determination contained in subparagraph (a)(1)(ii), any exemption or stabilization may be granted as to new buildings, fixtures, machinery, or equipment for new buildings, firms, or expansions, and may be granted as to existing buildings, fixtures, machinery, and equipment.
  3. For purposes of this section, “property, real or personal, used for commercial purposes” means any building or structure used essentially for offices, retail, or commercial enterprises.
  4. Except as provided in this section, property, real or personal, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the town as long as the property, real or personal, is used for the manufacturing or commercial, including office, retail, and other commercial enterprises, or residential purposes for which the exemption or stabilized amount of taxes was made.
  5. Any tax exemption or stabilization granted by the town council pursuant to this section shall be applicable for a period beginning on the first day of the fiscal year in which the exemption or stabilization is granted or the first day of the fiscal year in which a certificate of occupancy is issued for the new, renovated property.
  6. If a property owner whose property tax has been exempted or stabilized pursuant to this section becomes delinquent in the payment of its property taxes, the town council shall have the authority to review and terminate the tax exemption or stabilization agreement. Such termination shall be at the town council’s sole and absolute discretion.

History of Section. P.L. 2016, ch. 249, § 1; P.L. 2016, ch. 293, § 1.

Compiler’s Notes.

P.L. 2016, ch. 249, § 1, and P.L. 2016, ch. 293, § 1 enacted identical versions of this section.

44-3-9.10. Portsmouth — Exemption or stabilizing of taxes on qualified property used for manufacturing or commercial purposes in the town of Portsmouth.

  1. Notwithstanding any provisions of § 44-3-9 to the contrary, except as provided in this section, the town council of the town of Portsmouth may vote to authorize, for a period not exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from payment, in whole or part, real and personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper of general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial concern to locate in the town; or
      2. The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain or expand its facility in the town and not reduce its work force in the town; or
      3. An improvement of the physical plant of the town that will result in long-term economic benefits to the town and the state.
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in plant or commercial building investments by the firm or concern in the town.
  2. Should the town council make the determination in subsections (a)(1)(i) through (a)(1)(iii), or subsection (a)(2), an exemption or stabilization may be granted for existing buildings, property, machinery, or facilities owned by businesses already located in the town of Portsmouth on January 1, 2016.
  3. For the purposes of this section, “real property used for manufacturing or commercial purposes” means and includes any building or structure used for offices or commercial enterprises including, without limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage business, used for service industries, or used for any other commercial business, and not the land on which the building or structure is situated, and not used for residential purposes.
  4. For purposes of this section, “personal property used for manufacturing or commercial purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  5. Except as provided in this section, property for which taxes have been exempted in whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes have been exempted or stabilized, be further liable to taxation by the town so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilization was granted.
  6. Notwithstanding any vote of, or findings by, the town council, the property shall be assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state, to the appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
  7. Any application for tax exemption or stabilization submitted pursuant to this section shall be submitted before an application for development plan review is submitted to the Portsmouth planning board, as applicable, or for other such permits and/or approvals that may be required from any other town board or commission.
  8. Any tax exemption or stabilization granted by the town council pursuant to this section shall be applicable for a period beginning on the first day of the fiscal year in which the exemption or stabilization is granted.
  9. If a property owner whose property tax has been exempted or stabilized pursuant to this section becomes delinquent in the payment of its property taxes, or transfers ownership of its business, the town council shall have the authority to review and terminate the tax exemption or stabilization agreement.
  10. Nothing in this section shall be deemed to permit the exemption or stabilization provided in this section for any manufacturing or commercial concern relocating from one city or town within the state of Rhode Island to the town of Portsmouth.

History of Section. P.L. 2016, ch. 220, § 1; P.L. 2016, ch. 260, § 1.

Compiler’s Notes.

P.L. 2016, ch. 220, § 1, and P.L. 2016, ch. 260, § 1 enacted identical versions of this section.

44-3-9.11. Smithfield — Exemption or stabilizing of taxes on qualifying property used for manufacturing or commercial purposes.

  1. Except as provided in this section, the town council of the town of Smithfield may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions provided in this section, to exempt from payment, in whole or in part, real and/or personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which shall be given in a newspaper having a general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial firm or concern to locate in the town; or
      2. The willingness of a manufacturing or commercial firm or concern to expand facilities with an increase in employment; or
    2. Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant or commercial building investment by the firm or concern in the town.
  2. For purposes of this section, “real property used for commercial purposes” includes any building or structure used for offices or commercial enterprises including, without limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business, and the land on which the building or structure is situated and not used for residential purposes.
  3. For purposes of this section, “personal property used for commercial purposes” means any personal property owned by a firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  4. Except as provided in this section, property, the payment of taxes on which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the town in which the property is located so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.
  5. Notwithstanding any vote and findings by the town council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the town of Smithfield for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.

History of Section. P.L. 2021, ch. 254, § 1, effective July 14, 2021; P.L. 2021, ch. 256, § 1, effective July 14, 2021.

Compiler's Notes.

P.L. 2021, ch. 254, § 1, and P.L. 2021, ch. 256, § 1 enacted identical versions of this section.

44-3-10. Idle manufacturing or mill property — Exemption.

The city council of any city or the town council of any town may, with the approval of the tax administrator appointed pursuant to the provisions of § 44-1-1 , wholly or partially exempt from taxation for a period of not exceeding one year manufacturing or mill buildings in which manufacturing has not been carried on for at least one year immediately prior to the granting of the exemption, and, if so determined, the personal property located in the city or town, with like power to repeat the action as often as may be deemed best; provided, that the owner agrees in writing with the tax administrator that the building or buildings so exempted shall not be torn down and that the personal property, if exempted, shall not be removed from the premises during the period for which the exemption is granted; and, provided, that the owner of the building or buildings agrees in writing with the tax administrator upon a price that the owner will accept for the property so exempted during the period of the exemption.

History of Section. P.L. 1939, ch. 694, § 1; P.L. 1940, ch. 921, § 1; G.L. 1956, § 44-3-10 .

44-3-11. South Kingstown and Narragansett — Exemption of railroad property.

The electors of the towns of South Kingstown and Narragansett, or either of the towns, qualified to vote on a proposition to impose a tax, when legally assembled, may vote to exempt, or may authorize the town council of the town to exempt, from taxation the real and personal property located within the town of any railroad corporation, the motive power of which is steam, gas, or electricity, and whose right of way and tracks lie wholly within the boundaries of this state until and unless in the fiscal year preceding the date for assessment of taxes in the town, the net receipts of the railroad applicable to dividends or other form of distribution of corporate earnings shall in the year amount to a sum that is not less than two percent (2%) of the aggregate valuation of the property of the railroad as determined by the Interstate Commerce Commission or other federal board of appraisement, or in the absence of the determination, of the total capital stock paid in and earned surplus of the railroad. Property so exempted under this section shall not during the period of exemption be liable to taxation, except and unless upon the conditions stated in this section.

History of Section. G.L. 1909, ch. 56, §§ 8, 9; P.L. 1920, ch. 1930, § 1; G.L. 1923, ch. 58, §§ 7, 8; G.L. 1938, ch. 29, §§ 7, 8; G.L. 1956, § 44-3-11 .

44-3-12. Visually impaired persons — Exemption.

  1. The property of each person who is legally blind according to federal standards as certified by a licensed physician or as certified by the Rhode Island services for the blind and visually impaired shall be exempted from taxation to the amount of six thousand dollars ($6,000), except for the towns of:
  2. In each city or town that has not increased the exemption provided by subsection (a) above the minimum of six thousand dollars ($6,000), except for the town of:
  3. The town of Charlestown may, by ordinance, provide a tax dollar credit reduction for such legally blind person.

Tiverton. Which exemption shall be provided by town ordinance as a tax credit of three hundred dollars ($300) or greater; and

Warren. Which exemption shall be up to forty thousand eight hundred ninety-five dollars ($40,895); and

Barrington. Which exemption shall be sixteen thousand dollars ($16,000) for real property. The exemption shall apply to the property in the municipality where the person resides, and if there is not sufficient property to exhaust the exemption, the person may proclaim the balance in any city or town where he or she may own property; except for the town of Cumberland, which exemption shall be up to forty-seven thousand five hundred forty-four dollars ($47,544); and

Westerly. Which may provide, by ordinance, an exemption on the total value of real and personal property not to exceed twenty-nine thousand dollars ($29,000). The city or town council of any city or town may, by ordinance, increase the exemption within the city or town to an amount not to exceed twenty-two thousand five hundred dollars ($22,500). The exemption shall not be allowed in favor of any person who is not a legal resident of the state, or unless the person entitled to the exemption shall have presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which exemption is claimed, due evidence that he or she is so entitled, which evidence shall stand so long as his or her legal residence remains unchanged. The exemption provided for in this section, to the extent that it shall apply to any city or town, shall be applied in full to the total value of the person’s real and tangible personal property located in the city or town and shall be applied to intangible personal property only to the extent that there is not sufficient real property or tangible personal property to exhaust the exemption. This exemption shall be in addition to any other exemption provided by law except as provided in § 44-3-25 .

West Warwick. Which exemption shall be equal to three hundred thirty-five dollars ($335).

Barrington. Which exemption shall be sixteen thousand dollars ($16,000) for real property. The exemption shall increase automatically each year by the same percentage as the percentage increase in the total amount of taxes levied by the city or town. The automatic increase shall not apply to cities or towns that have increased the exemption provided by subsection (a) above the minimum of six thousand dollars ($6,000), except for the town of:

Barrington. Which exemption shall be sixteen thousand dollars ($16,000) for real property. If the application of the automatic increase to an exemption of six thousand dollars ($6,000) on a continuous basis from December 31, 1987, to any subsequent assessment date would result in a higher exemption than the exemption enacted by the city or town council, then the amount provided by the automatic increase applies.

History of Section. P.L. 1959, ch. 150, § 1; P.L. 1974, ch. 278, § 1; P.L. 1979, ch. 275, § 1; P.L. 1983 (s.s.), ch. 337, § 1; P.L. 1984, ch. 109, § 1; P.L. 1985, ch. 24, § 1; P.L. 1985, ch. 135, § 1; P.L. 1985, ch. 165, § 1; P.L. 1985, ch. 204, § 1; P.L. 1986, ch. 27, § 1; P.L. 1986, ch. 50, § 1; P.L. 1986, ch. 132, § 1; P.L. 1987, ch. 369, § 1; P.L. 1993, ch. 157, § 2; P.L. 1993, ch. 334, § 2; P.L. 1995, ch. 284, § 1; P.L. 1995, ch. 362, § 1; P.L. 1995, ch. 382, § 1; P.L. 1996, ch. 23, § 1; P.L. 1996, ch. 25, § 1; P.L. 1996, ch. 71, § 1; P.L. 1996, ch. 80, § 1; P.L. 1997, ch. 335, § 1; P.L. 1999, ch. 9, § 2; P.L. 1999, ch. 19, § 2; P.L. 2004, ch. 161, § 1; P.L. 2004, ch. 176, § 1; P.L. 2005, ch. 15, § 1; P.L. 2005, ch. 30, § 1; P.L. 2005, ch. 410, § 26; P.L. 2005, ch. 423, § 1; P.L. 2006, ch. 89, § 1; P.L. 2006, ch. 151, § 1; P.L. 2007, ch. 398, § 1; P.L. 2007, ch. 461, § 1; P.L. 2008, ch. 79, § 1; P.L. 2008, ch. 83, § 1; P.L. 2013, ch. 259, § 1; P.L. 2013, ch. 348, § 1; P.L. 2016, ch. 304, § 1; P.L. 2016, ch. 324, § 1; P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2017, ch. 270, § 1; P.L. 2017, ch. 359, § 1; P.L. 2018, ch. 48, § 1; P.L. 2018, ch. 53, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1.

Compiler’s Notes.

P.L. 2013, ch. 259, § 1, and P.L. 2013, ch. 348, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 304, § 1, and P.L. 2016, ch. 324, § 1 enacted identical amendments to this section.

This section was amended by four acts (P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2017, ch. 270, § 1; P.L. 2017, ch. 359, § 1) as passed by the 2017 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all four acts.

P.L. 2017, ch. 75, § 1, and P.L. 2017, ch. 99, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 270, § 1, and P.L. 2017, ch. 359, § 1 enacted identical amendments to this section.

This section was amended by four acts (P.L. 2018, ch. 48, § 1; P.L. 2018, ch. 53, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1) as passed by the 2018 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by all four acts.

P.L. 2018, ch. 48, § 1, and P.L. 2018, ch. 53, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 65, § 1, and P.L. 2018, ch. 68, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2005, ch. 423, § 2, states that the amendments to this section by that act shall take effect upon passage and shall apply to taxes assessed on or after December 31, 2004.

44-3-13. Persons over the age of 65 years — Exemption.

  1. Bristol.  The town of Bristol may exempt from taxation the real estate situated in the town owned and occupied by any resident over the age of sixty-five (65) years, as of the preceding December 31st; or, over the age of seventy (70) years, as of the preceding December 31st; or, over the age of seventy-five (75) years, as of the preceding December 31st, and which exemption is in addition to any and all other exemptions from taxation to which the resident may otherwise be entitled. The exemption shall be applied uniformly and without regard to ability to pay. Only one exemption shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all the cotenants, joint tenants and tenants by the entirety are sixty-five (65) years of age or over as of the preceding December 31st. The exemption applies to a life tenant who has the obligation for payment of the tax on real estate. The town council of the town of Bristol shall, by ordinance, establish the value of this exemption.
  2. Central Falls.  The city of Central Falls may, by ordinance, exempt from taxation, real or personal property located within the city of any person sixty-five (65) years or over, which exemption shall be in an amount not exceeding seven thousand five hundred dollars ($7,500) of valuation and which exemption is in addition to any and all other exemptions from taxation and tax credits to which the person may be entitled by this chapter or any other provision of law.
  3. Cranston.
    1. The city council of the city of Cranston may, by ordinance, exempt from valuation for taxation the real property situated in the city and owned and occupied by any person over the age of sixty-five (65) years which exemption is in an amount not exceeding nine thousand dollars ($9,000) and which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly and without regard to ability to pay.
    2. The city council of the city of Cranston may, by ordinance, exempt from valuation for taxation the property subject to the excise tax situated in the city and owned by any person over the age of sixty-five (65) years, not owning real property, which exemption is in an amount not exceeding three thousand dollars ($3,000) and which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly and without regard to ability to pay.
  4. East Greenwich.  The town council of the town of East Greenwich may, by ordinance, and upon any terms and conditions that it deems reasonable, exempt from taxation the real estate situated in the town of East Greenwich owned and occupied by any resident of the age of sixty-five (65) to seventy (70) years, as of the preceding December 31st up to an amount of twenty-six thousand dollars ($26,000); or, of the age of seventy (70) to seventy-five (75) years, as of the preceding December 31st up to an amount of thirty-four thousand dollars ($34,000); or, of the age of seventy-five (75) to eighty (80) years, as of the preceding December 31st up to an amount of forty-two thousand dollars ($42,000); or, of the age of eighty (80) to eighty-five (85) years, as of the preceding December 31st up to an amount of fifty thousand dollars ($50,000); or, of the age of eighty-five (85) years or more, as of the preceding December 31st up to an amount of fifty-eight thousand dollars ($58,000), and which exemption is in addition to any and all other exemptions from taxation to which the resident may otherwise be entitled. The exemption shall be applied uniformly and without regard to ability to pay. Only one exemption shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all the cotenants, joint tenants, and tenants by the entirety are eligible for an exemption pursuant to this subsection. The exemption applies to a life tenant who has the obligation for payment of the tax on real estate.
  5. Lincoln.  The town council of the town of Lincoln may, by ordinance, exempt from taxation the real property, situated in said town, owned and occupied for a period of five (5) years by any person over the age of sixty-five (65) years, which exemption shall be in an amount not exceeding twenty-four thousand four hundred and forty dollars ($24,440) of valuation, and which exemption shall be in addition to any and all other exemptions from taxation to which said person may be otherwise entitled. Said exemption shall be applied uniformly and without regard to ability to pay.
  6. North Providence.  The town council of the town of North Providence may, by ordinance, exempt from valuation for taxation the real property located within the town of any person sixty-five (65) years or over, which exemption is in amount not exceeding ten thousand dollars ($10,000) of valuation and which exemption shall be in addition to any and all other exemptions from taxation and tax credits to which the person may be entitled by this chapter or any other provision of law.
  7. Tiverton.  The town council of the town of Tiverton may, by ordinance, exempt from taxation the real property situated in the town owned and occupied by any person over the age of sixty-five (65) years, and which exemption is in an amount not exceeding ten thousand dollars ($10,000) of valuation, and which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly and without regard to ability to pay. Only one exemption shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all of the cotenants, joint tenants, and tenants by the entirety are sixty-five (65) years of age or over. The exemption applies to a life tenant who has the obligation for the payment of the tax on real property.
  8. Warren.  The town council of the town of Warren may, by ordinance, exempt from taxation the real property situated in the town owned and occupied by any person over the age of sixty-five (65) years, and which exemption is in amount not exceeding thirty thousand six hundred fifty-six dollars ($30,656) of valuation and which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly and without regard to ability to pay. Only one exemption shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all of the cotenants, joint tenants, and tenants by the entirety are sixty-five (65) years of age or over. The exemption applies to a life tenant who has the obligation for the payment of the tax on the real property.
  9. Warwick.  The finance director of the city of Warwick may, by ordinance, exempt from taxation owner occupied residential real property or personal property located within the city of any person sixty-five (65) years or over, which exemption is in an amount not exceeding twelve thousand dollars ($12,000) of valuation and which exemption is in addition to any and all other exemptions from taxation and tax credits to which the person may be entitled by this chapter or any other provision of law.
  10. Westerly.  The town council of the town of Westerly may, by ordinance, exempt from taxation a real property situated in the town owned and occupied for a period of five (5) years next prior to filing of an application for a tax exemption, by any person over the age of sixty-five (65) years, and which exemption is in an amount and pursuant to any income limitations that the council may prescribe in the ordinance from time to time, and which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly and without regard to ability to pay. Only one exemption shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all of the cotenants, joint tenants, and tenants by the entirety are sixty-five (65) years of age or over. The exemption applies to a life tenant who has the obligation for the payment of the tax on real property.
  11. Charlestown.  The town council of the town of Charlestown may, by ordinance, and upon any terms and conditions that it deems reasonable, create a tax dollar credit reduction of taxation against real estate situated in the town of Charlestown owned and occupied by any resident of the age of sixty-five (65) years or over, and which credit is in an amount and pursuant to any income limitations that the council may prescribe in the ordinance, from time to time, and which credit is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The credit shall be applied uniformly and without regard to ability to pay. Only one credit shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all of the cotenants, joint tenants, and tenants by the entirety are sixty-five (65) years of age or over. The credit applies to a life tenant who has the obligation for the payment of the tax on real property.

History of Section. P.L. 1963, ch. 186, § 1; P.L. 1977, ch. 29, § 1; P.L. 1984, ch. 111, § 1; P.L. 1985, ch. 135, § 1; P.L. 1986, ch. 50, § 1; P.L. 1986, ch. 132, § 1; P.L. 1990, ch. 130, § 1; P.L. 1990, ch. 470, § 1; P.L. 1991, ch. 414, § 1; P.L. 1992, ch. 42, § 1; P.L. 1993, ch. 157, § 3; P.L. 1993, ch. 334, § 3; P.L. 1994, ch. 33, § 1; P.L. 1994, ch. 169, § 1; P.L. 1994, ch. 219, § 1; P.L. 1995, ch. 348, § 1; P.L. 1997, ch. 335, § 1; P.L. 1998, ch. 204, § 1; P.L. 2001, ch. 30, § 1; P.L. 2002, ch. 48, § 1; P.L. 2002, ch. 283, § 1; P.L. 2002, ch. 342, § 1; P.L. 2004, ch. 161, § 1; P.L. 2004, ch. 176, § 1; P.L. 2004, ch. 232, § 1; P.L. 2004, ch. 250, § 1; P.L. 2005, ch. 32, § 1; P.L. 2005, ch. 62, § 1; P.L. 2005, ch. 441, § 1; P.L. 2007, ch. 352, § 1; P.L. 2007, ch. 465, § 1; P.L. 2008, ch. 328, § 1; P.L. 2008, ch. 398, § 1; P.L. 2009, ch. 269, § 1; P.L. 2009, ch. 270, § 1; P.L. 2011, ch. 161, § 1; P.L. 2011, ch. 184, § 1; P.L. 2013, ch. 259, § 1; P.L. 2013, ch. 348, § 1; P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1.

Compiler’s Notes.

In 2000, the compiler added subsection (j), pursuant to an amendment contained in P.L. 1982, chs. 96 and 174, which became effective when the relevant referendum was approved by the people in Lincoln on June 29, 1982.

Other laws authorizing tax relief to certain elderly or disabled persons were enacted relating to the following cities and towns:

Barrington (P.L. 1964, ch. 41; P.L. 1967, ch. 117; P.L. 1972, ch. 61; P.L. 1977, ch. 6; P.L. 1979, ch. 225, subject to local approval);

Bristol (P.L. 1964, ch. 145; P.L. 1975, ch. 36);

Burrillville (P.L. 1973, ch. 22; P.L. 1981, ch. 92; P.L. 1984, ch. 90; P.L. 2017, ch. 159; P.L. 2017, ch. 162).

Central Falls (P.L. 1973, ch. 17);

Charlestown (P.L. 1968, ch. 41, subject to referendum; P.L. 1978, ch. 8; P.L. 1978, ch. 178; P.L. 1982, ch. 37);

Coventry (P.L. 1963, ch. 204);

Cranston (P.L. 1963, ch. 184; P.L. 1972, ch. 76; P.L. 1974, ch. 64; P.L. 1977, ch. 5; P.L. 1979, ch. 92, subject to local approval);

Cumberland (P.L. 1973, ch. 188);

East Greenwich (P.L. 1966, ch. 143; P.L. 1967, ch. 45, subject to referendum; P.L. 1972, chs. 181, 182; P.L. 1977, ch. 39; P.L. 1978, ch. 84, local approval);

East Providence (P.L. 1963, ch. 188; P.L. 1973, ch. 45; P.L. 1978, ch. 9, subject to local approval);

Exeter (P.L. 1968, ch. 254; P.L. 1976, ch. 56);

Foster (P.L. 1964, ch. 33; P.L. 1974, ch. 30);

Glocester (P.L. 1975, ch. 9; P.L. 1979, ch. 45, subject to local approval);

Hopkinton (P.L. 1968, ch. 79, subject to referendum; P.L. 1974, ch. 46);

Jamestown (P.L. 1974, ch. 288);

Johnston (P.L. 1964, ch. 97);

Lincoln (P.L. 1963, ch. 174; P.L. 1964, ch. 31; P.L. 1974, ch. 102; P.L. 1982, ch. 96; P.L. 1982, ch. 174, subject to local approval);

Middletown (P.L. 1970, ch. 169);

Narragansett (P.L. 1982, ch. 115);

Newport (P.L. 1983 (s.s.), ch. 337, subject to local approval);

New Shoreham (P.L. 1978, ch. 99; P.L. 1978, ch. 171);

North Kingstown (P.L. 1964, ch. 26; P.L. 1973, ch. 278);

North Providence (P.L. 1966, ch. 163; P.L. 1974, ch. 17; P.L. 1978, ch. 11; P.L. 1986, ch. 50);

North Smithfield (P.L. 1964, ch. 73; P.L. 1974, ch. 17);

Pawtucket (P.L. 1974, ch. 38);

Portsmouth (P.L. 1974, ch. 53; P.L. 1974, ch. 103; P.L. 1978, chs. 18, 19, local approval; P.L. 1979, ch. 42, subject to local approval; P.L. 1979, ch. 44, subject to local approval; P.L. 1979, ch. 103; P.L. 1982, ch. 22, subject to local approval);

Providence (P.L. 1974, ch. 47; P.L. 1975, ch. 187; P.L. 1979, ch. 174; P.L. 1986, ch. 501);

Richmond (P.L. 1970, ch. 260; P.L. 1975, ch. 187; P.L. 1974, ch. 285; P.L. 1982, ch. 211, subject to local approval);

Scituate (P.L. 1969, ch. 19; P.L. 1979, ch. 200);

Smithfield (P.L. 1982, ch. 35; P.L. 1984, ch. 315; P.L. 1984, ch. 358; subject to local approval);

South Kingstown (P.L. 1968, ch. 144; P.L. 1973, ch. 33; P.L. 1975, ch. 47);

Tiverton (P.L. 1973, ch. 36; P.L. 1978, ch. 61, local approval);

Warren (P.L. 1964, ch. 141; P.L. 1987, ch. 219);

Warwick (P.L. 1970, ch. 310; P.L. 1977, ch. 28; P.L. 1979, ch. 4; P.L. 1986, ch. 130);

Washington lighting district (P.L. 1971, ch. 196);

Westerly (P.L. 1967, ch. 77; P.L. 1970, ch. 245; P.L. 1977, ch. 76; P.L. 1981, ch. 66; P.L. 1986, ch. 134);

West Greenwich (P.L. 1972, ch. 12; P.L. 1975, ch. 48);

West Warwick (P.L. 1965, ch. 129; P.L. 1981, ch. 47; P.L. 1987, ch. 235) (see § 44-3-13.1 );

Woonsocket (P.L. 1977, ch. 23).

P.L. 2011, ch. 161, § 1, and P.L. 2011, ch. 184, § 1 enacted identical amendments to this section.

P.L. 2013, ch. 259, § 1, and P.L. 2013, ch. 348, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 75, § 1, and P.L. 2017, ch. 99, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 65, § 1, and P.L. 2018, ch. 68, § 1 enacted identical amendments to this section.

Cross References.

Adjustment of exemption upon reevaluation of real property, § 44-3-24 .

Freezing of tax rate and valuation for elderly or disabled, certain cities, § 44-3-16 .

44-3-13.1. West Warwick — Exemption of persons over the age of 65 years.

The town council of the town of West Warwick may, by ordinance, exempt from taxation the real property situated in the town owned and occupied by any person over the age of sixty-five (65) years, and which exemption is in an amount up to ten thousand dollars ($10,000), and which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly and without regard to ability to pay. Only one exemption shall be granted to cotenants, joint tenants, and tenants by the entirety, even though all of the cotenants, joint tenants, and tenants by the entirety are sixty-five (65) years of age or over. The exemption applies to a life tenant who has the obligation for the payment of the tax on the real property.

History of Section. P.L. 1984, ch. 38, § 1; P.L. 1994, ch. 124, § 1; P.L. 2007, ch. 398, § 1; P.L. 2007, ch. 461, § 1; P.L. 2016, ch. 248, § 1; P.L. 2016, ch. 279, § 1.

Compiler’s Notes.

P.L. 2016, ch. 248, § 1, and P.L. 2016, ch. 279, § 1 enacted identical amendments to this section.

44-3-13.2. Cumberland — Exemption of persons over the age of 65 years.

The town council of the town of Cumberland may, by ordinance, exempt from taxation the real property situated in the town owned and occupied by any person sixty-five (65) years and over, and which exemption is in an amount not exceeding forty-seven thousand five hundred forty-four dollars ($47,544). Any elderly person is entitled to an additional exemption of ten thousand five hundred sixty-seven dollars ($10,567) if yearly total income from all sources is as follows:

  1. $ 0.00 — $ 10,500 for a single owner occupying a single-family dwelling.
  2. $ 0.00 — $ 15,000 for two (2) or more owners occupying a single-family dwelling.

History of Section. P.L. 1985, ch. 24, § 2; P.L. 1995, ch. 284, § 1; P.L. 1995, ch. 362, § 1; P.L. 2005, ch. 423, § 1.

Applicability.

P.L. 2005, ch. 423, § 2, states that the amendments to this section by that act shall take effect upon passage and shall apply to taxes assessed on or after December 31, 2004.

44-3-13.3. North Kingstown — Exemption of property of totally disabled persons.

  1. The town council of the town of North Kingstown may, by ordinance, exempt from taxation any real property situated in the town which is owned and occupied by any one or more persons who is a domiciled resident of the town of North Kingstown and who is determined to be totally disabled by the Social Security Administration. The amount of the exemption and the rules and regulations regarding eligibility for the exemption shall be provided for by ordinance and the town council of the town of North Kingstown may, from time to time, by amendment to the ordinance, make any changes in the amount of exemption granted and the rules and regulations regarding eligibility for the exemption that it deems necessary to promote the purpose of this section.
  2. The town council of the town of North Kingstown is authorized in the ordinance to provide that any person who obtains an exemption pursuant to the ordinance to which the person is not entitled by the filing or making of any false statement or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information is liable to the town of North Kingstown for an amount equal to double the amount of reductions in taxes resulting from the exemption, which amount is recoverable by the town in a civil action.
  3. The question of the acceptance or rejection of this section shall be submitted to the qualified electors of the town of North Kingstown entitled to vote upon a proposition to impose a tax or for the expenditure of money at the next general or special election to be held after June 19, 1986, and no other action shall be taken under the authority of this section unless a majority of the electors voting on the question, vote to accept this section.

History of Section. P.L. 1986, ch. 129, § 1.

44-3-13.4. Low or moderate income housing — Exemption.

The town or city councils of any municipality of the state may, by ordinance, exempt from taxation, in whole or in part, the real property situated in that city or town which is occupied by persons or families of low or moderate income. The amount of the exemption and the rules and regulations regarding eligibility for the exemption shall be provided for by ordinance, and the city or town council may, from time to time, by amendment to the ordinance, make those changes in the amount of exemption granted in the rules and regulations regarding eligibility for exemption, as it deems necessary to promote the purposes of this section. The exemption may continue during a term of any mortgage granted by the Rhode Island housing and mortgage finance corporation on the real property, or until the time the real property is not occupied by persons of low or moderate income as their primary residence.

History of Section. P.L. 1989, ch. 395, § 1.

44-3-13.5. Glocester — Exemption of elderly and disabled persons.

  1. The town council of Glocester may, by ordinance, issue a tax credit for real property situated in the town of Glocester which is owned and occupied by owners over sixty-five (65) years of age or under sixty-five (65) years of age who are permanently disabled in an amount of one thousand one hundred fifty dollars ($1,150) adjusted annually by the rate of the annual tax increase, if any, times the per one thousand dollar ($1,000) average valuation of the exempted real properties and in like manner may also by ordinance issue a tax credit for real property situated in the town which is owned and occupied by owners with a combined adjusted gross taxable annual income not to exceed twenty-three thousand dollars ($23,000) adjusted annually by the consumer price index — all urban customers (CPI-U) published by the Bureau of Labor Statistics of the United States Department of Labor as set forth in the following schedule:
    1. Owners who are sixty-five (65) but less than eighty (80) years of age: — an additional tax credit not to exceed one thousand five hundred dollars ($1,500);
    2. Owners who are eighty (80) years of age or older: — an additional tax credit not to exceed four thousand five hundred ($4,500).
  2. The exemption shall be pro-rated among the owners of the real property and shall be in addition to any and all other exemptions from taxation to which the person may be otherwise entitled. The exemption shall be applied uniformly. Only one exemption shall be granted to co-tenants, joint tenants, and tenants by the entirety, even though all of the co-tenants, joint tenants, and tenants by the entirety are eligible for an exemption. The provisions of this section apply notwithstanding the provisions of § 44-3-15 .

History of Section. P.L. 1998, ch. 223, § 1; P.L. 2002, ch. 358, § 1; P.L. 2006, ch. 180, § 1; P.L. 2006, ch. 257, § 1; P.L. 2006, ch. 279, § 1; P.L. 2006, ch. 280, § 1.

44-3-13.6. Jamestown — Exemption of persons 65 years and over.

  1. The town council of the town of Jamestown may, by ordinance, exempt from valuation for taxation, the real property situated in the town and owned and occupied by any person sixty-five (65) years or over, which exemption is in addition to any and all other exemptions from taxation to which the person may be otherwise entitled.
    1. The town council of the town of Jamestown may, from time to time, by ordinance, make changes in the amount of exemption granted and the rules and regulations as it deems necessary to promote the purpose of this section. The schedule of exemptions is as follows:
      1. Taxpayers with an income of not less than two hundred percent (200%) and not more than two hundred twenty percent (220%) of the federal poverty guideline an exemption of twenty percent (20%) of the assessment cap or the assessed valuation, whichever is less;
      2. Taxpayers with an income of not less than one hundred and eighty percent (180%) and not more than two hundred percent (200%) of the federal poverty guideline an exemption of thirty percent (30%) of the assessment cap or the assessed valuation, whichever is less;
      3. Taxpayers with an income of not less than one hundred and sixty percent (160%) and not more than one hundred and eighty percent (180%) of the federal poverty guideline an exemption of forty percent (40%) of the assessment cap or the assessed valuation, whichever is less;
      4. Taxpayers with an income of not less than one hundred and forty percent (140%) and not more than one hundred and sixty percent (160%) of the federal poverty guideline an exemption of fifty percent (50%) of the assessment cap or the assessed valuation, whichever is less; and
      5. Taxpayers with an income of not more than one hundred and forty percent (140%) of the federal poverty guideline an exemption of sixty percent (60%) of the assessment cap or the assessed valuation, whichever is less.
    2. Notwithstanding anything to the contrary contained in this section, any person receiving an exemption pursuant to chapter 359 of the Public Laws January Session 1984, at the time of the adoption of the ordinance contemplated in this section and whose property is assessed in excess of the assessment cap and who qualifies for an exemption under the terms of any ordinance adopted pursuant to this chapter shall receive an exemption based on the assessment value, not limited by the assessment cap.
    3. For purposes of this section, the income described in subdivision (1) of this subsection is that specified in the federal poverty guideline for one person for all individual owners and that specified for a family of two (2) for all joint owners, including husband and wife. Only one exemption is granted to cotenants, joint tenants, and tenants by the entirety, even though all the cotenants, joint tenants and tenants by the entirety are sixty-five (65) years of age or over and occupy the property. In addition to the requirements of domicile within the town of Jamestown at the time of making application, the applicant must have been a resident of the town for a period of five (5) years ending with the date of assessment for the year for which exemption is claimed; provided, however, that the exemption shall not be allowed in favor of any person unless the individual has presented to the assessor a true and exact account of his or her ratable estate as provided for in §§ 44-5-15 and 44-5-16 for the year for which exemption is claimed, together with evidence that he or she is entitled to the exemption.
  2. No income-bearing residential property, business or combination of business and residential property, owned and occupied by any person or persons sixty-five (65) years of age or over is entitled to the exemption provided in this section. It is the express purpose of this section to confine the exemption to residential property exclusively used as residential property by the owners of the property. Professional persons who operate and conduct their respective professions from their residences are not entitled to the exemption provided for in this section. The practice of the profession from any residence is deemed, for the purpose of this section, to constitute it income-bearing property.
  3. All exemptions terminate upon the conveyance of the subject property, death of the person excepted, or the moving of the person from the town of Jamestown; also when the subject property is altered as to character and use that the property becomes subject to the provisions of subsection (e) of this section.
  4. When used in this section:
    1. “Federal poverty guideline” means the poverty guidelines issued each year by the Department of Health and Human Services and published in the federal register.
      1. “Income” in subsection (b) of this section means annual cash receipts before taxes from all sources except as provided in this section. Income includes money wages and salaries before any deductions; net receipts from non-farm self-employment (receipts from a person’s own unincorporated business, professional enterprise, or partnership, after deductions for business expenses); net receipts from farm self-employment (receipts from a farm which one operates as an owner, renter, or sharecropper, after deductions for farm operating expenses); regular payments from social security, railroad retirement, unemployment compensation, strike benefits from union funds, workers’ compensation, veterans’ payments, public assistance (including aid to families with dependent children or temporary assistance for needy families, supplemental security income, and non-federally-funded general assistance or general relief money payments), and training stipends; alimony, child support, and military family allotments or other regular support from an absent family member or someone not living in the household; private pensions, government employee pensions (including military retirement pay), and regular insurance or annuity payments; college or university scholarships, grants, fellowships, and assistantships; and dividends, interest, net rental income, net royalties, periodic receipts from estate or trusts, and net gambling or lottery winnings.
      2. “Income” does not include the following types of money received; capital gains; any assets drawn down as withdrawals from a bank, the sale of property, a house, or a car; or tax refunds, gifts, loans, lump-sum inheritances, one-time insurance payments, or compensation for injury. Also excluded are non-cash benefits, such as the employer-paid or union-paid portion of health insurance or other employee fringe benefits, food or housing received in lieu of wages, the value of food and fuel produced and consumed on farms, the imputed value of rent from own-occupied non-farm or farm housing, and federal non-cash benefit programs like Medicare, Medicaid, food stamps, school lunches, and housing assistance.
    2. “Resident” means one legally domiciled within the town of Jamestown for a period of five (5) years ending with the date of assessment for a year for which the exemption is claimed. Mere seasonal or temporary residence within the town, of whatever duration, does not constitute domicile within the town for the purposes of this section. Absence from the town for a period of twelve (12) months is prima facie evidence of abandonment of domicile in the town. The burden of establishing legal domicile within the town is upon the applicant.
    3. “Due evidence”: No exemption from taxation on the valuation of real property, as provided in this section, is allowed, except upon the written application, which application is on a form prescribed by the assessor. It is the burden of the applicant to prove his or her eligibility for the exemption in this section and the tax assessor may require the applicant to produce supporting information including, but not limited to, federal and/or state income tax returns and birth certificate. If this information is required, the tax assessor shall maintain the confidentiality of the information. The assessor may, at any time, inquire into the right of a claimant to the continuance of an exemption under this section; and, for that purpose, he or she may require the filing of a new application or the submission of any proof that the assessor deems necessary to determine the right of the claimant to continuance of the exemption.
    4. “Assessment cap” means the sum of one hundred forty-two thousand dollars ($142,000) as the sum may be adjusted from time to time as provided in this section. At any times that the tax assessor updates the assessments for real property in the town, the tax assessor shall adjust the assessment cap by the percentage increase or decrease between the median residential property value based on the aggregate residential property assessments then made under the new revaluation, or statistical updates, and the median residential property value under the previous revaluation, or statistical updates.
    5. “Median residential property value” means the assessment, which is the midpoint of the frequency distribution of residential property assessments or the assessment above which and below which fifty percent (50%) of the assessments lie.
  5. Nothing contained in this section abrogates or affects the authority conferred upon the assessor by the provisions of § 44-3-4 .

History of Section. P.L. 1999, ch. 5, § 2; P.L. 1999, ch. 62, § 2; P.L. 2000, ch. 391, § 1; P.L. 2000, ch. 497, § 1; P.L. 2003, ch. 17, § 1; P.L. 2003, ch. 19, § 1.

Compiler’s Notes.

P.L. 2000, ch. 391, § 2, and P.L. 2000, ch. 497, § 2, provide that the question of the acceptance or rejection of this section shall be submitted to the qualified electors of the town entitled to vote upon the a proposition to impose a tax or for the expenditure of money, at an annual special financial town meeting or at any special or regular election held after the passage of those acts, and no other action shall be taken under the authority of this section unless a majority of the qualified electors voting on the question vote to accept it. The town clerk shall certify the results of the election to the secretary of state immediately after the election. Following the approval of this question in 2000 or any subsequent year, any ordinance passed by the town council to provide tax relief for the elderly citizens of Jamestown, in accordance with this section, shall become effective upon passage. The provisions of the section were approved by the voters in Jamestown on March 5, 2001.

44-3-13.7. Exeter — Exemption of real property from taxation for totally disabled persons.

  1. The town council of the town of Exeter may, by ordinance, exempt from taxation any real property situated in the town which is owned and occupied by any one or more persons who is a domiciled resident of the town of Exeter and who is determined to be totally disabled by the social security administration. The amount of the exemption and the rules and regulations regarding eligibility for the exemption shall be provided for by ordinance and the town council of the town of Exeter, upon recommendation of the tax assessor, may, from time to time, by amendment to the ordinance, make changes in the amount of this exemption granted and the rules and regulations regarding eligibility for the exemption as they deem necessary to promote the purpose of this section.
  2. The town council of the town of Exeter is authorized in the ordinance to provide that any person who obtains an exemption pursuant to the ordinance to which the person is not entitled by the filing or making of any false statement or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information shall be liable to the town of Exeter for an amount equal to double the amount of reductions in taxes resulting from the exemption, which amount shall be recoverable by the town in a civil action.

History of Section. P.L. 1999, ch. 77, § 1; P.L. 1999, ch. 212, § 1.

44-3-13.8. Repealed.

History of Section. P.L. 1999, ch. 211, § 1; P.L. 1999, ch. 309, § 1; P.L. 2000, ch. 90, § 1; P.L. 2002, ch. 403, § 1; Repealed by P.L. 2004, ch. 227, § 1, effective July 1, 2004, and by P.L. 2004, ch. 316, § 1, effective July 3, 2004.

Compiler’s Notes.

Former § 44-3-13.8 concerned the granting of tax exemptions to residents of Exeter over 65 years of age.

44-3-13.9. North Kingstown — Exemption of elderly persons.

The town council of North Kingstown may, by ordinance, exempt from taxation the real property situated in the town which is owned and occupied by any person over the age of sixty-five (65) years, and the exemption may be in an amount up to but not in excess of thirty thousand dollars ($30,000) of valuation and only one exemption is allowed to co-tenants, joint tenants, and tenants by the entirety even though all or more than one of them are sixty-five (65) or more years of age and occupy the property. In addition to a requirement of domicile within the town of North Kingstown at the time of making application for the exemption, the ordinance may also require that an applicant for the exemption must be a resident of the town for a period of up to but not in excess of twenty (20) years prior to the date of assessment for the year for which the exemption is claimed; and the ordinance may also require that an applicant for the exemption must have owned and had title to the real estate where he or she resided during any period of residency required by the ordinance. The ordinance may also provide for a graduated schedule of increasing exemptions, the largest of which may not exceed thirty thousand dollars ($30,000) of valuation, which may be based on a graduated schedule of the number of years, up to but not in excess of twenty (20), an applicant for the exemption has resided in the town and/or owned and had title to real estate where he or she resides. The exemption provided in accordance with the provisions of this section is in addition to any other exemption to which a person may be entitled under any other law or ordinance.

History of Section. P.L. 1999, ch. 262, § 1; P.L. 1999, ch. 396, § 1.

44-3-13.10. North Kingstown — Exemption of certain real estate. [Contingent effective date; see notes.]

The town council of North Kingstown is authorized, by ordinance, to grant exemptions with respect to the assessed value of certain single-family residential real property situated in the town which is occupied by the owner or owners of it and which, as a consequence of a revaluation or update in accordance with § 44-5-11.6 , the assessed value of the land component (exclusive of any buildings or other improvements) of the property has increased by more than fifty percent (50%) of the assessed value of the land component of the property as of December 31 of the year immediately preceding the effective date of the revaluation or update ( hereafter referred to as the “increase”). The ordinance may provide that no exemption may be granted unless the subject property was on the tax roll as single-family residential real property for the year immediately preceding the effective date of the revaluation or update. The exemption may be a percentage up to one hundred percent (100%) of the amount by which the increase exceeds one hundred fifty percent (150%) or more of the assessed value of the land component of the property as of December 31 of the year immediately preceding the effective date of the revaluation or update ( hereafter referred to as the “exemption amount”) and only one exemption shall be allowed to co-tenants, joint tenants, and tenants by the entirety even though all or more than one of them are occupying the property. In addition to a requirement of domicile within the town of North Kingstown at the time of making application for the exemption, the ordinance may also require that an applicant for the exemption or a member of his or her immediate family, i.e. parent, spouse, child or sibling, must have owned and occupied the particular residential property for a period of up to but not in excess of five (5) years prior to the effective date of the revaluation or update and for the year for which the exemption is claimed. The ordinance may also provide that the exemption shall not be granted to any applicant whose annual household income exceeds an amount up to but not in excess of seventy-five thousand dollars ($75,000) in the year for which the exemption is claimed. For the purposes of this section, the “household income of a taxpayer” shall be deemed to include the income of his or her spouse and all other individuals residing in the taxpayer’s dwelling for more than fifty percent (50%) of the calendar year. The ordinance may require that the exemption shall not be allowed in favor of any person unless he or she shall have presented to the assessor a true and exact account of his or her ratable estate as provided for in §§ 45-5-15 and 45-5-16 for the year for which the exemption is claimed, together with due evidence that he or she is entitled to the exemption. The ordinance may also provide for a graduated schedule of decreasing annual exemptions following the effective date of the revaluation or update and/or a graduated schedule of increasing exemptions which may be based on ownership and occupancy of the subject property by the applicant or a member of his or her immediate family, up to but not in excess of five (5) years. The exemption provided in accordance with the provisions of this section shall be in addition to any other exemption to which a person may be entitled under any other law or ordinance.

History of Section. P.L. 2001, ch. 48, § 1; P.L. 2001, ch. 106, § 1.

Compiler’s Notes.

P.L. 2001, ch. 48, § 3 and P.L. 2001, ch. 106, § 3 provide that this section will be voted upon by the qualified electors of North Kingstown at any special or regular election held after the passage of this act. The town clerk will then certify the result to the secretary of state. Any ordinance passed by the town council of Kingstown to provide tax relief pursuant to the terms of this act shall become effective upon passage and may be made retroactive to December 31, 2000.

Contingent Effective Dates.

P.L. 2001, ch. 48, § 4 and P.L. 2001, ch. 106, § 4 provide that this section shall take effect if and when the electors of the town of North Kingstown vote to accept the act and shall be retroactive to December 31, 2000.

Severability.

P.L. 2001, ch. 48, § 2 and P.L. 2001, ch. 106, § 2 provide: “If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, section or part directly involved in the controversy in which such judgment shall have been rendered.”

44-3-13.11. Exeter — Property tax exemptions for active volunteer members of fire and rescue companies within the town of.

  1. The town council of the town of Exeter may, by ordinance, provide real property tax exemption of up to one hundred thousand dollars ($100,000) or a personal tangible property or vehicle excise tax exemption of up to twenty-five thousand dollars ($25,000) of assessed value of any owned and occupied real property or of any tangible personal property or vehicle owned by any volunteer member of an Exeter fire company or rescue corps; provided, that the organization has qualified as a tax-exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Service Code, 26 U.S.C. § 501(c)(3). The exemption shall also apply to the surviving spouse of any deceased person who qualified for an exemption at the time of his or her death.
  2. The exemption shall be in addition to any other exemption to which the person shall be entitled; provided, that any person seeking the exemption shall have presented, to the tax assessor, a true and exact account of his or her ratable estate as provided in §§ 44-5-15 and 44-5-16 for the year for which the exemption is claimed, together with due evidence that the person is entitled to the exemption.
  3. Any ordinance passed by the town shall provide prospective tax relief only.
  4. The amount of the exemption and the rules and regulations regarding eligibility for the exemption shall be provided for by ordinance and the town council of the town of Exeter, upon recommendation of the tax assessor, may, from time to time, by amendment to the ordinance, make changes in the amount of the exemption granted and the rules and regulations regarding eligibility for the exemption as they deem necessary to promote the purpose of this section.
  5. Nothing contained in this section shall abrogate or affect the authority conferred upon the assessor by the provisions of § 44-3-4 .

History of Section. P.L. 2003, ch. 271, § 1; P.L. 2003, ch. 346, § 1; P.L. 2004, ch. 280, § 1; P.L. 2020, ch. 26, § 1; P.L. 2020, ch. 37, § 1.

Compiler’s Notes.

P.L. 2020, ch. 26, § 1, and P.L. 2020, ch. 37, § 1 enacted identical amendments to this section.

44-3-13.12. Exemption of persons over the age of 65 years or fully disabled in the town of Exeter.

  1. In order to encourage, maintain, and preserve a sustainable supply of owner-occupied housing that is affordable for low- and moderate-income senior citizens and individuals with disabilities that is in keeping with the rural character of the town of Exeter and that is consistent with environmental and available infrastructure considerations, the assessor shall grant upon a proper claim a tax exemption in accordance with the schedule of exemptions provided in subsection (g) of this section.
  2. The word “income,” as used herein, includes the aggregate income of the person and all other persons residing with him or her. “Income” shall be computed on a calendar-year basis and shall include all income of every nature and description, whether or not taxable, and whether earned or unearned, and includes, but is not limited to: interest, gross net gains, gifts, pensions, all types of compensation, social security, and veterans benefits.
  3. This exemption applies to owner-occupants only. Only one exemption shall be granted to co-tenants, joint tenants, or tenants by the entirety who are sixty-five (65) years of age or older or who are totally disabled and occupy the subject property.
  4. This exemption applies only to the legally zoned minimally required acreage, primary dwelling, and its associated accessory structures, owned and occupied by the applicant. Additional or excess acreage, sites, secondary dwellings, and improvements inconsistent with the legal and conforming use of the primary dwelling are not eligible for this exemption.
  5. The elderly/disabled tax exemption as provided in this section is provided annually, upon timely application, to every qualified person who is a legally domiciled resident of the town of Exeter of the age of sixty-five (65) or more years and has reached his or her 65th birthday by December 31 of the assessment year for which the exemption is sought or who is totally disabled, and continuously residing in the town of Exeter in a dwelling house or mobile home owned by him or her. Applications must be completed and filed on or before April 15 of each year for which the exemption is claimed and shall be signed by the applicant and notarized under the pains and penalties of perjury.
  6. Proof of the qualification of any applicant for the elderly/disabled tax exemption, as provided in this section, shall include the following, together with such other and further information as may be deemed reasonable and necessary by the tax assessor or the town council:
    1. Age shall be proven by furnishing to the assessor either a birth certificate, certificate of citizenship, baptismal certificate, or certified affidavit, under the pains of perjury, of a third party having knowledge, or a government issued ID card.
    2. Ownership shall be established by furnishing the assessor with sufficient evidence of the date of purchase and certified copies of the documentary land evidence records relating to acquisition of the subject property.
    3. Legal domicile shall be established by the production of any of the documents authorized by § 17-1-3.1 to establish residency for voting purposes.
    4. Income and occupancy may be proven by incorporating required facts in a sworn application signed by the applicant and notarized, under the pains and penalties of perjury (the form of which is furnished by the assessor), together with copies of all requested United States and Rhode Island tax returns and schedules.
    5. Disability may be proven by a licensed medical doctor’s sworn and notarized opinion, or by satisfactory federal or state documentation certifying such total disability.
    6. Additionally, the assessor may require such other and further verifications or documents respecting qualifications of the applicant as he or she deems reasonably necessary or appropriate.
    7. No property shall be exempt from taxation which the assessor determines to have been conveyed to an applicant for the purpose of evading taxation.
  7. The following schedule shall determine the amount of the exemption to which the applicant may be entitled pursuant to this ordinance:
    1. When applying multiple exemptions, the assessor shall first apply the assessment reduction provided in this section and then apply any other applicable exemptions.
    2. The assessor shall grant upon a proper claim a tax exemption to any qualified person who meets the requirements contained in subsection (f) of this section. No such exemption shall exceed five thousand dollars ($5,000). This exemption is in addition to any other exemption from taxation provided under any other law or ordinance; provided, however, that this exemption will supersede any previous elderly/disabled freeze or exemption. Any person with a preexisting elderly/disabled freeze, sliding scale exemption on the effective date of this ordinance may choose to either continue on the existing program, or may apply for this exemption.

Household Income Assessment Reduction 0 — $20,000 50% $20,001 — $25,000 40% $25,001 — $30,00030% $30,001 — $35,00020% $35,001 — $40,00010% $40,001 — $52,0005%

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History of Section. P.L. 2004, ch. 227, § 2; P.L. 2004, ch. 316, § 2; P.L. 2021, ch. 369, § 1, effective July 16, 2021.

Compiler's Notes.

P.L. 2021, ch. 369, § 2, provides: “All acts or parts thereof inconsistent herewith are hereby repealed effective upon adoption by the Exeter Town Council of an ordinance consistent with the terms hereof.”

44-3-13.13. Jamestown — Exemption of property of totally disabled persons.

  1. The town council of the town of Jamestown may, by ordinance, exempt from taxation any real property situated in the town which is owned and occupied by any one or more persons who is a domiciled resident of the town of Jamestown and who is determined to be totally disabled by the Social Security Administration. The amount of the exemption and the rules and regulations regarding eligibility for the exemption shall be provided for by ordinance and the town council of the town of Jamestown may, from time to time, by amendment to the ordinance, make any changes in the amount of exemption granted and the rules and regulations regarding eligibility for the exemption that it deems necessary to promote the purpose of this section.
  2. The town council of the town of Jamestown is authorized in the ordinance to provide that any person who obtains an exemption pursuant to the ordinance to which the person is not entitled by the filing or making of any false statement or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information is liable to the town of Jamestown for an amount equal to double the amount of reductions in taxes resulting from the exemption, which amount is recoverable by the town in a civil action.
  3. The question of the acceptance or rejection of this section shall be submitted to the qualified electors of the town of Jamestown entitled to vote upon a proposition to impose a tax or for the expenditure of money at the next general or special election to be held after June 30, 2005, and no other action shall be taken under the authority of this section unless a majority of the electors voting on the question, vote to accept this section.

History of Section. P.L. 2005, ch. 187, § 1; P.L. 2005, ch. 250, § 1.

44-3-13.14. Foster — Exemption of elderly and disabled persons.

The town council of the town of Foster may, by ordinance, issue a tax credit for real property situated in the town of Foster that is owned and occupied by resident owners as follows:

  1. Any owner of an owner-occupied, single-family dwelling who has attained the age of sixty-seven (67) years, or more, or who is totally disabled and who is a resident of the town of Foster, as provided in said ordinance, shall be entitled to a tax credit equal to the lesser of:
    1. Five hundred dollars ($500); or
    2. Any increase in the “dollar amount” required to be paid by such owner on the said property above the “dollar amount” required to be paid in taxes during the tax assessment next following such owner’s sixty-seventh birthday, or following the filing of a certificate evidencing disability, as provided in said ordinance.
  2. Any owner of an owner-occupied, single-family dwelling who has attained the age of seventy-seven (77) years, or more, and who is a resident of the town of Foster, as provided in said ordinance, shall be entitled to a tax credit equal to the lesser of:
    1. One thousand dollars ($1,000); or
    2. Any increase in the “dollar amount” required to be paid by such owner on the said property above the “dollar amount” required to be paid in taxes during the tax assessment next following such owner’s seventy-seventh birthday, as provided in said ordinance.

History of Section. P.L. 2017, ch. 287, § 1; P.L. 2017, ch. 298, § 1.

Compiler’s Notes.

P.L. 2017, ch. 287, § 1, and P.L. 2017, ch. 298, § 1 enacted identical versions of this section.

44-3-14. Notice to tax assessor on conveyance of tax-exempt realty.

Every firm, business, corporation, or other body which is by any special or general law, or by other means, exempted from the apportionment of any tax upon its real property, shall, within ninety (90) days of the execution of a contract of sale or deed or other form of conveyance, file with the assessor of the city or town, wherein the property is situated, a notification of the conveyance.

History of Section. G.L. 1956, § 44-3-14 ; P.L. 1965, ch. 120, § 1.

44-3-14.1. Tiverton — Taxation of exempt property upon transfer.

  1. Upon the sale of tax-exempt property to a purchaser who or that holds no tax-exempt status, the tax assessor/collector may issue a prorated tax bill on the then-current tax assessment from the date of sale. The prorated tax shall be assessed from the date of sale to the end of the current calendar year.
  2. Not later than ninety (90) days after the notice has been received pursuant to § 44-3-14 , the assessor shall prorate the tax from the date of the sale to the next date of assessment (December 31). Taxes shall be based on the then-current property assessment and current fiscal year tax rate for the property as classified.
  3. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessor within forty-five (45) days from the date of the notification of the prorated tax assessed. If still aggrieved, an appeal may be filed with the tax assessment board of review within thirty (30) days of the assessor’s decision. If still aggrieved by the board’s decision, a petition in superior court may be filed within thirty (30) days of the notice from the tax board of decision.
  4. Upon receipt of the notice/bill from the assessor, the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or hand-delivered to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.

History of Section. P.L. 2018, ch. 310, § 1; P.L. 2018, ch. 329, § 1.

Compiler’s Notes.

P.L. 2018, ch. 310, § 1, and P.L. 2018, ch. 329, § 1 enacted identical versions of this section.

44-3-15. Persons who are totally disabled.

The city or town councils of the various cities and towns may provide by ordinance for the freezing of the rate and valuation of taxes on the real and personal property located in the city or town of any head of a household who is one hundred percent (100%) disabled and unable to work as of the date of the disability; provided, that in the town of Hopkinton, the determination of disability must have been made by the Social Security Administration or the Veterans’ Administration, the applicant must meet income requirements established by ordinance which may be amended from time to time and may include the aggregate income of the applicant and all other persons residing with him or her and, upon attaining the age of sixty-five (65), the person who is totally disabled is no longer entitled to this freeze of rate and valuation; provided, that the freeze of rate and valuation on real property shall apply only to single-family dwellings in which the person who is disabled resides; and provided, further, that the exemption shall not be allowed unless the person entitled thereto shall have presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which the foregoing is claimed, due evidence that he or she is so entitled, which evidence shall stand so long as his or her legal residence remains unchanged. The foregoing is in addition to any other exemption provided by law; and provided further that in the town of Warren the exemption shall be in the amount of twenty thousand four hundred eighty dollars ($20,480), and provided further that in the town of Charlestown the town council may create a tax dollar credit reduction in lieu of such exemption, upon terms and conditions that the council may prescribe.

History of Section. P.L. 1970, ch. 269, § 1; P.L. 1994, ch. 167, § 1; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123; P.L. 2004, ch. 161, § 1; P.L. 2004, ch. 176, § 1; P.L. 2013, ch. 259, § 1; P.L. 2013, ch. 348, § 1; P.L. 2017, ch. 75, § 1; P.L. 2017, ch. 99, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1.

Compiler’s Notes.

P.L. 2013, ch. 259, § 1, and P.L. 2013, ch. 348, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 75, § 1, and P.L. 2017, ch. 99, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 65, § 1, and P.L. 2018, ch. 68, § 1 enacted identical amendments to this section.

44-3-15.1. Hopkinton — Freezing of tax rates for persons who are totally disabled.

  1. Notwithstanding the provisions of § 44-3-15 , the town council of the town of Hopkinton may, by ordinance, provide for the freezing of the rate and valuation of taxes on the real and personal property located in the town to any head of a household who is one hundred percent (100%) disabled and unable to work as of the date of the disability. The applicant must be determined by the Social Security Administration or Veterans’ Administration to be totally disabled, and the applicant must be under the age of sixty-five (65) years; and the applicant must meet income guidelines to be established and set forth within the ordinance, and which may be changed from time to time by amendment of the ordinance. The “income” guidelines may pertain to income of every nature and description, and may include the aggregate income of the applicant and all other persons residing with him or her. The freeze of rate and valuation on real property shall apply only to single-family dwellings in which the person who is disabled resides. The exemption shall not be allowed unless the person entitled thereto shall have presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which the foregoing is claimed, due evidence that he or she is so entitled, which evidence must be resubmitted annually for each year during which the applicant desires the “freeze” to continue.
  2. Upon attaining the age of sixty-five (65) years, the person who is totally disabled is no longer entitled to the tax freeze provided for in this section. The foregoing shall be in addition to any other exemption provided by law; and provided further, that the real estate shall not be taken from the tax rolls and shall be subject to the bonded indebtedness of the city or town.

History of Section. P.L. 1994, ch. 57, § 1; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123.

44-3-15.2. Bristol — Persons who are totally disabled.

  1. Notwithstanding the provisions of § 44-3-15 , the town council of Bristol may, by ordinance, exempt from taxation the real property in the town, owned and occupied by any resident who is one hundred percent (100%) disabled and unable to work as of the date of assessment. The applicant must be determined by the Social Security Administration or Veteran’s Administration to be totally disabled; the applicant must be under the age of sixty-five (65) years as of the date of assessment; and the applicant must have a gross household income of less than eighteen thousand dollars ($18,000) per year. The “income” guidelines shall pertain to income of every nature and description and shall be deemed to include the aggregate gross income of the applicant and all other persons, over the age of twenty-one (21) years, residing with him or her. The exemption applies only to single-family dwellings in which the person who is disabled resides. The exemption shall not be allowed unless the person entitled to it shall have presented to the assessor, on or before the last day on which sworn statements may be filed with the assessor for the year for which the exemption is claimed, due evidence that he or she is entitled, which evidence must be resubmitted annually for each year which the applicant desires the exemption to continue.
  2. Upon attaining the age of sixty-five (65) years, the person who is totally disabled is no longer entitled to the exemption provided for in this section. The exemption provided for in this section shall be in addition to any other exemption provided by law, excepting the veteran’s one hundred percent (100%) disabled exemption provided for in § 44-3-4(c) .

History of Section. P.L. 1995, ch. 349, § 1; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123.

Compiler’s Notes.

Section 2 of P.L. 1995, ch. 349, makes the enactment of this section by that act retroactive to December 31, 1994.

44-3-15.3. Smithfield — Tax credit for persons who are totally disabled.

  1. Notwithstanding the provisions of § 44-3-15 , the town council of the town of Smithfield may, by ordinance, provide for a tax credit in the amount of two hundred fifty dollars ($250) on the real property located in the town to any person who is one hundred percent (100%) disabled and unable to work as of the date of the tax assessment. Said credit shall be in addition to any exemption(s) provided for by law to which said person may otherwise be entitled. Provided, that the applicant shall be determined by the Social Security Administration to be totally disabled.
  2. In order to qualify for this credit, the applicant shall be a town resident who shall own and reside on the real estate where to which the credit is to be applied as of the time of the application for the credit and also for a period of not less than five (5) years immediately preceding the application. Only one tax credit may be given per household on a parcel of real estate in any given year.
  3. Persons eligible for this credit shall file an application with the town tax assessor on or before midnight of the 15th day of March of the year in which the credit is requested, on forms to be provided for by the tax assessor. It shall be the obligation of the applicant to establish eligibility for the credit to the tax assessor. Any person receiving the tax credit, provided for in this section, shall be required to annually submit certified proof of his or her disability on or before March 15 in each year that the person continues to claim eligibility for the credit.

History of Section. P.L. 2003, ch. 266, § 1; P.L. 2003, ch. 288, § 1.

44-3-15.3.1. Smithfield — Exemption of Special Olympics Rhode Island, Inc.

The town council of the town of Smithfield may exempt from taxation the Special Olympics Rhode Island, Inc.

History of Section. P.L. 2012, ch. 223, § 1; P.L. 2012, ch. 225, § 1.

Compiler’s Notes.

P.L. 2012, ch. 223, § 1, and P.L. 2012, ch. 225, § 1 enacted identical versions of this section.

44-3-15.4. Lincoln — Tax credit for persons who are totally disabled.

  1. Notwithstanding the provisions of § 44-3-15 , the town council of the town of Lincoln may, by ordinance, provide for a tax credit in the amount of six hundred dollars ($600) on the real property located in the town to any person who is one hundred percent (100%) disabled and unable to work as of the date of the tax assessment. Said credit shall be in addition to any exemption(s) provided for by law to which said person may otherwise be entitled; provided, that the applicant shall be determined by the Social Security Administration to be totally disabled.
  2. In order to qualify for this credit, the applicant shall be a town resident who shall own and reside on the real estate where to which the credit is to be applied as of the time of the application for the credit and also for a period of not less than five (5) years immediately preceding the application. Only one tax credit may be given per household on a parcel of real estate in any given year.
  3. Persons eligible for this credit shall file an application with the town tax assessor on or before midnight of the 15th day of March of the year in which the credit is requested, on forms to be provided for by the tax assessor. It shall be the obligation of the applicant to establish eligibility for the credit to the tax assessor. Any person receiving the tax credit, provided for in this section, shall be required to annually submit certified proof of his or her disability on or before March 15 in each year that the person continues to claim eligibility for the credit.

History of Section. P.L. 2006, ch. 99, § 1; P.L. 2006, ch. 152, § 1.

44-3-15.5. Lincoln — Tax credit for persons over the age of 65 years.

Notwithstanding any provisions of this chapter or any provision of the general or public laws to the contrary, the town council of the town of Lincoln may, by ordinance, provide that any real property owned and occupied for a period of five (5) years or more by any person over the age of sixty-five (65) shall be eligible for a credit against their owner occupied residential property in an amount calculated in conformity with the following guidelines.

  1. Measurement of Income.  The income to be used shall be as has or would be reported on State Form RI-1040H (RI Property Tax Relief Claim) as “Total 20XX Household Income.”
  2. Calculation of Credit.  The annual credit to be applied shall be as determined by the following income thresholds and credit amounts:

Total Household Age Age Age Age 65 to 70 71 to 75 76 to 80 81 and Over $25,000 and above $600 $600 $600 $600 $20,000 to $24,999 $700 $800 $900 $1,000 $17,500 to $19,999 $800 $900 $1,000 $1,100 $15,000 to $17,999 $900 $1,000 $1,100 $1,200 $14,999 and below $1,000 $1,100 $1,200 $1,300

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(b) In order to qualify for this credit, the applicant shall be a town resident who shall own and reside on the real estate where the credit is to be applied as of the time of the application for the credit and also for a period of not less than five (5) calendar years immediately preceding the application.

(c) In order to qualify for the credit established by this section, a person must be sixty- five (65) years of age on or before December 31 of the year preceding the year in which the tax is due and payable.

(d) The credit provided by this section shall be applied to the tax roll by the tax assessor of the town of Lincoln, and the tax assessor shall require that each person seeking such credit shall apply on or before April 15 of each year, except for the year of enactment, that date to be determined by the tax assessor. Such application shall be in a form prescribed by the tax assessor.

(e) This credit shall be in addition to any and all other exemptions from taxation to which such person may be otherwise entitled; provided, however, that only one credit shall be permitted for each parcel of property whether or not there be one or more owners eligible for such credit.

(f) When property is held in trust, the settler, beneficiary, and trust are not eligible for the additional credit provided by this section. A trustee-occupier of the residence would be eligible if all other requirements are met.

History of Section. P.L. 2010, ch. 273, § 1; P.L. 2010, ch. 285, § 1.

Compiler’s Notes.

P.L. 2010, ch. 273, § 1, and P.L. 2010, ch. 285, § 1, enacted identical versions of this section.

44-3-15.6. Bristol volunteer firefighters exemption.

The town of Bristol may establish, by ordinance, a program to provide property tax relief for any individual who volunteers his or her services as a firefighter or emergency medical technician. Such tax relief may provide an abatement of up to two thousand five hundred dollars ($2,500) in property taxes due for any fiscal year. The criteria for providing such tax relief may include, but not be limited to, years of service, rank, quantity of calls responded to, number of training hours, and certification status.

History of Section. P.L. 2017, ch. 454, § 1; P.L. 2017, ch. 470, § 1.

Compiler’s Notes.

P.L. 2017, ch. 454 § 1, and P.L. 2017, ch. 470, § 1 enacted identical versions of this section.

Severability.

P.L. 2017, ch. 454, § 2 provides: “If any provision of this act, or the application thereof to the town of Bristol or to any person or circumstances, is deemed invalid for any reason, the remainder of this act, or the application of such provision to said town or other persons or circumstances, shall not be affected thereby and, to this end, the provisions of this act are declared to be severable.”

P.L. 2017, ch. 470, § 2 provides: “If any provision of this act, or the application thereof to the town of Bristol or to any person or circumstances, is deemed invalid for any reason, the remainder of this act, or the application of such provision to said town or other persons or circumstances, shall not be affected thereby and, to this end, the provisions of this act are declared to be severable.”

44-3-16. Elderly — Freeze of tax rate and valuation.

  1. The city or town councils of the various cities and towns except the towns of West Warwick, Exeter, Coventry and Bristol may provide, by ordinance, for the freezing of the rate and valuation of taxes on real property located therein to any person who is sixty-five (65) years or older or to any person who is totally and permanently disabled regardless of age and who does not have income from all sources in excess of four thousand dollars ($4,000) per year, or in the case of the town of Johnston to any person who is sixty-five (65) years or older or to any person who is totally and permanently disabled regardless of age and who does not have income from all sources in excess of six thousand dollars ($6,000) per year, and a total income of seventy-two hundred dollars ($7,200) for two (2) or more persons living in that dwelling, or in the case of the city of Cranston to any person who is sixty-five (65) years or older or to any person who is totally and permanently disabled regardless of age and who does not have income from all sources in excess of twenty thousand dollars ($20,000) per year, or a lesser figure as determined by the city council of the city of Cranston and a total income of twenty-three thousand dollars ($23,000), or a lesser figure as determined by the city council of the city of Cranston, for two (2) or more persons living in that dwelling; provided, that the freeze of rate and valuation on real property applies only to owner occupied single or two-family (2) dwellings in which the person resides; and provided, further, that the exemption is not allowed unless the person entitled to it has presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which the tax freeze is claimed, or for taxes assessed December 31, 2009, the deadline is April 15, 2010, evidence that he or she is entitled, which evidence shall stand as long as his or her legal residence remains unchanged. The exemptions shall be in addition to any other exemption provided by law, and provided, further, that the real estate is not taken from the tax rolls and is subject to the bonded indebtedness of the city or town.
    1. The town council of the town of West Warwick may provide, by ordinance, for a schedule of exemptions from the assessed valuation on real property located there for any person who is sixty-five (65) years or older or to any person who is totally and permanently disabled regardless of age, which exemption schedule is based upon gross annual income from all sources as follows:
      1. An exemption of three hundred seventy-five dollars ($375) for those having a gross annual income from all sources of $0 to $15,000;
      2. An exemption of two hundred eighty dollars ($280) for those having a gross annual income from all sources of $15,001 to $20,000;
      3. An exemption of two hundred thirty-five dollars ($235) for those having a gross annual income from all sources of $20,001 to $25,000;
      4. An exemption of one hundred ninety dollars ($190) for those having a gross annual income from all sources of $25,001 to $30,000;
      5. An exemption of one hundred dollars ($100) for those having a gross annual income from all sources of $30,001 to $35,000.
    2. Provided, that the exemption schedule applies only to single family dwellings in which the person resides; provided, further, that the person acquired the property for actual consideration paid or inherited the property; provided, further, that the person has resided in the town of West Warwick for a period of three (3) years ending with the date of assessment for the year for which exemption is claimed; and provided, further, that the exemption is not allowed unless the person entitled to it has presented to the assessors, on or before the last day on which sworn statements may be filed with the tax assessor for the year for which the exemption is claimed, evidence that he or she is entitled, which evidence shall stand as long as his or her residence remains unchanged. In the case of married persons, the age requirement will be met as soon as either the husband or wife reaches the age of sixty-five (65) years and in the event the husband passes away, a widow sixty-two (62) years of age to sixty-five (65) years of age is allowed the exemption as long as she remains unmarried.
    3. Those persons granted tax relief under chapter 255 of the Public Laws of 1972 have the option of retaining their current tax freeze or abandoning it to seek relief under this subsection.
  2. The town council of the town of Coventry may, by ordinance, exempt from taxation the real property and/or mobile homes situated in the town which is owned and occupied as the principal residence, by any one or more persons sixty-five (65) years of age or over or by one who is totally and permanently disabled, regardless of age, domiciled in the town of Coventry, upon terms and conditions that may be established by the town council in the ordinance. The exemption is for taxes assessed December 31, 1975, and subsequent years. Any ordinance adopted by the town council pursuant to the provisions of this subsection and subsections (d) and (e) may be amended at any time and from time to time by the town council or any successor town council.
  3. The town council of the town of Coventry may, by ordinance, exempt from taxation the real property situated in the town, owned and occupied by any person, who is a veteran as defined in § 44-3-4 , totally and permanently disabled or over the age of sixty-five (65) years, which exemption is in an amount not exceeding nine thousand dollars ($9,000) of valuation, retroactive to real property assessed on December 31, 1978, and which exemption is in addition to any and all other exemptions from taxation to which the person may be entitled. The exemption is applied uniformly, and without regard to ability to pay, provided, that only one exemption is granted to cotenants, joint tenants, and tenants by the entirety, even though all of the cotenants, joint tenants, and tenants by the entirety are veterans, totally and permanently disabled, or sixty-five (65) years of age or over. The exemption applies to a life tenant who has the obligation for the payment of the tax on the real property.
  4. The town council of the town of Coventry is authorized in the ordinance or ordinances to provide that any person who obtains an exemption pursuant to the ordinance to which the person is not entitled by the filing or making of any false statement or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information is liable to the town of Coventry for an amount equal to double the amount of reduction in taxes resulting from the exemption, which amount is recoverable by the town in a civil action.
  5. The town council of the town of Exeter may provide, by ordinance, for the freezing of the rate and valuation of taxes on real property located in the town to any qualified person who is sixty-five (65) years or older regardless of income, or to any person who is totally and permanently disabled regardless of age, and income, provided, that the freeze of rate and valuation on real property applies only to single family dwellings in which the person resides; and provided, further, that the person acquired the property for actual consideration paid or inherited the property; and provided that the qualified person has presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which the exemption is claimed, evidence that he or she is entitled, which evidence shall stand as long as his or her legal residence remains unchanged. The stabilization of resulting tax assessments shall be subject to reasonable definitions, terms and conditions as may otherwise be prescribed by ordinance. The exemption is in addition to any other exemption provided by law, and provided, further, that the real estate is not taken from the tax rolls and is subject to the bonded indebtedness of the town.
    1. (i) The town council of the town of Bristol may provide, by ordinance, for the freezing of the rate and valuation of taxes on real property located there to any person who is sixty-five (65) years or older, or if not sixty-five (65) or older, the taxpayer’s spouse who is domiciled with him or her, is sixty-five (65) or older; who is fifty (50) years or older and who is the widow or widower of a taxpayer who, prior to death, had qualified for, and was entitled to relief under this subsection and who was domiciled with the decedent taxpayer on the date of death or to any person who is totally and permanently disabled regardless of age. The taxpayer shall reside in the town of Bristol for one year prior to filing the claim for relief.
    2. The tax is calculated by fixing the tax at the tax rate as levied on the real property during the year in which the taxpayer became age sixty-four (64) or totally and permanently disabled regardless of age. The rate remains regardless of the taxpayer’s age, date of application, or date of qualification.
    3. The taxpayer shall apply annually for tax relief on a form prepared by the tax assessor. The application shall be filed between January 1 and May 15 for any year in which benefits are claimed. The taxpayer shall file any supplemental information necessary to satisfy the claim. Upon approval, the tax relief shall take effect in the next forthcoming tax roll.
    4. The owner of the property or a tenant for life or for a term of years who meets the qualifications previously enumerated is entitled to pay the tax levied on the property for the first year in which the claim for tax relief is filed and approved. For each subsequent year the taxpayer shall meet the qualifications hereafter enumerated, the taxpayer shall be entitled to continue to pay the tax or the lesser amount as is levied.
  6. The town council of the town of Tiverton may, by ordinance, provide for a tax credit on the real property and/or mobile homes situated in the town and owned and occupied as the principal residence by any one or more persons sixty-five (65) years of age or over, domiciled in the town of Tiverton, upon terms and conditions as may be established by the town council in the ordinance.
    1. The town of Tiverton may provide, by ordinance, for a schedule of tax credits for any person who is sixty-five (65) years or older, which tax credit schedule is based upon annual adjusted gross income as defined for federal income tax purposes.
    2. Provided, that the tax credit schedule applies only to single-family dwellings in which the person resides; provided, further, that the person acquired the property for actual consideration paid or inherited the property; provided, further, that the person has resided in the town of Tiverton for a period of three (3) years ending with the date of assessment for the year for which the tax credit is claimed; and provided, further, that the tax credit is not allowed unless the person entitled to it has presented to the assessors, on or before the last day on which sworn statements may be filed with the tax assessor for the year for which the tax credit is claimed, due evidence that he or she is so entitled, which evidence shall stand as long as his or her residence remains unchanged.
    3. In the case of married persons, the age requirement will be met as soon as either the husband or wife reaches the age of sixty-five (65) years, and in the event a spouse passes away, a widow(er) sixty-two (62) years of age to sixty-five (65) years of age is allowed the tax credit as long as he or she remains unmarried.
  7. The city council of the city of Warwick may provide, by ordinance, for the freezing of the tax rate and valuation of real property for persons seventy (70) years of age or older who reside in owner occupied single-family homes where the income from all sources does not exceed seven thousand five hundred dollars ($7,500) for a single person and does not exceed fifteen thousand dollars ($15,000) for married couples. Persons seeking relief shall apply for an exemption to the tax assessor no later than March 15 of each year.
  8. The town council of the town of East Greenwich may provide, by ordinance, and upon such terms and conditions as it deems reasonable, for the freezing of both the tax rate attributable to education and the valuation of taxes on real property located in the town of any person who is sixty-five (65) years or older or of any person who is totally and permanently disabled regardless of age; provided, that the freeze of rate and valuation on real property applies only to single or two (2) family dwellings in which the person resides; and provided, further, that the person acquired the property for actual consideration paid or inherited the property; and provided, further, that the exemption is not allowed unless the person entitled to it has presented to the tax assessor, on or before the last day on which sworn statements may be filed with the assessor for the year for which the exemption is claimed, evidence that he or she is entitled, which evidence shall stand as long as his or her legal residence remains unchanged. The exemption is in addition to any other exemption provided by law; and provided, further, that the real estate is not taken from the tax rolls and is subject to the bonded indebtedness of the town.
  9. The town council of the town of Charlestown may create a tax dollar credit reduction in lieu of such exemption, upon terms and conditions that the council may prescribe.

(ii) To qualify for relief, the taxpayer shall have “adjusted gross income,” as the term is defined for federal income tax purposes, for the preceding calendar year of less than ten thousand dollars ($10,000).

History of Section. P.L. 1971, ch. 227, § 1; P.L. 1972, ch. 255, § 1; P.L. 1973, ch. 277, § 1; P.L. 1976, ch. 276, § 1; P.L. 1977, ch. 11, § 1; P.L. 1977, ch. 101, § 1; P.L. 1978, ch. 86, § 1; P.L. 1979, ch. 233, § 1; P.L. 1979, ch. 365, § 1; P.L. 1980, ch. 189, § 1; P.L. 1980, ch. 406, § 8; P.L. 1981, ch. 47, § 1; P.L. 1982, ch. 6, § 1; P.L. 1986, ch. 421, § 1; P.L. 1987, ch. 401, § 1; P.L. 1989, ch. 168, § 1; P.L. 1989, ch. 455, § 1; P.L. 1993, ch. 157, § 4; P.L. 1993, ch. 334, § 4; P.L. 1995, ch. 36, § 1; P.L. 1995, ch. 283, § 1; P.L. 1995, ch. 310, § 1; P.L. 1996, ch. 54, § 1; P.L. 1996, ch. 77, § 1; P.L. 1998, ch. 313, § 1; P.L. 1998, ch. 434, § 1; P.L. 2000, ch. 93, § 1; P.L. 2001, ch. 59, § 1; P.L. 2001, ch. 71, § 1; P.L. 2002, ch. 269, § 1; P.L. 2002, ch. 340, § 1; P.L. 2003, ch. 121, § 1; P.L. 2003, ch. 254, § 1; P.L. 2003, ch. 284, § 1; P.L. 2003, ch. 291, § 1; P.L. 2003, ch. 400, § 1; P.L. 2004, ch. 10, § 1; P.L. 2004, ch. 193, § 1; P.L. 2005, ch. 14, § 1; P.L. 2007, ch. 398, § 1; P.L. 2007, ch. 461, § 1; P.L. 2009, ch. 269, § 1; P.L. 2009, ch. 270, § 1; P.L. 2015, ch. 10, § 1; P.L. 2015, ch. 15, § 1; P.L. 2018, ch. 65, § 1; P.L. 2018, ch. 68, § 1.

Compiler’s Notes.

P.L. 2015, ch. 10, § 1, and P.L. 2015, ch. 15, § 1 enacted identical amendments to this section

P.L. 2018, ch. 65, § 1, and P.L. 2018, ch. 68, § 1 enacted identical amendments to this section.

Cross References.

Tax relief for elderly or disabled in certain cities, § 44-3-13 and note.

44-3-16.1. Portsmouth — Tax deferral for certain persons age sixty-five (65) and for persons with a disability.

The town council of the town of Portsmouth may, by ordinance, provide a tax deferral program as follows:

  1. Definitions:
    1. “Qualified senior” for the purpose of this section means any person who shall satisfy the criteria in subsection (i)(A) or (B) or (C); and all of the criteria of subsections (ii) — (x) inclusive:
        1. who is age sixty-five (65) or more if single or widowed;
        2. who, if married, at least one taxpayer who has attained age sixty-five (65) as long as the taxpayers’ spouse is at least fifty (50) years of age;
        3. who, if widowed, over age fifty (50) whose spouse was at least age sixty-five (65) prior to death and either spouse was a participant under this ordinance prior to death;
      1. whose home is a single family home (condominium ownership not eligible);
      2. whose Portsmouth home is the taxpayer’s principal residence and that of the spouse (if living);
      3. who is a resident of the State of Rhode Island for income tax purposes, as is the spouse (if living);
      4. who is not a registered voter of any other city, town or political subdivision of Rhode Island or any other state, nor is the spouse (if living);
      5. who has resided in the principal residence for the past seven (7) years, as has the spouse (if living);
      6. whose real estate tax previously billed is not delinquent by more than four (4) quarters;
      7. who would otherwise qualify but has been forced to relocate residence through no fault of the taxpayer (e.g., in cases of fire, natural disaster or taking of property by eminent domain by a state or local government);
      8. whose real estate tax bill is more than ten percent (10%) of the total income of the taxpayer, or, if living, of both spouses. “Total income” means the total of adjusted gross income per US individual income tax return, Form 1040, 1040-A (or the like) plus non taxable income such as non-taxed social security benefits, welfare benefits, child support receipts, municipal bond interest receipts and other non-taxable items of income;
      9. who completes the application process and who attests that the individual meets, or, if living, both spouses meet all of the qualifications as outlined above.
    2. “Person with a disability” for the purpose of this section means a person with a disability as defined in Rhode Island General Laws subsection 42-87-1(7)(i) and all of the criteria of subsection (i) — (ix) include:
    3. “Deferred Amount” for the purpose of this section means the amount of tax that would otherwise be due and payable if the applicant did not qualify under this program.
    4. “Disqualifying Event” for the purpose of this section means to include any and all of the following:
    1. Upon proper application, approved by the administrator or his/her designee, the deferred amount will be deferred, with interest to be set by the Portsmouth town council, until the occurrence of a disqualifying event.
    2. A deferral under this ordinance shall not be disallowed if the owner applicant has only a life estate in the property or if the property is in the name of a parent or one or more children or in a trust for the benefit of the otherwise qualified resident and the owners submit an affidavit that the qualified resident is the principal owner or present beneficiary and title is held in that manner for estate planning purposes only.
    3. A deferral is not allowed for any improvement for outbuildings such as garages or storage sheds, attached or not, to the principal residence once application and acceptance into the tax freeze program occurs.
  2. Application Process:
    1. The taxpayer shall initially apply for eligibility in the tax stabilization program between the dates of November 1 through December 31, for taxes assessed December 31 of that year. After initial approval, the taxpayer must sign each year thereafter a statement attesting to the fact that the taxpayer and the spouse continue to qualify under the ordinance provisions.
    2. Participation is optional at the taxpayer’s option.
    3. Failure to file subsequent statements of eligibility; or the occurrence of a disqualifying event of a temporary nature; or the elimination of a disqualifying event that no longer applies, shall require re-entry into the program and full reapplication and recertification, and shall nullify any deferral for the tax year in which the disqualifying event occurred, and past deferred amounts shall be due under subsection (e). In such case, the tax shall be calculated as of the year of re-entry into the program.
  3. Recording of deferral; Lien:
    1. All properties subject to the deferral program will have the deferral registered and recorded with the Portsmouth town clerk. Normal recording fees will apply.
    2. All taxes deferred shall constitute a lien on the real estate for which the deferment was granted until paid in accordance with the provisions ordinance.
  4. Payment of deferral:
    1. All deferrals must be paid in full within six (6) months of a disqualifying event in the case of a death of the legal owner of the property, at closing and conveyance in the event of a sale and within three (3) months of any other disqualifying event.
    2. Failure to report the disqualifying event, and/or to pay the deferral tax when due, will carry a maximum penalty of one hundred dollars ($100) per month, or portion thereof, and applicable interest on the currently assessed tax. Interest will be assessed and due in the same manner as other past due tax receivables and will apply to all amounts previously deferred as well as current amounts due.
  5. Appeal:
  6. Severability: If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.
  7. The purpose of this section is to enable the town of Portsmouth to provide tax stabilization for those residents with a disability or those residents over the age of sixty-five (65). The provisions of this section are in addition to, and not in lieu of the provisions of § 44-3-32 .

(i) whose home is a single family home (condominium ownership not eligible)

(ii) whose Portsmouth home is the taxpayer’s principal residence and that of the spouse (if living);

(iii) who is a resident of the State of Rhode Island for income tax purposes, as is the spouse (if living);

(iv) who is not a registered voter of any other city, town or political subdivision of Rhode Island or any other state, nor is the spouse (if living);

(v) who has resided in the principal residence for the past seven (7) years, as has the spouse (if living);

(vi) whose real estate tax previously billed is not delinquent by more than four (4) quarters;

(vii) who would otherwise qualify by has been forced to relocate residence through no fault of the taxpayer (e.g. in cases of fire, natural disaster or taking of property by eminent domain by a state or local government);

(viii) whose real estate tax bill is more than ten percent (10%) of the total income of the taxpayer, or, if living, of both spouses. “Total income” means the total of adjusted gross income per U.S. individual income tax return, form 1040, 1040-A (or the like) plus non taxable income such as non-taxed social security benefits, welfare benefits, child support receipts, municipal bond interest receipts and other non-taxable items of income;

(ix) who completes the application process and who attests that the individual meets, or, if living, both spouses meet all of the qualifications as outlined above.

(i) Sale of the property;

(ii) Transfer of the property to a family member without life tenancy;

(iii) The point in time when the property ceases to be the taxpayer’s principal residence;

(iv) Written request by the applicant to be removed from the program; or

(v) Any property whose square footage living space is increased since application and acceptance under this ordinance.

Appeals of all decisions as to the application, administration, eligibility or other matter relating to this ordinance shall be made in writing according to law.

History of Section. P.L. 2006, ch. 223, § 1; P.L. 2006, ch. 255, § 1.

44-3-16.2. North Smithfield — Tax stabilization for certain persons age sixty-five (65) and over.

  1. Definitions.
    1. “Qualified senior” for the purpose of this section means any person who shall satisfy the criteria in subsection (A)(i) or (ii) or (iii); and all of the criteria of subsections (B) — (J) inclusive:
        1. Who is age sixty-five (65) or more if single or widowed;
        2. Who, if married, at least one taxpayer who has attained age sixty-five (65) as long as the taxpayers’ spouse is at least fifty (50) years of age;
        3. Who, if widowed, over age fifty (50) whose spouse was at least age sixty-five (65) prior to death and either spouse was a participant under this ordinance prior to death;
      1. Whose home is a single-family home (condominium ownership not eligible);
      2. Whose North Smithfield home is the taxpayer’s principal residence and that of the spouse (if living);
      3. Who is a resident of the State of Rhode Island for income tax purposes, as is the spouse (if living);
      4. Who is not a registered voter of any other city, town, or political subdivision of Rhode Island or any other state, nor is the spouse (if living);
      5. Who has resided in the principal residence for the past seven (7) years, as has the spouse (if living);
      6. Whose real estate tax previously billed is not delinquent by more than four (4) quarters;
      7. Who would otherwise qualify but has been forced to relocate residence through no fault of the taxpayer (e.g., in cases of fire, natural disaster, or taking of property by eminent domain by a state or local government);
      8. Whose real estate tax bill is more than five percent (5%) of the total income of the taxpayer, or, if living, of both spouses. “Total income” means the total of adjusted-gross income per U.S. individual income tax return, Form 1040, 1040-A (or the like), plus non-taxable income such as non-taxed social security benefits, welfare benefits, child support receipts, municipal bond interest receipts, and other non-taxable items of income;
      9. Who completes the application process and who attests that the individual meets, or, if living, both spouses meet, all of the qualifications as outlined above.
    2. “Deferred yearly tax” for the purpose of this section means the amounts otherwise due for the assessment date of the year in which the taxpayer turned age sixty-four (64), or the year of the date of first application to the program whichever is later in time, and the tax assessed the following July.
    3. “Deferred amount” for the purpose of this section means the difference between the yearly tax and the amount of tax that would otherwise be due and payable if the applicant did not qualify under this program.
    4. “Disqualifying event” for the purpose of this section means to include any and all of the following:
      1. Sale of the property;
      2. Transfer of the property to a family member without life tenancy;
      3. The point in time when the property ceases to be the taxpayer’s principal residence;
      4. Written request by the applicant to be removed from the program; or
      5. Any property whose square footage living space is increased since application and acceptance under this ordinance.
  2. Deferral of tax.
    1. The town council of the town of North Smithfield may, by ordinance, establish a deferral of taxes on the principal residence of a qualified senior located in the town of North Smithfield.
    2. Upon proper application, approved by the administrator or his/her designee, the assessment and tax will be deferred. The deferred amount will be deferred, without the accumulation of interest, until the occurrence of a disqualifying event.
    3. A deferral under this ordinance shall not be disallowed if the owner applicant has only a life estate in the property or if the property is in the name of a parent or one or more children or in a trust for the benefit of the otherwise qualified resident and the owners submit an affidavit that the qualified resident is the principal owner or present beneficiary and title is held in that manner for estate planning purposes only.
    4. A deferral is not allowed for any improvement for outbuildings such as garages or storage sheds, attached or not, to the principal residence once application and acceptance into the tax freeze program occurs.
  3. Application process.
    1. The taxpayer shall initially apply for eligibility in the tax stabilization program between the dates of January 1 and March 31, for taxes assessed the following July of that year. After initial approval, the taxpayer must sign each year thereafter a statement attesting to the fact that the taxpayer and the spouse continue to qualify under the ordinance provisions.
    2. Participation is optional at the taxpayer’s option.
    3. Failure to file subsequent statements of eligibility; or the occurrence of a disqualifying event of a temporary nature; or the elimination of a disqualifying event that no longer applies, shall require re-entry into the program and full reapplication and recertification, and shall nullify the freeze and any deferral for the tax year in which the disqualifying event occurred, and past deferred amounts shall be due under subsection (e). In such case, the frozen yearly tax shall be calculated as of the year of re-entry into the program.
  4. Recording of deferral; Lien.
    1. All properties subject to the deferral program will have the deferral noted on the deed and the deferral will be registered and recorded with the North Smithfield town clerk. Normal recording fees will apply.
    2. All taxes deferred shall constitute a lien on the real estate for which the deferment was granted until paid in accordance with the provisions ordinance.
  5. Payment of deferral.
    1. All deferrals must be paid in full within six (6) months of a disqualifying event in the case of a death of the legal owner of the property, at closing and conveyance in the event of a sale and within three (3) months of any other disqualifying event.
    2. Failure to report the disqualifying event, and/or to pay the deferral tax when due, will carry a maximum penalty of one hundred dollars ($100) per month, or portion thereof, and applicable interest on the currently assessed tax without regard to the freeze provisions contained herein. Interest will be assessed and due in the same manner as other past due tax receivables and will apply to all amounts previously deferred as well as current amounts due.
  6. Appeal.  Appeals of all decisions as to the application, administration, eligibility or other matter relating to this ordinance shall be made in writing to the North Smithfield town council.
  7. Severability.  If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2006, ch. 304, § 1; P.L. 2006, ch. 433, § 1; P.L. 2015, ch. 121, § 1; P.L. 2015, ch. 133, § 1; P.L. 2016, ch. 511, art. 1, § 20.

Compiler’s Notes.

P.L. 2015, ch. 121, § 1, and P.L. 2015, ch. 133, § 1 enacted identical amendments to this section.

44-3-17. Tax exempt property — Listing and valuation.

The tax assessor of every city and town shall annually list the estimated value of the property, which is exempt from taxation because of the nonprofit status of the owner of the land.

History of Section. P.L. 1972, ch. 84, § 1.

44-3-18. Repealed.

History of Section. P.L. 1977, ch. 202, § 1; P.L. 1980, ch. 35, § 1; Repealed by P.L. 2004, ch. 6, § 37, effective April 14, 2004.

Compiler’s Notes.

Former § 44-3-18 concerned the valuation of cogeneration and solar and/or wind energy systems for the purposes of taxation.

44-3-19. List of tax exemptions — Notification.

The tax assessor of every city and town shall maintain a list of every tax exemption or tax rebate for which a taxpayer may apply, including the tax credits defined in chapter 33 of this title entitled “Property Tax Relief ”; information on property exempt from taxation under § 44-3-3(16); and information on the appeals process defined in § 44-5-26 . A copy of this list shall be sent to every taxpayer each year with one of the annual tax bills and shall include the telephone number of the city or town office to be contacted should any taxpayer wish to determine his or her eligibility for any exemption or rebate.

History of Section. P.L. 1979, ch. 86, § 1; P.L. 1991, ch. 252, § 1; P.L. 1991, ch. 326, § 1.

44-3-20. Middletown — Deferment of payment of tax for the elderly.

The town council of the town of Middletown is authorized to provide, by ordinance, that the payment of property taxes on all family dwellings located in the town and owned and occupied by persons who are aged sixty-five (65) years or older is deferred until the property is disposed of by reason of death of all the owners or by reason of transfer or conveyance. Any taxes so deferred constitute a lien against the real estate.

History of Section. P.L. 1979, ch. 367, § 1.

44-3-20.1. Coventry — Deferment of payment of tax for the elderly or certain disabled residents.

The town council of the town of Coventry is authorized to provide, by ordinance, that the payment of property taxes on all family dwellings located in the town and owned and occupied by persons who are aged sixty-five (65) years or older, or who are totally and permanently disabled, is deferred until the property is disposed of by reason of death of all the owners or by reason of transfer or conveyance. Any taxes so deferred constitute a lien against the real estate.

History of Section. P.L. 1993, ch. 331, § 1.

44-3-20.2. Bristol — Deferment of partial payment of tax for low-income residents.

The town council of the town of Bristol may, by ordinance, provide that the payment of property taxes on a single-family dwelling, owned and occupied by a low-income resident, may be partially deferred until the property is disposed by reason of death of all the qualified owners, or by reason of transfer or conveyance. Any taxes so deferred constitute a lien against the real estate. The deferral shall not exceed twenty-five thousand dollars ($25,000) of valuation, and the exemption is in addition to any and all other exemptions which the person may be entitled to by this chapter or any other provisions of the general laws. The town council of the town of Bristol shall establish the requirements and application and/or verification procedures for taxpayers to avail themselves of the benefit of the deferment provided for in this section.

History of Section. P.L. 1996, ch. 58, § 1.

44-3-20.3. Jamestown — Deferment of payment of tax for the elderly. [Contingent Repeal — See notes.]

The town council of the town of Jamestown is authorized to provide, by ordinance, that the payment of property taxes on all family dwellings located in the town and owned and occupied for at least five (5) years prior to the passage of the ordinance by persons sixty-five (65) years of age or over is deferred until the property is disposed of by reason of death of all the owners or by reason of transfer on conveyance. Any deferred taxes constitute a lien against the real estate.

History of Section. P.L. 1996, ch. 422, § 1.

Effective Dates.

P.L. 1999, ch. 62, § 3 provides that the repeal of this section shall take effect if and when the electors of the town of Jamestown qualified to vote upon a proposition to impose a tax or for the expenditure of money vote to accept that act.

Contingently Repealed Sections.

P.L. 1999, ch. 5, § 3 provides that the repeal of this section shall take effect if and when the electors of the town of Jamestown qualified to vote upon a proposition to impose a tax or for the expenditure of money vote to accept that act.

44-3-20.4. Deferment of payment of tax for low income — Warren.

The town council of the town of Warren may, by ordinance, provide that payment of property taxes on a single family dwelling, owned and occupied by a low-income resident, may be partially deferred until the property is disposed by reason of death of all the qualified owners, or by reason of transfer or conveyance; provided, that any taxes so deferred constitute a lien against the real estate. The town council of the town of Warren shall establish the requirements and application and/or verification procedures for taxpayers to avail themselves of the benefit of the deferment provided for in this section.

History of Section. P.L. 2004, ch. 73, § 1; P.L. 2004, ch. 231, § 1.

44-3-21. Renewable energy systems — Exemption.

The city or town councils of the various cities and towns may, by ordinance, exempt from taxation any renewable energy system located in the city or town.

History of Section. P.L. 1980, ch. 283, § 2.

NOTES TO DECISIONS

In General.

Rhode Island Legislature does not intend renewable energy systems to be exempt only if the various cities and towns enact ordinances; moreover, such an interpretation would cause an inconsistency with the statute that defines “manufacturer” because it expressly creates an exception for public utilities and certain nonregulated power producers. DePasquale v. Cwiek, 129 A.3d 72, 2016 R.I. LEXIS 5 (R.I. 2016).

44-3-22. Cranston — Real estate and excise tax exemption for persons who are disabled.

    1. The city council of the city of Cranston is authorized to provide, by ordinance, for an exemption not to exceed three thousand dollars ($3,000) on assessed value used in determining the excise tax for any person who meets the following two (2) requirements:
      1. Is determined by the Social Security Administration to be totally disabled;
      2. Does not own any real property.
    2. The exemption is not allowed unless the person entitled to it has presented to the assessor on or before the last day on which sworn statements may be filed with the assessor for the last year for which the exemption is claimed, evidence that he or she is entitled.
    3. Upon attaining the age of sixty-five (65) years, a person who is totally disabled is no longer entitled to this exemption. Any person who transfers any personal property specifically for the purpose of qualifying for this exemption shall be denied the exemption.
    1. The city council of the city of Cranston is authorized to provide, by ordinance, for an exemption up to six thousand dollars ($6,000) on assessed value from local taxation on real residential property for any person who meets the following three (3) requirements:
      1. Head of household;
      2. Is determined by the Social Security Administration to be totally disabled; and
      3. Is occupied as a domicile of the person who is disabled.
    2. In no case is real residential property entitled to more than one, six-thousand dollar ($6,000) exemption even though occupied and designated as a domicile by more than one person who is disabled.
    3. The total amount of tax exemption that one can receive from any source whatsoever under this subsection shall not exceed six thousand dollars ($6,000).
    4. The exemption is not allowed unless the person entitled to it has presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which the exemption is claimed, due evidence that he or she is so entitled.
    5. Upon attaining the age of sixty-five (65) years, a person who is totally disabled is no longer entitled to this exemption.

History of Section. P.L. 1982, ch. 4, § 1; P.L. 1984, ch. 110, § 1; P.L. 1995, ch. 282, § 1; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123.

Cross References.

Tax rate freeze for elderly, § 44-3-16 .

44-3-23. Narragansett — Tax exemptions in the town.

The town council of the town of Narragansett may, by ordinance, grant an exemption on real property located within the town and owned and occupied by any person sixty-five (65) years of age or older at the rate of one hundred twenty-five dollars ($125) per one thousand dollars ($1,000) of valuation. Each exemption to all other persons granted on property in the town of Narragansett is at the rate of fifty-five dollars ($55.00) per one thousand dollars ($1,000.00) of valuation for each exemption granted to a taxpayer.

History of Section. P.L. 1982, ch. 419, § 1; P.L. 1988, ch. 84, § 34; P.L. 2003, ch. 272, § 1; P.L. 2003, ch. 349, § 1.

44-3-24. Reevaluation of real property — Adjustment of exemption upon.

The city and town councils of the various cities and towns may provide, by ordinance, for the adjustment of the tax exemption for all persons entitled to it pursuant to this chapter in any year that the city or town has a real property reevaluation. The adjustment shall be made to reflect the same monetary savings that appeared on the property tax bill that existed for the year prior to reevaluation of the real property. If any provision of this section is held invalid, the remainder of this section and the application of its provisions shall not be affected by that invalidity.

History of Section. P.L. 1983, ch. 5, § 1; P.L. 1985, ch. 136, § 1.

Cross References.

Exemption of persons over age 65, § 44-3-13 .

Veterans’ exemptions, § 44-3-4 .

44-3-25. Cumberland — Maximum exemptions.

The maximum exemption from taxation for residents of the town of Cumberland under any of the provisions of this chapter shall not exceed the sum of fifty-eight thousand one hundred eleven dollars ($58,111).

History of Section. P.L. 1985, ch. 24, § 2; P.L. 1985, ch. 110, § 1; P.L. 1987, ch. 269, § 1; P.L. 1995, ch. 284, § 1; P.L. 1995, ch. 362, § 1; P.L. 1999, ch. 264, § 1; P.L. 2005, ch. 423, § 1.

Applicability.

P.L. 2005, ch. 423, § 2, states that the amendments to this section by that act shall take effect upon passage and shall apply to taxes assessed on or after December 31, 2004.

44-3-25.1. Bristol — Maximum exemptions.

The maximum exemption from taxation for residents of the town of Bristol under any of the provisions of this chapter shall not exceed the sum of fifty thousand dollars ($50,000) of valuation in a calendar year.

History of Section. P.L. 1995, ch. 350, § 1.

44-3-26. Repealed.

History of Section. P.L. 1985, ch. 110, § 1; P.L. 1988, ch. 117, § 1; Repealed by P.L. 1995, ch. 353, § 1, effective retroactively to December 31, 1994.

Compiler’s Notes.

Former § 44-3-26 concerned real estate tax exemption for the disabled in Bristol.

44-3-27. South Kingstown — Certain tax exemptions.

Each exemption granted on property in the town of South Kingstown as defined in §§ 44-3-4 , 44-3-5 , and 44-3-12 is at a rate equivalent to seventy-one dollars ($71.00) per one thousand dollars ($1,000) of valuation for each exemption granted to a taxpayer.

History of Section. P.L. 1985, ch. 511, § 1.

44-3-27.1. Bristol — Certain tax exemptions.

Each exemption granted on property in the town of Bristol by any of the provisions of this chapter is at the current tax rate or a rate equivalent to twenty dollars ($20.00) per one thousand dollars ($1,000) of valuation, whichever is greater, for each exemption granted to a taxpayer.

History of Section. P.L. 1997, ch. 224, § 1; P.L. 1997, ch. 328, § 1; P.L. 2002, ch. 102, § 1.

44-3-28. North Providence — Exemption for people with paraplegia.

The town council of the town of North Providence may, by ordinance, exempt from taxation the real property situated in the town, owned and occupied by any person with paraplegia through a disability which is not a military service connected disability and who by reason of the paraplegic disability requires “specially adapted housing”; and that exemption shall not exceed fifteen thousand dollars ($15,000). For the purposes of this section, “specially adapted housing” is housing which is similar to that provided for in § 44-3-4 .

History of Section. P.L. 1986, ch. 50, § 2; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123.

44-3-29. Exemption and/or valuation freeze of wholesaler’s inventory.

    1. The city council or town council of any municipality may, by ordinance, wholly or partially exempt from taxation and/or freeze the valuation of stock in trade or inventory of wholesalers for a period of twenty-five (25) years.
    2. “Inventory” or “stock in trade” means and includes the merchandise kept on hand for sale in the normal and regular course of wholesale business.
      1. “Wholesaler” means and includes a person, partnership, corporation, or other business entity engaged in the business of selling goods for subsequent resale by its customers. Except as provided in subsection (b) of this section, no distinction is drawn between:
        1. A wholesaler all or a portion of the sales of which are sales to one or more customers affiliated with the wholesaler, and
        2. A wholesaler the sales of which are exclusively sales to customers not affiliated with the wholesaler.
      2. A wholesaler is considered affiliated with customers if it controls, is controlled by, or is under common control with the customers.
  1. In the event that a wholesaler sold inventory or stock in trade both at wholesale and at retail in the preceding calendar year, the tax assessors of the municipality shall assess on the same basis as a retailer’s inventory or stock in trade as of December 31 of that year, to the extent permitted by applicable law, notwithstanding any freeze of assessed valuation or exemption permitted under this section, that proportion of inventory or stock in trade of the wholesaler which is equal to the percentage of the wholesaler’s total sales during the preceding calendar year that were at retail. For the purposes of this paragraph, “sales at retail” do not include sales to employees of the wholesaler or to employees of its affiliates. If retail sales are less than one percent (1%) of total sales during the year, it is deemed that no sales were made at retail during the year. All sales of a wholesaler to a customer, which is an affiliated entity, are deemed to be retail sales for the purposes of this subsection if more than half of the dollar volume of the sales of the affiliated entity is made within the municipality.
  2. The city council or the town council of any municipality may, by ordinance, establish the application and/or verification procedures for taxpayers to avail themselves of the benefit of any exemption or valuation freeze permitted under this section as the city council or the town council deemed necessary.
  3. Nothing in this section is deemed to permit the exemption or stabilization for any wholesaler or commercial concern relocating from one city or town within the state of Rhode Island to another.

History of Section. P.L. 1986, ch. 51, § 1; P.L. 1987, ch. 7, § 1; P.L. 1988, ch. 57, § 1; P.L. 1992, ch. 10, § 1; P.L. 1992, ch. 153, § 1; P.L. 1992, ch. 253, § 1.

44-3-29.1. Wholesale and retail inventory tax phase out.

  1. Beginning July 1, 1999, the city council or town council of any municipality shall, by ordinance, phase out, over a ten (10) year period, the stock in trade or inventory tax of wholesalers and retailers. The rate schedule to be implemented by the cities and towns is established in this section.
  2. “Inventory”, as it refers to wholesalers, “stock in trade”, as it refers to wholesalers, and “wholesaler” have the same meaning as defined in § 44-3-19 .
  3. “Inventory”, as it refers to retailers, “stock in trade”, as it refers to retailers, and “retailer” have the same meaning as defined in § 44-3-40 .
  4. The rate schedule for the ten (10) year phase out of the wholesale and retail inventory tax is as follows:
  5. In the event that a wholesaler sold inventory or stock in trade both at wholesale and at retail in the preceding calendar year, the tax assessor of the municipality shall assess on the same basis as a retailer’s inventory or stock in trade as of December 31 of that year, to the extent permitted by applicable law, notwithstanding any freeze of assessed valuation or exemption permitted pursuant to § 44-5-12(c) , that proportion of inventory or stock in trade of the wholesaler which are equal to the percentage of the wholesaler’s total sales during the preceding calendar year that were at retail. For the purposes of this paragraph, “sales at retail” do include sales to employees of the wholesaler or to employees of its affiliates. If retail sales are less than one percent (1%) of total sales during the year, it is deemed that no sales were made at retail during the year. All sales of a wholesaler to a customer, which is an affiliated entity, are deemed to be retail sales for the purposes of this subsection if more than half of the dollar volume of the sales of the affiliated entity is made within the municipality.
  6. For purposes of this section, a wholesaler is considered affiliated with customers if it controls, or is under common control with the customers.
  7. In the event that a wholesaler or retailer subject to the inventory tax commences operations in a particular city or town after fiscal year 1999, the tax assessor for that municipality shall determine what would have been the value of the inventory as of December 1998, adjusting the inventory value to fiscal year 1999 using the changes in the consumer price index — all urban consumers (CPI-U) published by the Bureau of Labor Statistics of the United States Department of Labor. The director of the department of revenue shall annually publish an adjustment schedule.
  8. This section also applies to motor vehicle dealers, as defined in § 31-5-5 .
  9. The assent of two-thirds (2/3) of the members elected to each house of the general assembly is required to repeal or amend this section.

Year Maximum Tax Rate FY 1999 set by local officials FY 2000 ninety percent (90%) of FY 1999 rate FY 2001 eighty percent (80%) of FY 1999 rate FY 2002 seventy percent (70%) of FY 1999 rate FY 2003 sixty percent (60%) of FY 1999 rate FY 2004 fifty percent (50%) of FY 1999 rate FY 2005 forty percent (40%) of FY 1999 rate FY 2006 thirty percent (30%) of FY 1999 rate FY 2007 twenty percent (20%) of FY 1999 rate FY 2008 ten percent (10%) of FY 1999 rate FY 2009 no tax authorized

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History of Section. P.L. 1998, ch. 31, art. 27, § 1; P.L. 2008, ch. 98, § 36; P.L. 2008, ch. 145, § 36.

44-3-30. Burrillville — Property taxation of electricity generating facilities located in the town.

Notwithstanding any other provisions of the general laws to the contrary, real and personal property of any facility for the generation of electricity located in the town of Burrillville and in operation prior to July 1, 2017, or subsequently expanded, are taxable by the town. As to any facility for the generation of electricity located in the town of Burrillville, in operation prior to or subsequent to July 1, 2017, the town council of the town of Burrillville is authorized to determine, by ordinance or resolution, an amount of taxes to be paid each year on account of real or personal property used in connection with any facility for the generation of electricity located in the town, notwithstanding the valuation of the property or the rate of tax. The determination is for a period not to exceed twenty-five (25) years. The town council of the town of Burrillville is authorized to extend the determination by ordinance or resolution. The extension shall be for a period not to exceed an additional twenty (20) years.

History of Section. P.L. 1987, ch. 30, § 1; P.L. 2010, ch. 196, § 1; P.L. 2010, ch. 223, § 1; P.L. 2017, ch. 365, § 1; P.L. 2017, ch. 440, § 1.

Compiler’s Notes.

P.L. 2010, ch. 196, § 1, and P.L. 2010, ch. 223, § 1, enacted identical amendments to this section.

P.L. 2017, ch. 365, § 1, and P.L. 2017, ch. 440, § 1 enacted identical amendments to this section.

44-3-31. Providence — Certain tax exemptions.

  1. Notwithstanding any other provisions of general or special law to the contrary, the city council of the city of Providence is authorized to fix, by ordinance or resolution, the amount of the exemptions with respect to assessed value from local taxation on taxable property to the following persons: veterans and the unmarried widow or widower of veterans as defined in § 44-3-4 at three thousand dollars ($3,000); for persons who are blind as defined in § 44-3-12 at eighteen thousand dollars ($18,000); for veterans or the unmarried widow or widower of veterans who are totally disabled as defined in section 44-3-4 at six thousand dollars ($6,000); for gold star parents as defined in § 44-3-5 at nine thousand dollars ($9,000); for persons who are one hundred percent (100%) disabled as determined pursuant to title II and title XVI of the Social Security Act, 42 U.S.C. § 401 et seq., and 42 U.S.C. § 1381 et seq., or who, by reason of their being one hundred percent (100%) disabled, are receiving disability payments from sources other than the Social Security Administration (such as employees of the railroad, federal civil service, postal service, and the Providence police and fire departments) at nine thousand dollars ($9,000); for specially adapted housing for veterans with paraplegia as defined in § 44-3-4 at thirty thousand dollars ($30,000); for any person sixty-five (65) years of age, or over, at ten thousand dollars ($10,000); for any person sixty-two (62) through sixty-four (64) years of age, who is receiving social security benefits, ten thousand dollars ($10,000). Any increase in exemption provided for in this section over the amount previously provided by general or special law applies only to real property.
  2. The city council of the city of Providence may subject the exemptions provided in this section to verifications with respect to qualification for exemptions that it deems necessary or desirable.

History of Section. P.L. 1988, ch. 21, § 2; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123.

44-3-31.1. Providence Freeze of certain tax.

  1. The city of Providence is authorized to provide, by ordinance, for the freezing of property taxes on owner-occupied residential real estate, for 2001, at 105.5% of the amount of the property taxes levied for 2000 upon the assessed valuation as of December 31, 1999 (plus any property tax attributable to additions to the property between December 31, 1999 and December 31, 2000); and in subsequent years, at the amount of the property tax for the next prior year increased by the percentage increase in the tax rate for real estate (plus any increase in taxes due to any additions to the property between the date as of which the taxes are levied and the date as of which the taxes for the next prior year were levied) provided the household income of the owner is not greater than twenty-five thousand dollars ($25,000) during the calendar year of the date of assessment of the valuations.
  2. For the purposes of this section “owner-occupied residential real estate” is defined as real property from one to three (3) families owned and occupied by the owner or owners and having not more than three (3) dwelling units, one of the units of which constitutes the principal residence of the owner or owners; such property includes assessed land, buildings or improvements incidental to habitation and used exclusively by the owners of the property or their guests or tenants.
  3. “Household income” for purpose of this section means all monies received by the owner or owners, the spouse of any owner and any other person over eighteen (18) years of age occupying the dwelling unit occupied by the owner or owners, from whatever source derived, including, but not limited to, capital gains, dividends, interest, wages, pensions, annuities, retirement and social security benefits, workers’ compensation benefits, cash public assistance and relief and any and all other monies received.
  4. The ordinance providing for the tax freeze may provide rules for determining income, percentage increase in the tax rate, submission of proof of entitlement and any other terms and conditions as the city council deems appropriate to carry out the provisions of this section.

History of Section. P.L. 2001, ch. 95, § 1; P.L. 2001, ch. 394, § 1.

Compiler’s Notes.

P.L. 2001, ch. 95, § 2 and P.L. 2001, ch. 394, § 2 provide that all provisions of the general state law relating to the levy and assessment of local taxes shall continue to apply to the city of Providence after the adoption of those acts except insofar as any provision thereof is inconsistent with the terms of those acts.

Severability.

P.L. 2001, ch. 95, § 3 and P.L. 2001, ch. 394, § 3 provide that the invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of those acts.

44-3-31.2. Providence — Special property tax consideration for designated properties.

  1. The city of Providence may, by ordinance, provide special tax consideration for designated properties on the landmark list as part of the mill restoration program and in the arts and entertainment district in the city of Providence.
  2. Upon enactment [June 14, 2002] property taxes levied on eligible properties as of December 31, 2000, shall reflect adapted tax considerations. Owners of eligible properties are required to begin renovations by December 31, 2005, in order to qualify for continued tax considerations. Properties that fail to meet this deadline will be required retroactively to pay the difference between their actual tax payments and what they would have paid, if ineligible, for the specified tax considerations.
  3. Eligible properties shall be taxable properties located on the landmark list approved by ordinance in the city of Providence, and shall be eligible if certified by the city building inspector as in need of substantial rehabilitation.
  4. Tax benefits for eligible properties shall be transferable to new owners or tenants, but the life of the tax consideration shall not be extended.
  5. “Substantial rehabilitation” means rehabilitation that adheres to the applicable building and fire codes, extends to all floors that may be occupied of the building, and equals at least fifty percent (50%) of the current replacement value of the structure, as certified by the city building inspector.
  6. Nothing in this section shall be construed to diminish the authority of any body to review and approve the construction plans for overall appearance or historical preservation standards.
  7. During the period of eligibility, the city of Providence shall also be authorized to use special consideration in taxing tangible property located in businesses in eligible properties. For the ten (10) year period, the rate of thirty-three dollars and forty-four cents ($33.44) shall be applied annually to tangible property value, as it is determined and may change from year to year. This consideration shall apply to all taxable businesses occupying eligible properties during the period of eligibility, regardless of when they first occupied the property.
  8. The term of any special property tax consideration previously approved under this section that is still in effect upon the effective date of this section shall, notwithstanding any provision therein to the contrary, be extended for five (5) years.

History of Section. P.L. 2002, ch. 103, § 2; P.L. 2004, ch. 6, § 36; P.L. 2010, ch. 269, § 1; P.L. 2010, ch. 281, § 1.

Compiler’s Notes.

P.L. 2010, ch. 269, § 1, and P.L. 2010, ch. 281, § 1, enacted identical amendments to this section.

44-3-31.3. Providence — Additional special property tax consideration for designated properties.

  1. The city of Providence may, by ordinance, provide special tax consideration for designated properties on the landmark list as part of the mill restoration program and in the arts and entertainment district in the city of Providence.
  2. Upon enactment, property taxes levied on eligible properties as of December 31, 2010, shall be in an amount equal to the tax assessed as of December 31, 2000. Owners of eligible properties are required to begin renovations by December 31, 2015, in order to qualify for continued tax considerations. Properties that fail to meet this deadline will be required retroactively to pay the difference between their actual tax payments and what they would have paid, if ineligible, for the specified tax considerations.
  3. Eligible properties shall be taxable properties located on the landmark list approved by ordinance in the city of Providence, and shall be eligible if certified by the city building inspector as in need of substantial rehabilitation.
  4. Tax benefits for eligible properties shall be transferable to new owners or tenants, but the life of the tax consideration shall not be extended.
  5. “Substantial rehabilitation” means rehabilitation that adheres to the applicable building and fire codes, extends to all floors of the building that may be occupied, and equals at least fifty percent (50%) of the current replacement value of the structure, as certified by the city building inspector.
  6. Nothing in this section shall be construed to diminish the authority of any body to review and approve the construction plans for overall appearance or historical preservation standards.
  7. During the period of eligibility, the city of Providence shall also be authorized to use special consideration in taxing tangible property located in businesses in eligible properties. For the ten (10) year period, the rate of thirty-three dollars and forty-four cents ($33.44) shall be applied annually to tangible property value, as it is determined and may change from year to year. This consideration shall apply to all taxable businesses occupying eligible properties during the period of eligibility, regardless of when they first occupied the property.

History of Section. P.L. 2010, ch. 278, § 1; P.L. 2010, ch. 280, § 1.

Compiler’s Notes.

P.L. 2010, ch. 278, § 1, and P.L. 2010, ch. 280, § 1, enacted identical versions of this section.

44-3-32. Portsmouth — Tax exemption for the elderly.

  1. The town council of the town of Portsmouth may provide an ordinance for exemptions, partial or total, from taxation on parcels of real property located in the town which, as of the date of assessment, are owned and occupied wholly or partially as dwellings by persons who are citizens and residents of the town and who have attained the age of sixty-five (65) years. Each exemption is in the form of a credit against the taxes assessed on the real property. The amount of the credit with respect to each person is based on the annual income of that person. The maximum income for which each stated credit amount shall be allowed is set by the town council by resolution in January of each year provided that “income” includes the aggregate income of the person and all other persons residing with him or her; provided further, that “income” is computed on a calendar-year basis and includes all income of every nature and description, whether or not taxable, and whether earned or unearned, and includes but is not limited to dividends, interest, gross rents, gains, gifts, pensions, all types of compensation, and social security and veterans’ benefits. Only one exemption shall be allowed with respect to any one building; provided, that the exemption shall be allowed for single or multiple family dwellings and other buildings so long as the person resides in the dwelling. The exemption shall not be allowed unless the person entitled to it has presented to the tax assessor on or before June 1 of each year for which the exemption is sought an application for the exemption and due evidence that he or she is entitled to it, including, for example but not by way of limitation, certified birth records, voter registration records, and statements of annual income sworn or affirmed by the applicant before a person qualified to administer oaths. Such information shall be kept confidential by the tax assessor.
  2. Each exemption terminates immediately:
    1. Upon the alienation of the real property;
    2. In the event the person ceases to occupy the real property as his or her dwelling; or
    3. Upon the death of the person.

History of Section. P.L. 1989, ch. 28, § 1; P.L. 1999, ch. 320, § 1.

44-3-32.1. Portsmouth — Tax exemption for farmland, forest land, open space or historic preservation site.

  1. The town council of the town of Portsmouth may, by ordinance, exempt from taxation any real property situated in the town classified and utilized as farmland, forest land, open space land, or historic preservation site pursuant to the provisions of chapter 27 of this title, chapter 36 of title 45, a classification established by ordinance. The amount of the exemption, and the rules and regulations regarding eligibility for the exemption and classification as farmland, forest land, open space land, or historic preservation site, shall be provided for by ordinance, and the town council of the town of Portsmouth may, from time to time, by amendment to the ordinance, make those changes in the amount of exemption granted, and the rules and regulations regarding eligibility for the exemption and classification as farmland, forest land, open space land, or historic preservation site, as it deems necessary to promote the purpose of this section.
  2. The town council of the town of Portsmouth is authorized in the ordinance to provide that any person who obtains an exemption pursuant to the ordinance to which the person is not entitled, by the filing or making of any false statement, or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information, is liable to the town of Portsmouth for an amount equal to double the amount of reductions in taxes resulting from the exemption, which amount is recoverable by the town in a civil action.

History of Section. P.L. 1990, ch. 141, § 1; P.L. 1990, ch. 267, § 1; P.L. 2013, ch. 64, § 1; P.L. 2013, ch. 65, § 1.

Compiler’s Notes.

P.L. 2013, ch. 64, § 2, provides: “All real and personal property of the Prudence Island Historical And Preservation Society known as the Prudence Island Historical Museum, Prudence Island, Rhode Island, being designated as lot 81-11 of the tax assessor’s plats of the town of Portsmouth, as presently constituted together with the building and improvements thereon shall be exempt from local taxation so long as said property shall be used for nonprofit purposes.”

P.L. 2013, ch. 65, § 2, provides: “All real and personal property of the Prudence Island Historical And Preservation Society known as the Prudence Island Historical Museum, Prudence Island, Rhode Island, being designated as lot 81-11 of the tax assessor’s plats of the town of Portsmouth, as presently constituted together with the building and improvements thereon shall be exempt from local taxation so long as said property shall be used for nonprofit purposes.”

P.L. 2013, ch. 64, § 1, and P.L. 2013, ch. 65, § 1 enacted identical amendments to this section.

44-3-32.2. Cities and towns — Tax exemption for farmland, forestland, or open space land.

  1. Cities and towns in the state of Rhode Island may, by ordinance, exempt from taxation any real property situated in the town classified and utilized as farmland, forestland, or open space land pursuant to the provisions of chapter 27 of this title. The amount of the exemption shall be provided for by ordinance. Cities and towns may, from time to time, by amendment to the ordinance, make those changes in the amount of exemption granted.
  2. Cities and towns in the state of Rhode Island may, by ordinance, exempt from taxation any real property utilized in the production of dairy products by a licensed dairy in Rhode Island, current and future, pursuant to the department of health rules and regulations, including cow, sheep, and goat dairies. The real property shall include grazing land, cropland, outbuildings, and any other facility used in the direct production and processing of dairy products. The amount of the exemption shall be provided for by ordinance. Cities and towns may, from time to time, by amendment to the ordinance, make those changes in the amount of exemption granted.
  3. Cities and towns of Rhode Island are authorized by ordinance to provide that any person who obtains an exemption pursuant to the ordinance to which the person is not entitled, by the filing or making of any false statement, or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information, is liable for an amount equal to double the amount of reductions in taxes resulting from the exemption, which amount is recoverable by the city or town in a civil action.
  4. Cities and towns in the state of Rhode Island are authorized by ordinance to exempt from taxation any real property situated in the town classified and utilized as farmland on which the development rights have been sold or donated and will remain farmland in perpetuity. The amount of the exemption shall be provided for by ordinance. Cities and towns may, from time to time, by amendment to the ordinance, make those changes in the amount of exemption granted.

History of Section. P.L. 2002, ch. 223, § 1; P.L. 2002, ch. 247, § 1; P.L. 2003, ch. 398, § 1; P.L. 2021, ch. 182, § 1, effective July 6, 2021; P.L. 2021, ch. 183, § 1, effective July 6, 2021.

Compiler's Notes.

P.L. 2021, ch. 182, § 1 and P.L. 2021, ch. 183, § 1 enacted identical amendments to this section.

44-3-33. Burrillville — Tax exemption for the Industrial Foundation of Burrillville.

  1. The town council of the town of Burrillville may, by an ordinance pursuant to the home rule charter of the town of Burrillville, exempt from taxation the real property situated in that town and owned and/or occupied or otherwise controlled by the Industrial Foundation of Burrillville.
  2. The town of Burrillville may impose any conditions or other requirements for the exemption of taxation upon the Industrial Foundation of Burrillville upon its dissolution as a nonprofit corporation or upon fulfillment of its chartered purpose.
  3. The exemption if adopted by the town of Burrillville may be retroactive to December 31, 1986.

History of Section. P.L. 1989, ch. 247, § 1.

44-3-34. Central Falls — Homeowner exemption.

  1. The city council of the city of Central Falls, may, by ordinance, provide that the property of each person who is a domiciled resident of the city of Central Falls and which property is the principal residence of that person is exempt from taxation as follows: owner-occupied dwellings of no more than five (5) units not to exceed sixty thousand dollars ($60,000) of assessed valuation. The exemption is applied to residential property and includes property with up to a total of five (5) residential units and may include one commercial or professional use unit as part of the total of five (5) assessed units.
  2. Each person upon application for exemption shall provide by means of a sworn statement to the assessor clear and convincing evidence to establish his or her legal residence at the property subject to the exemption and eligibility for the exemption.
  3. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the city of Central Falls, upon approval of the city council, may provide for a proration of the homestead exemption in cases where title to a property passes from:
    1. Those not entitled to claim an exemption to those who are entitled to claim an exemption; or
    2. A person entitled to claim an exemption to those who are not entitled to claim an exemption.
  4. The city council of the city of Central Falls shall, by ordinance, establish rules and regulations governing the acceptance of evidence of residence.

History of Section. P.L. 1989, ch. 450, § 1; P.L. 1994, ch. 32, § 1; P.L. 1995, ch. 249, § 1; P.L. 1995, ch. 302, § 1; P.L. 2004, ch. 6, § 36; P.L. 2004, ch. 235, § 1; P.L. 2004, ch. 328, § 1; P.L. 2007, ch. 352, § 1; P.L. 2007, ch. 465, § 1; P.L. 2008, ch. 346, § 1; P.L. 2008, ch. 461, § 1; P.L. 2018, ch. 320, § 1; P.L. 2018, ch. 334, § 1; P.L. 2020, ch. 42, § 2; P.L. 2020, ch. 58, § 2.

Compiler’s Notes.

P.L. 2018, ch. 320, § 1, and P.L. 2018, ch. 334, § 1 enacted identical amendments to this section.

P.L. 2020, ch. 42, § 2, and P.L. 2020, ch. 58, § 2 enacted identical amendments to this section.

Effective Dates.

P.L. 2018, ch. 320, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2018, ch. 334, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

Retroactive Effective Dates.

P.L. 2020, ch. 42, § 3 provides that the amendment to this section by that act takes effect upon passage [June 27, 2020], and shall apply retroactively to July 1, 2020.

P.L. 2020, ch. 58, § 3 provides that the amendment to this section by that act takes effect upon passage [June 26, 2020], and shall apply retroactively to July 1, 2020.

44-3-35. Burrillville — Real estate tax exemption for persons who are disabled.

  1. The town council of the town of Burrillville is authorized to provide, by ordinance, for an exemption not to exceed three thousand dollars ($3,000) on assessed value from local taxation on residential property for any person who is:
    1. Determined by the social security administration to be totally disabled or for persons ineligible for social security, eligibility shall be determined through a process to be established by ordinance;
    2. Owns a single-family or a two-family residential property for a period of one year next prior to the filing of an application for taxation; and
    3. Occupies as his or her legal domicile, the residential property for which an exemption is being applied.
  2. This exemption is in addition to any other tax exemption provided under any other acts or ordinances of the town of Burrillville.
  3. The exemption is not allowed unless the person entitled to it has presented to the tax assessor on or before the last day in which sworn statements may be filed with the assessor for the year for which the exemption is claimed, evidence that he or she is entitled to the exemption.

History of Section. P.L. 1992, ch. 294, § 1; P.L. 2004, ch. 31, § 1; P.L. 2004, ch. 66, § 1; P.L. 2010, ch. 284, § 1; P.L. 2010, ch. 320, § 1.

Compiler’s Notes.

P.L. 2010, ch. 284, § 1, and P.L. 2010, ch. 320, § 1, enacted identical amendments to this section.

44-3-36. Portsmouth — Real estate tax exemption for persons who are disabled.

  1. The town council of the town of Portsmouth is authorized to provide, by ordinance, for an exemption not to exceed five thousand dollars ($5,000) on assessed value from local taxation on real residential property owned by any person who meets the following four (4) requirements:
    1. Head of household;
    2. Is determined by the Social Security Administration to be totally disabled;
    3. Has an annual gross income of less than fifteen thousand dollars ($15,000); and
    4. Occupies the property as the principal domicile of the disabled person.
  2. In no case is the real residential property entitled to more than one five thousand dollar ($5,000) exemption even though occupied and designated as a domicile by more than one disabled person.
  3. Any person who is claiming an exemption under the ordinance pursuant to this section shall not be eligible for tax exemptions under any other acts or ordinances of the town of Portsmouth.
  4. The exemption is not allowed unless the person entitled to it has presented to the assessors, on or before the last day on which sworn statements may be filed with the assessors for the year for which the exemption is claimed, evidence that he or she is entitled to the exemption.

History of Section. P.L. 1992, ch. 475, § 1; P.L. 1999, ch. 83, § 123; P.L. 1999, ch. 130, § 123.

44-3-37. Burrillville — Exemption and/or valuation freeze of retailer’s inventory.

  1. The town council for the town of Burrillville may, by ordinance, wholly or partially exempt from taxation and/or freeze the valuation of the stock in trade or inventory of retailers for a period of up to twenty-five (25) years.
  2. “Retailer” means and includes a person, partnership, corporation, or other business entity engaged in the business of selling goods at retail.
  3. “Inventory” or “stock in trade” means and includes the merchandise kept on hand for sale in the normal course of business of a retailer.
  4. The town council of the town of Burrillville may, by ordinance, establish the application and/or verification procedures for taxpayers to avail themselves of the benefit of any exemption or valuation freeze permitted under this section as the town council may deem necessary.

History of Section. P.L. 1993, ch. 343, § 1.

44-3-38. Transfer of property to trust. [As amended by P.L. 2012, ch. 376, § 2.]

Any exemption, freeze of tax rates and/or valuation granted to any individual pursuant to the provisions of the general laws, and/or pursuant to any public law or municipal ordinance shall not be affected if the otherwise eligible individual: (1) Transfers an ownership interest in the property while retaining a life estate in the property; or (2) Transfers an ownership interest while leasing the property back (but only where the lessee was the owner of the property prior to the transfer to the lessor); or (3) Transfers the property to a revocable or irrevocable living trust, if and so long as the otherwise eligible individual resides in such property and the otherwise eligible individual or the trustee is legally obligated to pay property tax on such property by contract, by agreement, by the terms of the trust instrument, or otherwise by law. The provisions of this section shall be applicable to any such transfer, regardless of when the transfer is made.

History of Section. P.L. 1993, ch. 464, § 1; P.L. 2012, ch. 376, § 2.

Compiler’s Notes.

P.L. 2012, ch. 376, § 2, and P.L. 2012, ch. 392, § 2 both amended this section. Since the amendments are in conflict, the section is set out twice as amended by each act.

44-3-38. Transfer of property to trust. [As amended by P.L. 2012, ch. 392, § 2.]

Any exemption, freeze of tax rates and/or valuation granted to any individual or individuals pursuant to this chapter is not affected if the eligible individuals transfer the property to a revocable living trust pursuant to the provisions of the general laws and/or pursuant to any public law or municipal ordinance shall not be affected if the otherwise eligible individual: (1) Transfers an ownership interest in the property while retaining a life estate in the property; or (2) Transfers an ownership interest while leasing the property back, but only where the lessee was the owner of the property prior to the transfer to the lessor; or (3) Transfers the property to a revocable or irrevocable living trust, if and so long as the otherwise eligible individual resides in such property and the otherwise eligible individual or the trustee is legally obligated to pay property tax on such property by contract, by agreement, by the terms of the trust instrument, or otherwise by law. The provisions of this section shall be applicable to any such transfer, regardless of when the transfer is made.

History of Section. P.L. 1993, ch. 464, § 1; P.L. 2012, ch. 392, § 2.

44-3-39. Middletown — Exemption of persons over the age of 65.

  1. Notwithstanding any other provisions of a general or special law to the contrary, the town council of the town of Middletown is authorized to fix, by ordinance or resolution, the amount of exemptions with respect to the assessed value from local taxation on taxable real property situated in the town, owned and occupied by any person over the age of sixty-five (65) years, whether the real property is income-producing or not.
  2. The exemption shall be in an amount established by the town council, including a complete exemption, and under conditions specified by the town council including income and/or property value limitations.

History of Section. P.L. 1994, ch. 38, § 1; P.L. 2003, ch. 223, § 1; P.L. 2003, ch. 277, § 1; P.L. 2009, ch. 55, § 1; P.L. 2009, ch. 74, § 1; P.L. 2010, ch. 239, § 37.

Effective Dates.

P.L. 2009, ch. 55, § 2, provides that the amendment to this section by that act takes effect upon passage [June 26, 2009], without voter approval notwithstanding any general or special law, charter or ordinance to the contrary, in conformance with the reserved powers of the general assembly pursuant to article XIII, § 5 of the constitution of the state of Rhode Island.

P.L. 2009, ch. 74, § 2, provides that the amendment to this section by that act takes effect upon passage [July 1, 2009], without voter approval notwithstanding any general or special law, charter or ordinance to the contrary, in conformance with the reserved powers of the general assembly pursuant to article XIII, § 5 of the constitution of the state of Rhode Island.

44-3-40. Cities and towns — Authorization to exempt retailer’s inventory.

  1. Each city and town, by resolution or ordinance adopted by the city or town council, may wholly or partially exempt from taxation the valuation of the stock in trade or inventory of retailers.
  2. “Retailer” means and includes a person, partnership, corporation, or other business entity engaged in the business of selling goods at retail.
  3. “Inventory” or “stock in trade” means and includes the merchandise kept on hand for sale in the normal course of business of a retailer.
  4. Nothing in this section is deemed to permit the exemption or stabilization for any retailer relocating from one city or town within the state to another.

History of Section. P.L. 1995, ch. 224, § 1.

44-3-41. Glocester — Historic district exemption.

The town council of the town of Glocester may, by ordinance, provide for a schedule of exemptions from increased assessment valuations for exterior renovations or improvements made to pre-20th century buildings within the historic district, and to post-19th century buildings made subject by their owners to historic district guidelines. The exemptions may be extended to buildings outside the historic district, which are on the national historic register. The ordinance shall specify the kinds of improvements and renovations for which exemptions are permitted.

History of Section. P.L. 1995, ch. 251, § 1.

44-3-42. Cumberland — Fixed tax assessment for farmland.

  1. The town council of the town of Cumberland may, by ordinance, provide for a fixed tax assessment for any real property situated in the town which has been classified and utilized as farmland, pursuant to the provisions of chapter 27 of this title, or pursuant to a classification established by ordinance. The amount of the assessment, and the rules and regulations regarding eligibility for the assessment and classification as farmland, shall be provided for by ordinance, and the town council of the town of Cumberland may, from time to time, by amendment to the ordinance, make changes in the amount of the assessment, and the rules and regulations regarding eligibility for the assessment and classification as farmland, as it deems necessary to promote the purpose of this section.
  2. The town council of the town of Cumberland is authorized in the ordinance to provide that any person who obtains an assessment pursuant to the ordinance to which the person is not entitled, by the filing or making of any false statement, or the proffering of any document or other writing known by the person to have been altered, forged, or to contain any false or untrue information, is liable to the town of Cumberland for an amount equal to double the amount of reductions in taxes resulting from the assessment, which amount is recoverable by the town in a civil action.

History of Section. P.L. 1996, ch. 96, § 1.

44-3-43. Historic stone wall exemption.

The city and town councils of the various cities and towns may provide, by ordinance, an exemption not exceeding five thousand dollars ($5,000) of valuation for any parcel of real property on which is located an historic stone wall(s); provided, that the wall(s) is fifty (50) or more feet in length, at least three (3) feet high, structurally maintained and free of noxious weeds and vegetation. For purposes of this section, an “historic stone wall” is a vertical structure of aligned natural stone built before 1900, normally constructed to designate a property boundary or to separate agricultural activities within a farmstead.

History of Section. P.L. 1996, ch. 264, § 1.

44-3-44. Qualifying stock options — Exemption.

For purposes of determining the federal income tax liability of a taxpayer subject to Rhode Island income tax, the Rhode Island income of the taxpayer under §§ 44-30-12 and 44-30-16 is determined by excluding any income, gain, or preference items resulting from the sale, transfer, or exercise of qualified and nonqualified stock options, the stock issued or transferred on the exercise of any such option, and warrants issued with respect to such options and/or stock, of a qualifying corporation provided that the taxpayer was a qualifying taxpayer and the taxpayer’s employer who issued the option was a qualifying corporation at the time the taxpayer acquired a vested interest in such option and exercised such option.

History of Section. P.L. 1997, ch. 223, § 1.

44-3-45. “Qualifying taxpayer” defined.

A “qualifying taxpayer” is a resident of the state who has been employed at a location in the state for at least three (3) consecutive months as a full-time employee of a qualifying corporation in accordance with corporate policy and the estate, heirs and successors of any qualifying individual.

History of Section. P.L. 1997, ch. 223, § 1.

44-3-46. “Qualifying corporation” and “full-time equivalent active employee” defined.

  1. A “qualifying corporation” is any corporation that:
    1. Annually elects (in a manner that may be determined by the tax administrator) to be a qualifying corporation;
    2. Has at least ten (10) full-time equivalent active employees in this state; and
    3. Is principally engaged in one or more of the business activities described in industry numbers 7371, 7372 and 7373 in the Standard Industrial Classification, Office of the Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as revised from time to time.
  2. For purposes of this section, “full-time equivalent active employee” means any employee who works a minimum of thirty (30) hours per week in this state, or two (2) or more part-time employees whose combined weekly hours equal or exceed thirty (30) hours per week in this state.
  3. The annual election by a corporation to be treated as a qualifying corporation for a fiscal year becomes effective for purposes of this section as of the first day of the fiscal year for which the election is filed and must be filed with the tax administrator on or before the due date prescribed by law (including any extensions) for the filing of the corporation’s tax return with the tax administrator for the fiscal year. In no event shall an election be effective for fiscal years commencing prior to January 1, 1997, and in no event shall the exclusion available under the provisions of this chapter be available to options that were issued prior to January 1, 1997.

History of Section. P.L. 1997, ch. 223, § 1.

44-3-47. Cranston — Economic development tax incentive program Exemptions.

The city council of the city of Cranston may, by ordinance, provide exemptions from assessed valuation for real and tangible personal property of property owners or businesses which create jobs in the city of Cranston and any property owners or businesses for any retrofit, expansion, or renovation of specifically permitted uses; provided, that the exemption shall be for a period of not more than ten (10) years.

History of Section. P.L. 1997, ch. 247, § 1.

44-3-48. Burrillville — Certain tax exemptions.

  1. Each exemption granted on property in the town of Burrillville by any of the provisions of this chapter shall be at a rate to be established per one thousand dollars ($1,000) of valuations for each exemption granted to a taxpayer.
  2. The town council of the town of Burrillville shall annually establish the tax rate for exemptions at the same time it establishes a tax rate for all ratable property.

History of Section. P.L. 1999, ch. 76, § 1.

44-3-49. Burrillville — Fixed tax rate.

The town council of the town of Burrillville may, by ordinance, provide for a fixed tax rate to apply to all personal tax exemptions provided for by this chapter.

History of Section. P.L. 1999, ch. 334, § 1.

44-3-50. Pawtucket — Certain tax exemptions.

  1. Notwithstanding any other provisions of general or special law to the contrary, the city council of the city of Pawtucket is authorized to fix, by ordinance or resolution, the amount of the exemptions with respect to assessed value from local taxation on taxable property to the following persons: for veterans and the unmarried widow or widower of veterans as defined in § 44-3-4 at twelve thousand four hundred dollars ($12,400); for persons who are visually impaired as defined in § 44-3-12 at seventy-four thousand three hundred dollars ($74,300); for veterans or the unmarried widow or widower of veterans who are totally disabled as defined in § 44-3-4 at twenty-four thousand eight hundred dollars ($24,800); for gold star parents as defined in § 44-3-5 at eighteen thousand six hundred dollars ($18,600); for specially adapted housing for veterans with paraplegia as defined in § 44-3-4 at twenty-four thousand eight hundred dollars ($24,800); for any person of age sixty-five (65) years or over at thirty-seven thousand one hundred dollars ($37,100). Beginning in fiscal year 2008, the age exemption shall increase by three thousand dollars ($3,000) per year for three (3) years and then shall remain at forty-six thousand one hundred dollars ($46,100); for any person under the age of sixty-five (65) who is totally disabled and who has been receiving social security disability benefits for a period of at least two (2) years at twenty-four thousand eight hundred dollars ($24,800); for any person who owns real estate which is occupied by at least one owner, or one principal, shareholder or member of the owner, if said owner is a corporation, limited liability company or other legal entity recognized under the laws of the State of Rhode Island, and which is individually listed or a contributing structure in a National Register of Historic Places and is listed on the city of Pawtucket’s local historic district as defined in § 45-24.1-1.1 , or is individually listed as a local historic district, but shall not include individual condominium units located within a qualifying structure, at seventy-four thousand three hundred dollars ($74,300).
  2. Notwithstanding the language in § 44-5-13.2.5 , all individuals who are receiving the three (3) year exemption for increases in the assessed value of their real property, not exceeding thirty-seven thousand one hundred dollars ($37,100) cumulatively, resulting from alterations and improvements to their real property as provided for under this section shall not have the three (3) year time period reduced by the implementation of revaluation.
  3. Notwithstanding subsection (a) of this section, exemptions on motor vehicles and trailers shall be determined as prescribed in § 44-34.1-1 regarding the phasing out of taxes on that property.
  4. The city council of the city of Pawtucket may subject the exemptions provided in this section to verifications with respect to qualification for exemptions that it deems necessary or desirable.

History of Section. P.L. 2000, ch. 22, § 1; P.L. 2002, ch. 336, § 1; P.L. 2007, ch. 20, § 1; P.L. 2007, ch. 21, § 1.

44-3-51. North Smithfield — Tax exemptions.

  1. The town council of the town of North Smithfield has the authority to exempt certain property from taxation based on the following: any real property situated in the town and owned and occupied by any person who has resided in the town of North Smithfield for three (3) years, ending with the date of assessment December 31st of the year requesting the exemption. Persons who are at least sixty-five (65) years of age are exempted up to five hundred dollars ($500) from taxation. These exemptions are in addition to any and all other exemptions from taxation to which the person may otherwise be entitled. The exemption shall be applied uniformly and without regard to ability to pay.
  2. The town council of the town of North Smithfield is authorized to provide by ordinance an exemption not to exceed five hundred dollars ($500) from local taxation on residential real property owned by any person who meets the following requirements: head of household; determined by the social security administration to be totally disabled; occupies the property as the principal domicile of the person who is disabled. In no case is the residential real property entitled to more than one five hundred dollar ($500) exemption even though occupied and designated as a domicile by more than one disabled person. Upon attaining the age of sixty-five (65) years the totally disabled person is no longer entitled to the exemption provided in this section. The exemption is not allowed unless the person entitled to it has presented to the assessor, on or before the last day on which sworn statements may be filed with the assessor for the year for which the exemption is claimed, evidence that he or she is entitled to the exemption.

History of Section. P.L. 2000, ch. 117, § 1; P.L. 2000, ch. 392, § 1; P.L. 2007, ch. 358, § 1; P.L. 2007, ch. 464, § 1.

44-3-52. Cumberland — Exemption for persons interned in concentration camps.

The town council of the town of Cumberland may, by ordinance, provide for an exemption from valuation for taxation any real property situated in the town, which is owned and occupied by any person who is determined to have been interned in a concentration camp. The amount of the exemption shall not exceed the maximum provided for in § 44-3-25 .

History of Section. P.L. 2000, ch. 414, § 1.

44-3-53. Club Sport Uniao Madeirense in the city of Central Falls — Tax exemption.

The town council of the city of Central Falls may, by ordinance or resolution, provide for an exemption from valuation for taxation any real property situated in the city owned by the Club Sport Uniao Madeirense.

History of Section. P.L. 2002, ch. 7, § 1.

44-3-54. “Sons of the Revolution” society located in the town of Middletown — Tax exemption.

Notwithstanding any other provisions of the general laws to the contrary, the city council of the town of Middletown is authorized to determine, by ordinance or resolution, exemptions from property taxation for the “Sons of the Revolution” society located in the town of Middletown.

History of Section. P.L. 2003, ch. 49, § 1.

44-3-55. South Kingstown — certain non-profit charitable organizations — Tax exemptions or payment in lieu of tax agreements.

The town council of the town of South Kingstown may, by ordinance or resolution, provide for exemptions from valuation for taxation or otherwise enter into payment in lieu of tax agreements regarding any real or personal property, which is directly related to the actual conduct of the charitable purposes of a non-profit organization and which otherwise is, or would become, subject to taxation by the town, that is owned, leased, or held in the town of South Kingstown by any nonprofit, charitable organization recognized as such by the state of Rhode Island. Notwithstanding any other provisions of the general laws to the contrary, the town of South Kingstown shall be authorized to enter into payment in lieu of tax agreements with qualifying organizations upon terms acceptable to the town council. The town shall maintain a comprehensive list of all such exemptions and payment in lieu of tax agreements adopted pursuant to this section, which list shall set forth the amount of the exemption, the amount of the in lieu of tax payment, and the date of the resolution or ordinance establishing the exemption and/or payment in lieu of tax agreement and of any amendments to the ordinance or resolution.

History of Section. P.L. 2003, ch. 220, § 1; P.L. 2003, ch. 289, § 1.

44-3-56. Tax credit in lieu of tax exemption in the town of Burrillville.

  1. The town council of the town of Burrillville may, by ordinance, grant a dollar tax credit of a specific dollar amount in lieu of the tax exemptions allowed pursuant to the provisions of §§ 44-3-4 , 44-3-5 , 44-3-12 , 44-3-15 and 44-3-35 and chapter 22 of the public laws of 1973. The basis for determining eligibility for the dollar tax credit shall be as set forth in §§ 44-3-4 , 44-3-5 , 44- 3-12, 44-3-15 and 44-3-35 and chapter 22 of the public laws of 1973. The dollar tax credit shall be a direct deduction from the tax bill.
  2. In lieu of the dollar tax credit allowed in subsection (a), the town council of the town of Burrillville may, by ordinance, establish a dollar tax credit for persons who meet the criteria set forth in §§ 44-3-15 and 44-3-35 and chapter 22 of the public laws of 1973 based on household gross income. The dollar tax credit may vary based on the household gross income.
  3. The total amount of all flat rate tax credits shall not exceed three percent (3%) of the prior year’s tax levy.

History of Section. P.L. 2004, ch. 30, § 1; P.L. 2004, ch. 67, § 1.

44-3-57. Deferment of payment of tax for the elderly — Bristol.

The town council of the town of Bristol is authorized to provide, by ordinance, that the payment of a portion of the property taxes on all family dwellings located therein and owned and occupied by persons who are age sixty-five (65) years or older for at least twenty (20) years, and who meet income thresholds defined by the council, is deferred until the property is disposed of by reason of death of all the owners or by reason of transfer or conveyance; provided, that any taxes so deferred constitute a lien against the real estate.

History of Section. P.L. 2004, ch. 155, § 1; P.L. 2004, ch. 190, § 1.

44-3-58. Tax deferment of elderly persons in the town of Narragansett.

  1. The town council of the town of Narragansett may, by ordinance, provide that the payment of all or a portion of the property taxes on a single family dwelling, owned by and occupied as the principal residence of persons who are sixty-five (65) years or older may be partially deferred until the property is disposed of by reason of death of all the qualified owners, or by reason of transfer or conveyance, provided, that any deferred taxes and interest constitute a lien against the real estate.
  2. This act shall be voted upon by the qualified electors of the town of Narragansett entitled to vote upon a proposition to impose a tax or for the expenditure of money at any special or regular election held after the passage of this act. The town clerk will then certify the results to the secretary of state. Any ordinance passed by the town council of Narragansett to provide tax deferment pursuant to the terms of this act shall become effective upon the approval of a majority of the electors voting on the question, vote to accept this section.

History of Section. P.L. 2004, ch. 166, § 1; P.L. 2010, ch. 239, § 37.

44-3-58.1. Tax deferment of increase in property taxes of persons sixty-five (65) years of age or older.

The town council of the town of East Greenwich is authorized to provide, by ordinance, that the payment of any increases in property taxes on the primary residence owned and occupied by a person or persons who are sixty-five (65) years of age or older, may be deferred, interest free, by the eligible taxpayer until such time as the property is disposed of by reason of the death of all owners who are sixty-five (65) years of age or older, or by reason of transfer or conveyance, at which time the total deferred taxes will be paid to the town. An eligible taxpayer is defined as an individual who is a resident of the town of East Greenwich for income tax purposes, is sixty-five (65) years of age or older, and has resided in the primary residence located in the town of East Greenwich, for which the deferral is claimed, for a minimum of five (5) years. There is no income or means test for eligibility. In the case of a married couple, at least one spouse must be sixty-five (65) years of age or older. The deferral is optional, to be made at the request of the eligible taxpayer to the tax assessor. Any taxes so deferred will become a lien on the property. The eligible taxpayer may remove the lien at any time by paying the total taxes due, interest free. This deferral is in addition to any and all other exemptions which the taxpayer may be entitled by law. The town council of the town of East Greenwich shall establish the requirements and application and/or verification procedures for taxpayers to avail themselves of this deferment.

History of Section. P.L. 2006, ch. 101, § 1; P.L. 2006, ch. 153, § 1.

Effective Dates.

P.L. 2006, ch. 101, § 2, provides that this section takes effect in the tax year following its passage [June 13, 2006].

P.L. 2006, ch. 153, § 2, provides that this section takes effect in the tax year following its passage [June 16, 2006].

44-3-59. Tax exemption in the town of Burrillville — The Columbus Club of Burrillville.

The town council of the town of Burrillville may by ordinance or resolution provide an exemption from valuation for taxation any real property owned by the Columbus Club of Burrillville, Council 383, in an amount not to exceed seven hundred fifty thousand dollars ($750,000).

History of Section. P.L. 2004, ch. 329, § 1; P.L. 2004, ch. 561, § 1.

44-3-60. Tax exemption extended to motor vehicle excise tax in lieu of tax exemption on property in the Town of Westerly.

The town council in the town of Westerly may, by ordinance, grant a tax exemption to a motor vehicle excise tax for persons who own no real or personal property, in the amounts set forth in §§ 44-3-4 , 44-3-5 , and 44-3-12 .

History of Section. P.L. 2005, ch. 15, § 2.

44-3-61. [Renumbered.]

Compiler’s Notes.

P.L. 2005, ch. 35, § 1, P.L. 2005, ch. 84, § 1, and P.L. 2005, ch. 414, § 1, enacted sections concerning the same subject matter and containing identical text, but at different locations of the General Laws. P.L. 2005, ch. 35, § 1, and P.L. 2005, ch. 414, § 1, enacted sections designated as § 44-3-61 , whereas P.L. 2005, ch. 84, § 1, enacted a section designated as § 44-5-80 . The director of law revision of the joint committee on legislative services has determined that the subject matter of the section more properly belongs as part of chapter 44-5, and has compiled all versions of the section at that location.

44-3-62. Lincoln — Tangible business property tax exemption for new investments.

The town of Lincoln may by ordinance create a three (3) year tangible property tax exemption for local small business owners who make new investments, excluding inventory.

History of Section. P.L. 2006, ch. 339, § 1.

44-3-63. Historical cemeteries.

City and town councils are authorized to provide by ordinance an abatement from taxation for any real property on which is located a historical cemetery registered pursuant to § 23-18-10.1 and to provide by ordinance for full or partial reimbursement of expenses incurred in repairing and maintaining such historical cemeteries, including walls or fences surrounding such cemeteries.

History of Section. P.L. 2011, ch. 117, § 4; P.L. 2011, ch. 126, § 4.

Compiler’s Notes.

P.L. 2011, ch. 117, § 4, and P.L. 2011, ch. 126, § 4 enacted identical versions of this section.

44-3-64. Tax exemption in the City of Pawtucket — Sandra Feinstein — Gamm Theatre.

The city council of the city of Pawtucket may by ordinance or resolution provide an exemption from valuation for taxation any real, personal and motor vehicle property owned by the Sandra Feinstein — Gamm Theatre, a Rhode Island 501(c)(3) nonprofit corporation.

History of Section. P.L. 2012, ch. 435, § 1; P.L. 2012, ch. 473, § 1.

Compiler’s Notes.

P.L. 2012, ch. 435, § 1, and P.L. 2012, ch. 473, § 1 enacted identical versions of this section.

44-3-65. Narragansett and East Greenwich — Tangible business property tax exemption.

The town of Narragansett and the town of East Greenwich may, by ordinance, create a tangible business property tax exemption for local small business owners in an amount not to exceed thirty-five thousand dollars ($35,000).

History of Section. P.L. 2016, ch. 327, § 1; P.L. 2019, ch. 21, § 2; P.L. 2019, ch. 22, § 2.

Compiler’s Notes.

P.L. 2019, ch. 21, § 2, and P.L. 2019, ch. 22, § 2 enacted identical amendments to this section.

Chapter 4 Situs and Ownership of Taxable Property

44-4-1. Place of taxation of real estate.

All real estate is taxed in the city or town where the real estate is situated.

History of Section. G.L. 1896, ch. 45, § 1; G.L. 1909, ch. 57, § 1; G.L. 1923, ch. 59, § 1; G.L. 1938, ch. 30, § 1; G.L. 1956, § 44-4-1 .

Comparative Legislation.

Taxable property:

Conn. Gen. Stat. § 12-40 et seq.

Mass. Ann. Laws ch. 59, § 2 et seq.

Collateral References.

Situs of aircraft, rolling stock, and vessels for purposes of property taxation. 3 A.L.R.4th 837.

44-4-2. Buildings on leased land deemed real estate.

Buildings on leased land, where the leases are in writing and recorded, are, for the purposes of taxation, deemed real estate.

History of Section. G.L. 1896, ch. 45, § 2; G.L. 1909, ch. 57, § 2; G.L. 1923, ch. 59, § 2; G.L. 1938, ch. 30, § 2; G.L. 1956, § 44-4-2 .

NOTES TO DECISIONS

Building Constructed Under Lease.

Building constructed under a recorded lease is taxable as real estate. O'Reilly v. Clarke, 48 R.I. 407 , 137 A. 783, 1927 R.I. LEXIS 65 (1927).

Unrecorded Leases.

Buildings owned by taxpayer and located on land belonging to railroad were improperly assessed as real estate where lease was not recorded. Lundgren v. Doughty, 32 R.I. 524 , 80 A. 125, 1911 R.I. LEXIS 68 (1911).

Collateral References.

Tenant’s interest in respect of building or other structure erected by him as separate unit for property tax apart from land. 154 A.L.R. 1309.

44-4-3. Fixtures declared to be real estate.

The main wheels, steam engines, dynamos, boilers, and shafts, whether upright or horizontal, drums, pulleys, and wheels attached to any real estate for operating machinery, and all steam pipes, gas pipes, water pipes, ammonia pipes, air pipes, gas fixtures, electric fixtures, and water fixtures attached to, and all kettles set and used in, any manufacturing establishment, are declared to be real estate when owned by the owners of the real estate to which they are attached.

History of Section. G.L. 1896, ch. 45, § 3; P.L. 1905, ch. 1246, § 3; G.L. 1909, ch. 57, § 3; G.L. 1923, ch. 59, § 3; G.L. 1938, ch. 30, § 3; G.L. 1956, § 44-4-3 .

Cross References.

Machinery, tools and apparatus, assessment, § 34-17-2 .

NOTES TO DECISIONS

Dynamos.

Dynamos so constructed and attached to the real estate so as to be removable at pleasure by simply unscrewing the bolts by which they are fastened to plates are not taxable as real estate. Newport Illuminating Co. v. Tax Assessors of Newport, 19 R.I. 632 , 36 A. 426, 1896 R.I. LEXIS 80 (1896).

Gas Pipes.

Gas pipes laid in the streets are taxable as real estate because such pipes are fixtures. Providence Gas Co. v. Thurber, 2 R.I. 15 , 1851 R.I. LEXIS 18 (1851).

Wiring.

Wiring inside station, consisting of a switchboard with wires connected thereto, and so attached to the real estate as to be removable without injury to the real estate, is taxable as personal property. Newport Illuminating Co. v. Tax Assessors of Newport, 19 R.I. 632 , 36 A. 426, 1896 R.I. LEXIS 80 (1896).

Poles and wires for the conducting of electricity to consumers are not taxable as real estate. Newport Illuminating Co. v. Tax Assessors of Newport, 19 R.I. 632 , 36 A. 426, 1896 R.I. LEXIS 80 (1896).

Collateral References.

Electronic computing equipment as fixture. 6 A.L.R.3d 497.

44-4-4. Assessment of real estate taxes against owner.

Taxes on real estate are assessed to the owners, including purchasers at tax sales of fractional interests, and separate tracts or parcels, and their fractioned interests, if any, shall be separately described and valued so far as practicable; provided, that no misdescription, defect in description, or mistake in valuation, so long as the estate assessed can be identified, shall be taken advantage of by any taxpayer in order to avoid the payment of a tax assessed against the taxpayer, unless he or she has brought to the assessors a true and exact account of all his or her ratable estate, describing and specifying the value of every parcel of his or her real and personal estate, at the time that they may prescribe for the assessing of the tax. Nothing contained in this section shall be construed to deprive a taxpayer of the remedies provided in §§ 44-5-26 44-5-31 .

History of Section. G.L. 1896, ch. 45, § 4; P.L. 1901, ch. 920, § 1; G.L. 1909, ch. 57, § 4; P.L. 1909, ch. 461, § 1; G.L. 1923, ch. 59, § 4; P.L. 1932, ch. 1945, § 1; G.L. 1938, ch. 30, § 4; G.L. 1956, § 44-4-4 ; P.L. 1987, ch. 225, § 1.

Cross References.

Real estate belonging to common trust fund, taxation to owner, § 18-5-3 .

Redevelopment purposes, ownership of property taken for, § 45-32-39 .

NOTES TO DECISIONS

Certainty of Description.

Assessment which described and valued several parcels of land under the name of “Beach” was too vague and uncertain in the absence of circumstances showing that it was impractical to separately describe and value the lands. Taylor v. Narragansett Pier Co., 19 R.I. 123 , 33 A. 519, 1895 R.I. LEXIS 88 (1895).

Description of real estate as “Slatersville Mills, purchased from John W. Slater” was invalid where it did not appear that the real estate purchased had remained intact and consisted of a single parcel or that it was in several parcels which could not practically be separately described. Mowry v. Slatersville Mills, 20 R.I. 94 , 37 A. 538, 1897 R.I. LEXIS 52 (1897).

Assessment based on description of real estate as “pipe and water rights and right-of-way to Carr’s pond” was void for insufficient description because tracts were not described. Kettelle v. Warwick & Coventry Water Co., 23 R.I. 114 , 49 A. 492, 1901 R.I. LEXIS 96 (1901).

Description of real estate as “land and dam at Carr’s pond, including right of flowage” was insufficient and assessment based thereon was void. Kettelle v. Warwick & Coventry Water Co., 23 R.I. 114 , 49 A. 492, 1901 R.I. LEXIS 96 (1901).

This section does not require the platting of assessable land into lots numbered to each owner nor meticulous description by metes and bounds, but a general description which serves to identify the tract and distinguish it in such a manner as to inform the owner with certainty of the assessment and of the property upon which the tax is levied is sufficient. Acme Corp. v. Mowrey, 59 R.I. 163 , 194 A. 593, 1937 R.I. LEXIS 138 (1937).

— Parol Evidence.

Parol evidence is admissible for the purpose of applying a description to the land or to remove a latent ambiguity but it cannot be resorted to for the purpose of supplementing and making certain a description which is so defective that it does not identify the land. Evans v. Newell, 18 R.I. 38 , 25 A. 347, 1892 R.I. LEXIS 4 (1892).

Description by assessors not definite enough to identify the land could not be supplemented by parol evidence. Kettelle v. Warwick & Coventry Water Co., 23 R.I. 114 , 49 A. 492, 1901 R.I. LEXIS 96 (1901).

Occupation and Use.

The fact that premises have always been occupied as one tract was not a defense to assertion that separate description and valuation was practicable. Clark v. Greene, 23 R.I. 118 , 52 A. 889, 1901 R.I. LEXIS 166 (1901).

Owner’s Description.

Objection to assessment on the ground that the assessors did not separately describe and value separate tracts could not be sustained where owner described the property in one parcel and such description was adopted by the assessors. Warwick & Coventry Water Co. v. Carr, 24 R.I. 226 , 52 A. 1030, 1902 R.I. LEXIS 56 (1902).

Where the owner furnishes to the assessor his own description of his property, and the assessors adopt such information as their own in describing such property on the assessment roll, the owner or his successor in title will not be heard later to complain that this section has not been observed. Acme Corp. v. Mowrey, 59 R.I. 163 , 194 A. 593, 1937 R.I. LEXIS 138 (1937).

Previous Assessments.

The fact that certain land has always been assessed as one tract was no defense to the assertion that separate description and valuation was practicable and did not estop taxpayer from asserting illegality of assessment as one tract. Clark v. Greene, 23 R.I. 118 , 52 A. 889, 1901 R.I. LEXIS 166 (1901).

Purchaser.

Purchaser was not taxable as owner where at date of assessment he had an oral agreement to purchase the land but had not received deed, paid the price, nor taken possession. Fish v. Coggeshall, 22 R.I. 318 , 47 A. 692, 1900 R.I. LEXIS 111 (1900).

Recovery of Illegally Assessed Tax.

Taxpayer can recover tax paid where assessment was not in accord with this section. Clark v. Greene, 23 R.I. 118 , 52 A. 889, 1901 R.I. LEXIS 166 (1901).

Sale Under Combined Description.

Where property was assessed without separately describing and valuing tracts, the only way the property could be sold was in one lot as advertised by the assessors. Acme Corp. v. Mowrey, 59 R.I. 163 , 194 A. 593, 1937 R.I. LEXIS 138 (1937).

Separation of Parts of Assessment.

An assessment which was void as to part did not make the entire assessment void where it was possible to separate the legal from the illegal. Mowry v. Slatersville Mills, 20 R.I. 94 , 37 A. 538, 1897 R.I. LEXIS 52 (1897).

Separation of Tracts.

A taxpayer cannot object that the assessors did not tax one parcel of real estate owned by him and that therefore the tax assessed as to the other parcels was invalid. Capwell v. Hopkins, 10 R.I. 378 , 1873 R.I. LEXIS 2 (1873).

Question of whether separate description and valuation is practicable is a question of fact, and the finding of assessors was not conclusive. Clark v. Greene, 23 R.I. 118 , 52 A. 889, 1901 R.I. LEXIS 166 (1901).

The mandate of this section may be satisfied by assessment by tract or parcel other than the platted lots when the description of such parcel is sufficient to identify the property taxed. Knuth v. Board of Sewer Comm'rs, 91 R.I. 164 , 162 A.2d 278, 1960 R.I. LEXIS 77 (1960).

Strict Compliance With Section.

Compliance with this section by separately describing and valuing tracts is mandatory for an assessment to be valid unless circumstances are shown which excuse nonobservance. Young v. Joslin, 13 R.I. 675 , 1882 R.I. LEXIS 69 (1882); Acme Corp. v. Mowrey, 59 R.I. 163 , 194 A. 593, 1937 R.I. LEXIS 138 (1937).

While this section is mandatory in character, strict compliance therewith is not required in every instance. Knuth v. Board of Sewer Comm'rs, 91 R.I. 164 , 162 A.2d 278, 1960 R.I. LEXIS 77 (1960).

Town Boundary Tracts.

Assessment of “Lot 26 — Arlington Heights Park Plat” was an assessment on the whole lot though only part of it was located in the town. Smith v. De Robbio, 30 R.I. 464 , 76 A. 161, 1910 R.I. LEXIS 44 (1910).

Collateral References.

Abbreviations, use of, in description of land in tax proceedings. 1 A.L.R. 1228.

Map, plat, or survey, sufficiency of description of property by, on tax rolls or in tax proceedings. 137 A.L.R. 184.

“Owner,” scope and import of term, in statutes relating to assessment of taxes. 2 A.L.R. 792; 95 A.L.R. 1085.

Payment of tax assessment which improperly describes property owned by taxpayer as good payment on that property. 23 A.L.R. 79.

44-4-4.1. State property taxed to lessee or tenant.

Any property owned by the state, except land and piers but including any other real property, buildings, improvements, and tangible personal property attached to, contained in, or used in connection with the property, which is leased or rented for a term of ten (10) or more years, including any options to renew or extend the term, shall be taxed to the person, partnership, corporation, joint stock company, or association leasing or renting the property, who, for the purposes of taxation is deemed the owner of the property; but excluding:

  1. Property acquired by the state from the United States pursuant to 49 U.S.C. § 47151 et seq., and managed for it by the Rhode Island economic development corporation;
  2. State property which is leased by any corporation, association, or organization which is exempt from property taxation;
  3. State property which is leased for purposes of nonprofit public use or service;
  4. Portions of buildings which are owned by the state, the portions being of a size, shape, or other unique character which makes them impossible to measure or separate for purposes of taxation; and
  5. State property leased for purposes which are necessary to the operation of an airport.

History of Section. P.L. 1982, ch. 451, § 2; P.L. 2005, ch. 410, § 27.

NOTES TO DECISIONS

Airport Property.

Although state-owned real property, buildings, improvements, and tangible personal property attached to, contained in, or used in connection with property which is leased or rented for a term of 10 or more years is to be taxed to the lessee, R.I. Gen. Laws § 44-4-4.1(5) excluded state property leased for purposes which were necessary to the operation of an airport; therefore, leasehold improvements by airlines under lease with Rhode Island Airport Corporation (RIAC) were tax exempt, since the lease provided that RIAC was owner of leasehold improvements, and lease did not extinguish exempt status. Delta Airlines, Inc. v. Neary, 785 A.2d 1123, 2001 R.I. LEXIS 251 (R.I. 2001).

Collateral References.

Availability of tax exemption to property held on lease from exempt owner. 54 A.L.R.3d 402.

Exemption of property leased by and used for purposes of otherwise tax-exempt body. 55 A.L.R.3d 430.

44-4-4.2. Leasehold improvements taxed to tenant of quasi-public corporation.

Commencing with taxes assessed on December 31, 2001, whenever real property is owned by a quasi-public corporation and leased to a tenant which is engaged in any business for profit, and that property is located at an airport terminal building with more than ten thousand (10,000) air carrier aircraft operations annually, any tax on leasehold improvements shall be paid by the tenant, who, for the purposes of taxation, shall be deemed to be the owner of the leasehold improvements, regardless of whether the improvements become state property, unless the improvements or the tenant or subtenant are otherwise exempt from taxation.

History of Section. P.L. 2002, ch. 61, § 1; P.L. 2002, ch. 65, art. 40, § 4; impl. am. P.L. 2002, ch. 67, § 7; P.L. 2002, ch. 129, § 1.

Applicability.

P.L. 2002, ch. 61, § 2 provides that this section takes effect upon passage [June 13, 2002] and applies to taxes assessed commencing on December 31, 2001. If any court of competent jurisdiction adjudges the application of this section to periods prior to the enactment of this section to be invalid or unconstitutional, this section is nevertheless effective for dates of assessment occurring on or after the date of passage.

P.L. 2002, ch. 65, art. 40, § 5 provides that this section takes effect upon passage [July 1, 2002] and applies to dates of property assessments occurring on or after December 31, 2000. If any court of competent jurisdiction adjudges the application of this section to periods prior to the enactment of this section to be invalid or unconstitutional, this section is nevertheless effective for dates of assessment occurring on or after the date of passage.

P.L. 2002, ch. 129, § 2 provides that this section takes effect upon passage [June 15, 2002] and applies to taxes assessed commencing on December 31, 2001. If any court of competent jurisdiction adjudges the application of this section to periods prior to the enactment of this section to be invalid or unconstitutional, this section is nevertheless effective for dates of assessment occurring on or after the date of passage.

44-4-5. Mortgagor in possession of real estate deemed owner.

The mortgagor is deemed to be the owner of mortgaged real estate, so long as the real estate is in the mortgagor’s possession.

History of Section. G.L. 1896, ch. 45, § 5; G.L. 1909, ch. 57, § 5; G.L. 1923, ch. 59, § 5; G.L. 1938, ch. 30, § 5; G.L. 1956, § 44-4-5 .

44-4-6. Tenant for life or years.

Estates in the possession of a tenant for life or for a term of ten (10) or more years when by the terms of his or her lease the tenant for years is required to pay the taxes on the estate, may be taxed to the tenant, who, for the purposes of taxation is deemed the owner.

History of Section. G.L. 1896, ch. 45, § 6; G.L. 1909, ch. 57, § 6; G.L. 1923, ch. 59, § 6; P.L. 1929, ch. 1388, § 1; G.L. 1938, ch. 30, § 6; G.L. 1956, § 44-4-6 .

NOTES TO DECISIONS

In General.

Request by lessee that taxes be assessed directly to it bound the lessee for a succeeding year in the absence of further notice to the assessor. Second Universalist Soc'y v. Providence, 6 R.I. 235 , 1859 R.I. LEXIS 34 (1859).

Taxable Estates.

Taxes could have been legally assessed to life tenant holding under curtesy since word “estate” is used in the sense of property and not in the technical sense of an estate for life or for years. Madden v. Chernick, 63 R.I. 100 , 7 A.2d 269, 1939 R.I. LEXIS 67 (1939).

Unproductive Real Estate.

This section is not contrary to the general rule that a life estate in land which produces no income will not require the life tenant to pay ordinary taxes or special assessments when the deed or other instrument that created the life estate places no such burden on the life tenant. Koszela v. Wilcox, 538 A.2d 150, 1988 R.I. LEXIS 32 (R.I. 1988).

This section merely allows parties who create a life estate or a leasehold for ten years or more to make the life tenant or leaseholder responsible for the payment of such taxes. This does not prevent a city or town assessor from implementing the provisions of this section by billing the life tenant or tenant for years for taxes as they accrue and selling that life estate or other limited interest for taxes. However, if the remainderman pays such taxes to protect his own interests, he has no right of action against the life tenant for reimbursement if the property is unproductive of income. Koszela v. Wilcox, 538 A.2d 150, 1988 R.I. LEXIS 32 (R.I. 1988).

Collateral References.

Duty to pay real-property taxes as affected by time of commencement or termination of life estate. 8 A.L.R.4th 643.

44-4-7. Undivided real estate of decedent.

Undivided real estate of any deceased person may be assessed to the estate, or heirs, or devisees of the deceased, generally, until a record of a division is made, or until they give notice to the assessors of the division, and of the names of the persons holding the portions of the estate; and each heir or devisee is liable for the whole of the tax, and shall have a lien on the shares of his or her associate heirs or devisees in the estate, for their proportion of the tax, if paid by the heir or devisee.

History of Section. G.L. 1896, ch. 45, § 7; G.L. 1909, ch. 57, § 7; G.L. 1923, ch. 59, § 7; G.L. 1938, ch. 30, § 7; G.L. 1956, § 44-4-7 .

NOTES TO DECISIONS

Construction.

The words “until a record of a division be made” mean a record in the land evidence records of the town or city where the land lies. In re Crafts, 41 R.I. 63 , 102 A. 753, 1918 R.I. LEXIS 11 (1918).

Decedents’ Estates.

Lots devised to heirs at law and next of kin were properly assessed to the estate, even though separately and severally assessed, if no division had ever been made, and if no notice to assessors was given of any division or of the names of persons holding portions thereof. In re Crafts, 41 R.I. 63 , 102 A. 753, 1918 R.I. LEXIS 11 (1918).

Redemption.

Cotenant cannot redeem property assessed under this section from a tax sale except by tendering the entire amount of tax due, even though the purchaser at the sale was his cotenant. Chace v. Durfee, 16 R.I. 248 , 14 A. 919, 1888 R.I. LEXIS 46 (1888).

Collateral References.

Decedent, name under which property of, shall be assessed. 119 A.L.R. 383.

Widow in possession under right of quarantine as under duty to pay taxes. 126 A.L.R. 824.

44-4-8. Real estate tax assessed to person not the owner.

If, in assessing real estate, the real estate is assessed by mistake to a person not the owner, the tax may nevertheless be collected from the real estate; provided, that the real estate is described so as to be identified, and the party having the record title has notice of the assessment.

History of Section. G.L. 1896, ch. 45, § 8; G.L. 1909, ch. 57, § 8; G.L. 1923, ch. 59, § 8; G.L. 1938, ch. 30, § 8; G.L. 1956, § 44-4-8 .

NOTES TO DECISIONS

In General.

This is a tax against specific parcels of real estate and is not a tax assessed against the owners thereof personally and only the real estate involved is liable for the payment of the tax; therefore, owner of property was not denied due process of law where property was erroneously assessed against grantor and actual owner was notified under the terms of this section. General Fin. Corp. v. Marchesi, 97 R.I. 392 , 198 A.2d 39, 1964 R.I. LEXIS 92 (1964).

Death of Owner.

Assessment to deceased owner after her death was valid, even though death of owner was of record, where parties of record under this section had notice of assessment but did not notify assessor of error. Madden v. Chernick, 63 R.I. 100 , 7 A.2d 269, 1939 R.I. LEXIS 67 (1939).

44-4-8.1. Apportionment of taxes upon sale of real estate.

Whenever any real estate situated in this state is sold and conveyed to a purchaser, the tax assessed upon the real estate and the buildings and land improvements thereon as of any December 31st shall, except as otherwise provided by contract of the parties involved, be apportioned as if the assessment were made in advance for the immediate following calendar year and shall be adjusted between the seller and the purchaser as of the date of delivery of the deed of conveyance, the seller paying for the period commencing January 1st to and including the date of delivery of the deed of conveyance, and the purchaser paying the balance of the taxes.

History of Section. G.L. 1956, § 44-4-8.1 ; P.L. 1966, ch. 150, § 1.

44-4-9. Rules for taxation of tangible personal property.

All ratable tangible personal property shall be taxed as described in §§ 44-4-10 , 44-4-14 , 44-4-15 , and 44-4-24 .

History of Section. G.L. 1896, ch. 45, § 9; P.L. 1905, ch. 1246, § 4; G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; G.L. 1923, ch. 59, § 9; G.L. 1938, ch. 30, § 9; G.L. 1956, § 44-4-9 ; P.L. 1969, ch. 197, art. 7, § 7.

44-4-10. Persons to whom tangible personalty taxed — Place of taxation.

  1. The fixtures enumerated in § 44-4-3 , all motors, machines, equipment, fixtures and tools of all sorts however propelled, in any factory, machine shop, print works, manufacturing, or other establishment of any kind, and all livestock and farming tools on farms; all fixtures, tools, machinery, livestock, farming tools, goods, wares, merchandise, and all other tangible personal property except manufacturer’s inventory as defined in § 44-3-3 situated in or upon any place for sale of property, store, office, shop, mine, quarry, farm, place of storage, manufactory, warehouse, or dwelling house belonging to any person, partnership, corporation, joint stock company, or association, shall be taxed to the person, partnership, corporation, joint stock company, or association in the town or city where the property is situated as defined in § 44-4-24 .
    1. All tangible personal property described in this section belonging to any person under guardianship or held in trust or otherwise by an executor, administrator, or trustee shall be taxed to the guardian, executor, administrator, or trustee in the town where the property is situated as defined in § 44-4-24 .
    2. If any tangible personal property described in this section located in any town or city shall belong to any person, partnership, corporation, joint stock company, or association unknown to the assessors, it shall be taxed to the owner, a person unknown to the assessors, and the collector may distrain and sell the property in the same manner as provided in chapters 8 and 9 of this title;
    3. Provided, that if any tangible personal property described in this section located in any town or city and belonging to any person, co-partnership, corporation, joint stock company, or association unknown to the assessors is in possession or custody of any agent, consignee, or other person or persons acting in a contractual representative capacity for the owner unknown to the assessors, it shall be taxed to the agent, consignee, or other representative, and the agent, consignee, or other representative is personally liable for the tax assessed against him or her on the property in his or her possession or custody owned as described in this section and, shall have a lien on the property of the person unknown to the assessors for the tax paid on the unknown person’s property;
  2. Provided, further, that nothing in this chapter shall be construed to impose any tax upon manufactured property owned by nonresidents and brought into this state temporarily to be finished and returned to the owner. Persons, partnerships, corporations, joint stock companies, or associations, residing or located in this state, and owning tangible personal property located in and taxed in any other state shall not be taxed for this property in this state.

History of Section. G.L. 1896, ch. 45, § 11; G.L. 1896, ch. 45, § 9; P.L. 1905, ch. 1246, § 4; G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; P.L. 1916, ch. 1398, § 1; G.L. 1923, ch. 59, § 9; G.L. 1938, ch. 30, § 9; G.L. 1956, § 44-4-10 ; P.L. 1965, ch. 112, § 1; P.L. 1966, ch. 245, § 2.

Cross References.

Tangible property belonging to common trust fund, taxation to owner, § 18-5-3 .

NOTES TO DECISIONS

In General.

In order for property to be taxed under this section the situs requirements of § 44-4-24 must be met. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

In order for an assessor to rely upon provision permitting taxation of personalty to agent of unknown owner, he must first make a reasonable effort to determine the owners of the personal property in question. Bassett v. De Rentis, 446 A.2d 763, 1982 R.I. LEXIS 899 (R.I. 1982).

Assessment to Bailee.

Bailee warehouseman may not be taxed as a whole for a great number of parcels held under separate contracts but is entitled to know which of the separate parcels are taxed, so that he may have a lien to collect payment of taxes advanced. Merchants' Cold Storage & Warehouse Co. v. Clarke, 43 R.I. 37 , 110 A. 380, 1920 R.I. LEXIS 30 (1920).

Bank Property.

Personal property of depositors in a savings institution, including bank stocks in which the savings bank has invested, is not taxable to the corporation but rather to the depositors. Providence Inst. for Sav. v. Gardiner, 4 R.I. 484 , 1857 R.I. LEXIS 23 (1857).

Estate Property.

Personal property in the hands of an executor is taxable even though it will ultimately be distributed under the will to a tax-exempt legatee. Estate of Wickes v. Stein, 107 R.I. 260 , 266 A.2d 911, 1970 R.I. LEXIS 768 (1970).

Goods Imported for Processing.

Goods brought into the state to be worked on in the course of manufacturing and then shipped back are not taxable under this section as merchandise or stock in trade, since these terms mean goods offered for sale. Woodman v. American Print Works, 6 R.I. 470 , 1860 R.I. LEXIS 17 (1860).

Nonresident Trustee.

A nonresident trustee who holds no property in Rhode Island is not liable to taxation in this state although the beneficiary resides in the state. Anthony v. Caswell, 15 R.I. 159 , 1 A. 290, 1885 R.I. LEXIS 17 (1885).

Place of Assessment.

A corporation’s tangible personal property of the type mentioned in this section which was located in Providence during the greater part of the taxable year, but removed by the corporation to North Kingstown before the end of the year and located there on assessment date, was taxable in North Kingstown rather than in Providence. Brown & Sharpe Mfg. Co. v. Cote, 101 R.I. 668 , 226 A.2d 814, 1967 R.I. LEXIS 818 (1967).

Separation of Assessment.

An entire assessment based on valuation of real estate and personal property which was void as to part did not make the entire assessment void where it was possible to separate the legal from the illegal. Mowry v. Slatersville Mills, 20 R.I. 94 , 37 A. 538, 1897 R.I. LEXIS 52 (1897).

Objection by taxpayer that personal property assessment failed to specify the particular personal property could not be sustained where valuation was less than the valuation given in the taxpayer’s account; hence, assessment did not embrace any other property than that mentioned by the taxpayer. Mowry v. Slatersville Mills, 20 R.I. 94 , 37 A. 538, 1897 R.I. LEXIS 52 (1897).

Trailers Left on Campground Property.

Fact that tax assessor previously had difficulty collecting taxes from owners of camping trailers left on campground owner’s property did not justify assessing of campground owner personally for the taxes. Bassett v. De Rentis, 446 A.2d 763, 1982 R.I. LEXIS 899 (R.I. 1982).

Collateral References.

Bailed property, taxation of. 135 A.L.R. 597.

Bank deposits, situs as between different states or countries for purposes of property taxation. 59 A.L.R. 1046.

“Business situs” for purposes of property taxation of intangibles in state other than domicil of owner. 143 A.L.R. 361.

Dam, flowage rights or water power, place of taxation. 64 A.L.R. 143; 134 A.L.R. 963.

Local presence of tangible personal property as affecting taxation of the related intangibles of nonresidents. 163 A.L.R. 985.

Membership in exchange or board of trade, situs for taxation of. 17 A.L.R. 89.

Situs as between different states or countries of tangible chattels for purposes of property taxation. 110 A.L.R. 707.

Situs for property taxation as between different governmental units within state, of personal property or interest therein held by trustees, executors, or administrators. 129 A.L.R. 273.

Wrecked vessel, where taxable. 8 A.L.R. 663.

44-4-11 — 44-4-13. Repealed.

History of Section. G.L. 1896, ch. 45, § 13; G.L. 1896, ch. 45, § 9; P.L. 1905, ch. 2146, § 4; G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; G.L. 1923, ch. 59, § 9; G.L. 1938, ch. 30, § 9; P.L. 1948, ch. 2132, § 1; P.L. 1960, ch. 252, § 20 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1962, ch. 255, § 1; Repealed by P.L. 1969, ch. 197, art. 7, § 11.

44-4-14. Tangible personal property in decedent’s estate.

If no executor of the will of, or no administrator of the estate of, a deceased person has been appointed, the tangible personal property of the deceased person, liable to taxation, is assessed as the estate of the deceased person, in the city or town where the deceased person resided, and the executor or administrator subsequently appointed is liable in his or her official capacity for so much of the tax proven not to be in excess of the tax upon the amount for which the estate was properly taxable.

History of Section. G.L. 1896, ch. 45, § 9; P.L. 1905, ch. 1246, § 4; G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; G.L. 1923, ch. 59, § 9; G.L. 1938, ch. 30, § 9; G.L. 1956, § 44-4-14 ; P.L. 1960, ch. 52, § 21 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1969, ch. 197, art. 7, § 8.

NOTES TO DECISIONS

In General.

Personal property of a decedent is taxable so long as it remains in the hands of an executor or administrator even though it is ultimately distributed to a tax-exempt legatee. Estate of Wickes v. Stein, 107 R.I. 260 , 266 A.2d 911, 1970 R.I. LEXIS 768 (1970).

Collateral References.

Executors or administrators, situs for property taxation as between different states or countries, of personal property, or interests therein, held by. 67 A.L.R. 393; 127 A.L.R. 379; 172 A.L.R. 341.

44-4-15. Property of minors not under guardianship.

The tangible personal property of any minor not under guardianship is assessed to the minor, and the minor is liable for so much of the tax, notwithstanding his or her minority, proven not to be in excess of the tax upon the amount for which the minor was properly taxable.

History of Section. G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; G.L. 1923, ch. 59, § 9; G.L. 1938, ch. 30, § 9; G.L. 1956, § 44-4-15 ; P.L. 1960, ch. 52, § 22 (unconstit.); revived and reenacted, P.L. 1961, ch. 3, § 1; P.L. 1969, ch. 197, art. 7, § 9.

44-4-16 — 44-4-23. Repealed.

History of Section. G.L. 1896, ch. 45, § 14; G.L. 1896, ch. 45, § 9; P.L. 1905, ch. 1246, § 4; G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; P.L. 1915, ch. 1204, § 15; G.L. 1923, ch. 59, § 9; G.L. 1923, ch. 268, § 15; P.L. 1925, ch. 604, § 1; P.L. 1929, ch. 1428, § 4; P.L. 1935, ch. 2210, § 1; G.L. 1938, ch. 30, § 9; P.L. 1947, ch. 1887, art. 1, § 2; P.L. 1950, ch. 2601, § 2; P.L. 1960, ch. 52, §§ 20 to 25; (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1962, ch. 255, § 1; Repealed by P.L. 1969, ch. 197, art. 7, § 11.

44-4-24. Rule as to situs of tangible personal property.

  1. All ratable tangible personal property shall be taxed to the owner of the property in the town or city in which the property has been situated for the larger portion of the twelve (12) months ending with the date of assessment. If any tangible personal property has not been situated in any one town or city for the larger portion of the twelve (12) months ending with the date of assessment, then the tangible personal property shall be taxed in the town or city where the property is stored, garaged, or permanently situated at the time of assessment.
  2. Any tax or portion of a tax under this section in arrears at the time of application or renewal is cause for the clerk of any city or town to refuse to grant or renew any license created under the ordinances of the city or town.

History of Section. G.L. 1896, ch. 45, § 9; P.L. 1905, ch. 1246, § 4; G.L. 1909, ch. 57, § 9; P.L. 1912, ch. 769, § 39; G.L. 1923, ch. 59, § 9; G.L. 1938, ch. 30, § 9; G.L. 1956, § 44-4-24 ; P.L. 1959, ch. 114, § 1; P.L. 1960, ch. 52, § 26 (unconstit.); revived and reenacted, P.L. 1961, ch. 3, § 1; P.L. 1965, ch. 112, § 2; P.L. 1969, ch. 197, art. 7, § 10; P.L. 1990, ch. 243, § 1; P.L. 1998, ch. 219, § 1; P.L. 2000, ch. 265, § 1.

NOTES TO DECISIONS

In General.

Taxpayer was under no duty to notify assessors that he had moved from their town nor to have his name placed on the assessment roll in the town where he moved. Soucy v. Knight, 52 R.I. 405 , 161 A. 132, 1932 R.I. LEXIS 75 (1932).

Date From Which Determination Made.

Tax assessor who was ordered to assess tax on December 31 properly used preceding April 1 as a base in determining whether petitioners had their actual place of abode in the town for the larger portion of the twelve months next preceding. Whitmarsh v. Gallotta, 84 R.I. 234 , 122 A.2d 906, 1956 R.I. LEXIS 50 (1956).

A corporation’s tangible personal property of the type mentioned in § 44-4-10 which was located in Providence during the greater part of the taxable year, but removed by the corporation to North Kingstown before the end of the year and located there on assessment date, was taxable in North Kingstown rather than in Providence. Brown & Sharpe Mfg. Co. v. Cote, 101 R.I. 668 , 226 A.2d 814, 1967 R.I. LEXIS 818 (1967).

“Larger Portion of Twelve Months”.

The words “the larger portion of the twelve months” mean for longer than six out of the twelve months. Ailman v. Griswold, 12 R.I. 339 , 1879 R.I. LEXIS 35 (1879).

Removal From State.

A person who has left the state and is no longer an inhabitant when the tax is assessed is not taxable on personal estate in any town, even though he lived in the state the greater part of the year. Barber v. Potter, 8 R.I. 15 , 1864 R.I. LEXIS 2 (1864).

An assessment of property which has been permanently removed from the taxing jurisdiction is an illegal assessment. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

Collateral References.

Domicile of debtor within state, or location therein of real property securing debt, as giving debt to nonresident a situs within the state for purpose of property taxation. 160 A.L.R. 788.

Situs of tangible personal property for purposes of property taxation. 2 A.L.R.4th 432.

44-4-25. Severability.

If a court of competent jurisdiction shall adjudge to be invalid or unconstitutional any clause, sentence, paragraph, section or part of this chapter or the application of it to any person or circumstance, the adjudication shall not affect, impair, invalidate or nullify the remainder of this chapter, or the applications of this chapter, which can be given effect without the invalid provision application, but the effect of the court’s adjudication shall be confined to the clause, sentence, paragraph, or section or part of this chapter, or application of it, which can be given effect without the invalid provision or application so adjudged to be invalid or unconstitutional.

History of Section. P.L. 2002, ch. 65, art. 40, § 4.

Chapter 4.1 Historic Residence — Tax Credit

44-4.1-1. Declaration of purpose.

The general assembly finds and declares that preservation of Rhode Island’s historic residences enhances an understanding of the state’s heritage, improves property values, fosters civic beauty, and promotes public education, pleasure, and welfare. The purpose of this chapter is to allow cities and towns to provide property tax relief to mitigate against the increased assessment of historic houses when they undergo substantial maintenance or rehabilitation.

History of Section. P.L. 1988, ch. 549, § 1.

44-4.1-2. Definitions.

As used in this chapter:

  1. “Certified maintenance or rehabilitation” means any maintenance or rehabilitation of a historic residence consistent with the character of that property or district as determined in accordance with commission guidelines, or for the purposes of North Smithfield, “certified maintenance or rehabilitation” means any maintenance or rehabilitation of a historic residence or historic commercial structure consistent with the character of that property or district as determined in accordance with the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Restoring Historic Buildings.
  2. “Commission” means the Rhode Island historical preservation and heritage commission created pursuant to § 42-45-2 , or for purposes of the historic commercial structure property tax reduction in Warren, the local historic district commission in Warren; or for purposes of the historic structure property tax reduction in Narragansett, the local historic district commission in Narragansett; or for purposes of the historic structure property tax reduction in Cumberland, the local historic district commission in Cumberland; or for the purposes of the historic residence or historic commercial structure property tax reduction in North Smithfield, the local historic district commission in North Smithfield.
  3. “Historic commercial structure” means: a historic structure in Warren or North Smithfield utilized for commercial purposes, whole or in part, and that is:
    1. Listed individually in the state register of historic places; or
    2. Located in a district listed in the state register of historic places and certified by the commission as contributing to the historic character of that district; or
    3. Located in a local historic district zone as designated by the town under chapter 24.1 of title 45 and certified by the commission as contributing to the character of that historic district zone; or
    4. Designated by the town as an individual structure subject to regulation by a local historic district commission under chapter 24.1 of title 45.
  4. “Historic residence” means a historic residential property or historic accessory structure that is not of a character subject to federal depreciation allowance pursuant to 26 U.S.C. § 167 or 168 and that is:
    1. Listed individually in the state register of historic places; or
    2. Located in a district listed in the state register of historic places and certified by the commission as contributing to the historic character of that district; or
    3. Located in a local historic district zone as designated by a city or town under chapter 24.1 of title 45 and certified by the commission as contributing to the character of that historic district zone; or
    4. Designated by a city or town as an individual structure subject to regulation by a local historic district commission under chapter 24.1 of title 45.

History of Section. P.L. 1988, ch. 549, § 1; P.L. 2005, ch. 410, § 28; P.L. 2006, ch. 302, § 1; P.L. 2006, ch. 478, § 1; P.L. 2007, ch. 375, § 1; P.L. 2007, ch. 492, § 1; P.L. 2019, ch. 160, § 1; P.L. 2019, ch. 168, § 1; P.L. 2020, ch. 47, § 1; P.L. 2020, ch. 56, § 1; P.L. 2021, ch. 5, § 1, effective April 23, 2021; P.L. 2021, ch. 6, § 1, effective April 23, 2021.

Compiler’s Notes.

P.L. 2019, ch. 160, § 1, and P.L. 2019, ch. 168, § 1 enacted identical amendments to this section.

P.L. 2020, ch. 47, § 1, and P.L. 2020, ch. 56, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 5, § 1, and P.L. 2021, ch. 6, § 1 enacted identical amendments to this section.

44-4.1-3. Property tax reduction.

  1. Each city or town may, by ordinance, provide up to twenty percent (20%) reduction in property tax liability for a period of up to five (5) years to an owner of a historic residence who incurs substantial maintenance or rehabilitation costs; provided, however, that
  2. Warren.  The town council of the town of Warren may, by ordinance, increase the time period for the reduction in property tax liability up to nine (9) years to an owner of an historic residence who incurs substantial maintenance or rehabilitation costs and to the owner of a historic commercial structure, with a value not to exceed one million dollars ($1,000,000) who incurs substantial maintenance or rehabilitation costs for the building’s exterior or structural features.
  3. The town or city may elect to provide the reduction to any contributing property listed on the state register of historic places, or to any property covered by chapter 24.1 of title 45, or to both. Each city or town shall establish a minimum dollar amount above which an owner must spend in order to qualify for the property tax reduction.

History of Section. P.L. 1988, ch. 549, § 1; P.L. 2000, ch. 47, § 1; P.L. 2000, ch. 92, § 1; P.L. 2006, ch. 302, § 1; P.L. 2006, ch. 478, § 1.

44-4.1-4. Completion — Certification.

Upon completion of maintenance or rehabilitation for which the owner of a historic residence, or historic commercial structure, seeks property tax reduction, the owner shall apply to the local tax assessor for relief under this chapter. Upon receiving the application, the city or town tax assessor shall notify the commission. The commission shall inspect the maintenance or rehabilitation of the historic residence, or historic commercial structure, and make a recommendation to the tax assessor who shall certify if it complies with the commission guidelines. The commission may establish a schedule of reasonable fees for the processing of inspection of maintenance and rehabilitation. The property tax reduction commences in the year that the inspection certifies approval of the maintenance or rehabilitation. An owner who receives a property tax reduction pursuant to this chapter shall, upon completion of further maintenance or rehabilitation, which again fulfills the necessary requirements of this chapter, receive a new five (5) year property tax reduction commencing on approval of the most recent application.

History of Section. P.L. 1988, ch. 549, § 1; P.L. 2006, ch. 302, § 1; P.L. 2006, ch. 478, § 1.

44-4.1-5. Restrictive covenant required.

No historic residence, or historic commercial structure, maintained or rehabilitated may benefit from the provisions of this chapter unless the owner of the historic residence, or historic commercial structure, grants a restrictive covenant to the commission, agreeing that the historic residence, or historic commercial structure, shall retain its use and be maintained in a manner which preserves the historic character of the historic residence or historic commercial structure’s rehabilitated portions historic character for a period equal to the length of the property tax reduction or until title to the property is transferred.

History of Section. P.L. 1988, ch. 549, § 1; P.L. 2006, ch. 302, § 1; P.L. 2006, ch. 478, § 1.

44-4.1-6. Forfeiture.

In the event of the failure of the owner to keep the property nondepreciable or to maintain the property according to the commission’s guidelines during the period of the tax reduction, the owner forfeits the property tax reduction retroactive to the date the reduction commenced. All differences in the amount of taxes that were paid and those that would have been due but for the reduction are payable together with interest of twelve percent (12%) per annum from the dates that the payments would have been due and are a lien against the historic residence. If the property is transferred to a new owner within the period that the tax reduction applies, the tax reduction shall cease, and not be applied to the new owner.

History of Section. P.L. 1988, ch. 549, § 1; P.L. 2006, ch. 302, § 1; P.L. 2006, ch. 478, § 1.

44-4.1-7. Administration of program.

The tax assessor shall promulgate all application and certification forms. The commission shall establish guidelines for the maintenance and rehabilitation of historic residences.

History of Section. P.L. 1988, ch. 549, § 1.

44-4.1-8. Appeal.

Appeal of decisions of the tax assessor under the provisions of this chapter is to the city or town council for a full hearing de novo; provided, that in cities or towns where there is established a tax appeal board, appeal may, at the discretion of the city or town council, be to the board for a full hearing de novo and the decision of the city or town council or tax appeal board may be further appealed under the provisions of chapter 35 of title 42, Administrative Procedures Act.

History of Section. P.L. 1988, ch. 549, § 1.

Chapter 4.2 Historic Industrial Building — Tax Deferment

44-4.2-1. Short title.

This chapter shall be known and may be cited as the “Historic Building Preservation and Affordable Residential Housing Act of Pawtucket”.

History of Section. P.L. 1989, ch. 132, § 1.

Compiler’s Notes.

Section 2 of P.L. 1989, ch. 132 provides, in pertinent part, that the enactment of this section by that Act shall be applicable to property tax assessments made upon property sold during the period from December 27, 1988 through December 31, 1994.

44-4.2-2. Declaration of necessity.

Latest surveys in the city of Pawtucket indicate a sizeable number of historic industrial mill buildings, which are unutilized or underutilized and a growing need to provide affordable residential housing for the residents of the city. Inability to provide this housing through the conventional free market forces has magnified the problem to a degree, which mandates immediate action. Economy and efficiency dictate that the most desirable method for dealing with this shortage is to convert unutilized and underutilized historic mill buildings for use as affordable residential housing through a cooperative partnership of local municipal tax authorities, building owners, and private sector lending institutions.

History of Section. P.L. 1989, ch. 132, § 1.

Compiler’s Notes.

Section 2 of P.L. 1989, ch. 132 provides, in pertinent part, that the enactment of this section by that Act shall be applicable to property tax assessments made upon property sold during the period from December 27, 1988 through December 31, 1994.

44-4.2-3. Definitions.

Wherever used in this chapter:

  1. “Historic and industrial mill building” means an industrial building built prior to January 1, 1949 and meets one of the following:
    1. Listed on the national register of historic places, as maintained by the U.S. Department of Interior;
    2. Eligible for listing on the local historic register, as established by the Pawtucket historic district commission;
    3. Not worthy to be nominated to the register, but determined to be eligible for the program by the Pawtucket city council.
  2. “Housing unit” means a new residential unit created within a historic industrial mill building.
  3. “Renovate” means conversion of a historic industrial mill building to create residential use by substantial rehabilitation.

History of Section. P.L. 1989, ch. 132, § 1.

Compiler’s Notes.

Section 2 of P.L. 1989, ch. 132 provides, in pertinent part, that the enactment of this section by that Act shall be applicable to property tax assessments made upon property sold during the period from December 27, 1988 through December 31, 1994.

44-4.2-4. Deferment of taxation.

  1. The city council of Pawtucket may, by ordinance, defer for real estate tax purposes a portion of the full valuation of a housing unit located within a renovated historic industrial mill building having at least twenty-five (25) new housing units as follows:
    1. In the first year after purchase of a housing unit, the Pawtucket tax assessor shall reduce the valuation of the housing unit for real estate tax purposes by two-thirds (2/3).
    2. In the second year after the purchase, the Pawtucket tax assessor shall reduce the total valuation of the housing unit for real estate tax purposes by one-third (1/3). In the subsequent calendar year, the Pawtucket tax assessor will access the housing unit at full valuation.
  2. For historic industrial mill buildings which are converted for residential rental use under this chapter, the Pawtucket city council may authorize the same adjustments to valuations for real estate tax purposes in each instance where an occupant, with a properly executed lease, and whose verified income is less than eighty percent (80%) of the median income for the standard metropolitan statistical area (Pawt./Prov.), is assessed the fair market rent limit as published by the U.S. Department of Housing and Urban Development for the first two (2) years of the lease.

History of Section. P.L. 1989, ch. 132, § 1.

Compiler’s Notes.

Section 2 of P.L. 1989, ch. 132 provides, in pertinent part, that the enactment of this section by that Act shall be applicable to property tax assessments made upon property sold during the period from December 27, 1988 through December 31, 1994.

44-4.2-5. Liberal construction.

The provisions of this chapter shall be liberally constructed in order to accomplish its purposes.

History of Section. P.L. 1989, ch. 132, § 1.

Compiler’s Notes.

Section 2 of P.L. 1989, ch. 132 provides, in pertinent part, that the enactment of this section by that Act shall be applicable to property tax assessments made upon property sold during the period from December 27, 1988 through December 31, 1994.

44-4.2-6. Severability.

If any provision of this chapter or its application to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 1989, ch. 132, § 1.

Compiler’s Notes.

Section 2 of P.L. 1989, ch. 132 provides, in pertinent part, that the enactment of this section by that Act shall be applicable to property tax assessments made upon property sold during the period from December 27, 1988 through December 31, 1994.

Chapter 5 Levy and Assessment of Local Taxes

44-5-1. Powers of city or town electors to levy — Date of assessment of valuations.

The electors of any city or town qualified to vote on any proposition to impose a tax or for the expenditure of money, when legally assembled, may levy a tax for the purposes authorized by law, on the ratable property of the city or town, either in a sum certain, or in a sum not less than a certain sum and not more than a certain sum. The tax shall be apportioned upon the assessed valuations pursuant to § 44-5-12 as determined by the assessors of the city or town as of December 31 in each year at 12:00 A.M. midnight, the date being known as the date of assessment of city or town valuations.

History of Section. G.L. 1896, ch. 46, § 1; G.L. 1909, ch. 58, § 1; P.L. 1919, ch. 1735, § 1; G.L. 1923, ch. 60, § 1; P.L. 1932, ch. 1944, § 2; G.L. 1938, ch. 31, § 1; P.L. 1949, ch. 2330, § 2; G.L. 1956, § 44-5-1 ; P.L. 1960, ch. 52, § 27 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1969, ch. 178, § 1; P.L. 2021, ch. 121, § 1, effective July 2, 2021; P.L. 2021, ch. 122, § 1, effective July 2, 2021.

Compiler's Notes.

P.L. 2021, ch. 121, § 1, and P.L. 2021, ch. 122, § 1 enacted identical amendments to this section.

Cross References.

Judicial order assessing tax to pay judgment against town, § 45-15-7 .

Notice of town meeting to make tax, § 45-3-12 .

Power of town to tax property, § 45-2-2 .

Law Reviews.

Zachary Carlson, 2018 Survey: Balmuth v. Dolce for Town of Portsmouth, 24 Roger Williams U. L. Rev. 558 (2019).

Comparative Legislation.

Local levy and assessment:

Conn. Gen. Stat., §§ 12-40 et seq., 12-122 et seq.

Mass. Ann. Laws ch. 59, § 2 et seq.

NOTES TO DECISIONS

Apportionment of Tax.

Taxes assessed by towns with different fiscal periods would not be apportioned between deceased life tenant and remaindermen where life tenant died before assessment date, but would be charged entirely to remaindermen. Industrial Trust Co. v. Wilson, 58 R.I. 378 , 192 A. 821, 1937 R.I. LEXIS 55 (1937).

Assessments to Follow State Law.

Tax assessments that are made outside the ambit of state law are illegal, regardless of whether identifiable and accepted methods of appraisal are used. Inn Group Assoc. v. Booth, 593 A.2d 49, 1991 R.I. LEXIS 122 (R.I. 1991).

Levy.

The word “levy” is not used in the same sense throughout the statutes. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

The qualified electors levy a tax when they vote to impose it. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

Local Laws.

Because Providence City Ordinance § 21-1 requires that taxes owed to the city of Providence must be due no later than 30 days following the beginning of each fiscal year, a supplemental tax imposed by the city directly contravened this city ordinance, and the violation of the city’s own ordinance made the tax illegal. A taxing authority must abide by its own ordinances and local laws. Cabana v. Littler, 612 A.2d 678, 1992 R.I. LEXIS 170 (R.I. 1992).

Period Covered by Tax.

This statute does not define the period that a tax is intended to cover or fix a definite fiscal year for the cities or towns. Industrial Trust Co. v. Wilson, 58 R.I. 378 , 192 A. 821, 1937 R.I. LEXIS 55 (1937).

Property Taxed.

Failure of vote for tax to mention the property on which tax was based did not invalidate tax since this section provided that tax should be on the ratable property. Mowry v. Mowry, 20 R.I. 74 , 37 A. 306, 1897 R.I. LEXIS 31 (1897).

Time of Assessment.

Before the 1919 amendment, cities and towns could order the time tax should be assessed. Industrial Trust Co. v. Wilson, 58 R.I. 378 , 192 A. 821, 1937 R.I. LEXIS 55 (1937).

Collateral References.

Additional tax levy necessitated by failure of some property owners to pay their proportions of original levy, power to make. 79 A.L.R. 1157.

Declaratory judgment proceedings to determine validity and application of levy. 132 A.L.R. 1134; 11 A.L.R.2d 359.

Prohibition to prevent levy of tax. 115 A.L.R. 20; 159 A.L.R. 627.

Quo warranto to test regularity of proceedings under valid statute. 109 A.L.R. 327.

Surplus, treatment of, in making tax levy under budget. 126 A.L.R. 891.

Uncollected taxes for previous years as deductible in determining amount to be appropriated or amount of taxes to be assessed for current year. 98 A.L.R. 500.

Widening of city street as local improvement justifying special assessment of adjacent property. 46 A.L.R.3d 127.

44-5-2. Maximum levy.

  1. Through and including its fiscal year 2007, a city or town may levy a tax in an amount not more than five and one-half percent (5.5%) in excess of the amount levied and certified by that city or town for the prior year. Through and including its fiscal year 2007, but in no fiscal year thereafter, the amount levied by a city or town is deemed to be consistent with the five and one-half percent (5.5%) levy growth cap if the tax rate is not more than one hundred and five and one-half percent (105.5%) of the prior year’s tax rate and the budget resolution or ordinance, as applicable, specifies that the tax rate is not increasing by more than five and one-half percent (5.5%) except as specified in subsection (c) of this section. In all years when a revaluation or update is not being implemented, a tax rate is deemed to be one hundred five and one-half percent (105.5%) or less of the prior year’s tax rate if the tax on a parcel of real property, the value of which is unchanged for purpose of taxation, is no more than one hundred five and one-half percent (105.5%) of the prior year’s tax on the same parcel of real property. In any year through and including fiscal year 2007 when a revaluation or update is being implemented, the tax rate is deemed to be one hundred five and one-half percent (105.5%) of the prior year’s tax rate as certified by the division of property valuation and municipal finance in the department of revenue.
  2. In its fiscal year 2008, a city or town may levy a tax in an amount not more than five and one-quarter percent (5.25%) in excess of the total amount levied and certified by that city or town for its fiscal year 2007. In its fiscal year 2009, a city or town may levy a tax in an amount not more than five percent (5%) in excess of the total amount levied and certified by that city or town for its fiscal year 2008. In its fiscal year 2010, a city or town may levy a tax in an amount not more than four and three-quarters percent (4.75%) in excess of the total amount levied and certified by that city or town in its fiscal year 2009. In its fiscal year 2011, a city or town may levy a tax in an amount not more than four and one-half percent (4.5%) in excess of the total amount levied and certified by that city or town in its fiscal year 2010. In its fiscal year 2012, a city or town may levy a tax in an amount not more than four and one-quarter percent (4.25%) in excess of the total amount levied and certified by that city or town in its fiscal year 2011. In its fiscal year 2013 and in each fiscal year thereafter, a city or town may levy a tax in an amount not more than four percent (4%) in excess of the total amount levied and certified by that city or town for its previous fiscal year. For purposes of this levy calculation, taxes levied pursuant to chapters 34 and 34.1 of this title shall not be included. For FY 2018, in the event that a city or town, solely as a result of the exclusion of the motor vehicle tax in the new levy calculation, exceeds the property tax cap when compared to FY 2017 after taking into account that there was a motor vehicle tax in FY 2017, said city or town shall be permitted to exceed the property tax cap for the FY 2018 transition year, but in no event shall it exceed the four percent (4%) levy cap growth with the car tax portion included; provided, however, nothing herein shall prohibit a city or town from exceeding the property tax cap if otherwise permitted pursuant to subsection (d) of this section.
  3. The division of property valuation in the department of revenue shall monitor city and town compliance with this levy cap, issue periodic reports to the general assembly on compliance, and make recommendations on the continuation or modification of the levy cap on or before December 31, 1987, December 31, 1990, and December 31, every third year thereafter. The chief elected official in each city and town shall provide to the division of property and municipal finance within thirty (30) days of final action, in the form required, the adopted tax levy and rate and other pertinent information.
  4. The amount levied by a city or town may exceed the percentage increase as specified in subsection (a) or (b) of this section if the city or town qualifies under one or more of the following provisions:
    1. The city or town forecasts or experiences a loss in total non-property tax revenues and the loss is certified by the department of revenue.
    2. The city or town experiences or anticipates an emergency situation, which causes or will cause the levy to exceed the percentage increase as specified in subsection (a) or (b) of this section. In the event of an emergency or an anticipated emergency, the city or town shall notify the auditor general who shall certify the existence or anticipated existence of the emergency. Without limiting the generality of the foregoing, an emergency shall be deemed to exist when the city or town experiences or anticipates health insurance costs, retirement contributions, or utility expenditures that exceed the prior fiscal year’s health insurance costs, retirement contributions, or utility expenditures by a percentage greater than three (3) times the percentage increase as specified in subsection (a) or (b) of this section.
    3. A city or town forecasts or experiences debt services expenditures that exceed the prior year’s debt service expenditures by an amount greater than the percentage increase as specified in subsection (a) or (b) of this section and that are the result of bonded debt issued in a manner consistent with general law or a special act. In the event of the debt service increase, the city or town shall notify the department of revenue which shall certify the debt service increase above the percentage increase as specified in subsection (a) or (b) of this section the prior year’s debt service. No action approving or disapproving exceeding a levy cap under the provisions of this section affects the requirement to pay obligations as described in subsection (d) of this section.
    4. The city or town experiences substantial growth in its tax base as the result of major new construction that necessitates either significant infrastructure or school housing expenditures by the city or town or a significant increase in the need for essential municipal services and such increase in expenditures or demand for services is certified by the department of revenue.
  5. Any levy pursuant to subsection (d) of this section in excess of the percentage increase specified in subsection (a) or (b) of this section shall be approved by the affirmative vote of at least four-fifths (4/5) of the full membership of the governing body of the city or town, or in the case of a city or town having a financial town meeting, the majority of the electors present and voting at the town financial meeting shall also approve the excess levy.
  6. Nothing contained in this section constrains the payment of present or future obligations as prescribed by § 45-12-1 , and all taxable property in each city or town is subject to taxation without limitation as to rate or amount to pay general obligation bonds or notes of the city or town except as otherwise specifically provided by law or charter.

History of Section. P.L. 1985, ch. 182, § 8; P.L. 1986, ch. 5, § 1; P.L. 1986, ch. 13, § 1; P.L. 1987, ch. 118, art. 7, § 6; P.L. 1989, ch. 126, art. 46, § 1; P.L. 2001, ch. 159, § 1; P.L. 2006, ch. 246, art. 38, § 12; P.L. 2006, ch. 253, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37; P.L. 2010, ch. 239, § 35; P.L. 2017, ch. 302, art. 11, § 1.

Repealed Sections.

Former § 44-5-2 (G.L. 1896, ch. 46, § 1; G.L. 1909, ch. 58, § 1; P.L. 1919, ch. 1735, § 1; G.L. 1923, ch. 60, § 1; P.L. 1932, ch. 1944, § 2; G.L. 1938, ch. 31, § 1; P.L. 1949, ch. 2330, § 2; G.L. 1956, § 44-5-2 ; P.L. 1960, ch. 46, § 1) was repealed by P.L. 1973, ch. 240, § 1.

44-5-2.1. Jamestown — Maximum levy.

  1. Notwithstanding any other provisions of this chapter, in connection with the change of Jamestown’s fiscal year from March 1 to June 30, the town may levy a tax for its extended fiscal year in excess of five and one-half percent (5.5%) in excess of the amount levied and certified by the town for the prior year, and such tax may cover a period of sixteen (16) months.
  2. “Extended fiscal year” means the period March 1, 2004 to June 30, 2005.
  3. Notwithstanding the requirements of § 44-5-7(a) , persons assessed pursuant to the provisions of this section have the option to pay their taxes in quarterly installments, for the extended fiscal year; provided, that the town is authorized to permit taxes to be paid in five (5) equal installments.

History of Section. P.L. 2003, ch. 263, § 1; P.L. 2003, ch. 296, § 1.

44-5-2.2. West Warwick — Maximum levy.

  1. Findings.  The general assembly makes the following findings of fact:
    1. Various sections of several towns in the state, including, but not limited to, the town of West Warwick, are deteriorated, blighted areas which have created very difficult challenges to economic development;
    2. Several areas of the state are in a distressed financial condition as defined by Rhode Island general laws subdivisions 45-13-13(b)(1) — (4) and cannot finance economic development projects on its own without the participation of private enterprise;
    3. The general assembly has found that it is nearly impossible for private enterprise alone to meet such challenges;
    4. In certain sections of financially distressed communities, the serious challenges of economic development and/or redevelopment have not been met by private enterprise alone and the impact is being felt throughout the community;
    5. Legislation enacted to encourage redevelopment of such deteriorated, blighted areas of success in generating economic development through the formation of local redevelopment agencies has had very limited success;
    6. A great deal of success in generating economic development has been realized by exercising the authority to use tax incremental financing;
    7. Most recently, municipalities in our state have had great success in attracting large commercial development, including financial services, manufacturing, and major energy facilities, due in large part to the authority to exempt and/or stabilize property, tangible and/or inventory taxes;
    8. Attracting large non-residential developments or encouraging expansion of existing commercial entities can be extremely important to municipalities, where the quality of public education is largely dependent on the local tax base, thereby expanding the commercial tax base and reducing reliance upon the residential tax base;
    9. The ability to attract such development and increase the non-residential tax base, in turn, improves municipalities’ ability to finance school systems, municipal services and infrastructure, thereby improving the quality of life;
    10. In addition to increasing the local non-residential tax base, such development creates construction jobs, permanent jobs, and spurs additional investment by private enterprises; and
    11. Providing authority to offer tax increment areas will attract and assist in expanding, revitalizing and redeveloping the tax base in our municipalities, thereby providing long-term economic benefits and development.
  2. Notwithstanding any other provisions of this chapter, any tax increment generated from a tax increment area designated by the town of West Warwick in connection with the development and construction of a hotel/water park to be located in the West Warwick business park and which is designated for infrastructure improvements or any current and/or future debt service in accordance with the rules and regulations of the state department of revenue shall be excluded from the maximum tax a city or town may levy pursuant to the provisions of § 44-5-2 of the general laws.

History of Section. P.L. 2008, ch. 351, § 1.

44-5-3. Ratable property of a city or town — Definitions.

  1. The ratable property of the city or town consists of the ratable real estate and the ratable tangible personal property (which do not include manufacturer’s manufacturing machinery and equipment of a manufacturer) and the ratable tangible personal property of manufacturers consisting of manufacturer’s manufacturing machinery and equipment of a manufacturer.
    1. For the purposes of this section and §§ 44-5-20 , 44-5-22 , 44-5-38 , and § 9 of chapter 245, public laws of Rhode Island, 1966, “manufacturing” includes the handling and storage of manufacturer’s inventories as defined in § 44-3-3(20)(ii).
    2. “Manufacturer’s machinery and equipment” or “manufacturing machinery and equipment” is defined as:
      1. Machinery and equipment which is used exclusively in the actual manufacture or conversion of materials or goods in the process of manufacture by a manufacturer as defined in § 44-3-3(20) and machinery, fixtures, and equipment used exclusively by a manufacturer for research and development or for quality assurance of its manufactured products; and
      2. Machinery and equipment which is partially used in the actual manufacture or conversion of raw materials or goods in the process of manufacture by a manufacturer as defined in § 44-3-3(20) and machinery, fixtures, and equipment used by a manufacturer for research and development or for quality assurance of its manufactured products, to the extent to which the machinery and equipment is used for the manufacturing processes, research, and development or quality assurance. In the instances where machinery and equipment is used in both manufacturing activities, the assessment on machinery and equipment is prorated by applying the percentage of usage of the equipment for manufacturing, research, and development and quality assurance activity to the value of the machinery and equipment for purposes of taxation, and the portion of the value used for manufacturing, research, and development and quality assurance is exempt from taxation. The burden of demonstrating this percentage usage of machinery and equipment for manufacturing and for research and development and/or quality assurance of its manufactured products rests with the manufacturer.
      3. Fixtures or other equipment situated in or upon premises used to conduct a business which is unrelated to the manufacture of finished products for trade and their sale by the manufacturer of the products, whether or not the premises where the unrelated business is conducted is in the same building in which the manufacturer has his or her manufacturing plant. The levy on tangible personal property of manufacturers consisting of manufacturer’s manufacturing machinery and equipment of a manufacturer is at the rate provided in § 44-5-38 .
    3. This definition of “manufacturing” or “manufacturer’s machinery and equipment” does not include:
  2. Notwithstanding any exemption provided by this section, and except for the exemptions created by §§ 44-3-3(a)(22) , 44-3-3(a)(48) and 44-3-3(a)(49) , which exemptions shall remain intact, cities and towns may, by ordinance or resolution, tax any renewable energy resources, as defined in § 39-26-5 , and associated equipment only pursuant to rules and regulations that will be established by the office of energy resources in consultation with the division of taxation after the rules are adopted, no later than November 30, 2016. The rules will provide consistent and foreseeable tax treatment of renewable energy to facilitate and promote installation of grid-connected generation of renewable energy and shall consider the following criteria in adopting appropriate and reasonable, tangible property tax rates for commercial renewable energy systems:
    1. State policy objectives to promote renewable energy development;
    2. Tax agreements between municipalities and renewable energy developers executed and effective after 2011, including net metering or lease agreements that address tax treatment;
    3. The valuation of local property tax in the ceiling prices set for the distributed-generation standard contract or renewable energy growth programs by the distributed-generation board;
    4. Assessment practices used by Rhode Island municipal property tax assessors; and
    5. Five dollars ($5.00) per kilowatt of nameplate capacity and the average kilowatt value of the tax agreements and associated payments executed between municipalities and renewable energy developers between 2011 and 2016 shall be the benchmarks for consideration of reasonable revenue generated by a city or town from renewable energy facilities provided that evidence to the contrary may be incorporated in final rules and regulations.
  3. The dollar amount adopted through the rules and regulations that municipalities will be required to use for commercial renewable energy systems shall be based on the alternating current (AC) name-plate capacity of the renewable energy resource.
  4. Any renewable energy resource projects that have executed interconnection service agreements with the electric distribution company as of December 31, 2016, shall not be subject to the rules developed under subsection (c) and shall maintain the tax status applicable before the rules are adopted, unless otherwise agreed pursuant to § 44-3-9(a) .

(i) Motor vehicles required by law to be registered with the division of motor vehicles;

(ii) Store fixtures and other equipment situated in or upon a retail store or other similar selling place operated by a manufacturer, whether or not the retail establishment store or other similar selling place is located in the same building in which the manufacturer operates his or her manufacturing plant; and

History of Section. G.L. 1938, ch. 31, § 1; P.L. 1949, ch. 2330, § 2; G.L. 1956, § 44-6-3 ; P.L. 1960, ch. 52, § 28 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1966, ch. 245, § 3; P.L. 1967, ch. 191, § 2; P.L. 1969, ch. 197, art. 7, § 12; P.L. 1982, ch. 199, § 2; P.L. 2016, ch. 149, § 7; P.L. 2016, ch. 163, § 7.

Compiler’s Notes.

P.L. 2016, ch. 149, § 7, and P.L. 2016, ch. 163, § 7 enacted identical amendments to this section.

Effective Dates.

P.L. 2016, ch. 149, § 8, provides that the amendment to this section by that act takes effect upon passage [June 27, 2016], except as otherwise may be provided therein.

P.L. 2016, ch. 163, § 8, provides that the amendment to this section by that act takes effect upon passage [June 27, 2016], except as otherwise may be provided therein.

44-5-4. Purpose of tax levied by city or town electors.

The tax is for the ordinary expenses and charges of the city or town, for the payment of interest and indebtedness, including sinking funds, and for other purposes authorized by law.

History of Section. G.L. 1938, ch. 31, § 1; P.L. 1949, ch. 2330, § 2; G.L. 1956, § 44-5-4 .

Collateral References.

What constitutes manufacturing and who is a manufacturer under tax laws. 17 A.L.R.3d 7.

44-5-5. Determination of date on which taxes due — Penalties on delinquencies.

The electors in a financial town meeting of any town qualified to vote on any proposition to impose a tax or for the expenditure of money, or the city council of a city, shall determine the date on which taxes are due and payable and the date on which they are subject to a penalty, unless otherwise provided by law, and all taxes remaining unpaid on the specified date shall carry until collected a penalty at a rate determined by the electors or the city council; provided, that if a state of fiscal emergency is deemed to exist by a vote of any city or town council, then the city or town council is authorized until July 1, 1992, to determine the delayed date on which taxes are due and payable and the date on which they are subject to a penalty, and may adopt a procedure to determine which persons assessed to pay the taxes are or have been adversely affected by the fiscal emergency.

History of Section. G.L. 1938, ch. 31, § 1; P.L. 1949, ch. 2330, § 2; G.L. 1956, § 44-5-5 ; P.L. 1991, ch. 14, § 1.

Collateral References.

Contest in good faith of validity of tax as affecting liability to penalty for failure to pay tax. 147 A.L.R. 142.

Disallowance of claims for “penalties” under 11 US Code § 93(j). 1 A.L.R. Fed. 657.

Doubt as to liability for, or as to person to whom to pay, tax, as affecting liability for penalties and interest. 137 A.L.R. 306.

Executor, administrator, or trustee, penalties or interest incurred by, as a charge against him personally or against the estate. 47 A.L.R.3d 507.

Judgment for taxes, provision in, as regards future penalties. 93 A.L.R. 793.

Notice to taxpayer, lack of, as affecting penalty for nonpayment of taxes when due. 102 A.L.R. 405.

Time of mailing or receipt as determinative of liability for penalty or additional amount for failure to pay tax within prescribed time. 158 A.L.R. 370.

What is “last known address” of taxpayer for purposes of mailing of notice of tax deficiency under § 6212(b) of the Internal Revenue Code of 1954 (26 USCS § 6212(b)). 58 A.L.R. Fed. 548.

44-5-6. Repealed.

History of Section. G.L. 1909, ch. 57, § 11; P.L. 1912, ch. 769, § 41; G.L. 1923, ch. 59, § 11; G.L. 1938, ch. 30, § 11; G.L. 1956, § 44-5-6 ; P.L. 1960, ch. 52, § 29 (unconstit.); P.L. 1961, ch. 3, § 1; Repealed by P.L. 1969, ch. 197, art. 7, § 13.

44-5-7. Provision for municipal installment payments.

    1. Every city and town shall make provision for the payment in installments of any tax levied under the provisions of § 44-5-1 by adding to and making a part of the resolution ordering the assessment and the collection of the tax an option permitting persons assessed to pay their taxes in equal quarterly installments if they so desire, free of any charges, interest, penalties, or other assessments, the amounts and dates for payment of the installments to be specified in the resolution; provided, that the city or town may provide that the option contained in the resolution does not apply to any tax levied in an amount not in excess of one hundred dollars ($100) in which case the tax is payable in a single installment.
    2. As used in this section, “person assessed” includes: (i) the person named in the assessment, the record owner of the property assessed, and any attorney, property manager, or other person acting on behalf of the person assessed, or the record owner of the property assessed; and (ii) Any mortgagee or other person having a lien or other security interest in the property assessed of any mortgage servicer, tax servicer, or agent of any such mortgagee or lienholder.
  1. If, prior to July 8, 1999, a mortgagee, holder of a security interest, mortgage servicer, tax servicer, or agent has been required by the tax collector of the city or town where the property is situated to pay the tax levied under the provisions of § 44-5-1 in a single installment, the tax collector, city or town, mortgagee, holder, mortgage servicer, tax servicer, or agent will be deemed, with respect to the single installment payment, to have complied with applicable law.
  2. No tax collector of the city or town where the property assessed is situated shall impose or attempt to impose different requirements relating to payment of taxes based upon whether the person who actually pays the tax is:
    1. The person named in the assessment, the record owner of the property assessed, and any attorney, property manager, or other person acting on behalf of the person assessed, or the record owner of the property assessed; or
    2. A mortgagee or other person having a lien or other security interest in the property assessed or any mortgage servicer, tax servicer or agent of any mortgagee or lienholder.
  3. A person assessed as defined in paragraph (a)(2)(ii) of this section may opt to continue to pay the tax assessed as of December 31, 1996, in a single installment if the tax collector of the city or town where the property assessed is situated required those persons to pay the tax levied under the provisions of § 44-5-1 in a single installment. This subsection applies notwithstanding that, prior to July 8, 1999, the tax collector of the city or town where the property assessed is located permitted the person to pay the tax levied under the provisions of § 44-5-1 in installments, but only upon payment of a charge, interest, penalty, or other assessment.
  4. Compliance within this section is mandatory with respect to the tax assessed as of December 31, 1999, and thereafter.
  5. This law is not applicable to any city or town that as of July 8, 1999, offered a discount in exchange for a single installment payment.

History of Section. P.L. 1934, ch. 2101, § 1; G.L. 1938, ch. 36, § 2; G.L. 1956, § 44-5-7 ; P.L. 1969, ch. 224, § 1; P.L. 1986, ch. 109, § 1; P.L. 1992, ch. 92, § 1; P.L. 1992, ch. 210, § 1; P.L. 1999, ch. 493, § 1; P.L. 2005, ch. 410, § 29.

NOTES TO DECISIONS

State Action.

Summary judgment was properly granted to a defendant corporation since it was clear from the record that the defendant did not enter into any agreement with tax collectors to deprive the plaintiff taxpayers of any established constitutional or statutory rights, but rather that the tax collectors in 33 municipalities made their own decisions as to how to interpret state tax statutes. Tomaiolo v. Transamerica Corp., 131 F. Supp. 2d 280, 2001 U.S. Dist. LEXIS 1906 (D.R.I. 2001), modified in part, aff'd in part sub nom. Tomaiolo v. Mallinoff, 281 F.3d 1, 2002 U.S. App. LEXIS 2524 (1st Cir. 2002).

Collateral References.

Failure of property owner to make formal election to avail himself of privilege of paying taxes in installments. 140 A.L.R. 1442.

Installments, constitutionality of statute permitting payment of taxes in. 101 A.L.R. 1335.

44-5-8. Form of option for quarterly payment.

  1. The option to allow payment of taxes in installments shall be expressed in substantially the following form:
  2. Notwithstanding the provisions of subsection (a), each municipality shall have the authority, in the case of failure of a taxpayer to pay the first installment or any succeeding installment by the last date of the respective installment period, to require immediate payment of only that late installment, and to impose an interest charge only on that late installment.

“The tax may be paid in installments, the first installment of percent on or before the day of A.D. 20: (proportions and dates to be specified.)” “Each installment of taxes if paid on or before the last day of each installment period successively and in order is free from any interest charge.” “If the first installment or any succeeding installment of taxes is not paid by the last date of the respective installment period or periods as they occur, then the whole tax or remaining unpaid balance of the tax, as the case may be, immediately becomes due and payable and carries until collected a penalty at the rate of percent (not less than six (6) nor more than eighteen (18) or, in the case of the city of Cranston, not more than twelve (12) per annum).”

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History of Section. P.L. 1934, ch. 2101, § 1; P.L. 1936, ch. 2373, § 1; G.L. 1938, ch. 36, § 2; G.L. 1956, § 44-5-8 ; P.L. 1970, ch. 257, § 1; P.L. 1972, ch. 5, § 1; P.L. 1980, ch. 137, § 1; P.L. 1982, ch. 143, § 2; P.L. 1982, ch. 343, § 2; P.L. 1985, ch. 35, § 1; P.L. 1985, ch. 36, § 1; P.L. 1985, ch. 208, § 1; P.L. 1995, ch. 280, § 1; P.L. 1997, ch. 239, § 1; P.L. 2000, ch. 26, § 1; P.L. 2000, ch. 44, § 1; P.L. 2000, ch. 89, § 1; P.L. 2010, ch. 266, § 1; P.L. 2010, ch. 295, § 1; P.L. 2011, ch. 334, § 1; P.L. 2011, ch. 394, § 1.

Compiler’s Notes.

P.L. 2010, ch. 266, § 1, and P.L. 2010, ch. 295, § 1, enacted identical amendments to this section.

P.L. 2011, ch. 334, § 1, and P.L. 2011, ch. 394, § 1 enacted identical amendments to this section.

44-5-8.1. Waiver of interest on overdue quarterly tax payments.

  1. Notwithstanding any other provision in this chapter to the contrary, any city or town may, by ordinance duly enacted, authorize a waiver of interest on one quarter’s overdue property tax payment and allow the remaining balance of taxes owed to be paid on a quarterly basis if all of the following conditions are satisfied by the taxpayer:
    1. The property subject to the overdue payment is the residence of the taxpayer and has been for the five (5) years immediately preceding the tax payment which is overdue.
    2. The request for a waiver of interest is in writing, signed and dated by the taxpayer.
    3. The taxpayer has made timely payments of taxes to the city or town for the five (5) years immediately preceding the tax payment, which is overdue. The burden of proof of timely payments shall be upon the taxpayer.
    4. The bill for which the payment is overdue was issued less than two (2) years prior to the date of the request for a waiver of interest.
  2. In no event shall the waiver of interest on a tax bill exceed five hundred dollars ($500). Decisions of the tax collector shall be in writing and contain a notice to the city or town council. If the taxpayer receives an adverse decision from the tax collector, the taxpayer must pay the interest and may file a claim for reimbursement with the city or town council within ten (10) days of the decision.
  3. Any request for a waiver of taxes which meets criteria established by this section pursuant to a duly enacted ordinance shall be granted by the city or town.

History of Section. P.L. 2001, ch. 92, § 1.

44-5-8.2. Johnston — Tax amnesty period.

  1. Notwithstanding any other provision in this chapter to the contrary, the town of Johnston may, by ordinance duly enacted, authorize a forty-five (45) day period during fiscal year 2012 during which a waiver of interest and penalties on overdue tangible tax payments and motor vehicle tax payments may be made if all of the following conditions are satisfied by the taxpayer:
    1. The tangible property and/or motor vehicle subject to the overdue payment is the property of the taxpayer and has been for the five (5) years immediately preceding the tax payment which is overdue.
    2. The request for a waiver of interest and penalties is in writing, signed and dated by the taxpayer and must be submitted within the forty-five (45) day waiver period.
  2. Decisions of the tax collector shall be in writing and contain a notice to the town council. If the taxpayer receives an adverse decision from the tax collector, the taxpayer must pay the interest and penalties and may file a claim for reimbursement with the town council within ten (10) days of the decision.
  3. Any request for a waiver of taxes and penalties which meets criteria established by this section pursuant to a duly enacted ordinance shall be granted by the town.

History of Section. P.L. 2011, ch. 290, § 1; P.L. 2011, ch. 322, § 1.

Compiler’s Notes.

P.L. 2011, ch. 290, § 1, and P.L. 2011, ch. 322, § 1 enacted identical versions of this section.

44-5-8.3. Coventry — Tax amnesty period.

  1. Notwithstanding any other provision in this chapter to the contrary, the town of Coventry may, by ordinance duly enacted, authorize a forty-five (45) day period during fiscal year 2013 during which a waiver of interest and penalties on overdue tangible tax payments and motor vehicle tax payments may be made if all of the following conditions are satisfied by the taxpayer:
    1. The tangible property and/or motor vehicle subject to the overdue payment is the property of the taxpayer and has been for the five (5) years immediately preceding the tax payment which is overdue.
    2. The request of a waiver of interest and penalties is in writing, signed and dated by the taxpayer and must be submitted within the forty-five (45) day waiver period.
  2. Decisions of the tax collector shall be in writing and contain a notice to the town council. If the taxpayer receives an adverse decision from the tax collector, the taxpayer must pay the interest and penalties and may file a claim for reimbursement with the town council within ten (10) days of the decision.
  3. Any request for a waiver of taxes and penalties which meets criteria established by this section pursuant to a duly enacted ordinance shall be granted by the town.

History of Section. P.L. 2012, ch. 489, § 1.

44-5-8.4. Woonsocket — Tax amnesty periods.

  1. Notwithstanding any other provision in this chapter to the contrary, the city of Woonsocket may, by ordinance duly enacted, authorize two (2), separate sixty-day (60) periods during fiscal year 2015 during which a waiver of interest and penalties on overdue tangible tax payments and motor vehicle tax payments may be made if the request for a waiver of interest and penalties is in writing, signed, and dated by the taxpayer and submitted within the two (2) sixty-day (60) waiver periods.
  2. Decisions of the tax assessor shall be in writing and contain a notice to the city council. If the taxpayer receives an adverse decision from the tax assessor, the taxpayer must pay the interest and penalties and may file a claim for reimbursement with the city council within ten (10) days of the decision.
  3. Any request for a waiver for taxes and penalties that meets criteria established by this section pursuant to a duly-enacted ordinance may be granted by the city.
  4. Waivers of interest and penalties shall not be granted for any taxes contained in the 2014 tax bill.

History of Section. P.L. 2014, ch. 283, § 1; P.L. 2014, ch. 544, § 1.

Compiler’s Notes.

P.L. 2014, ch. 283, § 1, and P.L. 2014, ch. 544, § 1 enacted identical versions of this section.

44-5-8.5. Woonsocket — Tax amnesty periods.

  1. Notwithstanding any other provision in this chapter to the contrary, the city of Woonsocket may, by ordinance duly enacted, authorize two (2), separate sixty-day (60) periods during fiscal year 2021 during which a waiver of interest and penalties on overdue tangible tax payments and motor vehicle tax payments may be made if the request for a waiver of interest and penalties is in writing, signed, and dated by the taxpayer and submitted within the two (2) sixty-day (60) waiver periods.
  2. Decisions of the tax assessor shall be in writing and contain a notice to the city council. If the taxpayer receives an adverse decision from the tax assessor, the taxpayer must pay the interest and penalties and may file a claim for reimbursement with the city council within ten (10) days of the decision.
  3. Any request for a waiver of taxes and penalties that meets criteria established by this section pursuant to a duly-enacted ordinance may be granted by the city.
  4. Waivers of interest and penalties shall not be granted for any taxes contained in the 2020 tax bill.

History of Section. P.L. 2020, ch. 46, § 1; P.L. 2020, ch. 57, § 1.

Compiler’s Notes.

P.L. 2020, ch. 46, § 1, and P.L. 2020, ch. 57, § 1 enacted identical versions of this section.

44-5-9. Deductions and penalties to insure prompt payment.

Any city or town may provide for a deduction from the tax assessed against any person, if paid by an appointed time, or for the penalties by way of percentage on a tax, if not paid at the time appointed, not exceeding eighteen percent (18%) per annum, as it deems necessary to insure punctual payment; provided, that the city of Cranston may charge a penalty not exceeding twelve percent (12%) per annum.

History of Section. G.L. 1896, ch. 50, § 1; G.L. 1909, ch. 62, § 1; G.L. 1923, ch. 64, § 1; G.L. 1938, ch. 36, § 1; G.L. 1956, § 44-5-9 ; P.L. 1982, ch. 143, § 2; P.L. 1982, ch. 343, § 2.

44-5-10. Interest forgiven during wartime military service.

No tax previously or hereafter assessed by any town or city upon the property of any resident of this state shall bear interest by reason of the nonpayment of the tax during the duration of, and for a period of six (6) months after the resident’s active service in the military, air, or naval forces of the United States or in the American merchant marine occasioned by any war, declared or undeclared, in which the United States is engaged.

History of Section. P.L. 1943, ch. 1349, § 1; P.L. 1950 (s.s.), ch. 2643, § 1; G.L. 1956, § 44-5-10 .

44-5-10.1. Tax payment relief during periods of governmental cessation of operations.

During periods when either the state or federal government cease the operation of governmental functions, in whole or in part, the city or town council may, by ordinance, provide relief from the payment of any interest, late fees, or penalties on any tax due or payable to the city or town previously or hereafter assessed upon real estate or tangible property, to any resident of this state employed by the state or federal government.

History of Section. P.L. 2019, ch. 36, § 1; P.L. 2019, ch. 50, § 1.

Compiler’s Notes.

P.L. 2019, ch. 36, § 1, and P.L. 2019, ch. 50, § 1 enacted identical versions of this section.

44-5-11. Repealed.

History of Section. G.L. 1896, ch. 46, § 2; G.L. 1909, ch. 58, § 2; G.L. 1923, ch. 60, § 2; G.L. 1938, ch. 31, § 2; G.L. 1956, § 44-5-11 ; P.L. 1979, ch. 2330, § 3; P.L. 1979, ch. 298, § 4; P.L. 1982, ch. 355, § 1; P.L. 1985, ch. 218, § 1; P.L. 1988, ch. 84, § 95; P.L. 1991, ch. 18, § 1; P.L. 1991, ch. 371, § 1; P.L. 1991, ch. 392, § 1; P.L. 1991, ch. 416, § 1; P.L. 1992, ch. 123, § 1; P.L. 1992, ch. 222, § 1; P.L. 1992, ch. 295, § 1; P.L. 1992, ch. 300, § 1; P.L. 1992, ch. 310, § 1; P.L. 1993, ch. 113, § 1; P.L. 1993, ch. 166, § 1; P.L. 1993, ch. 345, § 1; P.L. 1993, ch. 346, § 1; P.L. 1993, ch. 467, § 1; P.L. 1994, ch. 217, § 1; P.L. 1996, ch. 52, § 1; P.L. 1997, ch. 179, § 2; P.L. 1997, ch. 233, § 1; P.L. 1997, ch. 337, § 1; P.L. 1998, ch. 16, § 1; P.L. 1998, ch. 208, § 1; P.L. 1999, ch. 238, § 1; P.L. 1999, ch. 507, § 1; Repealed pursuant to subsection (c) of the section as added by P.L. 1997, ch. 179, § 2, effective January 1, 2000, except for provisions relating to the city of Providence, which expired on December 31, 2000.

Compiler’s Notes.

Former § 44-5-11 concerned assessment of valuations and apportionment of levies. For present comparable provisions, see § 44-5-11 .6.

44-5-11.1. Certification of businesses and employees engaged in revaluing property.

  1. All persons, firms, associations, partnerships, and corporations engaged in the business of revaluing property for any town or city pursuant to the provisions of § 44-5-11.6 shall be certified by the department of revenue.
  2. All employees of persons, firms, associations, partnerships, and corporations referred to in subsection (a) of this section shall, prior to revaluing property for any town or city pursuant to the provisions of § 44-5-11.6 , be certified by the department of revenue as qualified to perform the services.
  3. Each person, firm, association, partnership, or corporation referred to in subsection (a) of this section shall, prior to revaluing property for any town or city pursuant to the provisions of § 44-5-11.6 , disclose to the town or city council of that municipality, all standards to be used in conducting the revaluation and secure approval of the town or city council.
    1. The director of revenue shall promulgate rules and regulations as are necessary to carry out the purposes of this section.
    2. The rules and regulations shall include, but shall not be limited to, the following requirements:
      1. The person, firm, association, partnership, or corporation:
        1. Must demonstrate experience in the field of assessing, revaluation, and ad valorem appraising;
        2. Must list all officers engaged in the revaluation process in Rhode Island;
        3. Must list all project managers, field supervisors, reviewers, appraisers, and other personnel engaged in the revaluation process in Rhode Island;
        4. Must provide a list of the five (5) most recent revaluation projects performed within the preceding ten (10) years, including the municipality and state in which the work was performed as well as the project supervisor for each project;
        5. Must post a performance surety bond;
        6. Demonstrate financial solvency of the company;
        7. List all pending litigation, if any, to which the company is a party;
      2. The rules and regulations shall require ad valorem appraisers to have either proper designations from recognized professional organizations or written examinations by the licensing agency.

History of Section. P.L. 1984, ch. 328, § 1; P.L. 2005, ch. 410, § 29; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-11.2. Purpose of training and certification provisions.

The purpose of §§ 44-5-11.1 44-5-11.3 is to provide a resource to local tax assessors which would improve the methods of property tax assessments; provide for increased capability in the annual maintenance of assessments; integrate technological innovations in property tax administration; and, substantially reduce the cost of required revaluations.

History of Section. P.L. 1984, ch. 381, art. V, § 1; P.L. 1988, ch. 84, § 95; P.L. 1999, ch. 354, § 28.

44-5-11.3. Annual training institute for tax assessors.

  1. The director of the department of revenue, in cooperation with the Rhode Island association of assessing officers shall establish and conduct an annual training institute for local tax assessors. The training institute shall consist of certified training courses in such areas as the cost approach, market data approach, and income approach to property valuation; the use of computer technology for property tax assessments and maintenance, the application of Rhode Island law to property tax administration, and containing education. For this purpose, the department may cooperate with educational institutions, local, regional, state, or national assessors’ organizations, and with any other appropriate professional organizations. A local tax assessor who has successfully completed the training program, or who has obtained the necessary amount of credits, shall be awarded the designation of Rhode Island Certified Assessor (R.I.C.A.).
  2. An applicant, who is a member of a local assessment personnel staff, who has successfully completed the training program, or who has obtained the necessary courses, shall be awarded the designation of Rhode Island Certified Assessment Personnel (RICAP).
  3. The Rhode Island Association of Assessing Officers shall establish a program of re-certification, approved by the department of revenue, for all designated members.

History of Section. P.L. 1984, ch. 381, art. V, § 1; P.L. 1985, ch. 55, § 1; P.L. 1995, ch. 128, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-11.4. Technology grants for property tax administration.

The director of the department of revenue may establish a local grant-in-aid program whereby cities and towns may purchase microcomputers to be used for the purpose of property tax administration. The director shall also cause to be prepared and distributed to all cities and towns that participate in the grant-in-aid program, a uniform “software” application program which would adapt current state-of- the-art uses in property tax administration.

History of Section. P.L. 1984, ch. 381, art. V, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-11.5. Legislative findings — Revaluation cycle.

It is found and declared that:

  1. Rhode Island property taxes continue to play a significant role in the financing of local educational and municipal services. The general assembly recognizes that the way the property tax is assessed, levied and collected can be improved to provide more reliable and up-to-date property values in each of the cities and towns.
  2. The state’s ten (10) year property revaluation cycle is the longest revaluation cycle in the country. Infrequent revaluations translate into disparities in property tax burden between types and classes of property within and among cities and towns. In addition, because each city and town represents multiple systems and procedures for administering the property tax, there is an inconsistent administration of property tax law and regulations.
  3. It is the intent of the general assembly to ensure that all taxpayers in Rhode Island are treated equitably. The more frequent the revaluation, the greater the equity within and among jurisdictions. Ensuring that taxpayers are treated fairly begins with modernizing the administration of the property tax that ensures:
    1. Up-to-date property values are maintained through more frequent property revaluations;
    2. Cities and towns meet defined standards related to performing updates of property values;
    3. The state shares in the cost of performing updates of property values in the cities and towns;
    4. A meaningful and effective method of ensuring that cities and towns comply with the nine (9) year revaluation cycle and the updates of property values are developed;
    5. Procedures for administering the property tax are standardized — such as general reporting and classification systems;
    6. Assessors and contracted property revaluation companies meet appropriate qualifications and standards; and
    7. Intergovernmental cooperation in the administration of the property tax is maximized.
  4. With these findings in mind, it is the intent of the general assembly to institute a revaluation cycle where every city or town conducts a revaluation within nine (9) years of the date of the prior revaluation and shall conduct an update of real property every three (3) years from the date of the last revaluation.

History of Section. P.L. 1997, ch. 179, § 1.

44-5-11.6. Assessment of valuations — Apportionment of levies.

  1. Notwithstanding the provisions of § 44-5-11 [repealed], beginning on December 31, 2000, the assessors in the several towns and cities shall conduct an update as defined in this section or shall assess all valuations and apportion the levy of all taxes legally ordered under the rules and regulations, not repugnant to law, as the town meetings and city councils, respectively, shall, from time to time, prescribe; provided, that the update or valuation is performed in accordance with the following schedules:
      1. For a transition period, for cities and towns that conducted or implemented a revaluation as of 1993 or in years later:
      2. Provided that the reevaluation period for the town of New Shoreham shall be extended to 2003 and the update for the town of Hopkinton may be extended to 2007 with no additional reimbursements by the state relating to the delay.
      3. The implementation date for this schedule is December 31st, of the stated year.
      4. Those cities and towns not listed in this schedule shall continue the revaluation schedule pursuant to § 44-5-11 [repealed].
      1. For the post-transition period and in years thereafter:
      2. The implementation date for the schedule is December 31 of the stated year. Upon the completion of the update and revaluation according to this schedule, each city and town shall conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct an update of real property every three (3) years from the last revaluation. Provided, that for the town of Bristol, the time for the first statistical update following the 2010 revaluation shall be extended from 2013 to 2014 and said statistical update shall be based on valuations as of December 31, 2014, and the first revaluation following the December 31, 2014, and 2015 statistical revaluation shall be extended from 2016 to 2019 and said revaluation shall be based on valuations as of December 31, 2018, and, that for the city of Woonsocket, the time of the first statistical update following the 2017 revaluation shall be extended from 2020 to 2021, and the statistical update shall be based on the valuations as of December 31, 2021.
      3. Cities and towns shall not change the assessment of any property based on the purchase price of the property after a transfer occurs except in accordance with a townwide or citywide revaluation or update schedule; provided that, this prohibition shall not apply to completed new real estate construction.
  2. No later than February 1, 1998, the director of the department of revenue shall promulgate rules and regulations consistent with the provisions of this section to define the requirements for the updates that shall include, but not be limited to:
    1. An analysis of sales;
    2. A rebuilding of land value tables;
    3. A rebuilding of cost tables of all improvement items; and
    4. A rebuilding of depreciation schedules. Upon completion of an update, each city or town shall provide for a hearing and/or appeal process for any aggrieved person to address any issue that arose during the update.
  3. The costs incurred by the towns and cities for the first update shall be borne by the state in an amount not to exceed twenty dollars ($20.00) per parcel. The costs incurred by the towns and cities for the second update shall be borne eighty percent (80%) by the state (in an amount not to exceed sixteen dollars ($16.00) per parcel) and twenty percent (20%) by the town or city, and in the third update and thereafter, the state shall pay sixty percent (60%) of the update (not to exceed twelve dollars ($12.00) per parcel) and the town or city shall pay forty percent (40%); provided, that for the second update and in all updates thereafter, that the costs incurred by any city or town that is determined to be a distressed community pursuant to § 45-13-12 shall be borne eighty percent (80%) by the state and twenty percent (20%) by the city or town for all updates required by this section.
  4. The office of municipal affairs, after consultation with the League of Cities and Towns and the Rhode Island Assessors’ Association, shall recommend adjustments to the costs formula described in subsection (c) of this section based upon existing market conditions.
  5. Any property that is either exempt from the local property tax pursuant to § 44-3-3 or pays a city or town an amount in lieu of taxes is not required to have its values updated pursuant to this section and the property is not eligible for the reimbursement provisions of subsection (c) of this section. However, those properties that are exempt from taxation and are eligible for state appropriations in lieu of property tax under the provisions of § 45-13-5.1 are eligible for state reimbursement pursuant to subsection (c) of this section, provided, that these properties were revalued as part of that city or town’s most recent property revaluation.
  6. No city or town is required to conduct an update pursuant to this section unless the state has appropriated sufficient funds to cover the state’s costs as identified in subsection (c) of this section.
  7. Any city or town that fails to conduct an update or revaluation as required by this section, or requests and receives an extension of the dates specified in this section, shall receive the same amount of state aid under §§ 45-13-1 , 45-13-5.1 , and 45-13-12 in the budget year for which the new values were to apply as the city or town received in state aid in the previous budget year; provided, however, if the new year’s entitlement is lower than the prior year’s entitlement, the lower amount applies, except for the town of New Shoreham for the fiscal year 2003.
  8. Any bill or resolution to extend the dates for a city or town to conduct an update or revaluation must be approved by a two-thirds (2/3) majority of both houses of the general assembly.

Update Revaluation Lincoln 2000 2003 South Kingstown 2000 2003 Smithfield 2000 2003 West Warwick 2000 2003 Johnston 2000 2003 Burrillville 2000 2003 North Smithfield 2000 2003 Central Falls 2000 2003 North Kingstown 2000 2003 Jamestown 2000 2003 North Providence 2001 2004 Cumberland 2001 2004 Bristol 2004 2001 Charlestown 2001 2004 East Greenwich 2002 2005 Cranston 2002 2005 Barrington 2002 2005 Warwick 2003 2006 Warren 2003 2006 East Providence 2003 2006

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Update #1 Update #2 Revaluation Woonsocket 2002 2005 2008 Pawtucket 2002 2005 2008 Portsmouth 2001 2004 2007 Coventry 2001 2004 2007 Providence 2003 2006 2009 Foster 2002 2005 2008 Middletown 2002 2005 2008 Little Compton 2003 2006 2009 Scituate 2003 2006 2009 Westerly 2003 2006 2009 West Greenwich 2004 2007 2010 Glocester 2004 2007 2010 Richmond 2004 2007 2010 Bristol 2004 2007 2010 Tiverton 2005 2008 2011 Newport 2005 2008 2011 New Shoreham 2006 2009 2012 Narragansett 2005 2008 2011 Exeter 2005 2008 2011 Hopkinton 2007 2010 2013 Lincoln 2006 2009 2012 South Kingstown 2006 2009 2012 Smithfield 2006 2009 2012 West Warwick 2006 2009 2012 Johnston 2006 2009 2012 Burrillville 2006 2009 2012 North Smithfield 2006 2009 2012 Central Falls 2006 2009 2012 North Kingstown 2006 2009 2012 Jamestown 2006 2009 2012 North Providence 2007 2010 2013 Cumberland 2007 2010 2013 Charlestown 2007 2010 2013 East Greenwich 2008 2011 2014 Cranston 2008 2011 2014 Barrington 2008 2010 2014 Warwick 2009 2012 2015 Warren 2009 2012 2016 East Providence 2009 2012 2015

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History of Section. P.L. 1997, ch. 179, § 1; P.L. 1998, ch. 16, § 1; P.L. 1998, ch. 208, § 1; P.L. 1998, ch. 446, § 1; P.L. 2000, ch. 55, art. 19, § 1; P.L. 2000, ch. 219, § 1; P.L. 2002, ch. 28, § 1; P.L. 2002, ch. 105, § 1; P.L. 2002, ch. 335, § 1; P.L. 2002, ch. 373, § 1; P.L. 2006, ch. 299, § 1; P.L. 2006, ch. 497, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37; P.L. 2011, ch. 101, § 1; P.L. 2011, ch. 137, § 1; P.L. 2014, ch. 288, § 1; P.L. 2014, ch. 342, § 1; P.L. 2014, ch. 530, § 1; P.L. 2014, ch. 541, § 1; P.L. 2016, ch. 221, § 1; P.L. 2016, ch. 263, § 1; P.L. 2021, ch. 215, § 1, effective January 10, 2022; P.L. 2021, ch. 216, § 1, effective January 10, 2022; P.L. 2021, ch. 271, § 1, effective July 14, 2021.

Compiler’s Notes.

P.L. 2011, ch. 101, § 1, and P.L. 2011, ch. 137, § 1 enacted identical amendments to this section.

This section was amended by four acts ( P.L. 2014, ch. 288, § 1, P.L. 2014, ch. 342, § 1; P.L. 2014, ch. 530, § 1; P.L. 2014, ch. 541, § 1) passed by the 2014 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all four acts.

P.L. 2014, ch. 288, § 1, and P.L. 2014, ch. 530, § 1 enacted identical amendments to this section.

P.L. 2014, ch. 342, § 1, and P.L. 2014, ch. 541, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 221, § 1, and P.L. 2016, ch. 263, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 215, § 1, and P.L. 2021, ch. 216, § 1 enacted identical amendments to this section.

This section was amended by three acts ( P.L. 2021, ch. 215, § 1; P.L. 2021, ch. 216, § 1; P.L. 2021, ch. 271, § 1) as passed by the 2021 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all three acts.

Delayed Effective Dates.

P.L. 2021, ch. 215, § 2, provides that the amendments to this section by that act take effect six (6) months after the date of passage [July 10, 2021].

P.L. 2021, ch. 216, § 2, provides that the amendments to this section by that act take effect six (6) months after the date of passage [July 10, 2021].

Severability.

P.L. 2016, ch. 221, § 2 provides: “If any provision of this act, or the application thereof to the Town of Bristol or to any person or circumstances, is deemed invalid for any reason, the remainder of this act, or the application of such provision to said town or other persons or circumstances, shall not be affected thereby and, to this end, the provisions of this act are declared to be severable.”

P.L. 2016, ch. 263, § 2 provides: “If any provision of this act, or the application thereof to the Town of Bristol or to any person or circumstances, is deemed invalid for any reason, the remainder of this act, or the application of such provision to said town or other persons or circumstances, shall not be affected thereby and, to this end, the provisions of this act are declared to be severable.”

Cross References.

Revaluations of property for tax purposes, R.I. Const., Art. VI, Sec. 12 .

Sidewalk costs, collection, § 24-7-4 .

NOTES TO DECISIONS

Carry Over of Value.

A tax assessor may carry over the same fair-market-value finding from one tax-assessment date to the next until required to conduct the decennial revaluation. Given the tremendous expense imposed upon municipalities in performing revaluations, the existing practice of decennial revaluations is reasonable. A property owner disputing an assessment carried over from a prior year, however, has interim remedies under §§ 44-5-26 and 44-5-27 . Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Based on the ambiguities created by the conflicting tax laws and the lack of clear legislative intent to the contrary, the Supreme Court held that the taxpayers were not locked in to the December 31, 2007, valuations of their properties, which was the year of the town’s last revaluation of real property; and that the taxpayers had the right to appeal the yearly tax assessments for tax years 2009 and 2010 based on the fair market valuations of their properties as of December 31, 2008, and December 31, 2009. Balmuth v. Dolce, 182 A.3d 576, 2018 R.I. LEXIS 43 (R.I. 2018).

Certification.

The statutory provisions which set forth the procedures for certification of revaluations and tax rolls by tax assessors are directory, not mandatory. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

Because revaluations are not void and tax levies are not illegal merely because they result from a delayed process, the tax assessor’s failure to certify that a townwide revaluation was complete did not render the entire tax structure illegal or illegitimate, and neither did it trigger the invalidity of the tax. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

Discretion of Assessor.

An assessor’s use of the cost of reproduction method of valuation was a valid exercise of the discretion delegated to assessors by the general assembly in accordance with R.I. Const., Art. IV, Sec. 15 (now see R.I. Const., Art. VI, Sec. 12 ). Kargman v. Jacobs, 113 R.I. 696 , 325 A.2d 543, 1974 R.I. LEXIS 1225 (1974).

Property Valuation.

In an assessment of federally financed property, the trial justice was not clearly wrong in rejecting the assessor’s calculations based on the cost approach method of evaluating property, claiming that the income approach was the preferable method of valuing a federally financed apartment complex. Ferland Corp. v. Bouchard, 626 A.2d 210, 1993 R.I. LEXIS 168 (R.I. 1993).

Collateral References.

Judicial notice as to assessed valuations. 42 A.L.R.3d 1439.

Requirement of full value real property taxation assessments. 42 A.L.R.4th 676.

Sale price of real property as evidence in determining value for tax assessment purposes. 89 A.L.R.3d 1126.

Standing of one taxpayer to complain of underassessment or nonassessment of property of another for state and local taxation. 9 A.L.R.4th 428.

44-5-11.7. Permanent legislative oversight commission.

    1. There is created a permanent legislative commission on property taxation. The commission consists of the following members:
      1. Chairperson of the house finance committee, or designee;
      2. Chairperson of the senate finance committee, or designee;
      3. Chief budget analyst of the office of municipal affairs, or designee;
      4. The president of the league of cities and towns;
      5. The executive director of the Rhode Island public expenditures council, or designee; and
      6. Three (3) members of the Rhode Island Assessors’ Association.
      7. Director of the property valuation within the department of revenue.
    2. The commission at its first meeting shall elect a chairperson from its membership.
  1. The purpose of the commission is to work in conjunction with Rhode Island department of administration, department of revenue and the RIAAO representatives, to study and evaluate property tax related issues including, but not limited to:
    1. Revaluation process and statistical study after a revaluation;
    2. Exemptions and classifications;
    3. Uniform depreciation rates; and
    4. Any other issues which the commission determines are relevant to the issue of property taxation.
  2. The members shall receive no compensation for their services. All departments and agencies of the state shall furnish advice and information, documentary or otherwise to the commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of the commission.
  3. The commission shall meet no less than three (3) times per year and shall report its findings and recommendations to the general assembly on an annual basis.

History of Section. P.L. 1997, ch. 179, § 1; P.L. 2006, ch. 246, art. 38, § 12; P.L. 2007, ch. 389, § 1; P.L. 2007, ch. 451, § 1.

44-5-11.8. Tax classification.

  1. Upon the completion of any comprehensive revaluation or any update, in accordance with § 44-5-11.6 , any city or town may adopt a tax classification plan, by ordinance, with the following limitations:
    1. The designated classes of property shall be limited to the classes as defined in subsection (b) of this section.
    2. The effective tax rate applicable to any class, excluding class 4, shall not exceed by fifty percent (50%) the rate applicable to any other class, except in the city of Providence and the town of Glocester and the town of East Greenwich; however, in the year following a revaluation or statistical revaluation or update, the city or town council of any municipality may, by ordinance, adopt tax rates for the property class for all ratable tangible personal property no greater than twice the rate applicable to any other class, provided that the municipality documents to, and receives written approval from, the office of municipal affairs that the rate difference is necessary to ensure that the estimated tax levy on the property class for all ratable tangible personal property is not reduced from the prior year as a result of the revaluation or statistical revaluation.
    3. Any tax rate changes from one year to the next shall be applied such that the same percentage rate change is applicable to all classes, excluding class 4, except in the city of Providence and the town of Glocester and the town of East Greenwich.
    4. Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable to wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are governed by § 44-3-29.1 .
    5. The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b) of this section, are governed by § 44-34.1-1 .
    6. The provisions of chapter 35 of this title relating to property tax and fiscal disclosure apply to the reporting of, and compliance with, these classification restrictions.
  2. Classes of Property.
    1. Class 1: Residential real estate consisting of no more than five (5) dwelling units; land classified as open space; and dwellings on leased land including mobile homes. In the city of Providence, this class may also include residential properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units.
      1. A homestead exemption provision is also authorized within this class; provided however, that the actual, effective rate applicable to property qualifying for this exemption shall be construed as the standard rate for this class against which the maximum rate applicable to another class shall be determined, except in the town of Glocester and the city of Providence.
      2. In lieu of a homestead exemption, any city or town may divide this class into non-owner and owner-occupied property and adopt separate tax rates in compliance with the within tax rate restrictions.
    2. Class 2: Commercial and industrial real estate; residential properties containing partial commercial or business uses; and residential real estate of more than five (5) dwelling units. In the city of Providence, properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units may be included in Class 1.
    3. Class 3: All ratable, tangible personal property.
    4. Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.
  3. The city council of the city of Providence and the town council of the town of Glocester and the town council of the town of East Greenwich may, by ordinance, provide for, and adopt, a tax rate on various classes as they shall deem appropriate. Provided, that the tax rate for Class 2 shall not be more than two (2) times the tax rate of Class 1 and the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by more than two hundred percent (200%). Glocester shall be able to establish homestead exemptions up to fifty percent (50%) of value and the calculation provided in subsection (b)(1)(i) shall not be used in setting the differential tax rates.
  4. Notwithstanding the provisions of subsection (a) of this section, the town council of the town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or after the assessment date of December 31, 2002.
  5. Notwithstanding the provisions of subsection (a) of this section, the town council of the town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in accordance with the provisions of subsections (a) and (b) of this section and the provisions of § 44-5-79 , to be applicable to taxes assessed on or after the assessment date of December 31, 2004.
  6. Notwithstanding the provisions of subsection (a) of this section, the town council of the town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent (50%) of value to one hundred percent (100%) of value on residential and commercial/industrial/mixed-use property, while tangible property is assessed at one hundred percent (100%) of cost, less depreciation; provided, however, the tax rate for Class 3 (tangible) property shall not exceed the tax rate for Class 1 (residential) property by more than two hundred thirteen percent (213%). This provision shall apply whether or not the fiscal year is also a revaluation year.
  7. Notwithstanding the provisions of subsections (a) and (b) of this section, the town council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may also include residential properties containing commercial or business uses, such ordinance to be applicable to taxes assessed on or after the assessment date of December 31, 2014.
  8. Notwithstanding the provisions of subsection (a) of this section, the town council of the town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or after the assessment date of December 31, 2018. Further, the East Greenwich town council may adopt, repeal, or modify that tax classification plan for any tax year thereafter, notwithstanding the provisions of subsection (a) of this section.

History of Section. P.L. 2000, ch. 55, art. 19, § 4; P.L. 2001, ch. 217, § 1; P.L. 2001, ch. 263, § 1; P.L. 2002, ch. 39, § 1; P.L. 2002, ch. 305, § 1; P.L. 2003, ch. 41, § 1; P.L. 2003, ch. 268, § 1; P.L. 2003, ch. 280, § 1; P.L. 2004, ch. 11, § 1; P.L. 2004, ch. 276, § 1; P.L. 2004, ch. 321, § 1; P.L. 2005, ch. 197, § 1; P.L. 2005, ch. 214, § 1; P.L. 2005, ch. 253, § 1; P.L. 2005, ch. 261, § 1; P.L. 2006, ch. 301, § 1; P.L. 2013, ch. 78, § 1; P.L. 2013, ch. 80, § 1; P.L. 2014, ch. 432, § 1; P.L. 2014, ch. 458, § 1; P.L. 2015, ch. 6, § 1; P.L. 2015, ch. 7, § 1; P.L. 2019, ch. 21, § 1; P.L. 2019, ch. 22, § 1; P.L. 2021, ch. 246, § 1, effective July 14, 2021; P.L. 2021, ch. 247, § 1, effective July 14, 2021.

Compiler’s Notes.

P.L. 2013, ch. 78, § 1, and P.L. 2013, ch. 80, § 1 enacted identical amendments to this section.

P.L. 2014, ch. 432, § 1, and P.L. 2014, ch. 458, § 1 enacted identical amendments to this section.

P.L. 2015, ch. 6, § 1, and P.L. 2015, ch. 7, § 1 enacted identical amendments to this section

P.L. 2019, ch. 21, § 1, and P.L. 2019, ch. 22, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 246, § 1, and P.L. 2021, ch. 247, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2006, ch. 301, § 3, provides that the amendment to this section by that act takes effect upon passage [July 4, 2006] and applies retroactively to June 29, 2000.

NOTES TO DECISIONS

Motor Vehicles.

Since R.I. Gen. Laws § 44-5-11.8(a)(5) , prior to the 2006 amendment, indicated that, notwithstanding the language of § 44-5-11.8(a)(2) , the tax rates for motor vehicles were governed by former R.I. Gen. Laws § 44-34.1-1 , the 50% limit on tax rates found in former § 44-5-11.8(a)(2) did not apply to motor vehicle tax rates. Planned Env'ts Mgmt. Corp. v. Robert, 966 A.2d 117, 2009 R.I. LEXIS 28 (R.I. 2009).

44-5-11.9. West Warwick — Residential real estate classification.

  1. Notwithstanding any limitation, condition or any other provision to the contrary contained within § 44-5-11.8 , the town of West Warwick may adopt the following separate and distinct tax classification tax-rates for each of the following classification:
  2. Classes of Property:
    1. Single-family homes, condominiums, residential real estate consisting of no more than two (2) dwelling units (one of which is owner occupied), land classified as open space, and dwellings on leased land including mobile homes;
    2. Residential real estate containing between two (2), three (3), four (4), and five (5) dwelling units, except for two (2) dwelling units, one of which is owner occupied;
    3. Residential real estate containing six (6) or more dwelling units, and properties containing partial commercial or business uses with six (6) or more dwelling units;
    4. Commercial and industrial real estate, and residential properties containing partial commercial or business uses, with five (5) or less dwelling units; and
    5. Two (2) separate and distinct tax classification tax-rates for personal property described as Class 3 and Class 4 in subsection 44-5-11.8(b)(3) and (b)(4), respectively.

History of Section. P.L. 2001, ch. 90, § 1; P.L. 2004, ch. 18, § 1; P.L. 2010, ch. 239, § 38.

44-5-11.10. Real estate tax classification — East Providence.

Notwithstanding any provision within § 44-5-11.8 to the contrary:

  1. Upon the completion of any comprehensive revaluation in accordance with § 44-5-11.6 , the city of East Providence may adopt a tax classification plan by ordinance with the following limitations:
    1. The designated classes of property shall be limited to the four (4) classes as defined in subsection (b).
    2. The tax rate applicable to any class shall not exceed by two hundred percent (200%) the rate applicable to any other class.
    3. Any tax rate changes from one year to the next shall be applied such that the same percentage rate change is applicable to all classes.
    4. Notwithstanding subdivisions (a)(2) and (a)(3), the tax rates applicable to wholesale and retail inventory within Class 3 as defined in subsection (b) are governed by § 44-3-29.1 .
    5. Notwithstanding subdivisions (a)(2) and (a)(3), the tax rates applicable to motor vehicles within Class 4 as defined in subsection (b) are governed by § 44-34.1-1 .
    6. The provisions of chapter 35 of this title relating to property tax and fiscal disclosure applies to the reporting of and compliance with these classification restrictions.
  2. Classes of Property.
    1. Class 1: Residential real estate consisting of no more than three (3) dwelling units, land classified as open space, and dwellings on leased land including mobile homes. A homestead exemption provision is also authorized within this class; provided, however, that the actual effective rate applicable to property qualifying for this exemption shall be construed as the standard rate for this class against which the maximum rate applicable to another class shall be determined.
    2. Class 2: Commercial and industrial real estate, residential properties containing partial commercial or business uses and residential real estate of more than three (3) dwelling units.
    3. Class 3: All ratable tangible personal property; excluding wholesale and retail inventory, which shall be taxed in accordance with § 44-3-29.1 .
    4. Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 2004, ch. 9, § 1; P.L. 2004, ch. 13, § 1.

44-5-11.11. Residential real estate classification — West Greenwich.

Notwithstanding any provision within § 44-5-11.8 to the contrary, the town of West Greenwich may adopt a separate tax classification and tax rate for unimproved residentially zoned real property excepting property assessed pursuant to § 44-27-1 ; and provided, further that the rate applicable to this class shall not be the standard rate against which the maximum rate applicable to another class shall be determined.

History of Section. P.L. 2005, ch. 88, § 1; P.L. 2005, ch. 135, § 1.

44-5-11.12. Residential real estate classification — Glocester.

Notwithstanding any provision within § 44-5-11.8 to the contrary, the town of Glocester may adopt a separate tax classification and tax rate for unimproved residentially zoned real property excepting property assessed pursuant to § 44-27-1 and provided further that the rate applicable to this class shall not be the standard rate against which the maximum rate applicable to another class shall be determined.

History of Section. P.L. 2005, ch. 197, § 2; P.L. 2005, ch. 214, § 2; P.L. 2005, ch. 363, § 1; P.L. 2005, ch. 430, § 1.

44-5-11.13. Homestead exemption in the town of Glocester.

The town council of the town of Glocester is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of Glocester and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed forty percent (40%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide by ordinance rules and regulations governing eligibility for the exemption established by this section.

History of Section. P.L. 2005, ch. 197, § 2; P.L. 2005, ch. 214, § 2.

44-5-11.14. Commercial/residential real estate classification — Narragansett.

Notwithstanding any provisions of § 44-5-11.8 to the contrary, the town of Narragansett may adopt a separate tax classification for owner occupied mixed use combination commercial and residential properties with five (5) units or less provided that the total commercial portion of the structure cannot occupy more than fifty percent (50%) of the entire square foot size of the structure itself. The tax assessor shall be required to allocate the percentage share of the full and fair market value of the property devoted to residential real estate use. This portion of the property shall be subject to the same tax rate as property defined in class 1 by § 44-5-11.8(b)(1)(i) , while the remaining percentage of the property shall be subject to the tax rate as property defined as class 2 by § 44-5-11.8 (b)(2).

History of Section. P.L. 2005, ch. 198, § 1; P.L. 2005, ch. 212, § 1.

Effective Dates.

P.L. 2005, ch. 198, § 3, and P.L. 2005, ch. 212, § 3, state that the newly enacted sections by those acts shall take effect after the approval by Narragansett electors at an election held at least thirty (30) days after the passage of this act [July 8, 2005.]

44-5-11.15. Authority to extend homestead exemption.

Any city or town authorized under this chapter to enact a homestead exemption may, by ordinance, provide the homestead exemption to any owner occupied premises in that city or town notwithstanding any law, regulation or ordinance to the contrary.

History of Section. P.L. 2011, ch. 397, § 1.

44-5-12. Assessment at full and fair cash value.

  1. All real property subject to taxation shall be assessed at its full and fair cash value, as of December 31 in the year of the last update or revaluation, or at a uniform percentage thereof, not to exceed one hundred percent (100%), to be determined by the assessors in each town or city; provided, that:
    1. Any residential property encumbered by a covenant recorded in the land records in favor of a governmental unit or Rhode Island housing and mortgage finance corporation restricting either or both the rents that may be charged or the incomes of the occupants shall be assessed and taxed in accordance with § 44-5-13.11 ;
    2. In assessing real estate that is classified as farmland, forest, or open space land in accordance with chapter 27 of this title, the assessors shall consider no factors in determining the full and fair cash value of the real estate other than those that relate to that use without regard to neighborhood land use of a more intensive nature;
    3. Warwick.  The city council of the city of Warwick is authorized to provide, by ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick who makes any improvements or additions on his or her principal place of residence in the amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the city of Warwick, is exempt from reassessment of property taxes on the improvement or addition until the next general citywide reevaluation of property values by the tax assessor. For the purposes of this section, “residence” is defined as voting address. This exemption does not apply to any commercial structure. The property owner shall supply all necessary plans to the building official for the improvements or addition and shall pay all requisite building and other permitting fees as now are required by law; and
    4. Central Falls.  The city council of the city of Central Falls is authorized to provide, by ordinance, that the owner of any dwelling of one to eight (8) units who makes any improvements or additions to his or her residential or rental property in an amount not to exceed twenty-five thousand dollars ($25,000), as determined by the tax assessor of the city of Central Falls, is exempt from reassessment of property taxes on the improvement or addition until the next general citywide reevaluation of property values by the tax assessor. The property owner shall supply all necessary plans to the building official for the improvements or additions and shall pay all requisite building and other permitting fees as are now required by law.
    5. Tangible property shall be assessed according to the asset classification table as defined in § 44-5-12.1 .
    6. Provided, however, that, for taxes levied after December 31, 2015, new construction on development property is exempt from the assessment of taxes under this chapter at the full and fair cash value of the improvements, as long as:
      1. An owner of development property files an affidavit claiming the exemption with the local tax assessor by December 31 each year; and
      2. The assessor shall then determine if the real property on which new construction is located is development property. If the real property is development property, the assessor shall exempt the new construction located on that development property from the collection of taxes on improvements, until such time as the real property no longer qualifies as development property, as defined herein.
  2. Municipalities shall make available to every land owner whose property is taxed under the provisions of this section a document that may be signed before a notary public containing language to the effect that they are aware of the additional taxes imposed by the provisions of § 44-5-39 in the event that they use land classified as farm, forest, or open space land for another purpose.
  3. Pursuant to the provisions of § 44-3-29.1 , all wholesale and retail inventory subject to taxation is assessed at its full and fair cash value, or at a uniform percentage of its value, not to exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city. Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase. The phase-out rate schedule established in § 44-3-29.1 (d) applies to this fixed value in each year of the phase out.

For the purposes of this section, “development property” means: (A) Real property on which a single-family residential dwelling or residential condominium is situated and said single-family residential dwelling or residential condominium unit is not occupied, has never been occupied, is not under contract, and is on the market for sale; or (B) Improvements and/or rehabilitation of single-family residential dwellings or residential condominiums that the owner of such development property purchased out of a foreclosure sale, auction, or from a bank, and which property is not occupied. Such property described in subsection (a)(6)(ii) of this section shall continue to be taxed at the assessed value at the time of purchase until such time as such property is sold or occupied and no longer qualifies as development property. As to residential condominiums, this exemption shall not affect taxes on the common areas and facilities as set forth in § 34-36-27 . In no circumstance shall such designation as development property extend beyond two (2) tax years and a qualification as a development property shall only apply to property that applies for, or receives, construction permits after July 1, 2015. Further, the exemptions set forth in this section shall not apply to land.

History of Section. G.L. 1896, ch. 46, § 3; G.L. 1909, ch. 58, § 3; G.L. 1923, ch. 60, § 3; G.L. 1938, ch. 31, § 3; G.L. 1956, § 44-5-12 ; P.L. 1965, ch. 115, § 1; P.L. 1968, ch. 288, § 2; P.L. 1988, ch. 84, § 95; P.L. 1990, ch. 225, § 1; P.L. 1994, ch. 259, § 1; P.L. 1995, ch. 239, § 1; P.L. 1995, ch. 372, § 1; P.L. 1995, ch. 375, § 1; P.L. 1998, ch. 31, art. 27, § 2; P.L. 2006, ch. 383, § 1; P.L. 2006, ch. 434, § 1; P.L. 2013, ch. 81, § 1; P.L. 2013, ch. 87, § 2; P.L. 2015, ch. 156, § 1; P.L. 2015, ch. 189, § 1; P.L. 2021, ch. 121, § 1, effective July 2, 2021; P.L. 2021, ch. 122, § 1, effective July 2, 2021; P.L. 2021, ch. 290, § 1, effective July 9, 2021; P.L. 2021, ch. 291, § 1, effective July 9, 2021.

Compiler’s Notes.

P.L. 2013, ch. 81, § 1, and P.L. 2013, ch. 87, § 1 enacted identical amendments to this section.

P.L. 2015, ch. 156, § 1, and P.L. 2015, ch. 189, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 121, § 1, and P.L. 2021, ch. 122, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 290, § 1, and P.L. 2021, ch. 291, § 1 enacted identical amendments to this section.

This section was amended by four acts (P.L. 2021, ch. 121, § 1; P.L. 2021, ch. 122, § 1; P.L. 2021, ch. 290, § 1; P.L. 2021, ch. 291, § 1) as passed by the 2021 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all four acts.

NOTES TO DECISIONS

Constitutionality.

This section gives a substantial basis of uniformity, is not discriminatory, and does not violate R.I. Const., Art. I, Sec. 2 or U.S. Const., Amend. XIV. Allen v. Bonded Mun. Corp., 62 R.I. 101 , 4 A.2d 249, 1938 R.I. LEXIS 16 (1938).

Carry Over of Value.

A tax assessor may carry over the same fair-market-value finding from one tax-assessment date to the next until required to conduct the decennial revaluation. Given the tremendous expense imposed upon municipalities in performing revaluations, the existing practice of decennial revaluations is reasonable. A property owner disputing an assessment carried over from a prior year, however, has interim remedies under §§ 44-5-26 and 44-5-27 . Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Fair Cash Value.

“Full and fair cash value” means that price the property would probably bring in a transaction in a fair market between a willing seller and a willing buyer. Allen v. Bonded Mun. Corp., 62 R.I. 101 , 4 A.2d 249, 1938 R.I. LEXIS 16 (1938); Rosen v. Restrepo, 119 R.I. 398 , 380 A.2d 960, 1977 R.I. LEXIS 2053 (1977).

In determining the fair market value of ratable property an assessor is not bound by any particular formula; he is exercising a discretionary act. Kargman v. Jacobs, 113 R.I. 696 , 325 A.2d 543, 1974 R.I. LEXIS 1225 (1974); Rosen v. Restrepo, 119 R.I. 398 , 380 A.2d 960, 1977 R.I. LEXIS 2053 (1977).

Full and fair cash value has been defined as the price property would probably bring in a fair market between a willing seller and a willing buyer and in determining the full and fair cash value of ratable property the tax assessor engages in a discretionary act and is not bound by any particular formula. CIC-Newport Assocs. v. Stein, 121 R.I. 844 , 403 A.2d 658, 1979 R.I. LEXIS 1984 (1979).

The replacement-cost-less-depreciation method is one recognized method for determining value in real estate appraisals. Reproduction costs must be adequately discounted for obsolescence and inadequacy as well as for physical deterioration. Burrillville Racing Ass'n v. Tellier, 574 A.2d 749, 1990 R.I. LEXIS 95 (R.I. 1990).

The issue of attendance relates to the management of the facility and cannot be factored in when calculating functional obsolescence. Evidence of functional depreciation, to be admissible, must demonstrate that the property, even though out of date, was not functioning efficiently for the purpose to which it was put. Burrillville Racing Ass'n v. Tellier, 574 A.2d 749, 1990 R.I. LEXIS 95 (R.I. 1990).

Once the plaintiff conceded the fair and accurate revaluation of her property, the “full and fair cash value” was established, and the alternative assessment of a “uniform percentage” became inapplicable. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

Since the burden was on a taxpayer company to establish that a city set a value on intangible personal property that was greater than the fair market value and therefore in violation of R.I. Gen. Laws § 44-5-12(a) , and since the superior court sat as the trier of fact and could reject the taxpayer’s expert’s determination of fair market value where there was a lack of specificity pertaining to the experience upon which the expert’s judgment rested, the superior court could properly give the expert’s opinion no weight and could properly affirm the city’s decision to uphold tax assessments. Harvard Pilgrim Health Care of New Eng., Inc. v. Gelati, 865 A.2d 1028, 2004 R.I. LEXIS 197 (R.I. 2004).

Real property assessment exceeded fair market value because (1) an assessor’s comparable sales approach arbitrarily considered outliers despite not using the outliers to assess other properties, (2) appraisals that did not adjust for relevant factors had to be rejected, and (3) a six percent decline in real estate values required such a reduction. Whittemore v. Thompson, 139 A.3d 530, 2016 R.I. LEXIS 91 (R.I. 2016).

Neglect or Waste.

Whether a property owner is responsible for committing neglect and/or allowing waste which causes or contributes to the decline in the condition of his taxable property is irrelevant in the tax-assessment analysis and should not be weighed. In assessing the value of property, the assessor has as his or her function to assess all property liable to taxation at its full and fair cash value. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Reassessment.

Where, pursuant to a policy of reassessing all real property sold within the preceding year on the basis of the values established by such sales, the tax assessors raised the assessment of plaintiffs’ property, but there was no general reassessment, no reassessment of similar, adjoining and neighboring properties which had not been sold since the last general reassessment and no reassessment of similar properties which had been sold but where the recorded deeds had no transfer stamps affixed evidencing the consideration for the conveyances, the court held that, since plaintiffs failed to specifically prove that a substandard amount of the real property assessed in the area was assessed at a lower percentage of its fair market value than their property, they failed to establish that their property was not assessed at its full and fair cash value, or at a uniform percentage thereof, as required by this section, R.I. Const., Art. I, Sec. 2 and the equal protection of laws clause of U.S. Const., Amend. XIV. Merlino v. Tax Assessors, 114 R.I. 630 , 337 A.2d 796, 1975 R.I. LEXIS 1465 (1975).

Restitution for Illegal or Void Assessment.

If a tax is determined to be void, an entire rebate is appropriate, but if the tax assessment is determined to be illegal, then the excessive tax paid is subject to a remittance. Where the trial justice properly concluded that assessments were not void, the trial justice appropriately denied the plaintiffs a rebate of the entire tax paid. Oster v. Tellier, 544 A.2d 128, 1988 R.I. LEXIS 89 (R.I. 1988).

Where the alternative relief sought by the plaintiffs is that recovery be allowed for the excess tax that was paid because not all classes of property liable to taxation were assessed at a single, uniform percentage of full and fair cash value, but the plaintiffs do not prove what portion of the tax paid constitutes an illegal or disproportionate tax, the plaintiffs are not entitled to a rebate of the entire tax. Oster v. Tellier, 544 A.2d 128, 1988 R.I. LEXIS 89 (R.I. 1988).

Standing.

Even assuming that the notice of appeal had been timely, it did not appear that the hearing justice erred in determining that a taxpayer lacked standing to challenge a town’s application of §§ 44-5-12 and 44-5-13.11 to two low and moderate income housing developments because the taxpayer did not show that he had a personal stake beyond that shared by all other members of the public at large or the taxpayers of the town; all taxpayers of the town necessarily had some share of the effect of the decrease in the development’s tax burden. Morse v. Minardi, 208 A.3d 1151, 2019 R.I. LEXIS 78 (R.I. 2019).

Uniform Application.

Once the assessor has established the property’s fair market value, if he is assessing at less than 100 percent of value, he must comply with the constitutional directive of R.I. Const., Art. I, Sec. 2 , and apply the same percentage factor to each piece of property being assessed. Rosen v. Restrepo, 119 R.I. 398 , 380 A.2d 960, 1977 R.I. LEXIS 2053 (1977).

Since the assessor must apply the same percentage factor to each piece of property being assessed, mandamus lies in an action to order the assessor to assess a shopping center complex in the same manner in which he assessed the other ratable property in the town. Rosen v. Restrepo, 119 R.I. 398 , 380 A.2d 960, 1977 R.I. LEXIS 2053 (1977).

Where the plaintiffs prove, not only that not all of the business tangible personal property in the city is assessed by the assessor, but that this is true also of household tangible personal property, the assessments on the business personalty of the plaintiffs are violative both of the equal protection clause of the United States Constitution, and the guarantee of R.I. Const., art. 1, § 2 , requiring that the burdens of the state be fairly distributed among its citizens, but absent proof by the plaintiffs to demonstrate that the assessor intentionally sought to commit fraud or injury or selectively to discriminate against particular businesses, the trial justice properly may determine that the assessment is illegal rather than void. Oster v. Tellier, 544 A.2d 128, 1988 R.I. LEXIS 89 (R.I. 1988).

Collateral References.

Appurtenant rights, easements, restrictions, or charges in respect of land as factors in taxation. 108 A.L.R. 829.

Flowage rights as factor in property taxation. 134 A.L.R. 963.

Income or rental value as a factor in valuation. 96 A.L.R.2d 666.

Lease as affecting taxable value of property against owner. 30 A.L.R. 361.

Leasehold interest, method or rule for valuation of. 84 A.L.R. 1310.

Original cost of construction or reproduction cost as proper factors in assessing real property. 104 A.L.R. 790.

Price paid or received by taxpayer for property as evidence of its value for tax purposes. 160 A.L.R. 684.

Prospective value as basis of valuation of land for purposes of property taxation. 24 A.L.R. 649.

Requirement of full-value real property taxation assessments. 42 A.L.R.4th 676.

Special franchise or privilege of crossing street, basis of valuation for tax purposes. 57 A.L.R. 379.

Valuation for purposes of taxation as evidence of value of property for other purposes. 39 A.L.R.2d 209.

Valuation of property as affected by variation of tax rate for local or special purposes in different local taxing units, or inclusion of property within particular taxing unit. 119 A.L.R. 1300.

Valuation of real property for tax purposes, discretion of court or referee as to mode of. 152 A.L.R. 611.

44-5-12.1. Assessment of tangible personal property.

  1. All tangible personal property subject to taxation shall be assessed for taxation based on the original purchase price (new or used) including all costs such as freight and installation. Assets will be classified and depreciated as defined in this section.
  2. The following classification and depreciation table shall be used in determining the assessed value of tangible personal property.
  3. Assets shall be classified on an annual basis by the Rhode Island Association of Assessing Officers’ Personal Property Committee based on the following table:
  4. Any industry, group, or asset not enumerated in subsection (c) of this section, shall be categorized as class II.

State of Rhode Island Tangible Property Classification Class I Class II Class III Class of Assets Short Life Mid-Life Long Life Age 1-5 yrs 6-12 yrs 13+ yrs 1 95 95 95 2 80 90 90 3 60 80 85 4 30 70 80 5 20 60 75 6 20 50 70 7 20 40 65 8 20 30 60 9 20 30 55 10 20 30 50 11 20 30 45 12 20 30 40 13 20 30 35 14 20 30 30 15+ 20 30 30

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Assets Shall Not be Trended

INDUSTRY GROUP IN YEARS CLASS Agriculture machinery and equipment II Aircraft and all helicopters II Amusement and theme parks II Apparel and fabricated textile manufacturing II Automobile repair shops II Bakeries and confectionery production II Barber and beauty shops II Billboards III Brewery equipment not used directly in manufacturing II Cable television, headend facilities: II Microwave systems II Program origination II Service and testII Subscriber connection and distributionII Canneries and frozen food productionII Cement processingIII Chemical and allied productionII Clay products processingIII Cold storage and ice-making equipmentIII Cold storage warehouse equipmentII Computers, personal computers (PC), laptops, tablets, cellphones, mainframe/servers, peripherals, keyboard, mouseI Condiments, processingII Construction equipment, general construction, backhoes, forklifts, loaders, cranes, unregistered vehiclesII Dairy products processingII Data handling equipment, except computersII printers, copiers, bridges, routers and gatewaysII DistillingII Electrical equipment not used in manufacturingII Electronic equipmentII Fabricated metal products/special toolsII Fishing equipment, excluding boats and barges, lines, netsI Food and beverage productionII Fur processingII Gas distribution, total distribution equipmentIII Glass and glass products/special toolsII Grain and grain mill products processingIII Gypsum productsIII Hand toolsII Hospital furnishings and equipment II Hotel and motel furnishings and equipmentII Jewelry products and pensII Knitwear and knit products, ex, work uniformsI Laundry equipmentII Leather and leather productsII Logging, timber cuttingII Marine constructionII MeatpackingII Medical and dental supply productionII Metalworking machinery processingII Mining and quarryingII Motion picture and television production II Motor vehicle and parts/special toolsII Office furniture and equipment II Optical lenses and instrument processingII Paints and varnishesI Petroleum refiningIII pipeline transportationIII Plastics manufacturingI/II Plastic products processing/special toolsII Primary metals production, nonferrous and foundry productsIII special toolsIII Primary steel mill products III Printing and publishingII Professional and scientific instrumentsII Radio and television, broadcastingII Railroad transportation equipment II locomotiveII Recreation and amusementII Retail trades, fixtures and equipmentII Residential furnitureII Restaurant and bar equipmentII Restaurant equipment, fast foodsII Rubber products processing/special toolsII Sawmills, permanent/portableII Service establishmentsII Ship and boat building equipment/special toolsII Soft drink processing and bottlingII Stone products processingIII Telecommunications, local and interstateII analog switchingII circuit, digital, analog, opticII information/origination equipmentI/II smart phonesI metallic cableIII fiber cable, poles, conduitIII all other equipmentII Telecommunications, cellular analog/digital switchingII radio frequency channel and controlII power equipmentII antennaeII towersIII transmission equipmentII cellular phonesI Textile products, including finishing and dyeingII yarn, thread and woven fabricsII Theater equipmentII Utilities/power productionIII generation, transmission, or distribution equipmentIII Waste reduction and resource recoveryII Water transportationIII vessels, barges and tugsIII Water utilitiesIII Wharves, docks and piersIII Wholesale trade fixtures and equipmentII Wood products and furniture manufacturingII

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History of Section. P.L. 2006, ch. 383, § 2; P.L. 2006, ch. 434, § 2; P.L. 2018, ch. 315, § 1; P.L. 2018, ch. 352, § 1; P.L. 2021, ch. 422, § 1, effective July 17, 2021.

Compiler’s Notes.

P.L. 2018, ch. 315, § 1, and P.L. 2018, ch. 352, § 1 enacted identical amendments to this section.

44-5-13. Assessment and apportionment according to law — Date of assessment.

The assessors shall assess all valuation and apportion any tax levy on the inhabitants of the city or town and the ratable property in the city or town according to law, and the assessed valuation of the ratable property shall be made as of the date of assessment provided in § 44-5-1 and shall be in accordance with the provisions of § 44-5-1 2; except that personal property consisting of stocks in trade and materials used in manufacture, which include raw materials, fuel, goods in process of manufacture, and completed products, except those which are specifically exempt by statute, are estimated at the average of the personalty kept on hand or located in the taxing district during the twelve (12) months ending with the date of assessment, or the average of any portion of the twelve (12) months when the business has not been carried on or located in the taxing district for a year.

History of Section. G.L. 1896, ch. 46, § 4; G.L. 1909, ch. 58, § 4; P.L. 1919, ch. 1735, § 2; G.L. 1923, ch. 60, § 4; G.L. 1938, ch. 31, § 4; P.L. 1949, ch. 2330, § 4; G.L. 1956, § 44-5-13 ; P.L. 1969, ch. 177, § 1; P.L. 2021, ch. 121, § 1, effective July 2, 2021; P.L. 2021, ch. 122, § 1, effective July 2, 2021.

Compiler's Notes.

P.L. 2021, ch. 121, § 1, and P.L. 2021, ch. 122, § 1 enacted identical amendments to this section.

NOTES TO DECISIONS

In General.

Taxpayers who have not resided in any one town for longer than six out of the twelve months prior to the first day of April preceding the assessment are taxable where they are inhabitants on the date of assessment. Ailman v. Griswold, 12 R.I. 339 , 1879 R.I. LEXIS 35 (1879).

44-5-13.1. Duties of assessors with respect to forms.

The assessors shall utilize all forms adopted in accordance with forms prepared by the department of revenue for the preparation and administration of their assessments. Nothing contained in this chapter invalidates a tax assessed and levied in accordance with law.

History of Section. P.L. 1984, ch. 381, art. III, § 2; P.L. 1986, ch. 198, § 49; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-13.2. South Kingstown — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate, including manufactured homes or dwellings or living units on leased land, in the town of South Kingstown completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of use and occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building official issuing the certificate shall, within ten (10) days after issuing the certificate, notify, the assessor in writing of the issuance of the certificate of use and occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building official or after a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of use and occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment. In a property revaluation year, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date, shall prorate that amount from the date of issuance of the certificate of use and occupancy or the date on which the new construction was first used for the purpose for which it was constructed, to the assessment date immediately following, and shall add the increment as prorated to the tax roll for the immediately preceding assessment date not later than forty-five (45) days after the date the tax roll is certified, or forty-five (45) days after receipt by the assessor of the notice from the building official or after a determination by the assessor that the new construction is being used for the purpose for which it was constructed.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of South Kingstown.

History of Section. P.L. 1990, ch. 184, § 1; P.L. 2008, ch. 81, § 1; P.L. 2008, ch. 212, § 1.

44-5-13.2.1. West Warwick — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of West Warwick completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review with sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of West Warwick.

History of Section. P.L. 1992, ch. 327, § 1.

44-5-13.2.2. Barrington — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Barrington completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and properly assessed in the town of Barrington.

History of Section. P.L. 1993, ch. 268, § 1; P.L. 1993, ch. 471, § 1.

44-5-13.2.3. Warwick — Assessment and taxation of certain improvements to real estate.

Notwithstanding any other provisions of this chapter, the owner of any building or dwelling in the city of Warwick consisting of one to three (3) family units, the building also being the owner’s principal place of residence, who makes any improvements or additions to the building in an amount not exceeding fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the city of Warwick, is exempt from the assessment of property taxes on those improvements or additions until the next general municipal revaluation of property values in 1997. As used in this section, “residence” means a voting address. The property owner shall supply all necessary plans to the building official of the city of Warwick for the improvements or addition and shall pay all requisite building and other permit fees as are then required by law. The provisions of this section do not apply to any commercial building or structure.

History of Section. P.L. 1994, ch. 170, § 1.

44-5-13.2.4. Newport — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the city of Newport completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the city of Newport.

History of Section. P.L. 1994, ch. 205, § 1.

Compiler’s Notes.

See also § 44-5-13.8 .

44-5-13.2.5. Pawtucket — Exemption for residential improvements and alterations.

  1. The tax assessor of the city of Pawtucket is authorized to grant an exemption from real property taxation equal to any increase in assessed valuation not exceeding fifteen thousand dollars ($15,000) cumulatively resulting from alterations and improvements made to existing dwellings used for residential purposes and shall include mobile and manufactured homes. For the purpose of this section, “dwelling” has the meaning defined in § 45-24.3-5(10) . “Mobile and manufactured home” has the meaning defined in § 31-44-1(8) . The exemption is granted for three (3) years commencing with the tax roll assessed as of the assessment date which immediately follows the completion of the alterations and improvements or which next occurs eighteen (18) months after the date of issuance of the building permit for the alterations and improvements, whichever occurs first.
  2. In order to be eligible for exemption, the dwelling must be an existing residential dwelling and be at least five (5) years of age at the time of issuance of the building permit for the alterations and improvements, all real estate taxes and other assessments and fees assessed against the dwelling must be paid up to date, and the dwelling must meet all minimum housing building code and zoning requirements or the alterations and improvements must be that which will improve the dwelling to meet code requirements. The tax assessor shall require a certificate from the building inspector that the dwelling meets all minimum housing, building code and zoning requirements and regulations including the number of dwelling units allowed. The certificate from the building inspector shall be provided to the tax assessor at the time that the application for an exemption is filed.
  3. The exemption provided for in this section is allowed only for owner-occupied residential dwellings including up to five (5) units, including the owner-occupied unit, and include owner-occupied residential condominium units. The exemption is not allowed for any property used for professional or business use or other commercial or income-producing purposes other than owner-occupied dwellings of five (5) units or fewer.
  4. Alterations and improvements which qualify for the exemption provided for in this section include the following:
    1. Installations of additional plumbing facilities, electrical fixtures or re-wiring of the electrical system, heating system, hot water system or the replacement of any of these items;
    2. Inside and outside painting or redecorating;
    3. Repairing, repainting or replacing existing masonry;
    4. Reshingling or installation of siding on exterior walls;
    5. Replacing or repairing roofs, gutters, downspouts;
    6. Weather stripping, insulating or replacing of existing windows and sashes;
    7. Adding a bedroom, bathroom, recreation room, fireplace or garage;
    8. Converting basement into amusement or rumpus room;
    9. Enclosing open porches or breezeways;
    10. New basement or incinerator;
    11. Adding new fences or stone walls;
    12. Repairing or replacing or adding porches, steps, sidewalks or driveways;
    13. Adding any built-ins, kitchen cabinets or closets;
    14. Any other improvement, alteration, or addition which the city council may provide for by ordinance which does not materially affect the character and use of the property and is of such a nature that the property retains its basic structural design and is improved to a condition comparable to similar structures and housing standards.
  5. An exemption will not be allowed if a building permit and/or zoning approval is granted after the alteration or improvement is made. The following are not deemed to be alterations and improvements which qualify for exemption under this section:
    1. Any increase in the number of dwelling units;
    2. The addition of recreational facilities including, but not limited to, swimming pool and/or pool cabana, a tennis court or basketball court;
    3. Any change in connection with, or enabling the operation of a business or profession from a residence;
    4. Any alteration or improvement which in the opinion of the tax assessor is of such a nature that the property does not retain its basic structural design or that the character and use of the property has changed;
    5. Any alteration or improvement made without a building permit issued by the building inspector.
  6. No person is entitled to any exemption under this section without first filing an application with the tax assessor on forms furnished by the tax assessor. The application requires information as to cost, construction, ownership, occupancy, use and any other information required by the tax assessor to determine compliance with the terms of this section. The tax assessor may require the applicant to provide recipients and other evidence of the cost of the alteration or improvement. The city council of the city of Pawtucket may, by ordinance, adopt rules and regulations not inconsistent with this section concerning the exemption provided for under this section, the manner and form of application for the exemption, the proof required for the dwelling to be considered “owner-occupied” and the determination by the tax assessor of the cost, valuation, and amount of exemption allowed for the alterations and improvements. Applications for exemption must be filed by December 31 of the year in which the alterations and improvements are completed and may be approved by the tax assessor prior to certification of the subsequent tax roll.
  7. Any exemption under this section terminates upon the conveyance of the subject property, except for a conveyance or transfer to a member of the immediate family of the owner without consideration. For the purposes of this section, “member of the immediate family of the owner” includes the owner’s spouse, parents, children, grandchildren and brothers and sisters. Any exemption terminates when this property subject to exemption is no longer owner-occupied for residential purposes or if the original conditions and qualifications for the granting of the exemption no longer exist. A person’s residence for the purpose of this section is his or her fixed and established domicile. The tax assessor may challenge a person’s residency based upon the criteria established in chapter 1 of title 17 relating to residency for voting purposes.
  8. Any person aggrieved by a decision of the tax assessor pursuant to this section has the right to an appeal pursuant to the terms of this chapter to the city of Pawtucket board of tax review.
  9. Notwithstanding the grant of an exemption under this section, the property is still subject to any general revaluation on a city-wide basis. An owner of an owner-occupied dwelling is allowed one exemption under this section during each revaluation period.
  10. No exemption is granted for alterations and improvements made pursuant to a building permit issued prior to December 31, 1995.
  11. An exemption shall not be allowed if a building permit and/or zoning approval is granted after the alteration or improvement is made.

History of Section. P.L. 1995, ch. 335, § 1; P.L. 1999, ch. 354, § 28; P.L. 2004, ch. 6, § 22; P.L. 2005, ch. 410, § 29.

44-5-13.3. Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to that damage and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date the demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the towns of South Kingstown, North Kingstown, West Warwick and Barrington.

History of Section. P.L. 1990, ch. 184, § 1; P.L. 1992, ch. 327, § 2; P.L. 1994, ch. 34, § 1; P.L. 1996, ch. 55, § 1.

44-5-13.4. Richmond — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Richmond completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate of occupancy shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Richmond.

History of Section. P.L. 1992, ch. 102, § 1.

44-5-13.5. Richmond — Reduction in assessed value of real estate — Removal of damaged buildings.

  1. Whenever, after the expiration of ninety (90) days after damage to a building, the building remains damaged as to require reconstruction of seventy-five percent (75%) or more before it may be used for any purpose related to its use prior to the damage and, following which, the owner provides for seventy-five percent (75%) or more demolition of the building, with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector and tax assessor, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the damaged building, demolished, or removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. The Richmond town council is authorized to suspend this tax abatement policy for any year in which so many buildings within the town of Richmond are so severely damaged that granting reduced assessments for all would jeopardize the fiscal integrity of the town.
  4. This section applies only to assessment and taxes in the town of Richmond.

History of Section. P.L. 1992, ch. 102, § 1.

44-5-13.6. Coventry — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Coventry completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Coventry.

History of Section. P.L. 1992, ch. 291, § 1.

44-5-13.7. Coventry — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to the damage and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the town of Coventry.

History of Section. P.L. 1992, ch. 291, § 1.

44-5-13.8. Newport — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to assessments and taxes in the city of Newport.

History of Section. P.L. 1994, ch. 397, § 1.

Compiler’s Notes.

See also § 44-5-13.2.4 .

44-5-13.9. Newport — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to the damage and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the city of Newport.

History of Section. P.L. 1994, ch. 397, § 1.

44-5-13.10. Hopkinton — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Hopkinton completed after any assessment date is liable for the payment of municipal taxes thirty (30) days after the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. He or she shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax role for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Hopkinton.

History of Section. P.L. 1995, ch. 363, § 1.

44-5-13.11. Qualifying low-income housing — Assessment and taxation.

Any residential property that has been issued an occupancy permit on or after January 1, 1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban Development and is encumbered by a covenant recorded in the land records in favor of a governmental unit or Rhode Island housing and mortgage finance corporation restricting either or both the rents that may be charged to tenants of the property or the incomes of the occupants of the property, is subject to a tax that equals eight percent (8%) of the property’s previous years’ gross scheduled rental income or a lesser percentage as determined by each municipality.

History of Section. P.L. 1995, ch. 372, § 2; P.L. 1995, ch. 375, § 2.

NOTES TO DECISIONS

Standing.

Even assuming that the notice of appeal had been timely, it did not appear that the hearing justice erred in determining that a taxpayer lacked standing to challenge a town’s application of §§ 44-5-12 and 44-5-13.11 to two low and moderate income housing developments because the taxpayer did not show that he had a personal stake beyond that shared by all other members of the public at large or the taxpayers of the town; all taxpayers of the town necessarily had some share of the effect of the decrease in the development’s tax burden. Morse v. Minardi, 208 A.3d 1151, 2019 R.I. LEXIS 78 (R.I. 2019).

44-5-13.12. North Kingstown — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of North Kingstown completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of North Kingstown.

History of Section. P.L. 1996, ch. 55, § 2.

44-5-13.13. Portsmouth — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Portsmouth completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed; provided, that the rate of taxation is uniform within each class. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. He or she shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Portsmouth.

History of Section. P.L. 1996, ch. 211, § 1.

44-5-13.14. Portsmouth — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to the damage and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the town of Portsmouth.

History of Section. P.L. 1996, ch. 211, § 1.

44-5-13.15. East Greenwich — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of East Greenwich completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of East Greenwich.

History of Section. P.L. 1997, ch. 236, § 1; P.L. 1997, ch. 274, § 1.

44-5-13.16. Cumberland — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Cumberland completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Cumberland.

History of Section. P.L. 1997, ch. 248, § 1.

44-5-13.17. North Providence — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of North Providence completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of North Providence.

History of Section. P.L. 1997, ch. 286, § 1.

44-5-13.18. Smithfield — Assessment and taxation of real estate construction.

  1. Completed new construction of real estate in the town of Smithfield completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Smithfield.

History of Section. P.L. 1998, ch. 136, § 1.

44-5-13.19. Westerly — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Westerly completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. After certification of the tax roll, on or before June 15th, and not later than ninety (90) days, after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor must file an appeal to the assessor within thirty (30) days from the date that the prorated tax payment is due without penalty. If still aggrieved, the taxpayer may appeal to the board of assessment review within ninety (90) days from the date the prorated tax payment is due. Any person still aggrieved may, within thirty (30) days of the tax board of review’s decision notice, file a petition in Superior Court.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable is be equal.
  6. Nothing in this section is deemed to authorize the collection of taxes twice in respect to the land assessment or other improvements previously assessed on the immediate preceding assessment date.
  7. This section only applies apply to taxes levied and property assessed in the town of Westerly.

History of Section. P.L. 1999, ch. 18, § 1; P.L. 1999, ch. 206, § 1.

44-5-13.20. Burrillville — Assessment and taxation of new real estate construction.

  1. New construction of real estate in the town of Burrillville completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax will be computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor may appeal the determinations of the assessor to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and shall be subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable shall be equal.
  6. Nothing in this section is deemed to authorize the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section shall only apply to taxes levied and property assessed in the town of Burrillville.

History of Section. P.L. 1999, ch. 229, § 1; P.L. 1999, ch. 276, § 1; P.L. 1999, ch. 335, § 1.

44-5-13.21. Burrillville — Deferment of taxes for persons claiming an exemption pursuant to § 44-3-3(16).

  1. Notwithstanding the provisions of chapter 3 of title 44 or any other provision of the general or public laws to the contrary, the town council of the town of Burrillville is authorized to provide, by ordinance, that the payment of taxes by any resident of the town claiming an exemption pursuant to the provisions of § 44-3-3(16) may be deferred in whole or in part for a period of five (5) years, and will constitute a lien on the property during the five (5) year period. If the property is transferred in any manner, including but not limited to gift, inheritance, or deed or if the property is refinanced, all taxes accrued to that date are immediately due and payable.
  2. In the event that the property upon which the taxes have been deferred has not been transferred or refinanced as set forth in subsection (a) of this section at the expiration of the fifth year of deferment, the tax bill that has been deferred for five (5) years is automatically abated and the records of the tax collector shall reflect the abatement.
  3. The town council of the town of Burrillville is authorized to enact, by ordinance, eligibility criteria to grant deferments in whole or in part for persons claiming an exemption pursuant to § 44-3-3(16).
  4. Any person claiming the deferment aggrieved by an adverse decision of the assessor shall appeal the decision to the local board of tax review, and thereafter according to the provisions of § 44-5-26 .

History of Section. P.L. 1999, ch. 230, § 1.

44-5-13.22. Scituate — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Scituate completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Scituate.

History of Section. P.L. 2000, ch. 8, § 1; P.L. 2000, ch. 45, § 1.

44-5-13.23. North Smithfield — Assessment and taxation and new real estate construction.

  1. Completed new construction of real estate completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it is constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within ninety (90) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to assessments and taxes in the town of North Smithfield.

History of Section. P.L. 2000, ch. 114, § 1; P.L. 2000, ch. 411, § 1.

44-5-13.24. North Smithfield — Reduction in assessed value of real estate — Removal of damaged buildings.

  1. Whenever, after the expiration of ninety (90) days after damage to a building, the building remains damaged as to require reconstruction of seventy-five percent (75%) or more before it may be used for any purpose related to its use prior to the damage and, following which, the owner provides for seventy-five percent (75%) or more demolition of the building, with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for the purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector and tax assessor, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, or removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. The North Smithfield town council is authorized to suspend this tax abatement policy for any year in which so many buildings within the town of North Smithfield are so severely damaged that granting reduced assessments for all would jeopardize the fiscal integrity of the town.
  4. This section applies only to assessment and taxes in the town of North Smithfield.

History of Section. P.L. 2000, ch. 114, § 1; P.L. 2000, ch. 411, § 1.

44-5-13.25. Narragansett — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Narragansett completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. After certification of the tax roll, on or before June 15th, and not later than ninety (90) days, after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor must file an appeal to the assessor within thirty (30) days from the date that the prorated tax payment is due without penalty. If still aggrieved, the taxpayer may appeal to the board of assessment review within ninety (90) days from the date the prorated tax payment is due. Any person still aggrieved may within thirty (30) days of the tax board of review’s decision notice, file a petition in superior court.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section is deemed to authorize the collection of taxes twice in respect to the land assessment or other improvements previously assessed on the immediate preceding assessment date.
  7. This section only applies to taxes levied and property assessed in the town of Narragansett.

History of Section. P.L. 2000, ch. 121, § 1; P.L. 2000, ch. 385, § 1.

44-5-13.26. Tiverton — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to the damage and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the town of Tiverton.

History of Section. P.L. 2001, ch. 6, § 1; P.L. 2001, ch. 19, § 1.

44-5-13.27. Tiverton — Assessment and taxation of new real estate construction and subdivision of land.

  1. Completed new construction of real estate in the town of Tiverton completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. Parcels created by a recorded final plan after the assessment date will be assessed and prorated as of the recording of those lots. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy. The planning board’s administrative officer shall notify the assessor within ten (10) days of the recording of new subdivisions of land.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment. Not later than ninety (90) days after receipt by the assessor of notice from the administrative officer of the recorded subdivision of land, the assessor shall determine the increment by which the assessment for the new lot or lots exceeds the assessment of the subdivided lot as of the last assessment date. The assessor shall prorate that amount from the date of recording to the assessment date immediately following, and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall, within thirty (30) days, notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Tiverton.

History of Section. P.L. 2001, ch. 6, § 1; P.L. 2001, ch. 19, § 1; P.L. 2018, ch. 309, § 1; P.L. 2018, ch. 331, § 1.

Compiler’s Notes.

P.L. 2018, ch. 309, § 1, and P.L. 2018, ch. 331, § 1, enacted identical amendments to this section.

44-5-13.28. Middletown — Assessment and taxation of new real estate construction.

  1. Construction of real estate in the town of Middletown, except accessory structures, completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy, or a certification of approval issued by the building inspector, or the date on which the construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the construction is completed, provided, that the rate of taxation is uniform within each class. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate of occupancy, or certification of approval for those properties not requiring a certificate of occupancy shall, within ten (10) days after the issue, notify the assessor, in writing, including a copy of the certificate of occupancy or certification of approval.
  3. Upon receipt by the assessor of the certification from the building inspector or by a determination by the assessor that the construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment for the immediately preceding assessment date. He or she shall prorate the amount from the date of issuance of the certification of the building inspector or the date on which the construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to any as-yet uncertified tax roll for the immediately preceding assessment date. If the roll has been certified the assessor shall within thirty (30) days notify the tax collector and the record owner as appearing on the tax roll of the issuance of a prorated assessment in the manner of any other addendum against real property in the town of Middletown.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review in the manner of any other appeal of real property assessment, except that those prorated assessments issued by addendum after the certification of the tax roll for the preceding assessment date shall be appealed to the board of tax assessment review within sixty (60) days from the mailing of the notification of additional assessment. Those claiming to be aggrieved by a decision of the board of tax assessment review may seek further relief in the manner of any other appeal of real property.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within thirty (30) days thereafter mail or hand a bill to the owner based upon the amount prorated by the assessor. The tax is due, payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in a manner that the tax collector determines to best coincide with the town’s regular tax payment schedule so long as the entire tax is due and payable prior to the end of the fiscal year of issuance.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Middletown.

History of Section. P.L. 2001, ch. 40, § 1; P.L. 2001, ch. 310, § 1.

44-5-13.29. Middletown — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to the damage and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated and properly disposed of or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, and removed; provided, that the building is not replaced or under construction on the thirty-first (31st) day of December next succeeding.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted according the manner of other abatements in the town of Middletown. The building inspector shall certify compliance with this section by certification as in § 44-5-13.6(a) .
  3. This section is not applicable in the event of criminal activity or civil unrest or natural disasters such as, but not limited to, erosion or demolition resulting from floods, fires or hurricanes.
  4. This section applies only to assessments and taxes in the town of Middletown.

History of Section. P.L. 2001, ch. 40, § 1; P.L. 2001, ch. 310, § 1.

44-5-13.30. Foster — Assessment and taxation of new real estate construction and newly created lots.

  1. New real estate construction in the town of Foster completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. New lots created after the assessment date will be assessed and prorated as of the date of the approval of those lots. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy. The planning department shall notify the assessor within ten (10) days of the approval of the new lots.
    1. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall, within five (5) days, notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
    2. Not later than ninety (90) days after receipt by the assessor of notice from the planning department of the creation of the new lot(s), the assessor shall determine the increment by which the assessment for the new lot exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of approval to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall, within five (5) days, notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  3. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  4. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter, mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  5. Nothing in this section authorizes the collection of taxes twice in respect of land upon which the new construction is located.
  6. This section applies only to taxes levied and property assessed in the town of Foster.

History of Section. P.L. 2002, ch. 30, § 1.

44-5-13.31. Johnston — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to, and following which, the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax of the date the demolition, removal, and grading are completed to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the town of Johnston.

History of Section. P.L. 2003, ch. 90, § 1; P.L. 2003, ch. 96, § 1.

44-5-13.32. Johnston — Assessment and taxation of new real estate construction.

  1. The owner of record of new construction of real estate in the town of Johnston, completed after any assessment date, is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed; provided, that the rate of taxation is uniform within each class. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Johnston.

History of Section. P.L. 2003, ch. 90, § 1; P.L. 2003, ch. 96, § 1.

44-5-13.33. Bristol — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Bristol completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of the tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of that certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and properly assessed in the town of Bristol.

History of Section. P.L. 2003, ch. 303, § 1; P.L. 2003, ch. 355, § 1.

44-5-13.34. Bristol — Reduction in assessed value of real estate — Removal of damaged buildings.

  1. Whenever, after the expiration of ninety (90) days after damage to a building, the building remains damaged as to require reconstruction of seventy-five percent (75%) or more before it may be used for any purpose related to its use prior to the damage and, following which, the owner provides for seventy-five percent (75%) or more demolition of the building, with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date of demolition, removal, and grading are completed to the satisfaction of the building inspector and tax assessor, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the damaged building, demolished, or removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal, and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. The Bristol town council is authorized to suspend this tax abatement policy for any year in which so many buildings within the town of Bristol are so severely damaged that granting reduced assessments for all would jeopardize the fiscal integrity of the town.

History of Section. P.L. 2003, ch. 303, § 1; P.L. 2003, ch. 355, § 1.

44-5-13.35. Lincoln — Assessment and taxation of new real estate construction.

  1. Construction of real estate in the town of Lincoln, except accessory structures, completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the construction is completed. New lots created after the assessment date will be assessed and prorated as of the date of the approval of those lots. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate of occupancy shall, within thirty (30) days after the issue, notify the assessor, in writing, including a copy of the certificate of occupancy. The planning department shall notify the assessor within ten (10) days of the approval of the new lots.
    1. Upon receipt by the assessor of the certification from the building inspector or by a determination by the assessor that the construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment for the immediately preceding assessment date. He or she shall prorate the amount from the date of issuance of the certification of the building inspector or the date on which the construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to any as-yet uncertified tax roll for the immediately preceding assessment date. If the roll has been certified, the assessor shall, within thirty (30) days, notify the tax collector and the record owner as appearing on the tax roll of the issuance of a prorated assessment.
    2. Not later than ninety (90) days after receipt by the assessor of notice from the planning department of the creation of the new lot(s), the assessor shall determine the increment by which the assessment for the new lot exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of approval to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall, within thirty (30) days, notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  3. Any person claiming to be aggrieved by the action of the assessor must file an appeal to the assessor within thirty (30) days from the date that the prorated tax payment is due without penalty. If still aggrieved, the taxpayer may appeal to the board of assessment review within ninety (90) days from the date the prorated tax payment is due. Any person still aggrieved may, within thirty (30) days of the tax board of review’s decision notice, file a petition in superior court.
  4. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax so due and payable are equal.
  5. Nothing in this section is deemed to authorize the collection of taxes twice in respect to the land assessment or other improvements previously assessed on the immediately preceding assessment date.
  6. This section applies only to taxes levied and property assessed in the town of Lincoln.

History of Section. P.L. 2003, ch. 382, § 1.

44-5-13.36. Warwick — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the city of Warwick completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate of occupancy shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the city of Warwick.

History of Section. P.L. 2003, ch. 417, § 1.

44-5-13.37. Assessment and taxation of new real estate construction and new lots in the town of Warren.

  1. Completed new construction of real estate in the town of Warren completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. New lots created after the assessment date will be assessed and prorated as of the date of recording of the plat containing those lots. The prorated tax is computed on the basis of the rate of tax applicable with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building official issuing the certificate shall, within ten (10) days after issuing the certificate, notify the assessor of the issuance of the certificate of occupancy.
  3. The planning department shall notify the assessor within ten (10) days of the recording of the plat containing new lots.
  4. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  5. Not later than ninety (90) days after receiving notice that a plat containing a new lot or lots has been recorded, the assessor will assess the new lot as if the lot had been in existence on the immediately preceding assessment date. However, the assessor shall prorate the amount from the date of recording of the plat containing the new lot.
  6. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  7. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes, tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  8. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  9. This section applies only to taxes levied and properly assessed in the town of Warren.

History of Section. P.L. 2006, ch. 202, § 1; P.L. 2006, ch. 512, § 1; P.L. 2007, ch. 247, § 1; P.L. 2007, ch. 338, § 1.

44-5-13.38. Assessment and taxation of new real estate construction in the town of Exeter.

  1. Completed new construction of real estate in the town of Exeter completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the rate of tax applicable with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building official issuing the certificate shall, within ten (10) days after issuing the certificate, notify the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall, within five (5) days, notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and shall be subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than fifteen (15) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments as they are due and payable, and the several installments of a tax due and payable shall be equal.
  6. Nothing in this section shall be deemed to authorize the collection of taxes twice with respect to the land upon which the new construction is located.
  7. This section applies only to taxes levied and properly assessed in the town of Exeter.

History of Section. P.L. 2009, ch. 271, § 1.

Effective Dates.

P.L. 2009, ch. 271, § 2, provides that the enactment of this section by that act takes effect upon passage [November 13, 2009] and any acts inconsistent herewith are hereby repealed.

44-5-13.39. West Greenwich — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of West Greenwich completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector, or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate the amount from the date of issuance of the certificate of occupancy, or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as so prorated to the tax roll for the immediately preceding assessment date and shall, within five (5) business days, notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section, may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter, mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and properly assessed in the town of West Greenwich.

History of Section. P.L. 2016, ch. 303, § 1; P.L. 2016, ch. 319, § 1.

Compiler’s Notes.

P.L. 2016, ch. 303, § 1, and P.L. 2016, ch. 319, § 1 enacted identical versions of this section.

44-5-13.40. Property tax exemptions for surviving spouses of police and fire personnel killed in the line of duty.

  1. Notwithstanding any other provision of chapter 5 of title 44, each municipality shall exempt from taxation the real property of the surviving spouse of any law enforcement officer or firefighter who was killed in the line of duty, who occupies the real property as his or her principal place of residence. This exemption shall cease if the surviving spouse remarries and shall not be claimed thereafter. This exemption applies to the surviving spouse’s principal place of residence without any restriction on the spouse’s moving to a different principal place of residence within the state.
  2. For the purposes of this section, killed in the line of duty shall mean a traumatic physical wound (or traumatized physical condition of the body) directly and proximately caused by external force (such as bullets, explosives, sharp instruments, blunt objects, or physical blows), chemicals, electricity, climatic conditions, infectious disease, radiation, viruses, or bacteria. When a law enforcement officer or firefighter engages in a situation involving nonroutine stressful or strenuous physical law enforcement, fire suppression or participates in a training exercise involving nonroutine stressful or strenuous physical activity and dies of a heart attack, stroke, or vascular rupture not later than twenty-four (24) hours after the officer or firefighter engaged in the activity, the death shall be considered killed in the line of duty.
  3. The provisions of this section shall not be applied retroactively but shall only be applied prospectively.

History of Section. P.L. 2019, ch. 101, § 1; P.L. 2019, ch. 125, § 1.

Compiler’s Notes.

P.L. 2019, ch. 101, § 1, and P.L. 2019, ch. 125, § 1 enacted identical versions of this section.

44-5-14. Repealed.

History of Section. G.L. 1896, ch. 46, § 5; G.L. 1909, ch. 58, § 5; P.L. 1920, ch. 1899, § 1; G.L. 1923, ch. 60, § 5; G.L. 1938, ch. 31, § 5; G.L. 1956, § 44-5-14 ; Repealed by P.L. 1969, ch. 197, art. 7, § 13.

44-5-15. Notice of assessors’ meetings — Notice by taxpayer of intent to bring in account.

Before assessing any valuations, the assessors of all the cities and towns shall cause printed notices of the time and place of their respective meetings to be posted in four (4) public places in their respective city or town, for three (3) weeks next preceding the time of their meeting, and shall advertise in a newspaper with a statewide circulation jointly, at least once a week for the same space of time. The cost of said advertisement shall be shared equally among all of the cities and towns. The notices require every person and body corporate liable to taxation to bring in to the assessors at the time they may prescribe a true and exact account of all the ratable estate owned or possessed by that person or body, describing and specifying the value of every parcel of the real estate as of December 31 in the year of the last update or revaluation and personal estate as of December 31 of the tax year, together with the additional information that may be prescribed by the assessors relative to the ratable estate as may be contained in any corporation or inheritance tax return filed with the state by the person within the year preceding the date of assessment next prior to the bringing in of the account. If any person or body corporate liable to taxation files with the assessors, on or before January 31 next following the date of assessment, a written notice of that person’s or that body’s intention to bring in an account, the person or body corporate may bring in to the assessors the account at any time between March 1 and March 15 next following the date of assessment. The notice of intention to bring in an account is deemed to have been filed with the assessors if the notice is sent to them by registered or certified mail, postage prepaid, postmarked before 12:00 A.M. midnight of the last day on which the notice may be filed. The account is deemed to be brought in to the assessors if the account is sent to them by registered or certified mail, postage prepaid, postmarked before 12:00 A.M. midnight of the last day on which accounts may be brought in pursuant to the provisions of this section. In case any person or body corporate fails to file any intention, that person or that body is deemed to have waived that person’s or that body’s right to file the account. All matters contained within the account filing are available for review only by assessment related personnel.

History of Section. G.L. 1896, ch. 46, § 6; G.L. 1909, ch. 58, § 6; P.L. 1919, ch. 1735, § 3; G.L. 1923, ch. 60, § 6; P.L. 1932, ch. 1944, § 6; P.L. 1935, ch. 2260, § 1; G.L. 1938, ch. 31, § 6; P.L. 1949, ch. 2330, § 5; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-5-15 ; P.L. 1960, ch. 52, § 30 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1965, ch. 116, § 1; P.L. 1987, ch. 401, § 2; P.L. 1989, ch. 4, § 1; P.L. 1997, ch. 127, § 1; P.L. 2001, ch. 365, § 1; P.L. 2005, ch. 387, § 1.

Law Reviews.

Zachary Carlson, 2018 Survey: Balmuth v. Dolce for Town of Portsmouth, 24 Roger Williams U. L. Rev. 558 (2019).

NOTES TO DECISIONS

Accounts Brought in Before Assessment Date.

Notice which required accounts to be brought in during a period before the assessment date was defective since taxpayers were deprived of chance to be heard on value of their property on assessment date. Matteson v. Warwick & Coventry Water Co., 28 R.I. 570 , 68 A. 577, 1908 R.I. LEXIS 76 (1908).

Notice requiring accounts to be filed during a period a part of which was before the assessment time was defective, but where no taxpayers filed before the assessment time or objected to the defect, the illegality was waived. Greenough ex rel. Riley v. Board of Canvassers, 34 R.I. 84 , 82 A. 411, 1912 R.I. LEXIS 28 (1912).

— Failure to Fix Time of Assessment.

Where notice fixed no time for valuation, the assessment would be deemed to have been made on the day following the last date on which the taxpayers were required to file their account; hence, the filing of account was prior to date of valuation and assessment was invalid. Horgan v. Taylor, 36 R.I. 232 , 89 A. 1058, 1914 R.I. LEXIS 17 (1914).

Failure to File for Relief of Assessment.

Where a taxpayer failed to file a petition in superior court for relief from assessment or account of ratable property as required by statute, he could not raise a defense that the assessment was illegal and void in an action to recover the tax. Murray v. Rockaway Boulevard Wrecking & Lumber Co., 108 R.I. 607 , 277 A.2d 922, 1971 R.I. LEXIS 1314 (1971).

By failing to file an account of the property pursuant to this section, the petitioner failed to satisfy a condition precedent to allow it to challenge the tax valuation on the merits. Rock Ridge v. Assesor of Taxes, 667 A.2d 778, 1995 R.I. LEXIS 281 (R.I. 1995).

A court does not lack subject-matter jurisdiction simply as a consequence of the failure of a taxpayer, who is challenging his assessment, to comply with this section. The filing of an account is a condition precedent and must be pleaded prior to trial in accordance with Rule 9(c), R.I.R.C.P. If the defense of failure to file an account is not timely pleaded, it is waived, and the court must hear the petition for relief in accordance with § 44-5-26(a) (relief from assessment). Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Even though the plaintiff failed to file an account with the tax assessor for the tax years encompassed in his petitions as required by this section, the Superior Court was not precluded from considering his claim of overassessments on the merits pursuant to § 44-5-26(a) . Landfill & Resource Recovery v. Gelinas, 703 A.2d 602, 1997 R.I. LEXIS 309 (R.I. 1997).

Form of Notice.

This section does not require separate notices to bring in accounts and to announce the assessors’ meeting but rather requires that one notice serve both purposes. McTwiggan v. Hunter, 19 R.I. 265 , 33 A. 5, 1895 R.I. LEXIS 70 (1895).

Notice stating time and place of meeting for receiving accounts and the penalty for refusing or neglecting to present accounts at such time would be construed as requiring persons liable to bring in accounts. Kettelle v. Warwick & Coventry Water Co., 23 R.I. 114 , 49 A. 492, 1901 R.I. LEXIS 96 (1901).

Taxpayers’ contest of one year’s assessment had to be dismissed as untimely; the failure of the assessor’s notice to include certain information stated in § 44-5-26 did not estop the assessor from raising a timeliness defense to the petition, as the statutory language was not mandatory, since no remedy was prescribed. Whittemore v. Thompson, 139 A.3d 530, 2016 R.I. LEXIS 91 (R.I. 2016).

Notice Mandatory.

Proceedings for the assessment of a tax are quasi judicial and notice is essential to validity of an assessment. McTwiggan v. Hunter, 18 R.I. 776 , 30 A. 962, aff ’d, 19 R.I. 265 , 33 A. 5 (1895).

Tax collector must prove that assessors posted public notices in compliance with the statute to show legality of assessment. Taft v. Ballou, 23 R.I. 213 , 49 A. 895, 1901 R.I. LEXIS 118 (1901).

Sufficiency of Account.

This statute requires an account of all of a taxpayer’s ratable property whether it is taxable or not. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

The taxpayer, whether using a form supplied by the tax assessor or one independently fashioned, was required to bring in an account contemplated by the legislature in its mandate to the court, as the tax assessor had no authority to waive the requirements of the law which must be met as a condition precedent to the jurisdiction of the court. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

The taxpayer, who intended to contest whatever assessment might be placed on his ratable property, was not relieved by the enactment of P.L. 1932 substituting “fraudulently” for “wilfully” from making a return to the assessors which was so full, true and exact as to be something more than a generic classification amounting to nothing more than a mere generalization of its personalty. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Where the account submitted contained neither a personal oath as to the truth of the account nor a written appointment, the account was inadequate and taxpayers were not entitled to judicial review of their claim of overassessment. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

The plaintiff, in challenging its tax assessment as excessive, failed as a matter of law to satisfy the statutory account-filing requirements of this section and § 44-5-16 since none of the documents it sent to the board contained an oath before a notary public indicating that it was a “true and exacting” account and valuation of any of the ratable estate it owned or possessed, it failed to file timely the documents with the tax assessor as accounts within the prescribed time limits, and the documents were sent to the board, instead of to the tax assessor. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Where the only evidence presented was of a lesser property tax assessment of full and fair cash value made three years after the challenged assessment, this was not the “last preceding assessment day” referenced in the statute and was irrelevant to the fact that plaintiff’s account failed to conform with the requirements for the filing of complete accounts under § 44-5-15 . Jacober Realty Trust v. Neary, 723 A.2d 292, 1999 R.I. LEXIS 21 (R.I. 1999).

Waiver of Account.

The Superior Court did not lack subject-matter jurisdiction to determine the fair-market value of property even though the taxpayers had not filed an account for any of the years in question. The filing of an account pursuant to statute is a condition precedent to allowing a petitioner to seek relief, which must be pleaded and called to the attention of the trial court prior to trial. The tax assessor, having failed to plead and raise before the trial court in any way the fact of the failure to file an account, could not raise this matter for the first time on appeal. Chase v. Bouchard, 671 A.2d 794, 1996 R.I. LEXIS 43 (R.I. 1996).

44-5-16. Oath to account brought in — Remedies after failure to bring in account — Effect on proration.

  1. Every person bringing in any account shall make oath before some notary public or other person authorized to administer oaths in the place where the oath is administered that the account by that person exhibited contains, to the best of his or her knowledge and belief, a true and full account and valuation of all the ratable estate owned or possessed by him or her; and whoever neglects or refuses to bring in the account, if overtaxed, shall have no remedy therefor, except as provided in §§ 44-4-14 , 44-4-15 , 44-5-26 44-5-31 , and 44-9-19 44-9-24 . In case a taxpayer is, because of illness or absence from the state, unable to make the required oath to his or her account within the time prescribed by law, the taxpayer may, in writing, appoint an agent to make oath to his or her account within the time prescribed by the assessors, and the agent shall at the time of making the oath append his or her written appointment to the account, and for all purposes in connection with the account the taxpayer is deemed to have personally made the oath.
  2. No taxpayer shall be denied a right of review by means of the procedure described in this chapter: (1) of any assessment on his or her real property by reason of any claimed inadequacies, inaccuracies, or omissions in his or her listing of personal property; (2) nor in the case of his or her personal property by reason of any claimed inadequacies, inaccuracies, or omissions in his or her listing of real property; (3) nor in the case of real or personal property by reason of any claimed inadequacies, inaccuracies, or omissions, which are not substantial, in his or her listing of real or personal property, respectively.
  3. Notwithstanding § 44-4-24 , tangible personal property introduced into or removed from any town or city during a calendar year shall be assessed as though the property was situated in the city or town for the entire calendar year unless the taxpayer has filed an account as provided in this section specifying the date on which the property was introduced or removed.
  4. Each city or town having a year of taxable ownership that measures length of ownership over the calendar year beginning immediately after the date of assessment shall adjust its year of taxable ownership so that it has a year of taxable ownership that measures length of ownership over the calendar year ending on the date of assessment.

History of Section. G.L. 1896, ch. 46, § 7; G.L. 1909, ch. 58, § 7; P.L. 1915, ch. 1211, § 7; G.L. 1923, ch. 60, § 7; P.L. 1932, ch. 1945, § 2; P.L. 1935, ch. 2260, § 2; G.L. 1938, ch. 31, § 7; P.L. 1939, ch. 659, § 2; P.L. 1949, ch. 2330, § 7; G.L. 1956, § 44-5-16 ; P.L. 1965, ch. 61, § 1; P.L. 1968, ch. 163, § 1; P.L. 1998, ch. 219, § 2.

NOTES TO DECISIONS

Administration of Oath.

An oath taken before a notary does not comply with this section. United States Trust Co. v. Tax Assessors, 47 R.I. 420 , 133 A. 802, 1926 R.I. LEXIS 75 (1926) (decision prior to 1949 amendment).

Corporate Agents.

The appointment of an attorney to represent a corporation before the assessors of taxes did not authorize him to make oath to the account of the corporation’s property. Narragansett Pier Co. v. Assessors of Taxes, 17 R.I. 452 , 23 A. 11, 1891 R.I. LEXIS 53 (1891).

Appointment by vice-president of railroad of a representative to appear before board of assessors, confirmed by president prior to carrying in and making oath of account, was valid. New York, N. H. & H. R.R. v. Smith, 20 R.I. 134 , 37 A. 636, 1897 R.I. LEXIS 60 (1897).

Account presented to assessors by president of corporation was admissible in evidence over the objection that he had no authority to make such return, where charter and by-laws showed that such officer was charged with the direction of all corporate affairs. Boston Safe Deposit & Trust Co. v. Assessors of Taxes, 25 R.I. 524 , 57 A. 301, 1904 R.I. LEXIS 131 (1904).

A corporation can file account by means of an agent appointed for that purpose. United States Trust Co. v. Tax Assessors, 47 R.I. 420 , 133 A. 802, 1926 R.I. LEXIS 75 (1926).

Description.

Account that did not show, with respect to corporate stock, the name of the corporation and the number and value of shares, and that failed to itemize goods, chattels, wares and merchandise, was insufficient. Clarke v. Tinkham, 20 R.I. 790 , 38 A. 926, 1893 R.I. LEXIS 88 (1893).

The mere statement “not taxable” with reference to the item of intangible personal property in a return made as to taxpayer’s ratable property is not a compliance with this section. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

The general statement made by the petitioner with respect to her household furniture “household furniture in excess of $300, value $5,775” without any further description and valuation was not a reasonable compliance with the provisions of this section, such generality being no aid to the assessors in making a proper return. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

An account which makes no distinction between machinery and other personal property except for a reference to “stock in trade” is defective. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Failure to File Account.

This section bars an objection of overtaxation of a trust estate if trustees have not presented an account under oath of the ratable estate. Greene v. Mumford, 4 R.I. 313 , 1856 R.I. LEXIS 31 (1856) (decision prior to 1932 amendment).

Since a savings bank is not taxable for its reserved profits, bank is not barred from recovery of taxes on reserved profits by failure to file an account since the case is not one of overtaxation but of void taxation. Mechanics' Sav. Bank v. Granger, 17 R.I. 77 , 20 A. 202, 1890 R.I. LEXIS 42 (1890).

Person erroneously taxed on corporate stock could not recover the taxes paid when he owned other property subject to taxation but had failed to make an account. Tripp v. Torrey, 17 R.I. 359 , 22 A. 278, 1891 R.I. LEXIS 31 (1891) (decision prior to 1932 amendment).

Taxpayer who did not file account because of illness was not barred from relief for overtaxation since failure was due to physical impossibility rather than neglect. Bishop v. Tax Assessors, 47 R.I. 351 , 133 A. 342, 1926 R.I. LEXIS 57 (1926) (decision prior to 1932 amendment).

Taxpayers who failed to file account could not recover tax assessed on state-owned building. O'Reilly v. Clarke, 48 R.I. 407 , 137 A. 783, 1927 R.I. LEXIS 65 (1927) (decision prior to 1932 amendment).

Before the 1932 amendments a person possessing any ratable estate of any value who neglected to make a return was remediless, since taxation of exempt property was held to be overtaxation and not illegal taxation. People's Sav. Bank v. Kiernan, 54 R.I. 102 , 170 A. 77, 1934 R.I. LEXIS 12 (1934).

There is no statutory requirement that the notice of tax assessment reveal the consequences of the failure to file an account. The city complied with this chapter by issuing a notice that those liable for taxation are required to bring to the city assessor a true and exact account of all ratable estate owned by the taxpayer; thus, the petitioner was on notice that the filing of an account was required. Rock Ridge v. Assesor of Taxes, 667 A.2d 778, 1995 R.I. LEXIS 281 (R.I. 1995).

Legislative Intent.

The legislative intent is to require such sufficiency in the separation and description of the various parcels of real and personal property as to be of assistance to the assessor in assessing a tax against each such parcel. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

The legislature intended by § 44-5-30 to deny relief to a taxpayer who brought an account purporting on its face to be true as required by § 44-5-15 and this section but which omitted some item of ratable property with the deliberate intent of fraudulently concealing the taxpayer’s interest therein; but the legislature did not intend to penalize a taxpayer who by inadvertence, oversight or mistake neglected to include ratable property in an account in all other respects sufficient to support his petition brought under § 44-5-26 . Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Taxpayers’ contest of one year’s assessment had to be dismissed as untimely; the failure of the assessor’s notice to include certain information stated in § 44-5-26 did not estop the assessor from raising a timeliness defense to the petition, as the statutory language was not mandatory, since no remedy was prescribed. Absent the provision of an explicit remedy accompanying the statutory directives, the appellate court could not conclude that the General Assembly intended for the town to be estopped from raising the affirmative defense. Whittemore v. Thompson, 139 A.3d 530, 2016 R.I. LEXIS 91 (R.I. 2016).

Ratable Estate.

The word “ratable,” as used in this section, is not equivalent to the word “taxable.” In re Newport Reading Room, 21 R.I. 440 , 44 A. 511, 1899 R.I. LEXIS 94 (1899).

Remedies.

The remedy provided by § 44-5-26 permitting a petitioner to bring a petition and authorizing the superior court to hear the same is purely statutory and is granted only to those taxpayers who file an account which is in reasonable compliance with § 44-5-15 and this section; for in the absence of such compliance, the taxpayer is not entitled to the remedy and the superior court is without jurisdiction to grant relief. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

Filing an account of ratable property was not a prerequisite to filing a petition in superior court to challenge the legality rather than the amount of an assessment. Brown & Sharpe Mfg. Co. v. Cote, 101 R.I. 668 , 226 A.2d 814, 1967 R.I. LEXIS 818 (1967).

Dismissal of petition for relief from alleged overassessment of real property affirmed pursuant to this section and § 44-5-26 where plaintiff had filed an account pursuant to § 44-5-15 , but, in lieu of listing intangible personal property, included statement that, and reasons why, such intangible personal property was deemed not taxable. Ewing v. Tax Assessors, 104 R.I. 630 , 247 A.2d 850, 1968 R.I. LEXIS 696 (1968).

Sufficiency of Account.

This statute requires an account of all of a taxpayer’s ratable property whether it is taxable or not. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

The taxpayer, whether using a form supplied by the tax assessor or one independently fashioned, was required to bring in an account contemplated by the legislature in its mandate to the court, as the tax assessor had no authority to waive the requirements of the law which must be met as a condition precedent to the jurisdiction of the court. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

The taxpayer, who intended to contest whatever assessment might be placed on his ratable property, was not relieved by the enactment of P.L. 1932 substituting “fraudulently” for “wilfully” from making a return to the assessors which was so full, true and exact as to be something more than a generic classification amounting to nothing more than a mere generalization of its personalty. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Where the account submitted contained neither a personal oath as to the truth of the account nor a written appointment, the account was inadequate and taxpayers were not entitled to judicial review of their claim of overassessment. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

The plaintiff, in challenging its tax assessment as excessive, failed as a matter of law to satisfy the statutory account-filing requirements of § 44-5-15 and this section since none of the documents it sent to the board contained an oath before a notary public indicating that it was a “true and exacting” account and valuation of any of the ratable estate it owned or possessed, it failed to file timely the documents with the tax assesor as accounts within the prescribed time limits, and the documents were sent to the board, instead of to the tax assessor. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Because the property owner failed to satisfy the statutory requirements for filing an account by failing to file a signed and notarized account valuing the commercial real estate it owned in the city, the superior court could not afford it relief in regard to the contested tax assessment. Granoff Realty II Ltd. P'shp v. Rossi, 833 A.2d 354, 2003 R.I. LEXIS 195 (R.I. 2003).

Valuation After Failure to File Account.

Where taxpayer failed to submit the account which would have enabled the assessor to arrive at a more accurate estimate, the tax assessor’s action in attempting to value the property without specific knowledge as to its character and extent was neither arbitrary nor unreasonable. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

44-5-17. Assessment of property covered by account.

If any person brings in an account as provided in § 44-5-15 , the assessors shall nevertheless assess the person’s ratable estate at what they deem its full and fair cash value, or a uniform percentage of its value as defined in § 44-5-12 .

History of Section. G.L. 1896, ch. 46, § 14; G.L. 1909, ch. 58, § 14; G.L. 1923, ch. 60, § 14; G.L. 1938, ch. 31, § 13; G.L. 1956, § 44-5-17 ; P.L. 1965, ch. 115, § 2; P.L. 1999, ch. 354, § 28.

NOTES TO DECISIONS

In General.

An account rendered by a corporation in conformity with this chapter is not conclusive, but rather the assessors are to assess the ratable estate at its fair value. Tripp v. Merchants' Mut. Fire Ins. Co., 12 R.I. 435 , 1879 R.I. LEXIS 48 (1879).

Valuation of Property.

Assessors could obtain assistance of experts in valuing property as long as the assessors exercised their independent judgment to some degree. Clare v. Curran, 52 R.I. 196 , 159 A. 835, 1932 R.I. LEXIS 33 (1932).

44-5-18, 44-5-19. Repealed.

History of Section. G.L. 1896, ch. 46, §§ 11, 12; P.L. 1905, ch. 1246, § 7; G.L. 1909, ch. 58, §§ 11, 12; G.L. 1923, ch. 60, §§ 11, 12; G.L. 1938, ch. 31, §§ 11, 12; G.L. 1956, §§ 44-5-18 , 44-5-19); Repealed by P.L. 1969, ch. 197, art. 7, § 13.

44-5-20. List of ratable property.

The assessors shall make a list containing the true, full, and fair cash value or a uniform percentage of its value as defined in §§ 44-5-12 and 44-5-38 , as appropriate, of the ratable estate in the city or town, placing the real estate, tangible personal property except manufacturers’ machinery and equipment, and manufacturers’ machinery and equipment in separate columns, distinguishing real estate which is assessed specially as farm, forest, or open space land in accordance with the provision in § 44-5-12 , and also distinguishing those who give in an account and those who do not and shall apportion the tax in accordance with the provisions of this chapter.

History of Section. G.L. 1896, ch. 46, § 8; G.L. 1909, ch. 58, § 8; P.L. 1912, ch. 769, § 43; G.L. 1923, ch. 60, § 8; G.L. 1938, ch. 31, § 8; G.L. 1956, § 44-5-20 ; P.L. 1960, ch. 52, § 31 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1965, ch. 115, § 3; P.L. 1966, ch. 245, § 5; P.L. 1967, ch. 191, § 4; P.L. 1968, ch. 288, § 3; P.L. 1969, ch. 197, art. 7, § 14.

NOTES TO DECISIONS

Assessment Without Account.

Acceptance of list of persons after time for filing of accounts had expired and assessment of said persons was valid where assessment roll had not passed out of possession of the board at the time of the assessment. Greenough ex rel. Riley v. Board of Canvassers, 34 R.I. 84 , 82 A. 411, 1912 R.I. LEXIS 28 (1912).

Description of Estate.

Assessment was not illegal on the ground that personal property was not described on the assessment rolls where persons involved did not file an account. Stone v. Norris, 40 R.I. 477 , 101 A. 428, 1917 R.I. LEXIS 54 (1917).

Mistake of Law.

Omission by assessors of manufacturing property due solely to mistake of law was not due to an intentional disregard of law or fraud so did not make the assessment void. McTwiggan v. Hunter, 19 R.I. 265 , 33 A. 5, 1895 R.I. LEXIS 70 (1895).

Persons Filing Accounts.

Objection that list did not distinguish between those persons rendering an account and those who did not render an account could not be sustained where petition did not show that any person rendered an account. Greenough ex rel. Carroll v. Board of Canvassers & Registration, 33 R.I. 559 , 82 A. 406, 1912 R.I. LEXIS 115 (1912).

Separate Valuations of Land and Buildings.

Assessor’s listing of land and of building valuations in separate columns did not invalidate his assessments. Lowry v. Faraone, 500 A.2d 950, 1985 R.I. LEXIS 590 (R.I. 1985).

44-5-20.01. Central Falls — Property tax classification — Eligibility.

The city of Central Falls is authorized to adopt a system of property tax classification.

History of Section. P.L. 1990, ch. 194, § 1.

44-5-20.02. Central Falls — Property tax classification — List of ratable property.

  1. Notwithstanding any provision within § 44-5-11.8 to the contrary, on or before June 1, except in 1990, in which case the time is thirty (30) days after June 1, 1990, the assessor in the city of Central Falls, after certification for classification, shall submit to the director of revenue a list containing the true, full, and fair cash value of the ratable estate and motor vehicles and shall classify and provide a tax rate for the property according to the following use:
    1. “Class 1” includes residential property which is owner-occupied dwellings of no more than five (5) units and which is property used or held for human habitation, including rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating on a non-transient basis. Eligibility for the owner-occupied tax classification shall be determined by compliance with § 44-3-34 and relevant city ordinances. This property includes accessory land, buildings, or improvements incidental to the habitation and used exclusively by the residents of the property or their guests. This property does not include a hotel, motel, commercial, or industrial property.
    2. “Class 2” includes residential property which is owner-occupied dwellings of more than five (5) units and non-owner-occupied dwellings, including properties for mixed use as residential and commercial properties, and which is property used or held for human habitation, including rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating on a non-transient basis. This property includes accessory land, buildings, or improvements incidental to the habitation and used exclusively by the residents of the property or their guests. This property includes open space including “farmland,” “forestland,” and “open space land” as defined in accordance with § 44-27-2 . This property does not include a hotel, motel, commercial, or industrial property.
    3. “Class 3” includes personal property, previously subject to tax, and includes all goods, chattels, and effects, wherever they may be, except those that are exempt from taxation by the laws of the United States or of this state.
    4. “Class 4” includes every vehicle and trailer registered under chapter 3 of title 31.
    5. “Class 5” includes property used commercially or for industrial manufacturing.
  2. The city of Central Falls may, by ordinance adopted by the city council, provide for tax classification of property and tax rates in the city of Central Falls based on the five (5) classes outlined in subsection (a) of this section.
  3. The effective tax rate for Class 2 shall not exceed by two (2) times, the effective tax rate for Class 1; the effective tax rate for Class 5 shall not exceed by three (3) times, the effective tax rate for Class 1; and the effective tax rate for Class 3 shall not exceed by four (4) times, the effective tax rate for Class 1.

History of Section. P.L. 1990, ch. 194, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37; P.L. 2018, ch. 340, § 1; P.L. 2018, ch. 342, § 1; P.L. 2020, ch. 42, § 1; P.L. 2020, ch. 58, § 1; P.L. 2021, ch. 395, § 14, effective July 14, 2021.

Compiler’s Notes.

P.L. 2018, ch. 340, § 1, and P.L. 2018, ch. 342, § 1 enacted identical amendments to this section.

P.L. 2020, ch. 42, § 1, and P.L. 2020, ch. 58, § 1 enacted identical amendments to this section.

Retroactive Effective Dates.

P.L. 2020, ch. 42, § 3 provides that the amendment to this section by that act takes effect upon passage [June 27, 2020], and shall apply retroactively to July 1, 2020.

P.L. 2020, ch. 58, § 3 provides that the amendment to this section by that act takes effect upon passage [June 26, 2020], and shall apply retroactively to July 1, 2020.

44-5-20.03. Central Falls — Property tax classification — Duties of the assessor.

  1. The assessor of the city of Central Falls shall at the appointed time make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation in the city, and the determination is the assessed valuation of ratable property and motor vehicles.
  2. The assessed valuation of property subject to taxation is classified as follows:
    1. Class 1: residential and open space.
    2. Class 2:
      1. Personal property, previously subject to tax, including all goods, chattels, and effects, wherever they may be, except those that are exempt from taxation by the laws of the United States or of this state; and
      2. Every vehicle and trailer registered under chapter 3 of title 31.
    3. Class 3: property used commercially or for industrial manufacturing.
  3. The resulting amount is the taxable value of each class of property to which shall apply the tax rates applicable to each class, as determined under § 44-5-20.04 , to determine the tax due and payable on the property.

History of Section. P.L. 1990, ch. 194, § 1.

Cross References.

Motor Vehicle and Trailer Excise Tax Elimination Act, § 44-34.1 et seq.

44-5-20.04. Central Falls — Property tax classification — Procedures for adopting — Tax levy determination.

The tax assessor, with the approval of the city council by resolution, shall annually determine the percentage of the tax levy to be apportioned each class of property and establish a tax rate which equalizes as much as possible the rate of tax for each class of property.

History of Section. P.L. 1990, ch. 194, § 1.

44-5-20.05. Westerly — Property tax classification.

The town of Westerly may, by resolution or ordinance adopted by the town council, provide for a system of classification of taxable property in conformity with the provisions of §§ 44-5-20.06 44-5-20.08 .

History of Section. P.L. 1991, ch. 412, § 1; P.L. 1994, ch. 72, § 1; P.L. 2021, ch. 269, § 1, effective July 14, 2021; P.L. 2021, ch. 270, § 1, effective July 14, 2021.

Compiler's Notes.

P.L. 2021, ch. 269, § 1, and P.L. 2021, ch. 270, § 1 enacted identical amendments to this section.

44-5-20.06. Westerly — Property tax classification — List of ratable property.

Upon adoption of a system of classification of taxable property by the town of Westerly, all ratable property in the town of Westerly shall be classified by the assessor as follows:

  1. Class 1: In the town of Westerly, all ratable real estate and tangible personal property.
  2. Class 2: In the town of Westerly, all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 1991, ch. 412, § 1; P.L. 1994, ch. 72, § 1; P.L. 2021, ch. 269, § 1, effective July 14, 2021; P.L. 2021, ch. 270, § 1, effective July 14, 2021.

Compiler's Notes.

P.L. 2021, ch. 269, § 1, and P.L. 2021, ch. 270, § 1 enacted identical amendments to this section.

44-5-20.07. Westerly — Property tax classification — Duties of assessor.

  1. The assessor of the town of Westerly, on or before June 15 of each year, shall make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation, and determine the assessed valuation of each property class.
  2. The assessor shall apply different rates of taxation against Class 1 and Class 2 property to determine the tax due and payable on the property; provided, that the rate for each class is uniform.

History of Section. P.L. 1991, ch. 412, § 1; P.L. 1994, ch. 72, § 1; P.L. 2021, ch. 269, § 1, effective July 14, 2021; P.L. 2021, ch. 270, § 1, effective July 14, 2021.

Compiler's Notes.

P.L. 2021, ch. 269, § 1, and P.L. 2021, ch. 270, § 1 enacted identical amendments to this section.

44-5-20.08. Westerly — Property tax classification — Tax levy determination.

The assessor of the town of Westerly shall provide to the town council of Westerly a list containing the full and fair cash valuation of each property class, and with the approval of the town of Westerly town council, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1991, ch. 412, § 1; P.L. 1994, ch. 72, § 1; P.L. 2021, ch. 269, § 1, effective July 14, 2021; P.L. 2021, ch. 270, § 1, effective July 14, 2021.

Compiler's Notes.

P.L. 2021, ch. 269, § 1, and P.L. 2021, ch. 270, § 1 enacted identical amendments to this section.

44-5-20.1. Pawtucket — Property tax classification — Eligibility.

The city of Pawtucket is authorized to adopt a system of property tax classification.

History of Section. P.L. 1984, ch. 11, § 1; P.L. 1986, ch. 198, § 49; P.L. 2000, ch. 38, § 1.

44-5-20.2. Pawtucket — Property tax classification — List of ratable property.

  1. Under the system of classification of taxable property adopted by the city of Pawtucket, all ratable property in the city of Pawtucket shall be classified by the assessor as follows:
    1. Class-1: all residential real estate, which consists of not more than five (5) dwelling units and all residential real estate that consists of six (6) dwelling units in which at least one unit is owner-occupied. Class 1 includes all mobile/manufactured homes;
    2. Class 2: all commercial and industrial real estate and all residential real estate which consists of six (6) dwelling units in which no units are owner-occupied and all residential real estate which consists of more than six (6) dwelling units;
    3. Class 3: all ratable tangible personal property;
    4. Class 4: all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.
  2. Where real property is used or held for more than one purpose and the uses result in different classifications, the assessor shall allocate to each classification the percentage of true and fair cash value to the property devoted to each use.

History of Section. P.L. 1984, ch. 11, § 1; P.L. 2000, ch. 38, § 1.

44-5-20.3. Pawtucket — Property tax classification — Duties of assessor and finance director.

  1. The assessor of the city of Pawtucket, on or before June 15 of each year, shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation, and determine the assessed valuation of each property class.
  2. The finance director has the authority to apply different rates of taxation to each property class and to determine the tax due and payable on the property; provided, however, that the rate of taxation shall be uniform within each class; and for each year, class 2 property rates shall not be more than one hundred and seventy-five percent (175%) of class 1 property tax rates.

History of Section. P.L. 1984, ch. 11, § 1; P.L. 1986, ch. 33, § 1; P.L. 1988, ch. 72, § 1; P.L. 1990, ch. 29, § 1; P.L. 2000, ch. 38, § 1; P.L. 2001, ch. 21, § 1; P.L. 2003, ch. 40, § 1; P.L. 2006, ch. 34, § 1; P.L. 2006, ch. 55, § 1.

Cross References.

Motor Vehicle and Trailer Excise Tax Elimination Act, § 44-34.1-1 et seq.

44-5-20.3.1. Property tax classification in Pawtucket — Tax levy determination.

The assessor shall provide to the finance director and the city council a list containing the full and fair cash valuation of each property class. The finance director shall, with the approval of the city council, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 2001, ch. 21, § 2.

44-5-20.4. Pawtucket — Property tax classification — Compliance with state law.

  1. All property in Class 3, which is classified as inventory, shall be taxed in accordance with § 44-3-29.1 regarding the phasing out of taxes on that property.
  2. All property in Class 4 shall be taxed in accordance with chapter 34.1 of this title regarding the phasing out of taxes on that property.

History of Section. P.L. 1984, ch. 11, § 1; P.L. 1986, ch. 198, § 49; P.L. 2000, ch. 38, § 1.

44-5-20.5. Pawtucket — Property tax classification — Procedures for adopting.

  1. When the city of Pawtucket has been certified by the director of revenue for property tax classification in accordance with § 44-5-20.1 , the city of Pawtucket shall annually first determine the percentages of the local tax levy to be borne by each class of ratable property as defined in § 44-5-20.2 for the next fiscal year. In determining the percentages, the assessor together with the mayor’s approval shall after determining revenues to be realized from Class 2 properties then determine the residential factor. The factor shall be an amount not less than the minimum residential factor determined by the director of revenue in accordance with § 44-5-20.3 and shall be used by the assessor to determine the percentages of the local tax levy to be borne by each class. After the first year, the rate of taxation of Class 2 properties shall not exceed the rate of taxation of the previous year, until the rate of taxation of Class 1 properties is equal to the rate of Class 2 properties.
  2. In the first year, the Class 1 percentage shall be the full and fair cash value of the Class 1 property divided by the full and fair cash value of all real and personal property, excluding motor vehicles, in the city multiplied by the residential factor. In succeeding years, the rate of taxation shall be determined after Class 2 properties’ revenues have been determined.
  3. In the first year, the Class 2 percentage shall be the full and fair cash value of the Class 2 property divided by the sum of the full and fair cash value of all real and personal property, excluding motor vehicles, in the city multiplied by the difference between one hundred percent (100%) and the Class 1 percentage.

History of Section. P.L. 1984, ch. 11, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-20.6 — 44-5-20.9. Repealed.

History of Section. P.L. 1988, ch. 21, § 1; Repealed by P.L. 2001, ch. 44, § 1, and by P.L. 2001, ch. 227, § 1, effective June 29, 2001, and July 13, 2001, respectively.

Compiler’s Notes.

Former §§ 44-5-20.6 — 44-5-20.9 concerned property tax classifications in Providence.

44-5-20.10. Johnston — Property tax classification authorized.

The town of Johnston may, by resolution or ordinance adopted by the town council, provide for a system of classification of taxable property in conformity with the provisions of § 44-5-11.8 .

History of Section. P.L. 1994, ch. 49, § 1; P.L. 2019, ch. 25, § 1; P.L. 2019, ch. 26, § 1.

Compiler’s Notes.

P.L. 2019, ch. 25, § 1, and P.L. 2019, ch. 26, § 1 enacted identical amendments to this section.

44-5-20.11. [Repealed.]

History of Section. P.L. 1994, ch. 49, § 1; Repealed by P.L. 2019, ch. 25, § 2, effective June 13, 2019; P.L. 2019, ch. 26, § 2, effective June 13, 2019.

Compiler’s Notes.

Former § 44-5-20.11 concerned Johnston and property tax classification.

44-5-20.12. [Repealed.]

History of Section. P.L. 1994, ch. 49, § 1; Repealed by P.L. 2019, ch. 25, § 2, effective June 13, 2019; P.L. 2019, ch. 26, § 2, effective June 13, 2019.

Compiler’s Notes.

Former § 44-5-20.12 concerned Johnston, property tax classification, and valuation.

44-5-20.13. [Repealed.]

History of Section. P.L. 1994, ch. 49, § 1; Repealed by P.L. 2019, ch. 25, § 2, effective June 13, 2019; P.L. 2019, ch. 26, § 2, effective June 13, 2019.

Compiler’s Notes.

Former § 44-5-20.13 concerned Johnston, property tax classification, and tax levy determination.

44-5-20.13.1. Deferment of payment of tax for qualified senior citizens, disabled citizens and disabled veterans — Johnston.

  1. The town council for the town of Johnston may by ordinance, provide that the payment of property taxes on a single family dwelling owned and occupied by a senior citizen, disabled citizen or disabled veteran be partially deferred until the property is disposed by reason of death of all qualified owners, or by reason of transfer or conveyance; provided however, that any taxes so deferred shall contribute a lien against the real estate.
  2. For the purposes of this section the following definitions shall apply:
    1. “Senior citizen” means any Johnston resident who is sixty-five (65) years of age or older.
    2. “Disabled citizen” means a Johnston resident who has been determined to be totally disabled by the United States Social Security Administration.
    3. “Disabled Veteran” means a Johnston resident who is a veteran, and has been determined to be totally disabled by the United States Veterans Administrator.
  3. The town council for the town of Johnston shall by ordinance, establish the requirements and application and/or verification procedures for taxpayers to avail themselves of the benefit of the deferment provided for in this section.

History of Section. P.L. 2007, ch. 393, § 1; P.L. 2007, ch. 493, § 1.

44-5-20.14, 44-5-20.15. Repealed.

History of Section. P.L. 1994, ch. 94, § 1; repealed by P.L. 1995, ch. 254, § 1, effective retroactive to June 1, 1994.

Compiler’s Notes.

Former §§ 44-5-20.14 , 44-5-20.15 concerned property tax classification for the town of Smithfield.

44-5-20.16. Smithfield — Property tax classification and valuation.

  1. The assessor of the town of Smithfield, on or before June 1 of each year, shall make full- and fair-cash valuation of all the estate, real and personal, and motor vehicles subject to taxation, herein, and determine the assessed valuation of each property class.
  2. Class 1 and Class 2: The assessor shall apply different rates of taxation against Class 1 residential real estate and Class 2 commercial estate, in accordance with § 44-5-11.8 , to determine the tax due and payable on the property; provided, however, the rate for each class shall be uniform.
  3. Class 3: All ratable, tangible personal property shall be capped at the 2017 tax rate and not increased until which time the rate is not greater than twice the rate applicable to any other class in accordance with § 44-5-11.8 .
  4. Class 4: The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b) of this section, are governed by § 44-34.1-1 .

History of Section. P.L. 1994, ch. 94, § 1; P.L. 2016, ch. 309, § 1; P.L. 2016, ch. 322, § 1.

Compiler’s Notes.

P.L. 2016, ch. 309, § 1, and P.L. 2016, ch. 322, § 1 enacted identical amendments to this section.

44-5-20.17. Smithfield — Property tax classification — Tax levy determination.

The assessor shall provide to the town council a list containing the full and fair valuation of each property class, and with the approval of the town council, annually determine the percentage of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1994, ch. 94, § 1.

44-5-20.18. North Smithfield — Property tax classification.

The town of North Smithfield may, by resolution or ordinance adopted by the town council, provide for a system of classification of taxable property in conformity with the provisions of §§ 44-5-20.19 44-5-20.21 .

History of Section. P.L. 1994, ch. 221, § 1; P.L. 1996, ch. 404, § 34.

44-5-20.19. North Smithfield — Property tax classification — List of ratable property.

  1. Upon adoption of a system of classification of taxable property by the town of North Smithfield, all ratable property in the town of North Smithfield shall be classified by the assessor as follows:
    1. Class 1: all residential real estate, which consists of not more than five (5) dwelling units and all residential real estate that consists of six (6) dwelling units in which at least one unit is owner-occupied. Class 1 includes all mobile/manufactured homes;
    2. Class 2: all commercial and industrial real estate and all residential real estate which consists of six (6) dwelling units in which no units are owner-occupied and all residential real estate which consists of more than six (6) dwelling units;
    3. Class 3: all ratable tangible personal property;
    4. Class 4: all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.
  2. Where real property is used or held for more than one purpose and the uses result in different classifications, the assessor shall allocate to each classification the percentage of true and fair cash value to the property devoted to each use.
  3. Notwithstanding any provisions of § 44-5-11.8 , the tax rates applicable to wholesale and retail inventory within Class 3 as defined in subsection (a) of this section are governed by § 44-3-29.1 .
  4. The tax rates applicable to motor vehicles within Class 4 as defined in subsection (a) of this section are governed by § 44-34.1-1 .

History of Section. P.L. 1994, ch. 221, § 1; P.L. 2007, ch. 359, § 1; P.L. 2007, ch. 463, § 1.

44-5-20.20. North Smithfield — Property tax classification — Duties of assessor.

  1. The assessor of the town of North Smithfield, on or before June 1 each year, shall make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation, herein, and determine the assessed valuation of each property class.
  2. The assessor shall apply different rates of taxation to each property class as set forth in § 44-5-20.19 to determine the tax due and payable on the property; provided, however, the rate for each class shall be uniform within each class; and for each year, Class 2 property rates shall not be more than one hundred fifty percent (150%) of Class 1 property tax rates, and Class 3 property rates shall not be more than two hundred twenty-five percent (225%) of the maximum allowable Class 2 property rates.

History of Section. P.L. 1994, ch. 221, § 1; P.L. 2007, ch. 359, § 1; P.L. 2007, ch. 463, § 1.

44-5-20.21. North Smithfield — Property tax classification — Tax levy determination.

The assessor shall provide to the town council a list containing the full and fair cash valuation of each property class, and with the approval of the town council, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1994, ch. 221, § 1.

44-5-20.22. Cranston — Property tax classification.

The city of Cranston may, by resolution or ordinance adopted by its city council, provide for a system of classification of taxable property in conformity with the provisions of §§ 44-5-20.23 44-5-20.25 .

History of Section. P.L. 1996, ch. 75, § 1.

44-5-20.23. Cranston — Property tax classification — List of ratable property.

Upon adoption of a system of classification of taxable property by the city of Cranston, all ratable property in the city of Cranston shall be classified by the assessor as follows:

  1. Class 1: In the city of Cranston, all ratable real estate and tangible personal property.
  2. Class 2: In the city of Cranston, all motor vehicles and trailers subject to the excise tax created by chapter 34 of title 44.

History of Section. P.L. 1996, ch. 75, § 1.

44-5-20.24. Cranston — Property tax classification — Duties of assessor.

  1. The assessor of the city of Cranston, on or before June 15 of each year, shall make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation, herein, and determine the assessed valuation of each property class.
  2. The assessor shall have the authority to apply different rates of taxation against Class 1 and Class 2 property to determine the tax due and payable on the property; provided, however, such rates of taxation shall be uniform.

History of Section. P.L. 1996, ch. 75, § 1.

44-5-20.25. Cranston — Property tax classification — Tax levy determination.

The assessor of the city of Cranston shall provide to the city council of Cranston, a list containing the full and fair cash valuation of each property class, and with the approval of the city of Cranston city council, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1996, ch. 75, § 1.

44-5-20.26. East Providence — Property tax classification — List of ratable property.

Upon adoption of a system of classification of taxable property by the city of East Providence, all ratable property in the city of East Providence shall be classified by the assessor as follows:

  1. Class 1: In the city of East Providence, all ratable real estate.
  2. Class 2: In the city of East Providence, all motor vehicles and trailers subject to the excise tax created by chapter 34 of title 44 and tangible personal property.

History of Section. P.L. 1997, ch. 238, § 1.

44-5-20.27. East Providence — Property tax classification — Duties of assessor.

  1. The assessor of the city of East Providence, on or before June 15 of each year, shall make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation, herein, and determine the assessed valuation of each property class.
  2. The assessor shall have the authority to apply different rates of taxation against Class 1 and Class 2 property to determine the tax due and payable on the property; provided, however, such rates of taxation shall be uniform.

History of Section. P.L. 1997, ch. 238, § 1.

44-5-20.28. East Providence — Property tax classification — Tax levy determination.

The assessor of the city of East Providence shall provide to the city council of East Providence a list containing the full and fair cash valuation of each property class, and with the approval of the city of East Providence city council, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1997, ch. 238, § 1.

44-5-20.29. Property tax classification — Lincoln — Tax levy determination.

  1. The assessor and finance director shall provide to the town council a list containing the full and fair valuation of each property class, and with the approval of the town council, annually determine the percentage of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.
  2. Classes of Property.
    1. Class 1.  Residential real estate consisting of no more than five (5) dwelling units including dwellings on leased land including mobile homes. The existing homestead exemption authorized for residential properties shall continue in full force and effect.
    2. Class 2.  Commercial and industrial real estate, and residential real estate of more than five (5) dwelling units.
    3. Class 3.  All ratable tangible personal property excluding motor vehicles and trailers. (Notwithstanding any provisions of the contrary, the tax rates applicable to wholesale and retail inventory within Class 3 are governed by § 44-3-29.1 ).
    4. [Repealed by   P.L. 2004, ch. 439, § 1;   P.L. 2004, ch. 527, § 1, effective July 1, 2005].

History of Section. P.L. 2004, ch. 439, § 1; P.L. 2004, ch. 527, § 1; P.L. 2006, ch. 115, § 1; P.L. 2010, ch. 239, § 38.

Applicability.

P.L. 2006, ch. 115, § 2, provides that the amendment to this section by that act takes effect upon passage [June 16, 2006], and shall be applied retroactively to June 15, 2004.

44-5-21. Repealed.

History of Section. P.L. 1956, ch. 3714, § 2; G.L. 1956, § 44-5-21 ; R.P.L. 1957, ch. 142, § 1; P.L. 1977, ch. 276, § 1; Repealed by P.L. 1978, ch. 341, § 2 retroactive to January 1, 1978 for the excise to be levied in 1979.

Compiler’s Notes.

Former § 44-5-21 concerned the separate listing of motor vehicles on the tax roll. For present provisions see § 44-34-3 .

44-5-22. Certification of tax roll.

The tax levy shall be applied to the assessment roll and the resulting tax roll certified by the assessors to the city or town clerk, city or town treasurer, or tax collector, as the case may be, and to the department of revenue division of municipal finance, not later than the next succeeding August 15. For assessment date December 31, 2016, all certified tax rolls submitted to the city or town clerk, city or town treasurer, or tax collector, as the case may be, and to the department of revenue division of municipal finance shall be calculated in a manner that is consistent with any 2017 amendments to the motor vehicle excise tax laws not later than August 31, 2017. For assessment date December 31, 2016, in the event that a city, town, or fire district has certified tax rolls to the city or town clerk, city or town treasurer, or tax collector, as the case may be, and to the department of revenue division of municipal finance prior to the enactment of any amendment to the motor vehicle excise tax laws in 2017, said city, town, or fire district shall submit to the city or town clerk, city or town treasurer or tax collector, as the case may be, and to the department of revenue division of municipal finance an amended certified tax roll the calculation of which is consistent with any amendments to the motor vehicle tax laws in 2017 not later than September 15, 2017. In the case of a fire district, the tax levy shall be applied to the assessment roll and the resulting tax roll certified by such fire district’s tax assessor, treasurer, or other appropriate fire district official to the town clerk, town treasurer, tax assessor or tax collector, as the case may be, and to the department of revenue, division of municipal finance, not later than thirty (30) business days prior to its annual meeting.

History of Section. G.L. 1938, ch. 31, § 61/2; P.L. 1949, ch. 2330, § 6; G.L. 1956, § 44-5-22 ; P.L. 1966, ch. 245, § 6; P.L. 1967, ch. 191, § 3; P.L. 2007, ch. 252, § 3; P.L. 2007, ch. 292, § 3; P.L. 2011, ch. 151, art. 12, § 16; P.L. 2014, ch. 31, § 4; P.L. 2014, ch. 33, § 4; P.L. 2017, ch. 302, art. 11, § 1.

Compiler’s Notes.

P.L. 2014, ch. 31, § 4, and P.L. 2014, ch. 33, § 4 enacted identical amendments to this section.

Applicability.

P.L. 2014, ch. 31, § 7, provides: “Pending state judicial receivership proceedings. — The provisions of this act shall apply to any and all state judicial receivership proceedings pending at the time of passage of this act [May 2, 2014]; provided, however, in order to ensure an orderly transition, the superior court shall have limited jurisdiction to ratify the actions taken by any receiver prior to the date of enactment of this legislation at the request of the director of revenue, and to take such further actions as may be necessary to ensure an orderly transition.”

P.L. 2014, ch. 33, § 7, provides: “Pending state judicial receivership proceedings. — The provisions of this act shall apply to any and all state judicial receivership proceedings pending at the time of passage of this act [May 2, 2014]; provided, however, in order to ensure an orderly transition, the superior court shall have limited jurisdiction to ratify the actions taken by any receiver prior to the date of enactment of this legislation at the request of the director of revenue, and to take such further actions as may be necessary to ensure an orderly transition.”

Law Reviews.

2000 Survey of Rhode Island Law, see 6 Roger Williams U. L. Rev. 593 (2001).

NOTES TO DECISIONS

In General.

The statutory provisions which set forth the procedures for certification of revaluations and tax rolls by tax assessors are directory, not mandatory. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

Failure to Certify.

Because revaluations are not void and tax levies are not illegal merely because they result from a delayed process, the tax assessor’s failure to certify that a townwide revaluation was complete did not render the entire tax structure illegal or illegitimate, and neither did it trigger the invalidity of the tax. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

44-5-23. Assessment of back taxes on real estate.

If any real estate liable to taxation in any city or town has been omitted in the assessment of any year or years and has thereby escaped taxation, or if any tax has been erroneously or illegally assessed upon any real estate liable to taxation in any city or town in any year or years, and because of the erroneous or illegal assessment the tax cannot be collected, or if paid has been recovered, the assessor of taxes of the city or town in the next annual assessment of taxes after the omission or erroneous or illegal assessment is known to him or her shall assess or reassess, as the case may be, a tax or taxes against the person or persons who were the owner or owners of the real estate in the year or years, to the same amount to which the real estate ought to have been assessed in the year or years. The assessment is in addition to any assessment of taxes against the person or persons for the then current year, and shall be placed on a special tax roll and annexed to the general tax roll for the current year; provided, that the assessment or reassessment is made within six (6) years of the date of the assessment from which the real estate was omitted or in which it was erroneously or illegally assessed. In case the real estate was held in trust at the time of the omission or erroneous or illegal assessment and the title to the real estate has passed from the trustee or trustees who held the real estate in trust, then the tax or taxes shall be assessed against the person or persons who were the equitable owner or owners of the real estate at the time of the omission or erroneous or illegal assessment.

History of Section. P.L. 1911, ch. 732, § 1; G.L. 1923, ch. 60, § 25; G.L. 1938, ch. 31, § 24; G.L. 1956, § 44-5-23 .

NOTES TO DECISIONS

Illegal Exemptions.

Illegal exemption did not invalidate entire assessment since under this section taxes could be collected in future years. Caswell v. Westlake, 47 R.I. 411 , 133 A. 796, 1926 R.I. LEXIS 71 (1926).

Where illegality of exemption was not determined until after assessment date for general taxes, the back taxes could not be assessed until following year. McCanna v. Board of Assessors, 48 R.I. 396 , 137 A. 694, 1927 R.I. LEXIS 148 (1927).

Right to Relief.

In an action based on the alleged overpayment of real property taxes, the hearing justice did not err in granting the city’s motion for summary judgment on the taxpayer’s claim under this section; because this section provided municipalities with a six-year look-back period in which to assess or reassess real estate that may have escaped taxation, it did not provide relief to a taxpayer. Lehigh Cement Co. v. Quinn, 173 A.3d 1272, 2017 R.I. LEXIS 125 (R.I. 2017).

Selective and Arbitrary Valuation.

The city valuing real property for tax assessment purposes lower than the fair market value of other real property as later determined by the Superior Court in a future condemnation proceeding did not qualify as an “omitted” or “erroneous” assessment as required by this section, and was selective, arbitrary, and illegal. Capital Props. v. State, 749 A.2d 1069, 1999 R.I. LEXIS 222 (R.I. 1999).

44-5-24. Notice and procedure for collection of back taxes.

  1. The assessors of taxes shall give notice of the proposed assessment or reassessment of any real estate for any previous year or years to all persons liable to the tax in the manner provided in this chapter for the levy and assessment of taxes. The notice shall contain a general description of the real estate and state the year or years for which the real estate is liable to assessment or reassessment and the name or names of the person or persons liable to assessment or reassessment, and shall require every person so liable to bring in to the assessors a true and exact account of real estate owned by him or her in the previous year or years, describing the real estate and specifying the value of every parcel of the real estate at the time of the general assessment of property in previous year or years, and like proceedings for the collection of any and all taxes shall be taken as is provided in chapters 7 — 9 of this title for the collection of taxes, and all the provisions of chapters 2 — 9 of this title, so far as applicable and consistent herewith, shall apply to every assessment of taxes for the previous year and to the collection of the taxes, except that no lien for the collection of any tax for a previous year shall attach to any real estate which has been aliened by the person liable to the tax prior to the giving of the notice, and no lien thereon which lawfully attached prior to the giving of the notice shall be prejudiced thereby.
  2. Persons aged sixty-five (65) years and over or persons suffering from a disability may designate a third party to whom notice may be sent as required pursuant to this section by advising the tax assessor of the name and address of the person.

History of Section. P.L. 1911, ch. 732, § 2; G.L. 1923, ch. 60, § 26; G.L. 1938, ch. 31, § 25; G.L. 1956, § 44-5-24 ; P.L. 1987, ch. 120, § 1.

44-5-25. Vessels engaged in foreign commerce — Taxation.

The registered owners of every ship or vessel engaged in foreign commerce shall, on or before February 1 in each year, make a statement, in writing, to the town treasurer of the town where the ship or vessel is registered, of the net profits earned by the ship or vessel for the year ending on December 31 next preceding, and shall submit to the examination on oath by the treasurer as he or she deems necessary for the verification of the truth of the statement. Interest on the vessels and extraordinary repairs shall not be deducted from the earnings in making up the statement; and the owners shall pay to the town treasurer for the use of the town a tax of one percent (1%) on the net earnings; and in case the owners make the return and pay the tax provided in this section, they are subject to no other taxation on the property. Vessels are deemed to be engaged in foreign commerce in case three-fourths (3/4) of their earnings in any year have been received in foreign trade.

History of Section. G.L. 1896, ch. 46, § 13; G.L. 1909, ch. 58, § 13; G.L. 1923, ch. 60, § 13; G.L. 1938, ch. 44, § 1; G.L. 1956, § 44-5-25 .

44-5-25.1. Houseboats — Taxation — Definitions.

All houseboats being used as a principal or temporary place of residence or domicile by a person shall be taxed as personal property by the local tax assessor. For the purposes of this section, “houseboat” means a watercraft or an industrial or commercial structure on or in the waters of the state, floating or nonfloating, which is designed or remodeled as a place of habitation and is not principally used for transportation, and this definition includes platforms and waterborne hotels and restaurants; “local tax assessor”, for the purposes of this section, means the assessor for the city or town within whose harbor line the houseboat is physically situated.

History of Section. P.L. 1981, ch. 370, § 1.

44-5-26. Petition in superior court for relief from assessment.

  1. Any person aggrieved on any ground whatsoever by any assessment of taxes against him or her in any city or town, or any tenant or group of tenants, of real estate paying rent therefrom, and under obligation to pay more than one-half  (1/2) of the taxes thereon, may within ninety (90) days from the date the first tax payment is due, file an appeal in the local office of tax assessment; provided, if the person to whom a tax on real estate is assessed chooses to file an appeal, the appeal filed by a tenant or group of tenants will be void. For the purposes of this section, the tenant(s) has the burden of proving financial responsibility to pay more than one-half (1/2) of the taxes. The assessor has forty-five (45) days to review the appeal, render a decision and notify the taxpayer of the decision. The taxpayer, if still aggrieved, may appeal the decision of the tax assessor to the local tax board of review, or in the event that the assessor does not render a decision, the taxpayer may appeal to the local tax board of review at the expiration of the forty-five (45) day period. Appeals to the local tax board of review are to be filed not more than thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the assessor does not render a decision within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the expiration of the forty-five (45) day period. The local tax board of review shall, within ninety (90) days of the filing of the appeal, hear the appeal and render a decision within thirty (30) days of the date that the hearing was held. Provided, that a city or town may request and receive an extension from the director of the Rhode Island department of revenue.
  2. Appeals to the local office of tax assessment are to be on an application. In the event of an appeal to the local tax board of review, the local office of tax assessment, upon request by the taxpayer, shall forward the application to the local tax board of review. The application shall be in the following form:
  3. Provided, that in case the person has not filed an account, or filed an appeal first within the local tax board of review, that person shall not have the benefit of the remedy provided in this section and in §§ 44-5-27 44-5-31 , unless: (1) that person’s real estate has been assessed at a value in excess of the value at which it was assessed on the last preceding assessment day, whether then owned by that person or not, and has been assessed, if assessment has been made at full and fair cash value, at a value in excess of its full and fair cash value, or, if assessment has purportedly been made at a uniform percentage of full and fair cash value, at a percentage in excess of the uniform percentage; or (2) the tax assessed is illegal in whole or in part; and that person’s remedy is limited to a review of the assessment on the real estate or to relief with respect to the illegal tax, as the case may be.

STATE OF RHODE ISLAND FISCAL YEAR Name of City or Town APPLICATION FOR APPEAL OF PROPERTY TAX For appeals to the tax assessor, this form must be filed with the local office of tax assessment within ninety (90) days from the date the first tax payment is due. For appeals to the local tax board of review, this form must be filed with the local tax board of review not more than thirty (30) days after the assessor renders a decision, or if the assessor does not render a decision within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the expiration of the forty-five (45) day period. 1. TAXPAYER INFORMATION: A. Name(s) of Assessed Owner: B. Name(s) and Status of Applicant (if other than Assessed Owner): Subsequent Owner (Acquired Title After December 31 on 20 ) Administrator/Executor Lessee Mortgagee Other Specify C. Mailing Address and Telephone No.: () Address Tel. No. D. Previous Assessed Value E. New Assessed Value 2. PROPERTY IDENTIFICATION: Complete using information as it appears on tax bill. A. Tax Bill Account No.: Assessed Valuation Annual Tax B. Location: Description: No. Street Zip Real Estate Parcel Identification:Map Block Parcel Type Tangible Personal C. Date Property Acquired:Purchase Price: Total cost of any improvements What is the amount of fire insurance on building: 3. REASON(S) REDUCTION SOUGHT: Check reason(s) reduction is warranted and briefly explain why it applies. Continue explanation on attachment if necessary. Overvaluation. Incorrect Usage Classification. Disproportionate Assessment. Other Specify: Applicant’s Opinion of Fair Market ValueClassAssessed Value Value $ (as of December 31 in the year of the last update or revaluation for real estate and as of December 31 of the tax year for personal estate;) Explanation Have you filed a true and exact account this year with the City Assessor as required by law? Comparable Properties that support your claim: AddressSale PriceSales DateProperty TypeAssessed value 4. SIGNATURES; SIGNATURE OF APPLICANTDATE SIGNATURE OF AUTHORIZED AGENTDATE () Name of PreparerAddressTel. No. TAXPAYER INFORMATION ABOUT APPEAL PROCEDURE REASONS FOR AN APPEAL. It is the intent of the general assembly to ensure that all taxpayers in Rhode Island are treated equitably. Ensuring that taxpayers are treated fairly begins where cities and towns meet defined standards related to performing property values. All properties should be assessed in a uniform manner, and properties of equal value should be assessed the same. TO DISPUTE YOUR VALUATION OR ASSESSMENT OR CORRECT ANY OTHER BILLING PROBLEM OR ERROR THAT CAUSED YOUR TAX BILL TO BE HIGHER THAN IT SHOULD BE, YOU MUST APPEAL WITHIN NINETY (90) DAYS FROM THE DATE THE FIRST TAX PAYMENT IS DUE. You may appeal your assessment if your property is: (1) OVERVALUED (assessed value is more than the fair market value as of December 31 in the year of the last update or revaluation for real estate and as of December 31 of the tax year for personal estate for any reason, including clerical and data processing errors; (2) disproportionately assessed in comparison with other properties; (3) classified incorrectly as residential, commercial, industrial or open space, farm or forest; (4) illegal tax partially or fully exempt; (5) modified from its condition from the time of the last update or revaluation. WHO MAY FILE AN APPLICATION: You may file an application if you are (1) the assessed or subsequent (acquiring title after December 31) owner of the property; (2) the owner’s administrator or executor; (3) a tenant or group of tenants of real estate paying rent therefrom, and under obligations to pay more than one-half (1/2) of the taxes thereon; (4) a person owning or having an interest in or possession of the property; or (5) a mortgagee if the assessed owner has not applied. In some cases, you must pay all or a portion of the tax before you can file. WHEN AND WHERE APPLICATION MUST BE FILED. Your application must be filed with the local office of tax assessment within NINETY (90) days from the date the first tax payment is due. THESE DEADLINES CANNOT BE EXTENDED OR WAIVED BY THE ASSESSOR FOR ANY REASON. IF YOUR APPLICATION IS NOT FILED ON TIME, YOU LOSE ALL RIGHTS TO AN ABATEMENT AND THE ASSESSOR CANNOT BY LAW GRANT YOU ONE. AN APPLICATION IS FILED WHEN RECEIVED BY THE ASSESSOR’S OFFICE. PAYMENT OF TAX. Filing an application does not stay the collection of your taxes. In some cases, you must pay the tax when due to appeal the assessors disposition of your application. Failure to pay the tax assessed when due may also subject you to interest charges and collection action. To avoid any loss of rights or additional charges, you should pay the tax as assessed. If an abatement is granted and you have already paid the entire year’s tax as abated, you will receive a refund of any overpayment. FILING AN ACCOUNT. requires the annual filing of a true and exact account of all ratable estate owned or possessed by every person and corporate body. The time to file is between December 31, and January 31, of intention to submit declaration by March 15. Failure to file a true and full account, within the prescribed time, eliminates the right to appeal to the superior court, subject to the exceptions provided in . No amended returns will be accepted after March 15th. Such notice of your intention must be sent by certified mail, postage prepaid, postmark no later than 12 o’clock midnight of the last day, January 31. No extensions beyond March 15th can be granted. The form for filing such account may be obtained from the city or town assessor. Rhode Island General Laws Section 44-5-15 Rhode Island General Laws Section 44-5-26(b) ASSESSOR’S DISPOSITION. Upon applying for a reduction in assessment, you may be asked to provide the assessor with further written information about the property and to permit them to inspect it. Failure to provide the information or permit an inspection within thirty (30) days of the request may result in the loss of your appeal rights. APPEAL. The assessor shall have forty-five (45) days to review the appeal, render a decision and notify the taxpayer of the decision. The taxpayer, if still aggrieved, may appeal the decision of the tax assessor to the local tax board of review, or in the event that the assessor does not render a decision, the taxpayer may appeal to the local tax board of review at the expiration of the forty-five (45) day period. Appeals to the local tax board of review shall be filed not more than thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the assessor does not render a decision within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the expiration of the forty-five (45) day period. DISPOSITION OF APPLICATION (ASSESSOR’S USE ONLY) GRANTED Assessed Value Date Sent Abated Value Date Returned DENIED Adjusted Value Assessed Tax On-Site Inspection DEEMED DENIED Abated Tax Date Adjusted Tax By Date Voted/Deemed Denied Tax Board of Review Date Change Certificate No.

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Any person still aggrieved on any ground whatsoever by an assessment of taxes against him or her in any city or town may, within thirty (30) days of the tax board of review decision notice, file a petition in the superior court for the county in which the city or town lies for relief from the assessment, to which petition the assessors of taxes of the city or town in office at the time the petition is filed shall be made parties respondent, and the clerk shall thereupon issue a citation substantially in the following form:

THE STATE OF RHODE ISLAND. To the sheriffs of several counties, or to their deputies, Greetings: We command you to summon the assessors of taxes of the town of : to wit, of (if to be found in your precinct) to answer the complaint of of on the return day hereof (said return day being the day of A.D. 20) in the superior court to be holden at the county courthouse in as by petition filed in court is fully set forth; and to show cause why said petition should not be granted. Hereof fail not, and make true return of this writ with your doings thereon. Witness, the seal of our superior court, at this day of in the year , Clerk.

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History of Section. G.L. 1896, ch. 46, § 15; C.P.A. 1905, § 1099; G.L. 1909, ch. 58, § 15; G.L. 1923, ch. 60, § 15; P.L. 1932, ch. 1945, § 4; P.L. 1935, ch. 2260, § 4; G.L. 1938, ch. 31, § 14; G.L. 1956, § 44-5-26 ; P.L. 1968, ch. 163, § 2; P.L. 1988, ch. 130, § 1; P.L. 1997, ch. 127, § 1; P.L. 1999, ch. 485, § 1; P.L. 2001, ch. 365, § 1; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

Compiler’s Notes.

This section is set out to correct an error appearing in the bound volume.

In 2021, “AND PROVIDENCE PLANTATIONS" was deleted following “STATE OF RHODE ISLAND” in this section at the direction of the Law Revision Director to reflect the 2020 amendments to the state constitution that changed the state’s name.

Law Reviews.

Zachary Carlson, 2018 Survey: Balmuth v. Dolce for Town of Portsmouth, 24 Roger Williams U. L. Rev. 558 (2019).

NOTES TO DECISIONS

Constitutionality.

There was no denial of due process where by the very terms of the statute a taxpayer is entitled to a judicial review of an assessment which he claims to be illegal as distinguished from excessive without the prior requirement of making his accounting. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Construction.

The legislature intended by § 44-5-30 to deny relief to a taxpayer who brought an account purporting on its face to be true as required by §§ 44-5-15 and 44-5-16 but which omitted some item of ratable property with the deliberate intent of fraudulently concealing the taxpayer’s interest therein, but the legislature did not intend to penalize a taxpayer who by inadvertence, oversight or mistake neglected to include ratable property in an account in all other respects sufficient to support his petition brought under this section. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Taxing statutes are to be strictly construed with doubts resolved in favor of the taxpayer. Maggiacomo v. Di Vincenzo, 122 R.I. 615 , 410 A.2d 1332, 1980 R.I. LEXIS 1430 (1980).

Within the context of this section the term “assessment” refers to the entire plan or statutory scheme for the imposition and collection of taxes, including the calculation of the rate. Maggiacomo v. Di Vincenzo, 122 R.I. 615 , 410 A.2d 1332, 1980 R.I. LEXIS 1430 (1980).

Applicability.

This section and § 44-5-27 did not apply to an action for repayment of taxes, fees and assessments brought against a water authority that was established under a special act. Clarke v. Raposa, 713 A.2d 756, 1998 R.I. LEXIS 167 (R.I. 1998).

This section, not § 44-27-6 , offers the proper method of appealing an excessive or illegal land use change tax to the superior court. Nunes v. Marino, 707 A.2d 1239, 1998 R.I. LEXIS 58 (R.I. 1998).

This provision does not permit one taxpayer to bring a class action challenge to the entire taxation structure of a municipality. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

It was error to dismiss a complaint contesting sewer assessments for failure to exhaust administrative remedies in R.I. Gen. Laws § 44-5-26 because the assessments were not taxes, so the statute did not apply, as (1) an enabling act referred to them as “charges,” and distinguished between costs paid through taxation and costs paid by annual charges, (2) the general assembly’s treatment of the charges as taxes for collection purposes showed the charges were not taxes for other purposes, and (3) 1997 R.I. Public Laws ch. 330, § 19, stating the means of contesting the assessments, did not refer to taxes. Commerce Park Assocs. 1, LLC v. Houle, 87 A.3d 1061, 2014 R.I. LEXIS 35 (R.I. 2014).

Aggrieved Person.

Plaintiff who had purchased property after the tax assessment date was nonetheless an “aggrieved person” under the meaning of this statute and was thus the proper party to bring a complaint for relief from tax assessment since he was the party ultimately responsible for the payment of the taxes. DeZahara v. Weiss, 516 A.2d 879, 1986 R.I. LEXIS 544 (R.I. 1986).

Trial court acted within its discretion in denying city’s motion for judgment on partial findings based on a city’s argument that a taxpayer lacked standing to prosecute tax appeals for certain years when it did not own the property because: (1) the taxpayer was aggrieved within the meaning of R.I. Gen. Stat. § 44-5-26(a) and its standing flowed from its status as a successor-in-interest to the prior owner; and (2) R.I. Gen. Laws § 9-2-8 impliedly authorized the assignment because the transfer of the appeals appeared to be a market assignment involving a finite, purely economic transaction. Weybosset Hill Invs., LLC v. Rossi, 857 A.2d 231, 2004 R.I. LEXIS 153 (R.I. 2004).

Amendment of Petition.

Where petitioner’s motion for leave to amend after time for filing petition had expired was denied by superior court on the grounds that it raised a constitutional issue not presented by original petition, a bill of exceptions and not certiorari was the proper remedy. Howard Realty Co. v. Gallotta, 92 R.I. 497 , 170 A.2d 620, 1961 R.I. LEXIS 68 (1961).

A plaintiff’s petition that was amended for two separate tax years did not comply with this section. A taxpayer who challenges an assessment must file a complaint for each tax year that an assessment is under challenge. Therefore, the plaintiff’s amendment of the petition was insufficient. McKee v. Bouchard, 674 A.2d 378, 1996 R.I. LEXIS 120 (R.I. 1996).

Burden of Proof.

In any tax assessment challenge, the assessor must first present his or her conclusion as to fair market value and the procedure used to arrive at the fair market value of the subject property; if the taxpayer challenges either the legality of the assessment or claims that the assessor used an inappropriate fair market value of the subject property, the burden will be on the taxpayer to present evidence of fair market value. Nos Ltd. Partnership v. Booth, 654 A.2d 308, 1995 R.I. LEXIS 29 (R.I. 1995).

Since the burden was on a taxpayer company to establish that a city set a value on intangible personal property that was greater than the fair market value and therefore in violation of R.I. Gen. Laws § 44-5-12(a) , and since the superior court sat as the trier of fact and could reject the taxpayer’s expert’s determination of fair market value where there was a lack of specificity pertaining to the experience upon which the expert’s judgment rested, the superior court could properly give the expert’s opinion no weight and could properly affirm the city’s decision to uphold tax assessments. Harvard Pilgrim Health Care of New Eng., Inc. v. Gelati, 865 A.2d 1028, 2004 R.I. LEXIS 197 (R.I. 2004).

Evidence.

Reproduction cost less depreciation method of valuing property is admissible where there are no comparable sales. Socony-Vacuum Oil Co. v. French, 88 R.I. 6 , 143 A.2d 318, 1958 R.I. LEXIS 97 (1958).

Exclusiveness of Remedy.

The remedy given by this section for cases of excessive taxation is the only available remedy, and an assessment duly made is conclusive unless the taxpayer avails himself of this remedy. Tripp v. Merchants' Mut. Fire Ins. Co., 12 R.I. 435 , 1879 R.I. LEXIS 48 (1879). (Decision prior to enactment of § 44-5-27 .)

The remedy provided by this section permitting a petitioner to bring a petition and authorizing the superior court to hear the same is purely statutory and is granted only to those taxpayers who file an account which is in reasonable compliance with §§ 44-5-15 and 44-5-16 , for in the absence of such compliance the taxpayer is not entitled to the remedy and the superior court is without jurisdiction to grant relief. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

This section is the exclusive remedy available for relief from an alleged illegal assessment of taxes and had it been the intention of the legislature to furnish an additional remedy under § 9-31-1 , it would have so stated in view of the remedy already provided in this section. S. S. Kresge Co. v. Bouchard, 111 R.I. 685 , 306 A.2d 179, 1973 R.I. LEXIS 1262 (1973).

Old age home which claimed tax exempt status was not required to seek relief from property tax under this section, since a tax exempt property is not a “ratable estate” within the meaning of § 44-5-27 , which renders this section the exclusive remedy for taxpayers owning or possessing ratable estates, and home properly requested and equitable injunction against enforcement of the tax. St. Clare Home v. Donnelly, 117 R.I. 464 , 368 A.2d 1214, 1977 R.I. LEXIS 1713 (1977).

Where plaintiffs had merely received notice from tax assessors’ office requiring that they file an inventory of personal property used in business, the exclusive relief provided in this section was not invoked, as no assessment had been made upon which plaintiffs could petition Superior Court for relief, therefore, the remedy provided by this section would have been inadequate at law and did not foreclose plaintiffs from seeking equitable relief. Oster v. Restrepo, 448 A.2d 1268, 1982 R.I. LEXIS 995 (R.I. 1982).

Whether a tax is faulted because of an overassessment or because of an alleged illegality, the taxing statute provides the exclusive remedy for anyone aggrieved by a municipal assessment. Northgate Assocs. v. Shorey, 541 A.2d 1192, 1988 R.I. LEXIS 74 (R.I. 1988); Burrillville Racing Ass'n v. Tellier, 574 A.2d 749, 1990 R.I. LEXIS 95 (R.I. 1990).

It was error for the court to have permitted a taxpayer to proceed in equity under § 44-5-27 since it had an adequate statutory remedy under subsection (b) of this section. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

The relief provided by this section is the exclusive remedy available for relief from an alleged illegal assessment of taxes. Capital Props. v. State, 749 A.2d 1069, 1999 R.I. LEXIS 222 (R.I. 1999).

This provision provides no remedy to a taxpayer complaining of the results of an alleged illegal assessment beyond the statute’s opportunity for review of the taxpayer’s own assessment. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

Taxpayer’s complaint alleging an illegal tax was properly dismissed because the complaint essentially alleged an overassessment of taxes, since at least part of the taxpayer’s property was located in the taxing city, but the complaint did not comply with exclusive statutory procedures for contesting an assessment. Bluedog Capital Partners, LLC v. Murphy, 206 A.3d 694, 2019 R.I. LEXIS 63 (R.I. 2019).

Taxpayer’s declaratory judgment action did not set forth a cognizable claim because the taxpayer was confined to bringing a tax appeal action under the provisions of R.I. Gen. Laws § § 44-5-26 and 44-5-27 ; a person challenging an assessment of taxes may not maintain a cause of action for declaratory relief. Morse v. Minardi, 208 A.3d 1151, 2019 R.I. LEXIS 78 (R.I. 2019).

Failure to File Account.

Return showing no ratable personal estate over and above indebtedness did not comply with the statute and the taxpayer had no remedy against an assessment made by an assessor. Coventry Co. v. Assessors of Taxes, 16 R.I. 240 , 14 A. 877, 1888 R.I. LEXIS 42 (1888) (decision prior to 1932 amendment).

Before the 1932 amendments a person possessing any ratable estate of any value who neglected to make a return was remediless, such taxation being held to be a case of overtaxation and not illegal taxation. People's Sav. Bank v. Kiernan, 54 R.I. 102 , 170 A. 77, 1934 R.I. LEXIS 12 (1934).

The taxpayer, whether using a form supplied by the tax assessor or one independently fashioned, was required to bring in an account contemplated by the legislature in its mandate to the court, as the tax assessor had no authority to waive the requirements of the law which must be met as a condition precedent to the jurisdiction of the court. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

Compliance with the provisions of §§ 44-5-15 and 44-5-16 with respect to filing an account was not a prerequisite to filing a petition under this section to challenge the legality of an assessment rather than its amount. Brown & Sharpe Mfg. Co. v. Cote, 101 R.I. 668 , 226 A.2d 814, 1967 R.I. LEXIS 818 (1967).

Where taxpayer failed to submit the account which would have enabled the assessor to arrive at a more accurate estimate, the tax assessor’s action in attempting to value the property without specific knowledge as to its character and extent was neither arbitrary nor unreasonable. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

The fact that party purchased property after the date on which account could be filed under § 44-5-15 did not exempt him from requirement that account be filed in order to bring action under this section where previous titleholder did not file such account since he could acquire no greater rights than the previous titleholder. CIC-Newport Assocs. v. Stein, 121 R.I. 844 , 403 A.2d 658, 1979 R.I. LEXIS 1984 (1979).

The filing of an account is a condition precedent to seeking relief, and the failure to file must be pled as a defense or waived. The town tax assessor may not raise for the first time on appeal the failure to file the account. Chase v. Bouchard, 671 A.2d 794, 1996 R.I. LEXIS 43 (R.I. 1996).

A court does not lack subject-matter jurisdiction simply as a consequence of the failure of a taxpayer, who is challenging his assessment, to comply with § 44-5-15 (filing of account). The filing of an account is a condition precedent and must be pleaded prior to trial in accordance with Rule 9(c), R.I.R.C.P. If the defense of failure to file an account is not timely pleaded, it is waived, and the court must hear the petition for relief in accordance with subsection (a) of this section. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Even though the plaintiff failed to file an account with the tax assessor for the tax years encompassed in his petitions as required by § 44-5-15 , the Superior Court was not precluded from considering his claim of overassessments on the merits pursuant to subsection (a) of this section. Landfill & Resource Recovery v. Gelinas, 703 A.2d 602, 1997 R.I. LEXIS 309 (R.I. 1997).

— Failure to File Adequate Account.

A motion to dismiss a petition for relief from alleged overvaluation by the assessor was proper even if the adequacy of petitioner’s account was not expressly challenged where superior court had been deprived of jurisdiction by petitioner’s failure to reasonably comply with the statutory requirements as to filing an account. Ewing v. Tax Assessors, 93 R.I. 372 , 176 A.2d 69, 1961 R.I. LEXIS 122 (1961).

Where the court was without jurisdiction to find an assessment against a taxpayer excessive for the reason that the taxpayer had not filed a true and exact account of its ratable property, the taxpayer could not be granted relief even where such court had gone on and found the assessment excessive against the taxpayer. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

The taxpayer, who intended to contest whatever assessment might be placed on his ratable property, was not relieved by the enactment of P.L. 1932 substituting “fraudulently” for “wilfully” from making a return to the assessors which was so full, true and exact as to be something more than a generic classification amounting to nothing more than a mere generalization of its personalty. Sayles Finishing Plants v. Toomey, 95 R.I. 471 , 188 A.2d 91, 1963 R.I. LEXIS 28 (1963).

A petition for relief from alleged overassessment of real estate was not subject to dismissal because of alleged deficiencies in the taxpayer’s listing of personal property. Ewing v. Frank, 103 R.I. 96 , 234 A.2d 840, 1967 R.I. LEXIS 580 (1967).

Dismissal of petition for relief from alleged overassessment of real property affirmed pursuant to § 44-5-16 and this section where plaintiff had filed an account pursuant to § 44-5-15 , but, in lieu of listing intangible personal property, included statement that, and reasons why such intangible personal property was deemed not taxable. Ewing v. Tax Assessors, 104 R.I. 630 , 247 A.2d 850, 1968 R.I. LEXIS 696 (1968).

Where the only evidence presented was of a lesser property tax assessment of full and fair cash value made three years after the challenged assessment, this was not the “last preceding assessment day” referenced in the statute and was irrelevant to the fact that plaintiff’s account failed to conform with the requirements for the filing of complete accounts under § 44-5-15 . Jacober Realty Trust v. Neary, 723 A.2d 292, 1999 R.I. LEXIS 21 (R.I. 1999).

Because the property owner failed to satisfy the statutory requirements for filing an account by failing to file a signed and notarized account valuing the commercial real estate it owned in the city, the superior court could not afford it relief in regard to the contested tax assessment. Granoff Realty II Ltd. P'shp v. Rossi, 833 A.2d 354, 2003 R.I. LEXIS 195 (R.I. 2003).

Failure to File Petition for Relief.

Where a taxpayer failed to file a petition in superior court for relief from assessment or account of ratable property as required by statute, he could not raise a defense that the assessment was illegal and void in an action to recover the tax. Murray v. Rockaway Boulevard Wrecking & Lumber Co., 108 R.I. 607 , 277 A.2d 922, 1971 R.I. LEXIS 1314 (1971).

The city was not estopped from raising the defense of timeliness where plaintiff failed to file a timely petition challenging city’s 1989 assessment of plaintiff ’s property notwithstanding plaintiff ’s claim that the board’s delay in rendering a decision on its 1988 petition resulted in plaintiff ’s failure to file a timely petition regarding the 1989 assessment. The fact that the board was delayed in rendering its decision on plaintiff ’s 1988 petition had absolutely no effect on plaintiff ’s ability to file a petition challenging the city’s assessment for 1989. Ferland Corp. v. Bouchard, 626 A.2d 210, 1993 R.I. LEXIS 168 (R.I. 1993).

Taxpayer’s appeal of assessments of the taxpayer’s personal property was properly dismissed because (1) the taxpayer did not exhaust the taxpayer’s administrative procedures required by R.I. Gen. Laws § 44-5-26 , and (2) the taxpayer did not show that the taxes at issue were illegal by alleging the taxpayer’s taxed assets were exempt from taxes or that the assessments were so palpably exorbitant and excessive as to amount to constructive fraud, so direct judicial review under R.I. Gen. Laws § 44-5-27 was unavailable. Narragansett Elec. Co. v. Minardi, 21 A.3d 274, 2011 R.I. LEXIS 74 (R.I. 2011).

Full and Fair Cash Value.

Supreme court affirmed a judgment upholding a city assessor’s valuation of two buildings; owner did not provide appraisals or expert testimony to prove how major tenant loss affected value; an arbitrary prior year reduced value was not to be perpetuated; the doctrine of administrative finality did not apply to perpetuated an error. deBourgknecht v. Rossi, 798 A.2d 934, 2002 R.I. LEXIS 159 (R.I. 2002).

Illegal Assessment.

The assessor exceeded his authority when he set the tax rate at an amount, if fully collected, that would yield revenue above the maximum levy authorized. Maggiacomo v. Di Vincenzo, 122 R.I. 615 , 410 A.2d 1332, 1980 R.I. LEXIS 1430 (1980).

Partially Invalid Assessment.

Whenever an assessment is valid in part and invalid in part, the whole assessment will be invalidated unless the legal and illegal portions can be separated clearly and certainly. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

— Illegal Tax.

A challenge to taxable situs under §§ 44-4-10 and 44-4-24 is a challenge to the legality of the assessment which may be raised despite the failure to file an account. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

A taxpayer who establishes that the property assessed was permanently removed from the jurisdiction before the assessment period is entitled to relief under this section even though no account was filed. Van Alen v. Stein, 119 R.I. 347 , 376 A.2d 1383, 1977 R.I. LEXIS 1902 (1977).

While this section provides that relief may be granted from illegal taxation notwithstanding the lack of an account filing, a mere mistake in valuation resulting in an excessive assessment does not amount to illegal taxation. CIC-Newport Assocs. v. Stein, 121 R.I. 844 , 403 A.2d 658, 1979 R.I. LEXIS 1984 (1979).

Payment Under Protest.

In order to maintain a petition under this section, the petitioner need not show that he paid under protest, whether or not he made a return. People's Sav. Bank v. Kiernan, 54 R.I. 102 , 170 A. 77, 1934 R.I. LEXIS 12 (1934).

Practice and Procedure.

A taxpayer cannot rely on its single petition for relief to serve as a basis for a challenge to all the annual assessments with which he or she finds fault, where the tax levied during the five years in question is based upon an earlier assessment. Northgate Assocs. v. Shorey, 541 A.2d 1192, 1988 R.I. LEXIS 74 (R.I. 1988).

Recovery of Illegal Tax.

A real estate tax paid on a distinct parcel of land which was exempt from taxation could be recovered in an action of assumpsit. St. Mary's Church v. Tripp, 14 R.I. 307 , 1883 R.I. LEXIS 69 (1883). (Decision prior to enactment of § 44-5-27 .)

If the tax has been paid, the remedy is by an action in assumpsit to recover the excess payment. People's Sav. Bank v. Kiernan, 54 R.I. 102 , 170 A. 77, 1934 R.I. LEXIS 12 (1934). (Decision prior to enactment of § 44-5-27 .)

Right to Jury Trial.

Both the taxpayer and the tax assessors are entitled to a trial by jury of an action brought under this section. Briggs Drive, Inc. v. Moorehead, 103 R.I. 555 , 239 A.2d 186, 1968 R.I. LEXIS 829 (1968).

Time for Filing Petition.

Where last day for paying taxes was December 31, however the resolution of town meeting imposing tax provided that taxpayer could elect to pay in instalments provided first instalment was paid on or before August 30, the time for bringing action for relief from assessment ran from the December 31 date instead of the August 30 date where taxpayer did not elect to make instalment payments but made payment in full. Ewing v. Tax Assessors, 90 R.I. 86 , 155 A.2d 61, 1959 R.I. LEXIS 116 (1959).

In accordance with this section, a petition for relief from a real estate assessment must be filed within 30 days of a “final” local decision, and the review of the assessment is a continuous process that includes the council’s approval as a necessary step. Therefore, a complaint filed within 30 days of the council’s decision was timely filed. McKee v. Bouchard, 674 A.2d 378, 1996 R.I. LEXIS 120 (R.I. 1996).

The provision in subsection (a) that permits a taxpayer to file a complaint after the local tax administrator renders his or her final decision does not operate to preclude the taxpayer from filing a complaint for equitable relief in the superior court pursuant to § 44-5-27 at a time prior to the administrator’s rendering his or her decision. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Trial court erred in entering summary judgment for the municipal defendants in a suit challenging a property tax assessment as the municipal defendants failed to plead a failure to allege a condition precedent under R.I. Gen. Laws § 44-5-26 with the specificity and particularity required under R.I. Super. Ct. R. Civ. P. 9 (c) where they merely alleged that the trial court lacked jurisdiction; the municipal defendants waived their claim that the owner did not file its appeal with the tax assessor in a timely manner. Narragansett Elec. Co. v. Saccoccio, 43 A.3d 40, 2012 R.I. LEXIS 50 (R.I. 2012).

Taxpayers’ contest of one year’s assessment had to be dismissed as untimely; the failure of the assessor’s notice to provide certain information stated in subsection (b) of this section did not estop the assessor from raising a timeliness defense to the petition, as the statutory language was not mandatory, since no remedy was prescribed. Whittemore v. Thompson, 139 A.3d 530, 2016 R.I. LEXIS 91 (R.I. 2016).

City tax assessor was entitled to summary judgment with respect to the property owners’ appeals because their claims were barred by the applicable statutes of limitations since the owners alleged an illegal tax claim for tax year 2012 and did not follow the normal statutory procedures, they were required to file their complaint within three months after the last day appointed for the payment of the tax, or the first installment of the tax if it was payable in installments, and their illegal tax assessment claim was additionally barred as they filed their complaint more than three years after the applicable statute of limitations had run. Newport & New Rd.,LLC v. Hazard, 2021 R.I. Super. LEXIS 55 (R.I. Super. Ct. July 8, 2021).

Valuation.

A tax assessor may carry over the same fair-market-value finding from one tax-assessment date to the next until required to conduct the decennial revaluation. Given the tremendous expense imposed upon municipalities in performing revaluations, the existing practice of decennial revaluations is reasonable. A property owner disputing an assessment carried over from a prior year, however, has interim remedies under this section and § 44-5-27 . Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Once the plaintiff stipulated that the revaluation of her property was accurate, the only adverse effect she allegedly suffered was the tax assessor’s habitual tardiness in certifying the tax roll and the revaluation, and this generalized grievance did not endow the plaintiff with standing to contest the general outcome of the revaluations absent any claim that the revaluation of her property was inaccurate. Cummings v. Shorey, 761 A.2d 680, 2000 R.I. LEXIS 200 (R.I. 2000).

Based on the ambiguities created by the conflicting tax laws and the lack of clear legislative intent to the contrary, the Supreme Court held that the taxpayers were not locked in to the December 31, 2007, valuations of their properties, which was the year of the town’s last revaluation of real property; and that the taxpayers had the right to appeal the yearly tax assessments for tax years 2009 and 2010 based on the fair market valuations of their properties as of December 31, 2008, and December 31, 2009. Balmuth v. Dolce, 182 A.3d 576, 2018 R.I. LEXIS 43 (R.I. 2018).

Collateral References.

Standing of one taxpayer to complain of underassessment or nonassessment of property of another for state and local taxation. 9 A.L.R.4th 428.

44-5-27. Exclusiveness of remedy by petition.

The remedy provided in § 44-5-26 is exclusive if the taxpayer owned or possessed any ratable estate at all, except that, in a proper case, the taxpayer may invoke the equity jurisdiction of the superior court; provided, that the complaint is filed within three (3) months after the last day appointed for the payment, without penalty, of the tax, or the first installment of the tax, if it is payable in installments. A taxpayer alleging an illegal or void tax assessment against him or her is confined to the remedies provided by § 44-5-26 , except that the taxpayer is not required to file an appeal with the local assessor.

History of Section. G.L. 1923, ch. 60, § 15; P.L. 1935, ch. 2260, § 4; G.L. 1938, ch. 31, § 14; G.L. 1956, § 44-5-27 ; P.L. 1989, ch. 422, § 1.

NOTES TO DECISIONS

Construction.

The legislature, in enacting this section, recognized the necessity for finality in assessment disputes when it stated that the taxpayer’s complaint is to be filed within three months of the last day specified for payment without a penalty of such tax. Northgate Assocs. v. Shorey, 541 A.2d 1192, 1988 R.I. LEXIS 74 (R.I. 1988).

Applicability.

Section 44-5-26 and this section did not apply to an action for repayment of taxes, fees and assessments brought against a water authority that was established under a special act. Clarke v. Raposa, 713 A.2d 756, 1998 R.I. LEXIS 167 (R.I. 1998).

Tax-exempt property, by its nature, is not “ratable,” “assessable,” or “liable to taxation,” and therefore a lessee of tax-exempt property is not bound by the procedural requirements for ratable property under R.I. Gen. Laws § 44-5-27 . Delta Airlines, Inc. v. Neary, 785 A.2d 1123, 2001 R.I. LEXIS 251 (R.I. 2001).

Taxpayer’s appeal of assessments of the taxpayer’s personal property was properly dismissed because (1) the taxpayer did not exhaust the taxpayer’s administrative procedures required by R.I. Gen. Laws § 44-5-26 , and (2) the taxpayer did not show that the taxes at issue were illegal by alleging the taxpayer’s taxed assets were exempt from taxes or that the assessments were so palpably exorbitant and excessive as to amount to constructive fraud, so direct judicial review under R.I. Gen. Laws § 44-5-27 was unavailable. Narragansett Elec. Co. v. Minardi, 21 A.3d 274, 2011 R.I. LEXIS 74 (R.I. 2011).

Adequate Statutory Remedy.

It was error for the court to have permitted a taxpayer to proceed in equity under this section since it had an adequate statutory remedy under § 44-5-26(b) . Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Class Action.

Even if this section bars a taxpayer’s suit as a class action, the individual plaintiffs could still maintain their action under R.C.P. 23(a) authorizing class action and such rule prevailed over statute to the extent of any conflict. Johnston Businessmen's Ass'n v. Aarussillo, 108 R.I. 257 , 274 A.2d 433, 1971 R.I. LEXIS 1257 (1971).

Effect of Failure to Comply.

Where a taxpayer failed to file a petition in superior court for relief from assessment or account of ratable property as required by statute, he could not raise a defense that the assessment was illegal and void in an action to recover the tax. Murray v. Rockaway Boulevard Wrecking & Lumber Co., 108 R.I. 607 , 277 A.2d 922, 1971 R.I. LEXIS 1314 (1971).

Exclusivity.

Taxpayer’s declaratory judgment action did not set forth a cognizable claim because the taxpayer was confined to bringing a tax appeal action under the provisions of R.I. Gen. Laws § § 44-5-26 and 44-5-27 ; a person challenging an assessment of taxes may not maintain a cause of action for declaratory relief. Morse v. Minardi, 208 A.3d 1151, 2019 R.I. LEXIS 78 (R.I. 2019).

Inventory of Personal Property.

Where plaintiffs had merely received notice from tax assessors’ office requiring that they file an inventory of personal property used in business, the exclusive relief provided in § 44-5-26 was not invoked, as no assessment had been made upon which plaintiffs could petition Superior Court for relief, therefore, the remedy provided by § 44-5-26 would be inadequate at law and did not foreclose plaintiffs from seeking equitable relief. Oster v. Restrepo, 448 A.2d 1268, 1982 R.I. LEXIS 995 (R.I. 1982).

Ratable Estates.

This section does not render § 44-5-26 the exclusive remedy for tax exempt properties, since such properties are not “ratable estates.” St. Clare Home v. Donnelly, 117 R.I. 464 , 368 A.2d 1214, 1977 R.I. LEXIS 1713 (1977).

Time of Filing Petition.

The provision in § 44-5-26 that permits a taxpayer to file a complaint after the local tax administrator renders his or her final decision does not operate to preclude the taxpayer from filing a complaint for equitable relief in the superior court pursuant to this section at a time prior to the administrator’s rendering his or her decision. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

Facts were insufficient to toll the three-month limitations period in this section, and thus, the grant of summary judgment in favor of the city was not erroneous. Lehigh Cement Co. v. Quinn, 173 A.3d 1272, 2017 R.I. LEXIS 125 (R.I. 2017).

Assuming a taxpayer’s complaint alleging an illegal tax actually alleged an illegal tax, the complaint was properly dismissed because the complaint was not timely filed, as the complaint had to be filed within three months after the last day appointed for payment of the tax without penalty, or the tax’s first installment. Bluedog Capital Partners, LLC v. Murphy, 206 A.3d 694, 2019 R.I. LEXIS 63 (R.I. 2019).

City tax assessor was entitled to summary judgment with respect to the property owners’ appeals because their claims were barred by the applicable statutes of limitations since the owners alleged an illegal tax claim for tax year 2012 and did not follow the normal statutory procedures, they were required to file their complaint within three months after the last day appointed for the payment of the tax, or the first installment of the tax if it was payable in installments, and their illegal tax assessment claim was additionally barred as they filed their complaint more than three years after the applicable statute of limitations had run. Newport & New Rd.,LLC v. Hazard, 2021 R.I. Super. LEXIS 55 (R.I. Super. Ct. July 8, 2021).

Valuation.

A tax assessor may carry over the same fair-market-value finding from one tax-assessment date to the next until required to conduct the decennial revaluation. Given the tremendous expense imposed upon municipalities in performing revaluations, the existing practice of decennial revaluations is reasonable. A property owner disputing an assessment carried over from a prior year, however, has interim remedies under § 44-5-26 and this section. Wickes Asset Mgmt. v. Dupuis, 679 A.2d 314, 1996 R.I. LEXIS 190 (R.I. 1996).

44-5-28. Collection proceedings not stayed by petition.

No petition shall, before judgment, stay any proceedings for collecting the tax.

History of Section. G.L. 1896, ch. 46, § 19; G.L. 1909, ch. 58, § 19; G.L. 1923, ch. 60, § 19; G.L. 1938, ch. 31, § 18; G.L. 1956, § 44-5-28 .

NOTES TO DECISIONS

In General.

This provision limits the time for relief by petition whether a return has been made or not. People's Sav. Bank v. Kiernan, 54 R.I. 102 , 170 A. 77, 1934 R.I. LEXIS 12 (1934).

44-5-29. Service and return of citation — Procedural rules — Jurisdiction of court.

The citation shall be made returnable and shall be served in like manner as a writ of summons, and the petition is subject to all provisions of law as to time for pleading, assignment day, and all other incidents applicable to an action at law originally commenced in the superior court; and the court has exclusive original jurisdiction of all petitions, notwithstanding that the amount involved does not exceed one thousand dollars ($1,000).

History of Section. G.L. 1896, ch. 46, § 16; C.P.A. 1905, § 1100; G.L. 1909, ch. 58, § 16; G.L. 1923, ch. 60, § 16; G.L. 1938, ch. 31, § 15; G.L. 1956, § 44-5-29 .

NOTES TO DECISIONS

Jury Trial.

Nothing in the statutory history of this law suggests that the revision commissioners in 1895 or in 1905 advised the legislature that they were recommending specific changes in the statutes affecting the right of either the taxpayer or the taxing officials to claim a trial by jury; hence, the 1896 revision as amended by the 1905 act carries with it the 1892 meaning, notwithstanding the omission from the 1892 act of the words “either said petitioner or said assessors may, on demand, have a trial by jury therein * * *.” Briggs Drive, Inc. v. Moorehead, 103 R.I. 555 , 239 A.2d 186, 1968 R.I. LEXIS 829 (1968).

When this section is construed with §§ 44-5-30 and 44-5-31 , it seems reasonably evident that among the “other incidents applicable” to a petition for relief from an assessment of taxes is the right of either the taxpayer or the taxing officials to claim a trial by jury, notwithstanding the 1896 omission from this section of the words “claim for jury-trial” contained in the derivative statute. Briggs Drive, Inc. v. Moorehead, 103 R.I. 555 , 239 A.2d 186, 1968 R.I. LEXIS 829 (1968).

44-5-30. Judgment on petition where taxpayer has filed account.

If the taxpayer has given in an account, and if on the trial of the petition, either with or without a jury, it appears that the taxpayer’s real estate, tangible personal property, or intangible personal property has been assessed in excess of the provisions of § 44-5-12 or if it appears that the tax assessed is illegal in whole or in part, the court shall give judgment that the sum by which the taxpayer has been so overtaxed, or illegally taxed, with his or her costs, be deducted from his or her tax; but if the taxpayer’s tax be paid, whether before or after the filing of the petition, then the court shall give judgment for the petitioner for the sum by which he or she has been so overtaxed, or illegally taxed, plus the amount of any penalty paid on the tax, with interest from the date on which the tax and penalty were paid and costs, which judgment shall be paid to the petitioner by the city or town treasurer out of the treasury. If, however, on the trial of the petition, it appears that the taxpayer has fraudulently concealed or omitted any property from his or her account, or if it appears that the assessors have not assessed either the taxpayer’s real estate or his or her tangible personal property or his or her intangible personal property at a value in excess of the provisions of § 44-5-12 , and that the taxpayer has not been illegally taxed, the assessors shall have judgment and execution for their costs.

History of Section. G.L. 1896, ch. 46, § 17; G.L. 1909, ch. 58, § 17; G.L. 1923, ch. 60, § 17; P.L. 1932, ch. 1945, § 5; G.L. 1938, ch. 31, § 16; G.L. 1956, § 44-5-30 ; P.L. 1960, ch. 52, § 32 (unconstit.); P.L. 1961, ch. 3, § 1; P.L. 1968, ch. 163, § 3; P.L. 2021, ch. 121, § 1, effective July 2, 2021; P.L. 2021, ch. 122, § 1, effective July 2, 2021.

Compiler's Notes.

P.L. 2021, ch. 121, § 1, and P.L. 2021, ch. 122, § 1 enacted identical amendments to this section.

NOTES TO DECISIONS

Determination of Value.

In determining fair market value for purposes of taxation, due and equal consideration should be given to the rights of both the owner and the taxing municipality. Ashton v. Tax Assessors, 60 R.I. 388 , 198 A. 786, 1938 R.I. LEXIS 162 (1938).

Based on the ambiguities created by the conflicting tax laws and the lack of clear legislative intent to the contrary, the Supreme Court held that the taxpayers were not locked in to the December 31, 2007, valuations of their properties, which was the year of the town’s last revaluation of real property; and that the taxpayers had the right to appeal the yearly tax assessments for tax years 2009 and 2010 based on the fair market valuations of their properties as of December 31, 2008, and December 31, 2009. Balmuth v. Dolce, 182 A.3d 576, 2018 R.I. LEXIS 43 (R.I. 2018).

— Capability of Subdivision.

Evidence as to the number of lots into which a tract of land can be divided and the value of each lot is inadmissible. Goelet v. Tax Assessors, 54 R.I. 306 , 172 A. 896, 1934 R.I. LEXIS 75 (1934).

— Expert Testimony.

Trial justice is not forced to take testimony of one set of experts as controlling, since expert testimony is to be considered together with other evidence in the trial. Ashton v. Tax Assessors, 60 R.I. 388 , 198 A. 786, 1938 R.I. LEXIS 162 (1938).

— Forced Sales.

Forced sales of real estate different in area, location and improvements would be of slight aid in determining full, fair, cash value of estate in question. Goelet v. Tax Assessors, 54 R.I. 306 , 172 A. 896, 1934 R.I. LEXIS 75 (1934).

Evidence of sale of somewhat similar property not sold at a fair sale since forced through financial difficulties was not material. Ashton v. Tax Assessors, 60 R.I. 388 , 198 A. 786, 1938 R.I. LEXIS 162 (1938).

— Improvements.

Elaborate improvements should be definitely considered in evaluating property. Goelet v. Tax Assessors, 54 R.I. 306 , 172 A. 896, 1934 R.I. LEXIS 75 (1934).

While cost of construction is not the measure of value for taxation, it is unreasonable not to permit on cross-examination some inquiry as to relative improvement costs on two properties being compared. Goelet v. Tax Assessors, 54 R.I. 306 , 172 A. 896, 1934 R.I. LEXIS 75 (1934).

Construction expert’s testimony as to cost of construction of buildings on property was not admissible, since cost of construction has no bearing on the value of the property including land because the proportionate increase or decrease by improvement may vary. Ashton v. Tax Assessors, 60 R.I. 388 , 198 A. 786, 1938 R.I. LEXIS 162 (1938).

Disposition by Supreme Court.

Supreme court would set fair taxable valuation of property assessed, and consequently amount of overpayment, somewhere between valuations of experts of parties where case was fully tried by both parties in superior court and where to remit case would result in unnecessary delay, inconvenience, and expense. Ashton v. Tax Assessors, 60 R.I. 388 , 198 A. 786, 1938 R.I. LEXIS 162 (1938).

Interest on Overpayment.

Taxpayer is entitled to interest on amount found by the supreme court to have been overpaid at the legal rate from the date of payment. Ashton v. Tax Assessors, 60 R.I. 388 , 198 A. 786, 1938 R.I. LEXIS 162 (1938).

Right to Jury.

The words “either with or without a jury” imply that either the taxpayer or the taxing officials may have a trial by jury upon demand. Briggs Drive, Inc. v. Moorehead, 103 R.I. 555 , 239 A.2d 186, 1968 R.I. LEXIS 829 (1968).

44-5-31. Judgment where taxpayer has not filed account.

If the taxpayer has not filed an account, and if on the trial of the petition, either with or without a jury, it appears:

  1. That his or her real estate has been assessed at a value in excess of the value at which it was assessed on the last preceding assessment day, whether then owned by him or her or not, and that the real estate has been assessed, if assessment has been made a full and fair cash value, at a value in excess of its full and fair cash value, or, if assessment has purportedly been made at a uniform percentage of full and fair cash value, at a percentage in excess of the uniform percentage; or
  2. That the tax assessed is illegal in whole or in part, the court shall give judgment that the sum by which the taxpayer has been so overtaxed or illegally taxed, with his or her costs, be deducted from his or her tax; but if the taxpayer’s tax is paid, whether before or after the filing of the petition, then the court shall give judgment for the petitioner for the sum by which he or she has been so overtaxed, or illegally taxed, plus the amount of any penalty paid on the tax, with interest from the date on which the tax and penalty were paid, and costs, which judgment shall be paid to the petitioner by the city or town treasurer out of the treasury. Otherwise, the assessors shall have judgment and execution for their costs.

History of Section. G.L. 1896, ch. 46, § 18; G.L. 1909, ch. 58, § 18; G.L. 1923, ch. 60, § 18; P.L. 1932, ch. 1945, § 6; P.L. 1935, ch. 2260, § 5; G.L. 1938, ch. 31, § 17; G.L. 1956, § 44-5-31 ; P.L. 1968, ch. 163, § 4.

NOTES TO DECISIONS

Jury Trial.

The words “either with or without a jury” imply that either the taxpayer or the taxing officials may have a trial by jury upon demand. Briggs Drive, Inc. v. Moorehead, 103 R.I. 555 , 239 A.2d 186, 1968 R.I. LEXIS 829 (1968).

44-5-31.1. Burrillville — Judgment.

Notwithstanding any provision contained in § 9-21-10 , in any tax assessment appeal or civil action brought pursuant to the applicable provisions of chapter 44-5 in which a verdict is rendered or a decision made for pecuniary damages, the amount of interest which shall be included in addition to the judgment entered therein shall not exceed the sum of one hundred thousand dollars ($100,000).

History of Section. P.L. 2013, ch. 244, § 1; P.L. 2013, ch. 493, § 1.

Compiler’s Notes.

P.L. 2013, ch. 244, § 1, and P.L. 2013, ch. 493, § 1 enacted identical versions of this section.

44-5-32. Execution and filing of assessment.

The assessors, on completing an assessment, shall date and sign it and deposit it in the office of the city or town clerk.

History of Section. G.L. 1896, ch. 46, § 20; G.L. 1909, ch. 58, § 20; G.L. 1923, ch. 60, § 20; G.L. 1938, ch. 31, § 19; G.L. 1956, § 44-5-32 .

Cross References.

Procedure in Cranston, § 44-5-37 .

Procedure in Pawtucket, § 44-5-36 .

Procedure in Providence, § 44-5-35 .

NOTES TO DECISIONS

In General.

Provision requiring assessment to be dated is directory only. Warwick & Coventry Water Co. v. Carr, 24 R.I. 226 , 52 A. 1030, 1902 R.I. LEXIS 56 (1902).

44-5-33. Copy of assessment to treasurer.

The city or town clerk shall make a copy of the assessment and deliver it to the city or town treasurer.

History of Section. G.L. 1896, ch. 46, § 21; G.L. 1909, ch. 58, § 21; G.L. 1923, ch. 60, § 21; G.L. 1938, ch. 31, § 20; G.L. 1956, § 44-5-33 .

44-5-34. Warrant for collection.

The city or town treasurer shall issue and affix to the copy of the assessment a warrant under his or her hand, and which does not need to be under seal, directed to the collector of taxes of the city or town, commanding him or her to proceed and collect the several sums of money expressed in the warrant, of the persons and estates liable for this money, by the time directed by the city or town, and to pay over the sums to him or her or to his or her successor in office. Whenever any city or town elects its city or town treasurer as collector of taxes for the city or town, the warrant shall be issued to the city or town treasurer as collector of taxes by the city or town clerk.

History of Section. G.L. 1896, ch. 46, § 22; G.L. 1909, ch. 58, § 22; G.L. 1923, ch. 60, § 22; G.L. 1938, ch. 31, § 21; G.L. 1956, § 44-5-34 .

44-5-35. Providence — Collection procedure.

In lieu of the provisions of §§ 44-5-32 44-5-34 , the assessors of taxes in the city of Providence shall, on completing the assessment, date and sign the assessment, and shall make out and certify to the city treasurer a complete list of the names of the persons taxed and of the total value of all the real estate taxed to each person, also the amount of personal estate assessed against each person, and also the total amount of the tax assessed against each person on real and personal estate, opposite the name of the person or persons assessed, the assessment of real estate and of personal estate to appear in separate columns in the list, and the city treasurer shall proceed to collect the taxes at the time and in the manner provided by law and by order of the city council.

History of Section. G.L. 1896, ch. 46, § 23; G.L. 1909, ch. 58, § 23; G.L. 1923, ch. 60, § 23; G.L. 1938, ch. 31, § 22; G.L. 1956, § 44-5-35 .

44-5-36. Pawtucket — Collection procedure.

In lieu of the provisions of §§ 44-5-32 44-5-34 , the assessors of taxes in the city of Pawtucket shall, on completing their assessment, date and sign the assessment and shall make out and certify to the city treasurer a complete list of the names of the persons taxed and of the total value of all of the real estate taxed to each person, also the amount of personal estate assessed against each person, and also the total amount of the tax assessed against each person on the real and personal estate, opposite the name of the person or persons assessed, the assessment of real estate and of personal estate to appear in separate columns in the list, and the city treasurer shall proceed to collect the taxes at the time and in the manner provided by law and by direction of the city council.

History of Section. G.L. 1896, ch. 46, § 24; P.L. 1897, ch. 466, § 1; P.L. 1907, ch. 1425, § 1; G.L. 1909, ch. 58, § 24; G.L. 1923, ch. 60, § 24; G.L. 1938, ch. 31, § 23; G.L. 1956, § 44-5-36 .

44-5-37. Cranston — Collection procedure.

In lieu of the provisions of §§ 44-5-32 44-5-34 , the assessors of taxes in the city of Cranston shall, on completing their assessment, date and sign the assessment and shall make out and certify to the city treasurer a complete list of the names of the persons taxed and of the total value of all of the real estate taxed to each person, also the amount of personal estate assessed against each person, and also the total amount of the tax assessed against each person on the real and personal estate, opposite the name of the person or persons assessed, the assessment of real estate and of personal estate to appear in separate columns in the list, and the city treasurer shall proceed to collect the taxes at the time and in the manner provided by law and by order of the city council.

History of Section. G.L. 1938, ch. 31, § 231/2; P.L. 1940, ch. 923, § 1; G.L. 1956, § 44-5-37 .

44-5-38. Rate of levy against tangible personal property consisting of manufacturing machinery and equipment acquired or used by a manufacturer.

Tangible personal property consisting of manufacturing machinery and equipment acquired, owned, or used by a manufacturer is subject to taxation at a uniform rate of assessment not to exceed fifty percent (50%) of the full and fair cash value of the property. The levy and assessment of the tax upon the manufacturer’s manufacturing machinery and equipment is subject to, and limited to, the following:

    1. Assessment and levy on manufacturer’s machinery and equipment. In assessing the valuation of the property and apportioning the levy of the tax on December 31, 1968, the assessors in the several cities and towns shall not exceed seventy-five percent (75%) of the total adjusted levy on the machinery, equipment, and inventories of all manufacturers of the city or town as established by the division of local and metropolitan government using the levy based on the assessment of the city or town as of December 31, 1966. In apportioning the levy as established in this subdivision, the assessor may add to the total adjusted levy, the increase in levy on manufacturer’s machinery, equipment, and inventory occasioned by manufacturers found to be operating but not taxed in the city or town as of December 31, 1966, or who have located in the city or town since that date.
    2. In apportioning the levy of the tax on manufacturers’ machinery and equipment within a city or town for fiscal years ending after December 31, 1969, the assessors of any city or town shall apportion the levy of the tax in an amount not to exceed one hundred three and one-half percent (103.5%) of the total adjusted levy on manufacturer’s machinery and equipment for the next prior fiscal year. In apportioning the levy of the tax, as provided in this subdivision, the assessors of any city or town may add to the total adjusted levy for the next prior fiscal year, the increase in levy on manufacturer’s machinery and equipment occasioned by manufacturers who have located or who have increased investment within the meaning of subdivision (3) in the city or town since the date of the next prior assessment.
    1. Assessment and levy on individual manufacturers. In assessing the valuation of the property and apportioning the levy of the tax on December 31, 1968, the assessors of the several cities and towns shall not exceed seventy-three and one-half percent (73.5%) of the adjusted levy of the tax on the machinery, equipment, and inventory of any manufacturer of the city or town for the next prior year. If the application of the preceding provision results in the total tax levy thus obtained on manufacturers’ machinery and equipment of a city or town for the year for which the date of assessment of valuations was December 31, 1968, as the assessment of valuations is established under the provisions of the first paragraph of this section, being less in amount than the amount of the total adjusted levy as computed in accordance with the seventy-five percent (75%) limitation prescribed under the provisions of paragraph of this section, the assessor of the city or town, for the purpose of bringing the total levy on the machinery and equipment to an amount not exceeding the amount of the total adjusted levy as computed by the seventy-five percent (75%) limitation, may apply the amount of the total adjusted tax levy, as was thus limited and computed under the provisions of paragraph of this section, to the total assessed valuation as of December 31, 1968, as the valuation is established under the provisions of the first paragraph of this section, on the machinery and equipment of all manufacturers of the city or town, and apply the resulting classified tax rate to the assessed valuations as of December 31, 1968, on the machinery and equipment of each manufacturer of the city or town.
    2. In assessing the valuation of the property and apportioning the levy of the tax for fiscal years ending after December 31, 1969, the assessors of the several cities and towns shall not exceed one hundred five percent (105%) of the adjusted levy of the tax on the machinery and equipment of any manufacturer for the next prior fiscal year.
  1. As to the property constituting an increase in investment, the limitations fixed in subdivisions (1) and (2) of this section do not apply to that portion of the tax levy on a manufacturer derived from a substantial increase in investment in additional machinery and equipment or that portion of the tax levy applicable to the property not previously taxed in the city or town. For the purposes of this section, “substantial” means an investment in any one year equal to at least fifteen percent (15%) of the sum of net book value plus accumulated reserves for depreciation of other machinery and equipment of the manufacturer within the city or town.
  2. When a city or town has completed a revaluation of all ratable property by independent professional appraisers since December 31, 1966, the assessor of the city or town shall, in applying the preceding limitations, employ the levy and assessment made for the fiscal year immediately following the completion of the revaluation in lieu of the base established as previously established by the division of local and metropolitan government; provided, that a base year later than a fiscal year commencing in 1969 is not employed.
  3. Nothing in this section affects any agreement for the stabilization or exemption of local taxes entered into under the provisions of § 44-3-9 ; provided, that any agreement may be modified to take into account the effect of § 44-11-2 by the city or town council and the manufacturer without the necessity of meeting the criteria and complying with the procedures established in § 44-3-9 . Upon the expiration of any existing agreement, the tax on the property consisting of manufacturers’ machinery, equipment, and inventory formerly stabilized or exempted under the agreement shall be based upon a new assessment complying with all the terms of this section.
  4. Each city or town has the option of using its general property tax rate in computing its levy on machinery and equipment of manufacturers or any separate rate, which it deems appropriate subject to the restrictions established in this section.
    1. In order to assess accurately the impact of the provisions of this section upon the several cities and towns and to provide necessary information for that purpose, each manufacturer subject to taxation in any city or town shall submit to the division of local and metropolitan government on or before October 1, 1966, a declaration report on the value of machinery and equipment for each city or town in which the manufacturer is located; the declaration reports shall be submitted on a form designed and furnished by the division and shall provide for inclusion of the net book value and the accumulated reserve for depreciation of machinery and equipment subject to local taxation, all as reported in the manufacturers’ most recent Rhode Island corporate tax return. The declaration report shall cover the most recent fiscal year of the taxpayer for which the due date for the filing of a corporate tax return with the tax administrator is prior to the date prescribed in this section for filing the report; provided, that where a manufacturer files a corporate tax return with the tax administrator on or prior to the date of October 1 for the fiscal year, the manufacturer shall file the declaration report on or before October 1.
    2. On or before October 1, 1968, and annually thereafter, each manufacturer shall file with the office of the assessor of the city or town in which the property is situated, a declaration report, as described in paragraph (1)(i) of this section, on a form prescribed by the department of revenue and furnished to the local assessors. All reports shall be treated confidentially by the assessor and employed by him or her for assessment purposes only.
    3. Failure to submit a declaration report to either the department of revenue or the tax assessor of any city or town as required in subdivision (1)(i) subjects the manufacturer to a penalty not to exceed ten percent (10%) of the tax on machinery and equipment payable at the time when the taxes are due and payable as an addition to the tax due in the next succeeding year and the penalty shall be so identified and listed on the tax roll. Should a manufacturing establishment fail to submit a declaration report for a second successive year, it is subject to a penalty not to exceed twenty-five percent (25%) of its tax on machinery and equipment, payable as prescribed; should a manufacturing establishment fail for a third successive year to file the declaration report it is subject to a penalty not to exceed fifty percent (50%) of the tax on its machinery and equipment, payable as prescribed; for subsequent successive years, failure to file the declaration report subjects the manufacturing establishment to a penalty not to exceed fifty percent (50%) of its tax on machinery and equipment, payable as prescribed. As to any manufacturer failing to file a declaration report with the local assessor as required in this section, the limitation of paragraph (2)(ii) of this section shall not take effect until the assessment date next following the date upon which the manufacturer first files a report with the assessor. In lieu of the declaration report, any manufacturer subject to taxation for the first time in any city or town of this state shall submit the information that is necessary to establish its initial tax base and, in subsequent years, shall file the declaration report.
  5. In any case where the assessor of any city or town has reason to doubt the veracity of the contents of any declaration report so filed, the report may be submitted to the department of revenue, which shall compare the information contained in the report with information on file with the division of taxation and advise the assessor as to the veracity of the report.
  6. A manufacturer who stores or keeps on hand raw materials, work in process, and his or her finished products in a storage place (as distinguished from finished products which he or she holds for retail sale in any retail establishment operated by him or her) in a city or town other than that in which his or her manufacturing plant is located shall file on or before March 15, 1969, and annually thereafter on or before each succeeding March 15, an inventory report on a form prescribed and furnished by the department of revenue through the assessor, with the assessor of the city or town where the raw materials and finished products are stored. The assessor of each city or town shall notify all manufacturers of the city or town of the requirement for filing the reports by publication in a newspaper of general circulation in the city or town during the month of January, 1969, and during the same month in each year thereafter. The report shall contain a true account of the raw materials, work in process, and finished products that were manufactured by him or her in this state as well as any other merchandise owned or possessed by him or her in the city or town on December 31 next preceding the date specified for the filing of the inventory report. The report must describe and specify the value of the raw materials, work in process, and finished products that were manufactured as already stated and also the value of all other merchandise stored in the city or town. Any manufacturer who fails or refuses to file any inventory report at the time and in the manner prescribed in this section is deemed to have waived the tax exemption provided for on the raw materials, work in process, and finished products thus stored, whereupon, and notwithstanding the provisions of § 44-3-3(20), the property is subject to taxation like all other taxable property. The provisions of this subdivision shall not be construed to repeal § 44-5-15 or to limit the application of its provisions.
  7. A manufacturer who operates storage facilities for the storage of his raw materials, work in process, and finished products in a city or town other than that in which his or her manufacturing plant is located shall set forth in the declaration report, as and in the manner prescribed in subdivision (7) of this section to be filed with the assessor of the city or town where the storage facilities are located, any machinery and equipment owned or possessed by him or her which is situated in or upon the storage facilities for use in the operation of the storage facilities, or held there for use in the operation of the manufacturing plant.
  8. The restrictions contained in this chapter shall not apply to the portion of the tax, if any, assessed by the city or town for the purpose of paying the indebtedness of the city or town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the city or town, and the interest thereon; and for appropriation to any sinking fund of the city or town (which portion of the tax is paid in full).
  9. Any person who hires a person from public supported programs for persons with disabilities and rehabilitated, shall receive a five hundred dollar ($500) credit per person hired; provided, that the number of the persons increases the number of full-time employees by three percent (3%) of the total numbers of persons employed the previous year.
  10. For purposes of this subdivision, in determining the total amount of the tax levy on manufacturing machinery and equipment owned or used by a manufacturer on December 31, 1973, the assessors in the several cities and towns shall not exceed ninety percent (90%) of the levy on the class of property made as of December 31, 1972; thereafter annually commencing in 1974 on December 31, the assessors shall reduce the levy on the class of property whether or not acquired subsequent to December 31, 1972, except as provided in this section, as follows: to eighty percent (80%) of the December 31, 1972, levy on December 31, 1974; to seventy percent (70%) of the December 31, 1972, levy on December 31, 1975; to sixty percent (60%) of the December 31, 1972, levy on December 31, 1976; to fifty percent (50%) of the December 31, 1972, levy on December 31, 1977; to forty percent (40%) of the December 31, 1972, levy on December 31, 1978; to thirty percent (30%) of the December 31, 1972, levy on December 31, 1979; to twenty percent (20%) of the December 31, 1972, levy on December 31, 1980; to ten percent (10%) of the December 31, 1972, levy on December 31, 1981 and to continue at ten percent (10%) of the December 31, 1972, levy on December 31, 1982; and to five percent (5%) of the December 31, 1972, levy on December 31, 1983; and thereafter the property is exempt from taxation.

History of Section. P.L. 1966, ch. 245, § 4; P.L. 1966, ch. 287, §§ 2, 4; P.L. 1967, ch. 191, § 5; P.L. 1974, ch. 127, § 1; P.L. 1974, ch. 200, art. 1, § 1; P.L. 1976, ch. 131, § 2; P.L. 1982, ch. 199, § 2; P.L. 1983, ch. 167, art. 9, § 1; P.L. 1984, ch. 150, § 5; P.L. 1988, ch. 84, § 95; P.L. 1999, ch. 83, § 124; P.L. 1999, ch. 130, § 124; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

Collateral References.

What constitutes manufacturing and who is a manufacturer under tax laws. 17 A.L.R.3d 7.

44-5-38.1. Repealed.

History of Section. P.L. 1974, ch. 200, art. 1, § 2; P.L. 1983, ch. 167, art. IX, § 1; P.L. 1984, ch. 150, § 6; Repealed by P.L. 1987, ch. 118, art. 7, § 3, effective June 22, 1987.

Compiler’s Notes.

Former § 44-5-38.1 concerned appropriations in lieu of local personal property tax on manufacturers’ machinery and equipment.

44-5-39. Land use change tax.

  1. After May 15, 1980, when land classified as farm, dairy farm, forest, or open space land and assessed and taxed under the provisions of § 44-5-12 is applied to a use other than as farm, dairy farm, forest, or open space, or when the land owner voluntarily withdraws that classification, it shall be subject to additional taxes, subsequently referred to as a land use change tax. The tax is at the following rate:
    1. Ten percent (10%) of the then fair market value of the land if the use is changed or classification is withdrawn during the first six (6) years of classification.
    2. Nine percent (9%) of the then fair market value of the land if the use is changed or classification is withdrawn during the seventh (7th) year of classification.
    3. Eight percent (8%) of the then fair market value of the land if the use is changed or classification is withdrawn during the eighth (8th) year of classification.
    4. Seven percent (7%) of the then fair market value of the land if the use is changed or classification is withdrawn during the ninth (9th) year of classification.
    5. Six percent (6%) of the then fair market value of the land if the use is changed or classification is withdrawn during the tenth (10th) year of classification.
    6. Five percent (5%) of the then fair market value of the land if the use is changed or classification is withdrawn during the eleventh (11th) year of classification.
    7. Four percent (4%) of the then fair market value of the land if the use is changed or classification is withdrawn during the twelfth (12th) year of classification.
    8. Three percent (3%) of the then fair market value of the land if the use is changed or classification is withdrawn during the thirteenth (13th) year of classification.
    9. Two percent (2%) of the then fair market value of the land if the use is changed or classification is withdrawn during the fourteenth (14th) year of classification.
    10. One percent (1%) of the then fair market value of the land if the use is changed or classification is withdrawn during the fifteenth (15th) year of classification. No tax shall be imposed by the provisions of this section following the end of the fifteenth (15th) year of classification.
  2. Owners of land classified as farmland or dairy farmland who have held title to the land, and where the land has been farmed or used as a dairy farm for five (5) years previous to classification, are liable for a land use change tax of:
    1. Ten percent (10%) of the then fair market value of the land if the use is changed or classification is withdrawn during the first (1st) year of classification.
    2. Nine percent (9%) of the then fair market value of the land if the use is changed or classification is withdrawn during the second (2nd) year of classification.
    3. Eight percent (8%) of the then fair market value of the land if the use is changed or classification is withdrawn during the third (3rd) year of classification.
    4. Seven percent (7%) of the then fair market value of the land if the use is changed or classification is withdrawn during the fourth (4th) year of classification.
    5. Six percent (6%) of the then fair market value of the land if the use is changed or classification is withdrawn during the fifth (5th) year of classification.
    6. Five percent (5%) of the then fair market value of the land if the use is changed or classification is withdrawn during the sixth (6th) year of classification.
    7. Four percent (4%) of the then fair market value of the land if the use is changed or classification is withdrawn during the seventh (7th) year of classification.
    8. Three percent (3%) of the then fair market value of the land if the use is changed or classification is withdrawn during the eighth (8th) year of classification.
    9. Two percent (2%) of the then fair market value of the land if the use is changed or classification is withdrawn during the ninth (9th) year of classification.
    10. One percent (1%) of the then fair market value of the land if the use is changed or classification is withdrawn during the tenth (10th) year of classification. No tax shall be imposed by the provisions of this section following the end of the tenth year of classification.

History of Section. P.L. 1968, ch. 288, § 4; P.L. 1980, ch. 252, § 3; P.L. 2021, ch. 182, § 2, effective July 6, 2021; P.L. 2021, ch. 183, § 2, effective July 6, 2021.

Compiler's Notes.

P.L. 2021, ch. 182, § 2 and P.L. 2021, ch. 183, § 2 enacted identical amendments to this section.

Cross References.

Classification of farm, forest, or open space land, §§ 44-27-1 44-27-13 .

NOTES TO DECISIONS

Calculation of Classification Time.

Years during which property was used for farming prior to its classification as farmland under the farm, forest, and open space program could not be applied as program time credits in calculating the land use change tax due upon withdrawal of the property from the program. Nunes v. Marino, 707 A.2d 1239, 1998 R.I. LEXIS 58 (R.I. 1998).

44-5-39.1. Recording required.

No tax provided for in § 44-5-39 constitutes a valid lien upon any parcel of real estate classified as farm, forest, or open space unless notice of the classification of the real estate has been filed by the tax assessor with the recorder of deeds of the city or town in which the real estate is located. There is no recording fee collected for the recording of the notice.

History of Section. P.L. 1986, ch. 41, § 1.

44-5-40. Procedures for collecting land use change tax.

  1. When a change in the use of the land occurs the assessor shall record in the land evidence records a notice of the change in use, stipulating on the land evidence records, a description of the property, its plat and lot number (if any), the fair market value, and the amount of taxes due. Similar notices shall be mailed to the present owner of the property and the director of environmental management by registered or certified mail within twenty-four (24) hours of the recording. The tax constitutes a lien on the property at the time of recording the notice of land use change and the tax becomes due and payable in full within ninety (90) days of the date of recording. The lien continues in effect until the taxes are paid in full. Every city and town shall make provisions for the payment in installments of any land use change tax, permitting persons to pay the tax in equal quarterly installments, with the final quarter to be paid in full within one year of the date when the change of use notice is recorded, as prescribed in this subsection. Failure by the owner to pay the taxes in a timely manner as prescribed in this subsection allows the tax collector to advertise and sell the property in the same manner as prescribed in chapter 9 of this title.
  2. The board of assessment review of any city or town, or the city or town council if there is no board of review in any city or town, has the authority to hear and consider the appeal of any property owner concerning the fair market value placed on his or her land by the assessor, and if it appears that the land has been appraised in excess of its fair market value at the time of the change in use, the board or council has the power to change the value of the land and adjust the land use change tax applied to the land according to the schedule prescribed in § 44-5-39 .

History of Section. P.L. 1968, ch. 288, § 4; P.L. 1980, ch. 252, § 3.

44-5-41. Condemnation not to result in land use change tax.

The taking of land which is being valued, assessed, and taxed as farm, forest, or open space land pursuant to the provisions in § 44-5-12 by right of eminent domain does not subject the land so taken to the land use change tax imposed by § 44-5-39 .

History of Section. P.L. 1968, ch. 288, § 4; P.L. 1980, ch. 252, § 3.

44-5-42. Exemption of certain farm property.

  1. All farm machinery, including motor vehicles with farm registration plates, is exempt from taxation; provided, that any town or city is entitled to reimbursement by the state in an amount equal to the amount levied on the value of the farm machinery in excess of the value of ten thousand dollars ($10,000.00) based upon assessments on December 31, 1982.
  2. Livestock and poultry which are actually and exclusively used in farming, when owned and kept in this state by any farmer or group of farmers operating as a unit, a partnership, or a corporation, a majority of the stock of which corporation is held by members of a family actively engaged in farm operations, are exempt from local property taxation; provided, that the principal means of livelihood of each farmer whether operating individually or as one of a group, partnership or corporation is derived from the farming operation. Only one exemption is allowed to each farmer, group of farmers, partnership, or corporation.
  3. Richmond.  All real property including all real estate, buildings and improvements on the property which is not used for a personal residence and is actually and exclusively used in farming by a qualified farmer may be exempted from taxation by the town of Richmond. For purposes of this section, a “qualified farmer” is an individual, partnership or corporation who operates a farm and has filed a 1040F U.S. Internal Revenue form or similar document with the Internal Revenue Service, has a state of Rhode Island farm tax number, and has earned at least ten thousand dollars ($10,000) gross income on farm products in each of the preceding three (3) years, property defined as either farm, forest or open space land, pursuant to chapter 27 of this title. Any sale of exempted land, or portion of the land, incurs at the time of sale a penalty of twice the total amount of taxes exempted. The assessed penalty is due and payable to the town of Richmond, which would grant the exemption at the time of sale of the property. A sale of land to another qualified farmer or use according to this section is exempted from the penalty.
  4. Any taxpayer or owner which allows its real property to be used by a qualified owner in a manner consistent with use defined in subsection (c) may be eligible for the exemption established by this section for the duration of use by a qualified farmer. The tax assessor may prorate the exemption according to actual use. The tax assessor may require evidence of actual use, including, but not limited to, a lease, to substantiate the exemption.
  5. Cities and towns may tax farm buildings at a rate that reflects the actual costs incurred by the city or town in services to those buildings.
  6. All greenhouses constructed after January 1, 2006, or altered or repaired after January 1, 2006, where the cost of the alterations or repairs is equal to or greater than fifty percent (50%) of the physical value of the greenhouse, are exempt from taxation, provided that the greenhouse is used solely as an agriculture growing structure and provided further that the owner of the greenhouse operates a farm, has filed a 1040F, and has a current, valid Level II certificate of exemption as provided for in § 44-18-30 .

History of Section. P.L. 1972, ch. 189, § 1; P.L. 1984, ch. 245, art. X, § 1; P.L. 1984, ch. 348, § 1; P.L. 1988, ch. 84, § 95; P.L. 1996, ch. 207, § 1; P.L. 2001, ch. 81, § 1; P.L. 2001, ch. 255, § 1; P.L. 2006, ch. 535, § 1; P.L. 2006, ch. 536, § 1.

44-5-42.1. Repealed.

History of Section. P.L. 1984, ch. 245, art. X, § 1; Repealed by P.L. 1987, ch. 118, art. 7, § 3, effective June 22, 1987.

Compiler’s Notes.

Former § 44-5-42.1 concerned appropriations in lieu of tax on farm machinery, livestock and poultry.

44-5-43. Definitions.

  1. As used in this chapter, the following terms are defined as follows:
    1. “Assessment ratio study” means the process of comparing, on a sampling basis, the current market values of properties to their assessed valuations, and of applying statistical procedures to determine assessment levels and to measure the nonuniformity of assessments.
    2. “Department” means the department of revenue.
    3. “Russell index of inequality” is that percentage obtained from the relation between the average absolute deviation of assessment ratios and the average ratio of assessment, and formulated as follows:
  2. Average absolute deviation of assessment ratios divided by the average assessment ratio = Russell index of inequality.

History of Section. P.L. 1979, ch. 298, § 5; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37; P.L. 2010, ch. 239, § 38.

44-5-44. Collection and publication of property tax data.

  1. The department of revenue shall annually make and publicly issue comprehensive assessment ratio studies of the average level of assessment and the degree of assessment uniformity within each town and city. The department of revenue shall also annually compute and publicly issue the Russell Index of Inequality within each town and city.
  2. The department of revenue shall require assessors and other officers to report to it data on assessed valuations and other features of the property tax for the periods and in the form and content that the department of revenue requires. The department of revenue shall construct and maintain its system for the collection and analysis of property tax facts to enable it to make intrastate comparisons as well as interstate comparisons based on property tax and assessment ratio data compiled for other states by the United States Bureau of the Census or any agency successor to the Bureau.

History of Section. P.L. 1979, ch. 298, § 5; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-45. Severability of §§ 44-5-43 — 44-5-45.

The invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of §§ 44-5-43 44-5-45 .

History of Section. P.L. 1979, ch. 298, § 6.

44-5-46. Severability.

If any clause, sentence, paragraph, or part of this chapter shall for any reason is judged invalid by any court of competent jurisdiction, the judgment shall not affect, impair, or invalidate the remainder of the chapter but shall be confined in its operation to the clause, sentence, paragraph, or part of the chapter directly involved in the controversy in which judgment has been rendered.

History of Section. P.L. 1980, ch. 252, § 4.

44-5-47. Repealed.

History of Section. P.L. 1984, ch. 206, art. I, § 1; Repealed by P.L. 1984, ch. 450, § 2, effective June 28, 1984.

44-5-48. Municipal revaluation — Registration.

All persons, firms, partnerships, corporations, or other business entities seeking to perform a municipal revaluation as is described in § 44-5-11.6 shall first register with the department of revenue and shall conform to the rules and regulations promulgated by the director of the department of revenue in order to do business in this state.

History of Section. P.L. 1984, ch. 365, § 1; P.L. 1984, ch. 381, art. II, § 3; P.L. 2005, ch. 410, § 29; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-49. Municipal revaluation — Rules and regulations — Investigation.

The director of the department of revenue is authorized and empowered to promulgate rules and regulations for revaluation firms as described in § 44-5-48 , and the director is authorized to investigate and inquire into the resources of applicants including, but not limited to, contacting prior persons for whom service was performed in order to evaluate the applicant’s ability to perform the service of revaluation.

History of Section. P.L. 1984, ch. 365, § 2; P.L. 1984, ch. 381, art. II, § 3; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-50. Contract for revaluation — Certified copy.

Within ten (10) days after execution of a contract for revaluation as described in § 44-5-11.6 , the city or town clerk shall submit a duly authorized and certified copy of the contract to the department of revenue.

History of Section. P.L. 1984, ch. 365, § 3; P.L. 1984, ch. 381, art. II, § 3; P.L. 2005, ch. 410, § 29; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37.

44-5-51. Little Compton — Exemption of commercial fishers.

All gear and tackle owned by a commercial fisher who is a resident of the town of Little Compton is exempt from taxation by the town of Little Compton.

History of Section. P.L. 1992, ch. 130, § 1; P.L. 1992, ch. 348, § 1.

44-5-52. Burrillville — Property tax classification authorized.

Notwithstanding the provisions of § 44-5-11.8 to the contrary, the town of Burrillville is authorized to adopt a system of property tax classification in any year commencing in 2013 for taxes assessed as of December 31, 2012, and thereafter.

History of Section. P.L. 1994, ch. 40, § 1; P.L. 2013, ch. 138, § 1; P.L. 2013, ch. 170, § 1.

Compiler’s Notes.

P.L. 2013, ch. 138, § 1, and P.L. 2013, ch. 170, § 1 enacted identical amendments to this section.

44-5-53. Burrillville — Property tax classification — List of ratable property.

  1. Upon adoption of a system of classification of taxable property by the town of Burrillville, all ratable property in the town of Burrillville shall be classified by the assessor as follows:
    1. Class 1: All residential real estate, which consists of not more than six (6) dwelling units. Class 1 includes all mobile/manufactured homes and residential condominiums;
    2. Class 2: All commercial and industrial real estate and all residential real estate which consists of more than six (6) dwelling units;
    3. Class 3: All ratable tangible personal property;
    4. Class 4: All motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.
  2. Where real property is used or held for more than one purpose and the uses result in different classifications, the town council may, by ordinance, establish a process by which the assessor shall tax the property at the rate of the predominate use of the property.
  3. Notwithstanding any provisions of § 44-5-11.8 , the tax rates applicable to wholesale and retail inventory within Class 3 as defined in subsection (a) of this section are governed by § 44-3-29.1 .
  4. The tax rates applicable to motor vehicles within Class 4 as defined in subsection (a) of this section are governed by § 44-34.1-1 .

History of Section. P.L. 1994, ch. 40, § 1; P.L. 2013, ch. 138, § 1; P.L. 2013, ch. 170, § 1.

Compiler’s Notes.

P.L. 2013, ch. 138, § 1, and P.L. 2013, ch. 170, § 1 enacted identical amendments to this section.

44-5-54. Burrillville — Property tax classification — Duties of the assessor.

  1. The assessor of the town of Burrillville, on or before June 1 of each year, shall make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation under this chapter, and determine the assessed valuation of each property class.
  2. The assessor is authorized to apply different rates of taxation to each property class as set forth in § 44-5-53 to determine the tax due and payable on the property; provided, that the rate for each class is uniform within each class; and for each year. Class 2 property rates shall not be more than one hundred fifty percent (150%) of Class 1 property tax rates, and Class 3 property rates shall not be more than two hundred twenty-five percent (225%) of the maximum allowable Class 2 property rates.

History of Section. P.L. 1994, ch. 40, § 1; P.L. 2013, ch. 138, § 1; P.L. 2013, ch. 170, § 1.

Compiler’s Notes.

P.L. 2013, ch. 138, § 1, and P.L. 2013, ch. 170, § 1 enacted identical amendments to this section.

44-5-55. Burrillville — Property tax classification — Procedures for adopting — Tax levy determination.

The assessor shall provide to the town council of Burrillville a list containing the full and fair cash valuation of each property class, and the town council shall annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1994, ch. 40, § 1.

44-5-55.1. Burrillville — Tax levy assessment stabilization.

The town of Burrillville is authorized to establish by ordinance a process to stabilize tax assessments and/or provide tax credits for physical improvements made to certain properties located in areas of town that have been designated substandard by the town’s comprehensive plan or as may be separately designated by the town council. Specifically, said ordinance shall provide that physical improvements made to any commercial, industrial, mixed use buildings, and apartment houses with six (6) or more legal units located in areas that have been designated may be eligible for tax stabilization and/or a tax credit against their real estate tax levy as set forth in the town’s ordinance. The stabilization granted or tax credit based upon these improvements shall be in place for a period not to exceed ten (10) years from the date on which the work on the improvements shall have been completed. All improvements made to the property will be assessed accordingly as of December 31 of each year per § 44-5-1 . The ordinance shall also include a process for an applicant to apply and qualify for said credits.

History of Section. P.L. 2006, ch. 411, § 1; P.L. 2006, ch. 532, § 1; P.L. 2020, ch. 53, § 1.

Compiler’s Notes.

P.L. 2020, ch. 53 amended § 44-5-55.1 , while P.L. 2020, ch. 50 repealed § 44-5-55.1 and enacted § 44-5-55.2 with language substantially similar to the text of § 44-5-55.1 as amended by P.L. 2020, ch. 53. In 2020, both the amended and repealed versions of § 44-5-55.1 were set out, as well as § 44-5-55.2 , pending legislative clarification. In 2021, P.L. 2021, ch. 65, § 1 repealed § 44-5-55.2, and thus the repealed version of § 44-5-55.1 also has been deleted, leaving this section as amended by P.L. 2020, ch. 53.

44-5-55.2. [Repealed.]

History of Section. P.L. 2020, ch. 50, § 2; repealed by P.L. 2021, ch. 65, § 1, effective June 25, 2021.

Compiler’s Notes.

Former § 44-5-55.2 concerned Burrillville tax levy and stabilization. See Compiler's Note under § 44-5-55.1 .

44-5-56. North Providence — Property tax classification — Eligibility.

The town of North Providence is authorized to adopt a system of property tax classification.

History of Section. P.L. 1995, ch. 46, § 1.

44-5-57. North Providence — Property tax classification — List of ratable property.

Upon adoption of a system of classification of taxable property by the town of North Providence, all ratable property in the town of North Providence shall be classified by the assessor as follows:

  1. Class one: all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.
  2. Class two: all ratable tangible personal property.
  3. Class three: all residential real estate which consists of not more than five (5) dwelling units.
  4. Class four: all commercial and industrial real estate and all residential real estate which consists of six (6) or more dwelling units.
  5. Class five: owner-occupied mixed-use combination commercial and residential properties with five (5) units or less, and that the total commercial portion of the structure cannot occupy more than fifty percent (50%) of the entire square foot size of the structure itself.

History of Section. P.L. 1995, ch, 46, § 1; P.L. 1997, ch. 249, § 1.

44-5-58. North Providence — Property tax classification — Duties of assessor.

  1. The assessor of the town of North Providence, on or before June 1 of each year, shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation, and determine the assessed valuation of each property class.
  2. The assessor has the authority to apply different rates of taxation against class one, class two, class three and class four property to determine the tax due and payable on the property; provided, that the rate of taxation is uniform within each class.

History of Section. P.L. 1995, ch. 46, § 1; P.L. 2005, ch. 410, § 29.

44-5-59. North Providence — Property tax classification — Procedure for adopting.

The assessor shall provide to the finance director a list containing the full and fair cash valuation of each property class, and with the approval of the town council of North Providence, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1995, ch. 46, § 1.

44-5-60. North Providence — Homestead exemptions.

  1. The mayor, upon approval of the town council of the town of North Providence, is authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of North Providence and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a resident of North Providence and who occupies the property as his or her principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined in this subsection, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of North Providence may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption; provided, that there is a homestead exemption for owner-occupied residential and commercial mixed-use (class 5) real estate in an amount not to exceed ten percent (10%) of the assessed value.

History of Section. P.L. 1995, ch. 46, § 1; P.L. 1997, ch. 249, § 1; P.L. 2017, ch. 179, § 1; P.L. 2017, ch. 363, § 1.

Compiler’s Notes.

P.L. 2017, ch. 179, § 1, and P.L. 2017, ch. 363, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2017, ch. 179, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2017, ch. 363, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

44-5-60.1. Johnston — Homestead exemptions.

  1. The mayor of the town of Johnston, upon approval of the town council, is authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of Johnston and to grant homestead exemptions to the owner(s) of that residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. That exemption only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a resident of Johnston and who occupies the property as his or her principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the mayor of the town of Johnston, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption. Provided, that there shall be a homestead exemption for owner-occupied residential and commercial mixed-use (class 5) real estate in an amount not to exceed ten percent (10%) of the assessed value.

History of Section. P.L. 2000, ch. 36, § 1; P.L. 2017, ch. 179, § 1; P.L. 2017, ch. 363, § 1.

Compiler’s Notes.

P.L. 2017, ch. 179, § 1, and P.L. 2017, ch. 363, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2017, ch. 179, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2017, ch. 363, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

44-5-61. Coventry — Exemption or stabilizing of taxes on qualifying property used for manufacturing or commercial purposes in the town.

  1. Except as provided, the town council of the town of Coventry may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions provided, to exempt from payment, in whole or in part, real and personal property used for manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, that after public hearings, at least ten (10) days’ notice of which is given in a newspaper having a general circulation in the town, the town council determines that:
    1. Granting of the exemption or stabilization of taxes inures to the benefit of the town by reason of:
      1. The willingness of the manufacturing or commercial firm or concern to locate in the town; or
      2. The willingness of a manufacturing or commercial firm or concern to expend facilities with an increase in employment; or
    2. Granting of the exemption or stabilization of taxes inures to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant or commercial building investment by the firm or concern in the town.
  2. For purposes of this section, “real property used for commercial purposes” includes any building or structure used for offices or commercial enterprises including, without limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business and the land on which the building or structure is situated and not used for residential purposes.
  3. For purposes of this section, “personal property used for commercial purposes” means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by the firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.
  4. Except as provided, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, is not, during the period for which the exemption or stabilization of the amount of taxes is granted, further liable to taxation by the town in which the property is located so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.
  5. Notwithstanding any vote and findings by the town council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the town of Coventry for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision of the state to the extent assessed upon or apportioned to the town, and the interest thereon, and for appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.

History of Section. P.L. 1996, ch. 10, § 1.

44-5-61.1. Central Falls — Exemption or stabilizing of taxes on qualifying property located in the city.

Except as provided in this section, the city council of the city of Central Falls may vote to authorize for a period not exceeding twelve (12) years, and subject to the conditions provided in this section, to exempt from payment, in whole or in part, real and personal qualifying property, or to determine a stabilized amount, of taxes to be paid on account of the qualifying property located within the city of Central Falls, notwithstanding the valuation of the property or the rate of tax; provided, that after a public hearing, at least ten (10) days’ notice of which must be given in a newspaper having a general circulation in the city, the city council determines that granting of the exemption or stabilization for qualifying property has inured or will inure to the benefit of the city by reason of the willingness of the owners of qualifying property to replace, reconstruct, expand or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment or to construct new buildings or facilities or acquire new machinery or equipment for use in the buildings or facilities or to reoccupy or reuse the buildings or facilities if they are vacant or abandoned for manufacturing/warehousing or research and development, resulting in an increase in investment by the owners in the city. For purposes of this section, “qualifying property” means any building or structures used or intended to be used essentially for offices, manufacturing, or commercial enterprises, including, but not limited to, financial service enterprises. Except as provided in this section, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the city so long as that property is used or intended to be used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.

History of Section. P.L. 1999, ch. 492, § 1; P.L. 2013, ch. 87, § 1; P.L. 2013, ch. 95, § 1; P.L. 2017, ch. 452, § 1; P.L. 2017, ch. 466, § 1.

Compiler’s Notes.

P.L. 2013, ch. 87, § 1, and P.L. 2013, ch. 95, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 452, § 1, and P.L. 2017, ch. 466, § 1 enacted identical amendments to this section.

44-5-61.2. Pawtucket — Exemption or stabilizing of taxes on qualifying property located in the city.

Except as provided in this section, the city council of the city of Pawtucket may vote to authorize for a period not exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from payment, in whole or in part, real and personal qualifying property, or to determine a stabilized amount, of taxes to be paid on account of the qualifying property located within the city of Pawtucket, notwithstanding the valuation of the property or the rate of tax; provided, that after a public hearing, at least ten (10) days’ notice of which must be given in a newspaper having a general circulation in the city, the city council determines that granting of the exemption or stabilization for qualifying property will inure to the benefit of the city by reason of the willingness of the owners of qualifying property to replace, reconstruct, expand or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment or to construct new buildings or facilities or acquire new machinery or equipment for use in the buildings or facilities or to reoccupy or reuse the buildings or facilities if they are vacant or abandoned for manufacturing/warehousing or research and development, resulting in an increase in investment by the owners in the city. For purposes of this section, “qualifying property” means any building or structures used or intended to be used essentially for offices, manufacturing, or commercial enterprises. Except as provided in this section, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the city so long as that property complies with any stabilization agreement and is used or intended to be used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.

History of Section. P.L. 1999, ch. 239, § 1.

44-5-62. Cranston — Homestead exemption.

  1. The city council of the city of Cranston is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes or mixed purposes, defined as a combination of residential and commercial uses, in the city of Cranston and to grant homestead exemptions to the owner or owners of residential real estate or combination residential and commercial real estate in an amount not to exceed thirty percent (30%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units or real property used for a combination of residential and commercial uses. When real property is used for mixed purposes, the percentage of the assessed value shall be a pro rated amount. That pro rated amount is the percentage of square feet used for residential purposes multiplied by thirty percent (30%). In order to determine compliance with the homestead exemption as outlined in this subsection, the city council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. The city council of the city of Cranston may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to the exemption to those who are entitled to claim the exemption.

History of Section. P.L. 1996, ch. 22, § 1; P.L. 1996, ch. 225, § 1; P.L. 1997, ch. 258, § 3.

44-5-63. Barrington — Property tax classifications — List of ratable property.

Upon adoption of a classification of taxable property by the town of Barrington, all ratable property in the town of Barrington shall be classified by the assessor as follows:

  1. Class 1: all ratable real estate and tangible personal property.
  2. Class 2: all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 1996, ch. 27, § 1.

44-5-64. Barrington — Property tax classification — Tax levy determination.

  1. The assessor of the town of Barrington shall annually prepare a list containing the full and fair valuation of each property within the town and the percentage of the tax levy to be apportioned to each class of property and tax rates sufficient to produce the proportion of the total tax levy.
  2. The assessor has the authority to apply different rates of taxation against Class 1 and Class 2 property to determine the tax due and payable on the property; provided, that the rate of taxation is uniform within each class.

History of Section. P.L. 1996, ch. 27, § 1.

44-5-65. East Greenwich — Homestead exemption.

  1. The town council of the town of East Greenwich is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of East Greenwich and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the town of East Greenwich, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.

History of Section. P.L. 1996, ch. 365, § 1; P.L. 2017, ch. 179, § 1; P.L. 2017, ch. 363, § 1.

Compiler’s Notes.

P.L. 2017, ch. 179, § 1, and P.L. 2017, ch. 363, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2017, ch. 179, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2017, ch. 363, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

44-5-66. Warwick — Property tax classification — Eligibility.

The city of Warwick is authorized to adopt a system of property tax classification.

History of Section. P.L. 1996, ch. 319, § 3.

44-5-67. Property tax classification — Eligibility.

The city of Warwick is authorized to adopt a system of property tax classification.

History of Section. P.L. 1997, ch. 17, § 1.

Applicability.

P.L. 1997, ch. 17, § 2 provides that this section shall take effect upon passage [May 16, 1997], and shall apply to the tax levy for fiscal year 1997-1998 and for each fiscal year thereafter until the next citywide revaluation or any statistical revaluation which may be required by state law.

44-5-67.1. Warwick — Property tax classification — List of ratable property.

Upon adoption of a system of classification of taxable property by the city of Warwick, all ratable property in the city of Warwick shall be classified by the assessor as follows:

  1. Class 1: residential real estate consisting of no more than five (5) dwelling units, land classified as open space, and dwellings on leased land including mobile homes.
  2. Class 2: commercial and industrial real estate, residential properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units.
  3. Class 3: all ratable tangible personal property.
  4. Class 4: motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 1997, ch. 17, § 1.

44-5-67.2. Warwick — Property tax classification — Duties of assessor.

The assessor of the city of Warwick, on or before June 15 of each year, shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation, and determine the assessed valuation of each property class. The assessor has the authority to apply different rates of taxation to each class and to determine the tax due and payable on the property; provided, that the rates are pursuant to an annual tax resolution approved in the same manner as is provided for budget approval in the city charter; provided, further, that the rate of taxation is uniform within each class; and provided, further, that for each year, Class 1 property tax rates shall not be less than seventy-five percent (75%) of class two (2) property tax rates.

History of Section. P.L. 1997, ch. 17, § 1.

Applicability.

P.L. 1997, ch. 17, § 2 provides that this section shall take effect upon passage [May 16, 1997], and shall apply to the tax levy for fiscal year 1997-1998 and for each fiscal year thereafter until the next citywide revaluation or any statistical revaluation which may be required by state law.

44-5-67.3. Warwick — Reduction in assessed value of real estate upon demolition of buildings.

  1. Whenever a building is demolished and the refuse is removed from the property, the tax assessor shall reassess the property to reflect removal of the building, and the new assessment shall be effective as of the date the building official confirms that the demolition is complete.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the city of Warwick.

History of Section. P.L. 2006, ch. 635, § 1; P.L. 2008, ch. 117, § 1; P.L. 2008, ch. 473, § 1.

44-5-68. Warren — Property tax classifications. — List of ratable property.

Upon adoption of a classification of taxable property by the town of Warren, all ratable property in the town of Warren shall be classified by the assessor as follows:

  1. Class 1: all ratable real estate and tangible personal property.
  2. Class 2: all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 1997, ch. 19, § 1.

44-5-68.1. Warren — Property tax classification. — Tax levy determination.

  1. The assessor of the town of Warren shall annually prepare a list containing the full and fair valuation of each property within the town and the percentage of the tax levy to be apportioned to each class of property and tax rates sufficient to produce the proposition of the total tax levy.
  2. The assessor has the authority to apply different rates of taxation against Class 1, and Class 2 property to determine the tax due and payable on the property; provided, that the rate of taxation is uniform within each class.

History of Section. P.L. 1997, ch. 19, § 1.

44-5-68.2. Warren — Property tax classification. — Tax levy determination.

The assessor shall provide to the town council of Warren a list containing the full and fair valuation of each property class and, with the approval of the town council, annually determine the percentage of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 1997, ch. 19, § 1.

44-5-69. Local fire districts — Requirements of annual budget — Annual financial statements and publication of property tax data.

Every fire district authorized to assess and collect taxes on real and personal property in the several towns in the state shall be required to have annual financial statements audited by an independent auditing firm approved pursuant to § 45-10-4 by the auditor general. The auditor general may waive or modify form and content of financial statements and scope of the audit, based upon the size of the fire districts. The financial statements for fiscal year 2015 and every fiscal year thereafter shall be presented at the district’s first annual meeting subsequent to receipt of said financial statements. At least ten (10) days prior to said annual meeting, a copy of such financial statements shall be filed by the fire district with the town clerk for the town in which the district(s) is located. A copy of the financial statements shall be simultaneously sent to the auditor general and the division of municipal finance in the department of revenue. The fire districts shall also provide to the division of municipal finance in the department of revenue the adopted budget within thirty (30) days of final action, and other information on tax rates, budgets, assessed valuations, and other pertinent data upon forms provided by the division of municipal finance. The information shall be published by the department of revenue.

History of Section. P.L. 1997, ch. 40, § 1; P.L. 2006, ch. 246, art. 38, § 12; P.L. 2008, ch. 98, § 37; P.L. 2008, ch. 145, § 37; P.L. 2014, ch. 31, § 4; P.L. 2014, ch. 33, § 4; P.L. 2016, ch. 512, art. 1, § 31.

Compiler’s Notes.

P.L. 2014, ch. 31, § 4, and P.L. 2014, ch. 33, § 4 enacted identical amendments to this section.

Applicability.

P.L. 2014, ch. 31, § 7, provides: “Pending state judicial receivership proceedings. — The provisions of this act shall apply to any and all state judicial receivership proceedings pending at the time of passage of this act [May 2, 2014]; provided, however, in order to ensure an orderly transition, the superior court shall have limited jurisdiction to ratify the actions taken by any receiver prior to the date of enactment of this legislation at the request of the director of revenue, and to take such further actions as may be necessary to ensure an orderly transition.”

P.L. 2014, ch. 33, § 7, provides: “Pending state judicial receivership proceedings. — The provisions of this act shall apply to any and all state judicial receivership proceedings pending at the time of passage of this act [May 2, 2014]; provided, however, in order to ensure an orderly transition, the superior court shall have limited jurisdiction to ratify the actions taken by any receiver prior to the date of enactment of this legislation at the request of the director of revenue, and to take such further actions as may be necessary to ensure an orderly transition.”

44-5-69.1. Property tax classification — Albion fire district within the town of Lincoln — Tax levy determination.

The tax collector for the Albion fire district within the town of Lincoln shall provide to the board of fire commissioners a list containing the full and fair valuation of each property class, and with the approval of the members of the fire district by vote, annually determine the percentage of the tax levy to be apportioned to each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

  1. Class 1.  Residential real estate consisting of no more than five (5) dwelling units including dwellings on leased land including mobile homes.
  2. Class 2.  Commercial and industrial real estate and residential real estate of more than five (5) dwelling units.
  3. Class 3.  All ratable tangible personal property excluding motor vehicles and trailers. (Notwithstanding any provisions of the contrary, the tax rates applicable to wholesale and retail inventory within Class 3 are governed by § 44-3-29.1 ).

History of Section. P.L. 2010, ch. 317, § 1.

44-5-70. East Providence — Homestead exemption.

  1. The city council of the city of East Providence is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the city of East Providence and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed fifteen percent (15%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than four (4) units. In order to determine compliance with the homestead exemption as outlined in this section, the city council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the city of East Providence, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.

History of Section. P.L. 1997, ch. 237, § 1; P.L. 2017, ch. 179, § 1; P.L. 2017, ch. 363, § 1.

Compiler’s Notes.

P.L. 2017, ch. 179, § 1, and P.L. 2017, ch. 363, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2017, ch. 179, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2017, ch. 363, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

44-5-71. Jamestown — Reduction in assessed value of real estate upon removal of damaged buildings.

  1. Whenever a building is damaged as to require total reconstruction before it may be used for any purpose related to its use prior to the damage, and following which the owner provides for complete demolition of the building with the material from demolition being removed from the parcel of real property on which the building was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal and grading are completed, to the satisfaction of the building inspector, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessment value of the building so damaged, demolished and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal and grading are completed, as determined by the building inspector, until the thirty-first (31st) day of December next succeeding, and the amount of property tax payable with respect to the parcel for the assessment year in which demolition, removal and grading are completed is adjusted accordingly in the manner determined by the assessor.
  3. This section is not applicable in the event of natural disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes.
  4. This section applies only to assessments and taxes in the town of Jamestown.

History of Section. P.L. 1998, ch. 166, § 1; P.L. 1998, ch. 225, § 1.

44-5-72. Jamestown — Assessment and taxation of new real estate construction.

  1. Completed new construction of real estate in the town of Jamestown completed after any assessment date is liable for the payment of municipal taxes from the date the certificate of occupancy is issued or the date on which the new construction is first used for the purpose for which it was constructed, whichever is the earlier, prorated for the assessment year in which the new construction is completed. The prorated tax is computed on the basis of the applicable rate of tax with respect to the property, including the applicable rate of tax in any tax district in which the property is subject to tax following completion of the new construction, on the date the property becomes liable for the prorated tax in accordance with this section.
  2. The building inspector issuing the certificate shall, within ten (10) days after issuing the certificate, notify, in writing, the assessor of the issuance of the certificate of occupancy.
  3. Not later than ninety (90) days after receipt by the assessor of the notice from the building inspector or from a determination by the assessor that the new construction is being used for the purpose for which it was constructed, the assessor shall determine the increment by which the assessment for the completed construction exceeds the assessment on the tax roll for the immediately preceding assessment date. The assessor shall prorate that amount from the date of issuance of the certificate of occupancy or the date on which the new construction was first used for the purpose for which it was constructed, as the case may be, to the assessment date immediately following and shall add the increment as prorated to the tax roll for the immediately preceding assessment date and shall within five (5) days notify the record owner as appearing on the tax roll and tax collector of the additional assessment.
  4. Any person claiming to be aggrieved by the action of the assessor under this section may appeal to the assessment board of review within sixty (60) days from notification of the additional assessment or to superior court as provided.
  5. Upon receipt of the notice from the assessor, the tax collector shall, if the notice is received after the normal billing date, within ten (10) days thereafter mail or hand a bill to the owner based upon an amount prorated by the assessor. The tax is due and payable and collectible as other municipal taxes and subject to the same liens and processes of collection; provided, that the tax is due and payable in an initial or single installment due and payable not sooner than thirty (30) days after the date the bill is mailed or handed to the owner, and in any remaining, regular installments, as they are due and payable, and the several installments of a tax due and payable are equal.
  6. Nothing in this section authorizes the collection of taxes twice in respect of the land upon which the new construction is located.
  7. This section applies only to taxes levied and property assessed in the town of Jamestown.

History of Section. P.L. 1998, ch. 226, § 1.

44-5-73. Authority granted to city and town collectors to sell, assign and transfer tax liens and tax titles in bulk.

  1. Notwithstanding any of the provisions of chapter 9 of this title, any city or town may by resolution of its legislative body authorize its collector to sell and assign for consideration to the Rhode Island housing and mortgage finance corporation pursuant to § 44-9-8.3 of the general laws, any and all liens for taxes assessed against any owner-occupied residential property of three (3) units or less on real estate as constituted pursuant to § 44-9-1 together with the right to receive the taxes, penalties, and other charges secured by the lien, and to sell and assign any real estate liable for overdue taxes and deliver a collector’s deed granting tax title thereto, and to sell and assign any other tax titles on owner-occupied residential property of three (3) units or less previously acquired by the city or town. Sections 44-9-8 and 44-9-9 of the general laws shall not apply to the sale, assignment and transfer of real estate liable for overdue taxes pursuant to § 44-5-73 .
  2. The cities and towns may make regulations for the possession, management and sale or assignment, either individually or in bulk, of land purchased or taken for taxes, not inconsistent with law or the right of redemption.
  3. The minimum sum paid for the assignment of any tax lien may not be less than the tax due, plus accrued interest and expenses of collection or at a rate which may be discounted to reflect uncollectible factors.
  4. The collector of any city or town holding a tax title may assign and transfer the tax title, individually or in bulk, with other tax titles, either by public auction to the highest bidder or by direct sale.
  5. After complying with the provisions of § 44-9-8.3 , the minimum sum paid for the assignment of a tax title may not be less than the total amount necessary for the redemption of each individual tax title sold and assigned or at a rate which may be discounted to reflect uncollectable factors.
  6. The collector may execute and deliver on behalf of the city or town any instrument necessary in connection with the sale and assignment of the tax liens or tax titles, including, but not limited to, purchase and sale agreements, servicing agreements and trust agreements and accept on behalf of the city or town appropriate consideration pursuant to the regulations.
  7. The assignee of the liens or tax titles shall have and possess the same powers and rights at law and in equity as the city or town collector would have if the lien had not been assigned with regard to the collection of taxes, the precedence and priority of the lien, the accrual of interest and the fees and expenses of collections and the exemption from liability for enforcement or penalties arising from violations of environmental or minimum housing standards.
  8. The assignee has the same rights to enforce the liens as any private party holding a lien on real property.

History of Section. P.L. 1998, ch. 236, § 1; P.L. 2006, ch. 534, § 1; P.L. 2006, ch. 537, § 1.

44-5-74. Woonsocket — Property tax classification — Authorization.

The city of Woonsocket is authorized to adopt a system of property tax classification.

History of Section. P.L. 2000, ch. 30, § 1; P.L. 2000, ch. 39, § 1.

44-5-74.1. Woonsocket — List of ratable property.

  1. Upon adoption of a system of classification of taxable property by the city of Woonsocket, all ratable property in the city of Woonsocket shall be classified by the assessor as follows:
    1. Class One: all ratable tangible personal property;
    2. Class Two: residential real estate with less than four (4) units;
    3. Class Three: all commercial and industrial real estate and residential real estate with four (4) units or more, except as provided for in subsection (b); and
    4. Class Four: all motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.
  2. As to any residential real estate with four (4) units and wherein one or more of the units are occupied by the owner of the real estate, the four (4) unit residential real estate shall be classified as Class Two residential real estate. The real estate shall be classified as Class Three if it fails to have at least one unit that is occupied by the owner of the real estate. An owner of residential real estate with four (4) units who is entitled to the Class Two residential real estate classification pursuant to this section shall annually file a declaration of the owner-occupied status with the tax assessor. The assessor shall prepare an appropriate form for the making of the declaration.

History of Section. P.L. 2000, ch. 30, § 1; P.L. 2000, ch. 39, § 1; P.L. 2013, ch. 498, § 1; P.L. 2019, ch. 294, § 1; P.L. 2019, ch. 304, § 1.

Compiler’s Notes.

P.L. 2019, ch. 294, § 1, and P.L. 2019, ch. 304, § 1 enacted identical amendments to this section.

44-5-74.2. Woonsocket — Valuation of ratable property.

  1. The assessor of the city of Woonsocket, on or before June 1 of each year, shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation and determine the assessed valuation of each property class.
  2. The assessor has the authority to apply different rates of taxation against Class One, Class Two, and Class Three property to determine the tax due and payable on the property; provided, that the rate of taxation is uniform within each class. When real property is used for mixed purposes, the applicable rate shall be applied to the proportionate amount of the real property used for each purpose.

History of Section. P.L. 2000, ch. 30, § 1; P.L. 2000, ch. 39, § 1; P.L. 2003, ch. 31, § 1; P.L. 2003, ch. 48, § 1; P.L. 2013, ch. 498, § 1.

44-5-74.3. Woonsocket — Procedure for adopting tax rates.

The assessor shall provide to the finance director a list containing the full and fair cash valuation of each property class, and with the approval of the city council, annually determine the percentages of the tax levy to be appointed each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 2000, ch. 30, § 1; P.L. 2000, ch. 39, § 1.

44-5-74.4. Woonsocket — Supplemental tax.

  1. In order to execute a five (5) year financial plan for the city of Woonsocket, and notwithstanding any provision of law, general or special to the contrary, including, without limitation, §§ 44-5-74.1 and 44-5-74.2 , or any provisions of the home rule charter of the city of Woonsocket, any municipal ordinance or existing judicial decision, the city of Woonsocket is authorized to levy a supplemental tax as herein specified on some of the ratable property of the city, including motor vehicles and trailers, for the city’s fiscal year 2012-2013 in such sum, not to exceed two million, five hundred thousand dollars ($2,500,000), as shall be set by action of the Woonsocket budget commission or any individual or body authorized by law to take such action.
  2. The supplemental tax with respect to motor vehicles and trailers shall not be subject to the provisions of subdivision 44-34.1-1(c)(4) freezing excise tax rates at a level identical to the rate in effect for fiscal year 1998 or a lesser rate. For the city’s fiscal year 2013-2014 and thereafter, the excise tax rate for motor vehicles and trailers shall not exceed the city’s excise tax rate in effect for fiscal year 1998. The supplemental tax shall become part of the certified tax levy for the city’s fiscal year 2012-2013 for purposes of calculating the maximum property tax levy according to § 44-5-2 for the city’s fiscal year 2013-2014, and shall also not be subject to the maximum levy limitations of § 44-5-2 for the city’s fiscal year 2012-2013. Such supplemental tax shall be imposed by increasing the levy on motor vehicles and trailers by up to eighteen and seven tenths percent (18.7%) and by increasing the levy on occupied residential real estate, including residential properties with eleven (11) units or more, but excluding owner occupied single family dwellings and owner occupied condominiums, by up to four and eight tenths percent (4.8%) for the city’s fiscal year 2012-2013 only. Within seven (7) days succeeding the certification, the assessor shall cause to be published in a newspaper of general circulation within the city of Woonsocket, the rate of tax and the percentage of fair market value employed in assessing the supplemental tax.
  3. Said supplemental tax shall be paid in one installment on a date as shall be set by the action of the Woonsocket budget commission or any individual or body authorized by law to take such action, and shall carry interest commencing on August 31, 2013 as the Woonsocket budget commission or any individual or body authorized by law to take such action shall prescribe. Such supplemental tax shall be contingent upon the city of Woonsocket’s realization of a total amount of no less than three million seven hundred fifty thousand dollars ($3,750,000) in savings resulting from municipal enactment or concessions from collective bargaining agreements with applicable Woonsocket unions and retirees. No tax sale shall be conducted by the city prior to June 15, 2014 for nonpayment of the supplemental tax. In all other respects, the provisions of chapters 44-5, 44-7, 44-8, 44-9 and 44-34 of the general laws shall be applicable to the assessment, levy and collection of said supplemental tax.

History of Section. P.L. 2013, ch. 206, § 1.

44-5-74.5. Woonsocket — Exemption for elderly residents.

  1. For the city’s fiscal year 2014-2015 and thereafter, the budget commission for the city of Woonsocket, or any individual or body authorized by law to take such action, is authorized to annually fix the amount, if any, of a real estate tax exemption for Woonsocket residents based on age upon such terms and conditions as it deems reasonable. Exemption rates may be tiered based upon income level.
  2. Any such exemption shall only apply to residential property owned and occupied by the applicant.

History of Section. P.L. 2014, ch. 271, § 1; P.L. 2014, ch. 334, § 1.

Compiler’s Notes.

P.L. 2014, ch. 271, § 1, and P.L. 2014, ch. 324, § 1 enacted identical versions of this section.

44-5-75. Woonsocket — Homestead exemption.

  1. The mayor, upon approval of the city council of the city of Woonsocket, is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the city of Woonsocket and to grant homestead exemptions to the owner(s) of that residential real estate in amounts not to exceed the following percentages:
    1. Single family and condominiums: forty-five percent (45%) exemption;
    2. Two (2) family: twenty-five percent (25%) exemption;
    3. Three (3) family: fifteen percent (15%) exemption;
    4. Four (4) to ten (10) family: no homestead exemption.
  2. Any homestead exemption only applies to residential property improved with a dwelling house. There shall be no homestead exemption granted for vacant land or for the residential portion of mixed-use property in the city of Woonsocket, regardless of the number of units used for residential purposes. In order to determine compliance with the homestead exemption as outlined in this section, the city council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  3. The city council of the city of Woonsocket may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to the exemption to those who are entitled to claim the exemption.

History of Section. P.L. 2000, ch. 30, § 1; P.L. 2000, ch. 39, § 1; P.L. 2003, ch. 31, § 1; P.L. 2003, ch. 48, § 1.

44-5-76. East Greenwich — Reduction in assessed value of real estate upon removal of damaged structure.

  1. Whenever a structure in the town of East Greenwich is damaged so as to require total reconstruction and following which, the owner provides for complete demolition of the structure with the material from the demolition being removed from the parcel of real property on which the structure was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building official, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessed value of the structure so damaged, demolished, and removed.
  2. The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building official, until the thirty-first (31st) day of December next succeeding and the assessment of the parcel for the assessment year in which demolition, removal, and grading are completed shall be adjusted accordingly by the assessor. Any excess tax resulting from the adjusted assessment shall be abated by the town council.
  3. This section is not applicable in the event of disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes. In addition, the East Greenwich town council is authorized to suspend this tax abatement policy for any year in which so many structures within the town of East Greenwich are damaged that granting reduced assessments would, in the sole judgment of the town council, jeopardize the fiscal integrity of the town of East Greenwich.
  4. This section applies only to assessments and taxes in the town of East Greenwich.

History of Section. P.L. 2002, ch. 17, § 1; P.L. 2002, ch. 21, § 1.

44-5-76.1. Newport — Property tax classification — List of ratable property.

Upon adoption of a system of classification of taxable property by the city of Newport, all ratable property in the city of Newport shall be classified by the assessor as follows:

  1. Class One: all ratable tangible personal property;
  2. Class Two: residential real estate with less than four (4) units;
  3. Class Three: all commercial and industrial real estate and residential real estate with four (4) units or more; and
  4. Class Four: motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 2002, ch. 279, § 1; P.L. 2002, ch. 346, § 1.

44-5-76.2. Newport — Property tax classification.

  1. The assessor of the city of Newport, on or before June 1 of each year, shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation and determine the assessed valuation of each property class.
  2. The designated classes of property shall be limited to the four (4) classes as defined in § 44-5-76.1 .
  3. The effective tax rate applicable to any class shall not exceed by fifty percent (50%) the rate applicable to any other class.
  4. Any tax rate changes from one year to the next shall be applied so that the same percentage rate change is applicable to all classes. Notwithstanding the aforesaid sentence, in the first year following comprehensive revaluation or any update in accordance with § 44-5-11.6 , the city is authorized to set the effective tax rate applicable to any class in an amount not to exceed by fifty percent (50%) the rate applicable to any other class.
  5. The tax rates applicable to motor vehicles within class four as defined in § 44-5-76.1 are governed by § 44-34.1-1 .
  6. The provisions of chapter 35 of this title relating to property tax and fiscal disclosure apply to the reporting of and compliance with these classification restrictions.

History of Section. P.L. 2002, ch. 279, § 1; P.L. 2002, ch. 346, § 1; P.L. 2018, ch. 71, § 1; P.L. 2018, ch. 74, § 1.

Compiler’s Notes.

P.L. 2018, ch. 71, § 1, and P.L. 2018, ch. 74, § 1 enacted identical amendments to this section.

44-5-76.3. Newport — Property tax classification — Procedure for adopting.

The assessor shall provide to the finance director a list containing the full and fair cash valuation of each property class and with the approval of the city council, annually determine the percentages of the tax levy to be apportioned each class of property and shall annually tax rates sufficient to produce the proportion of the total tax levy.

History of Section. P.L. 2002, ch. 279, § 1; P.L. 2002, ch. 346, § 1.

44-5-77. Providence — Cooperative housing corporation property exemption.

Notwithstanding any other provision of the general or public laws to the contrary, the property taxes owed for any real property in the city of Providence owned by an entity organized as a cooperative housing corporation within the meaning of chapter 6.1 of title 7 shall be reduced by applying to the assessed value of that property all personal exemptions (including, for example, the homestead exemption and exemptions available to veterans, disabled veterans, elderly persons, former prisoners of war, and the blind) to which any shareholders of the corporation residing on the property would be entitled if they directly owned and occupied residential property in the city or town where the corporation’s property is located. In calculating the amount of any property tax reduction, the personal exemptions to which any resident shareholder is entitled shall not be applied to the portion of the common areas on the corporation’s property used for recreational or social purposes, such as game rooms, fitness facilities, dining rooms or theaters. The burden shall be on the corporation to demonstrate the extent to which any of its resident shareholders would qualify to receive the exemptions.

History of Section. P.L. 2002, ch. 88, § 1.

44-5-77.1. Providence — Cooperative housing corporation — Tax rates.

  1. Notwithstanding any provision of the general or public laws to the contrary, the property tax rate applicable to any real property in the city of Providence owned by an entity organized as a cooperative housing corporation within the meaning of chapter 6.1 of title 7 shall be as follows:
    1. For taxes assessed on units owned on December 31, 2013, one hundred fifteen percent (115%) of the rate applicable to residential, owner-occupied properties in the city;
    2. For taxes assessed on units owned on December 31, 2014, one hundred seven and one-half percent (107.5%) of the rate applicable to residential, owner-occupied properties in the city; and
    3. For taxes assessed on units owned on December 31, 2015, and for every tax assessment made thereafter, one hundred percent (100%) of the rate applicable to residential, owner-occupied properties in the city.
  2. With respect to any non-owner-occupied dwelling units in such real property, the rate applied in every assessment shall be the rate applicable to residential, non-owner-occupied properties in the city.

With respect to any owner-occupied dwelling units in such real property, the rate shall be:

History of Section. P.L. 2014, ch. 30, § 1; P.L. 2014, ch. 32, § 1.

Compiler’s Notes.

P.L. 2014, ch. 30, § 1, and P.L. 2014, ch. 32, § 1 enacted identical versions of this section.

Retroactive Effective Dates.

P.L. 2014, ch. 30, § 2, provides that the enactment of this section by that act shall take effect upon passage [May 2, 2014], and apply retroactively to December 31, 2013.

P.L. 2014, ch. 32, § 2, provides that the enactment of this section by that act shall take effect upon passage [May 2, 2014], and apply retroactively to December 31, 2013.

44-5-78. Newport — Homestead exemption.

  1. The city council of the city of Newport is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the city of Newport and to grant homestead exemptions to the owner(s) of the residential real estate in amounts not to exceed the following percentages:
    1. Single family and condominiums: thirty-five percent (35%) exemption; (2) Two (2) family: twenty percent (20%) exemption; (3) Three (3) family: five percent (5%) exemption.
  2. Any exemption shall only apply to residential property improved with a dwelling house. There shall be no homestead exemption granted for vacant land or for the residential portion of mixed-use property in the city of Newport, regardless of the number of units used for residential purposes. In order to determine compliance with the homestead exemption as outlined in this section, the city council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  3. The city council of the city of Newport may provide for a proration of the homestead exemption in cases where title to the property passes from those not entitled to the exemption to those who are entitled to claim the exemption.

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History of Section. P.L. 2002, ch. 279, § 1; P.L. 2002, ch. 346, § 1.

44-5-78.1. Newport — Exemption for elderly and disabled residents.

  1. The city council for the city of Newport is authorized to annually fix the amount, if any, of a real estate tax exemption to Newport residents based upon age or disability. Exemption rates may be tiered based upon income level.
  2. Any exemption shall only apply to residential property owned and occupied by the applicant.

History of Section. P.L. 2009, ch. 84, § 1.

44-5-79. Little Compton — Property tax classification.

  1. The assessor of the town of Little Compton shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation and determine the assessed valuation of each property class as defined in § 44-5-11.8 of the General Laws entitled Tax Classification.
  2. The town council of the town of Little Compton is authorized to apply, by ordinance, a higher rate of taxation to Class 3 property (all ratable tangible property) beginning in tax year 2005 (values as of 12/31/2004); provided, that the tax rate applicable to Class 3 property, notwithstanding the provisions of § 44-5-11.8 , shall not exceed the rate applicable to Class 1 by more than two hundred percent (200%); and provided further, that any subsequent tax rate changes thereafter shall be made consistent with the provisions of § 44-5-11.8 .

History of Section. P.L. 2005, ch. 253, § 2; P.L. 2005, ch. 261, § 2.

44-5-80. Homestead exemption in the town of West Greenwich.

  1. Notwithstanding any other provisions of the general or special laws to the contrary, the town council of the town of West Greenwich is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of West Greenwich and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed forty percent (40%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide by ordinance rules and regulations governing eligibility for the exemption established by this section.
  2. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the town of West Greenwich, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.

History of Section. P.L. 2005, ch. 35, § 1; P.L. 2005, ch. 84, § 1; P.L. 2005, ch. 414, § 1; P.L. 2017, ch. 179, § 1; P.L. 2017, ch. 363, § 1.

Compiler’s Notes.

P.L. 2017, ch. 179, § 1, and P.L. 2017, ch. 363, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2017, ch. 179, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2017, ch. 363, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

44-5-81. Pawtucket — Waiver of interest.

Notwithstanding any other provisions in the general laws to the contrary, the city of Pawtucket may, by ordinance duly enacted, authorize the finance director and/or the tax collector to waive interest on motor vehicle or tangible taxes, based on criteria established by the city council.

History of Section. P.L. 2008, ch. 272, § 1; P.L. 2008, ch. 325, § 1; P.L. 2009, ch. 310, § 18.

44-5-82. Cumberland homestead exemption.

  1. The town council of the town of Cumberland is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes or mixed purposes, defined as a combination of residential and commercial uses, in the town of Cumberland and to grant homestead exemptions to the owner or owners of residential real estate or combination residential and commercial real estate in an amount not to exceed thirty percent (30%) of the assessed value. The exemption shall apply to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units or real property used for a combination of residential and commercial uses. When real property is used for mixed purposes, the percentage of the assessed value shall be a prorated amount. The prorated amount shall be the percentage of square feet of the parcel used for residential purposes multiplied by the percentage of the homestead exemption. In order to determine compliance with the homestead exemption as outlined in this subsection, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. The town council of the town of Cumberland may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.

History of Section. P.L. 2008, ch. 76, § 1; P.L. 2008, ch. 324, § 1.

44-5-83. Annual training institute for local tax collectors.

  1. The director of the department of revenue, in cooperation with the Rhode Island association of collection officers shall establish and conduct an annual training institute for local tax collectors. The training institute shall consist of certified training courses in such areas as recording of payments, reconciliation of tax, recording of abatements, banking, certificates of tax and other liens, bankruptcies, knowledge of state and local laws, and conducting a tax sale. For this purpose, the department may cooperate with educational institutions, local, regional, state, or national collections’ organizations, and with any other appropriate professional organizations. The cost of said training program shall be at no cost to the state or municipality. A local tax collector who has successfully completed the training program, or who has obtained the necessary amount of credits, shall be awarded the designation of Rhode Island Certified Collector (RICC). Participation by a local tax collector at the training institute is not mandatory to continue working or to be hired without the designation “RICC.”
  2. An applicant, who is a member of a local collector’s staff, who has successfully completed the training program, or who has obtained the necessary courses, shall be awarded the designation of Rhode Island Certified Collector’s Personnel (RICCP). Participation by the personnel or staff of a local tax collector at the training institute is not mandatory to continue working or to be hired without the designation “RICCP.”
  3. The Rhode Island association of collection officers shall establish a program of recertification, approved by the department of revenue, for all designated members.

History of Section. P.L. 2012, ch. 13, § 1; P.L. 2012, ch. 14, § 1.

Compiler’s Notes.

P.L. 2012, ch. 13, § 1, and P.L. 2012, ch. 14, § 1 enacted identical versions of this section.

44-5-84. Town of East Greenwich — Exemption for elderly, disabled, and military service.

  1. The town council of the town of East Greenwich is authorized to fix the amount, if any, of a real estate exemption for East Greenwich residents based upon age, disability, or military service, including military service of a child of the resident. Exemptions may be tiered based upon age.
  2. Any exemption shall only apply to residential property owned and occupied by the applicant.

History of Section. P.L. 2013, ch. 443, § 1; P.L. 2013, ch. 474, § 1.

Compiler’s Notes.

P.L. 2013, ch. 443, § 1, and P.L. 2013, ch. 474, § 1 enacted identical versions of this section.

Collateral References.

Validity, construction and application of statutory and constitutional provisions exempting real property of persons in military service, or formerly in such service, from taxation. 7 A.L.R.7th 6.

44-5-85. Narragansett homestead exemption.

  1. The town council of the town of Narragansett is authorized to annually fix the amount, if any, of a homestead exemption, with respect to assessed value, from local taxation on taxable real property used for residential purposes or mixed purposes, defined as a combination of residential and commercial uses, in the town of Narragansett, and to grant homestead exemptions to the owner, or owners, of residential real estate, or combination residential and commercial real estate, in an amount not to exceed ten percent (10%) of the assessed value. The exemption shall apply to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units, or real property used for a combination of residential and commercial uses. When real property is used for mixed purposes, the percentage of the assessed value shall be a prorated amount. The prorated amount shall be the percentage of square feet of the parcel used for residential purposes, multiplied by the percentage of the homestead exemption. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  2. In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the town of Narragansett, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.

History of Section. P.L. 2016, ch. 88, § 1; P.L. 2016, ch. 201, § 1; P.L. 2017, ch. 179, § 1; P.L. 2017, ch. 363, § 1.

Compiler’s Notes.

P.L. 2016, ch. 88, § 1, and P.L. 2016, ch. 201, § 1 enacted identical versions of this section.

P.L. 2017, ch. 179, § 1, and P.L. 2017, ch. 363, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2016, ch. 88, § 2 provides that this section takes effect on December 31, 2016.

P.L. 2016, ch. 201, § 2 provides that this section takes effect on December 31, 2016.

P.L. 2017, ch. 179, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

P.L. 2017, ch. 363, § 2, provides that the amendment to this section by that act takes effect on August 1, 2018.

44-5-86. The Neil J. Houston, Jr. Residential Re-entry Center.

The city of Pawtucket is authorized to exempt from taxation, to the extent the city council of the city of Pawtucket may from time to time determine, the real and personal property of the Neil J. Houston, Jr. Residential Re-entry Center located at 67-85 Slater Street, Pawtucket, RI.

History of Section. P.L. 2017, ch. 455, § 1; P.L. 2017, ch. 468, § 1.

Compiler’s Notes.

P.L. 2017, ch. 455, § 1, and P.L. 2017, ch. 468, § 1 enacted identical versions of this section.

44-5-87. Property tax credit in exchange for volunteer services performed by persons over age sixty (60).

    1. Each city and town, by resolution or ordinance adopted by the city or town council, may establish a program to allow persons over the age of sixty (60) years to volunteer to provide services to the city or town. In exchange for the volunteer services, the city or town shall reduce the real property tax obligations of the person over the age of sixty (60) years on their tax bills and any reduction so provided shall be in addition to any exemption or abatement to which any such person is otherwise entitled and no such person shall receive a rate of, or be credited with, more than the current state minimum wage per hour for services provided pursuant to the reduction nor shall the reduction of the real property tax bill exceed one thousand five hundred dollars ($1,500) in a given tax year. It shall be the responsibility of the city or town to maintain a record for each taxpayer including, but not limited to, the number of hours of service and the total amount by which the real property tax has been reduced and to provide a copy of the record to the assessor in order that the actual tax bill reflect the credit granted. A copy of the record shall also be provided to the taxpayer prior to the issuance of the actual tax bill. The cities and towns shall have the power to create local rules and procedures for implementing this section in any way consistent with the intent of this section.
    2. In no instance shall the amount by which a person’s property tax liability is reduced in exchange for the provision of services be considered income, wages, or employment for purposes of taxation; for the purposes of withholding taxes; for the purposes of workers’ compensation; or any other applicable provisions of the general laws, but the person while providing the services shall be considered a public employee; provided, however, that the services shall be deemed employment for the purposes of unemployment insurance.
  1. A city or town, by vote of its city or town council, may adjust the credit in subsection (a) of this section by:
    1. Allowing an approved representative, for persons physically unable, to provide the services to the city or town; or
    2. Allowing the maximum reduction of the real property tax bill to be based on one hundred twenty-five (125) volunteer service hours in a given tax year, rather than one thousand five hundred dollars ($1,500).

History of Section. P.L. 2021, ch. 353, § 1, effective July 12, 2021; P.L. 2021, ch. 356, § 1, effective July 12, 2021.

Compiler's Notes.

P.L. 2021, ch. 353, § 1, and P.L. 2021, ch. 356, § 1 enacted identical versions of this section.

Chapter 5.1 Real Estate Nonutilization Tax

44-5.1-1. Purpose.

  1. There are numerous vacant and abandoned properties throughout the cities and towns of Rhode Island.
  2. The existence of vacant and abandoned properties within a city or town contributes to the deterioration of its viable real estate.
  3. Vacant and abandoned properties sometimes place a greater demand on essential city or town services such as police and fire protection than do occupied properties comparably assessed for real estate tax purposes.
  4. The owners of vacant and abandoned properties do not always contribute a fair share of the costs of providing the foregoing essential city or town services financed in part by real estate tax revenues, which revenues are solely based on the assessed value of properties.
  5. Some properties are deliberately left vacant by their owners in the hope that real estate values will increase, thereby enabling the owners to sell these properties at a substantial profit without making any of the required repairs or improvements to the property.
  6. The nonutilization of property whether for profit speculation, tax benefit, or any other purposes is the making use of that property and as such, is a privilege incident to the ownership of the property.
  7. Owners of vacant properties must be encouraged to use the properties in a positive manner to stop the spread of deterioration and to increase the stock of viable real estate within a city or town.
  8. Owners of vacant and abandoned properties must be required, through a city’s or town’s power to tax, to pay a fair share of the cost of providing certain essential city or town services.

History of Section. P.L. 1984, ch. 336, § 1; P.L. 1997, ch. 230, § 2; P.L. 1997, ch. 244, § 2; P.L. 2000, ch. 52, § 2; P.L. 2000, ch. 417, § 2.

Compiler’s Notes.

This section was amended by two Acts (P.L. 2000, ch. 52, § 2; P.L. 2000, ch. 417, § 2) passed by the 2000 General Assembly. Although the amendments to this section by both Acts are similar, they are not identical. The director of law revision of the joint committee on legislative services has determined that the P.L. 2000, ch. 417, supersedes P.L. 2000, ch. 52, as the later enactment.

44-5.1-2. Definitions.

The following words, terms, and phrases, when used in this chapter, have the meanings ascribed to them in this section, except in those instances where the context clearly indicates a different meaning:

  1. “Abutter” means a neighbor whose property touches the property in question.
  2. “Actively marketed” means good faith efforts by the owner of the property to obtain one or more occupants of the property. These good faith efforts may include, without limitation, one or more of the following:(i) making substantial financial expenditures in comparison with the value of the property; or (ii) listing the property for sale or lease, or both, with one or more real estate brokers, for a price and on terms, or for a rental that is realistic considering the fair market or fair market rental value of the property; or (iii) advertising, using one or more signs on the property and at least one other medium, the availability of the property for sale or rental for a price and on terms, or at a rental that is realistic considering the fair market value or fair rental value of the property. Sporadic attempts to sell or lease the property during the privilege year may be viewed as not constituting a good faith marketing effort.
  3. “Continuously unoccupied” means any property, which is listed during the entire privilege year as vacant in the records of a city or town’s department of minimum housing.
  4. “Development plan” means a plan to rehabilitate a vacant and abandoned property within a set time frame for a use in conformance with the city or town’s comprehensive plan.
  5. “Nonprofit housing organization” means any organization exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), whose exempt purposes include the provision of affordable housing to low and moderate income households.
  6. “Privilege year” means the twelve (12) month period corresponding to the calendar year.
  7. “Reviewing entity” means the municipal entity designated by the city or town pursuant to § 44-5.1-3 .
  8. “Vacant and abandoned property” means any property, which is:
    1. A building that has remained continuously unoccupied during the privilege year or a lot, with no existing structure that is littered with trash and obviously abandoned;
      1. In the case of property containing one or more buildings used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, been under continuous designation as vacant by a city’s or town’s department of minimum housing during the privilege year; or
      2. In the case of property containing one or more buildings none of which were used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, been under continuous citation by an agency of a city or town for violation of minimum housing code provisions relating to the health or safety of citizens during the privilege year.

History of Section. P.L. 1984, ch. 336, § 1; P.L. 2000, ch. 417, § 2; P.L. 2001, ch. 89, § 1; P.L. 2010, ch. 239, § 39.

44-5.1-3. Imposition of tax.

  1. Providence.  The city of Providence is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 1984, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  2. Pawtucket.  The city of Pawtucket is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 1997, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  3. Cranston.  The city of Cranston is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 1997, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  4. North Providence.  The town of North Providence is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the town during any privilege year commencing with the privilege year beginning January 1, 2001, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  5. East Providence.  The city of East Providence is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 2000, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  6. Woonsocket.  The city of Woonsocket is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 2000, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  7. Cities and towns.  Any city or town not previously empowered is empowered to impose a tax upon the privilege of utilizing vacant and abandoned property within the city or town during any privilege year commencing with the privilege year beginning January 1, 2002, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
  8. Implementing ordinance.  Cities and towns that are empowered to impose this tax and who choose to impose this tax shall adopt an implementing ordinance. The ordinance shall:
    1. Designate a municipal entity responsible for determining which properties are vacant and abandoned;
    2. Establish the mechanism by which the tax is imposed and how the tax is removed from the property once the property has been rehabilitated;
    3. Designate a reviewing entity to review and approve a development plan submitted by a nonprofit housing organization or an abutter;
    4. Empower the tax assessor to abate the tax if it is imposed in error or if a nonprofit housing organization or an abutter acquires the property for rehabilitation and submits a development plan that complies with the provisions of subdivision (i)(2) of this section;
  9. Exemptions.
    1. The non-utilization tax authorized by this chapter shall not be imposed on property owned by an abutter or a nonprofit housing organization if:
      1. The abutter or nonprofit housing organization submits a proposed development plan which has been approved by the Rhode Island housing resources commission or Rhode Island housing and mortgage finance corporation to the reviewing entity;
      2. The proposed development plan contains a reasonable timetable for the development or reuse of the property; and
      3. The reviewing entity determines that the proposed development plan is in accordance with the approved comprehensive plan of the city or town and approves it.

(2) The reviewing entity shall deliver a copy of the approved development plan to the tax assessor who shall certify the property as exempt from the non-utilization tax.

(3) Failure of the nonprofit housing organization or abutter, without good cause, to carry out the development or reuse of the property in accordance with the timetable set forth in the approved development plan shall result in the property being subject to the non-utilization tax as of the first date of assessment following the expiration of the timetable in the approved development plan.

(4) The decision of the reviewing entity denying approval of a development plan may be appealed as provided in § 44-5.1-6 .

History of Section. P.L. 1984, ch. 336, § 1; P.L. 1997, ch. 230, § 2; P.L. 1997, ch. 244, § 2; P.L. 2000, ch. 52, § 2; P.L. 2000, ch. 417, § 2; P.L. 2001, ch. 89, § 1.

44-5.1-4. Rate of tax.

The tax authorized by this chapter shall be measured by the assessed value of the real estate at the rate of ten dollars ($10.00) for each one hundred dollars ($100) of the assessed value of the real estate as most recently returned by the tax assessor of a city or town.

History of Section. P.L. 1984, ch. 336, § 1; P.L. 2000, ch. 417, § 2.

44-5.1-5. Date on which taxes due.

The tax imposed under authority of this chapter shall be due and payable in the same manner as other municipal taxes are due in a city or town.

History of Section. P.L. 1984, ch. 336, § 1; P.L. 2000, ch. 417, § 2.

44-5.1-6. Appeals.

  1. In any appeal from the imposition of the tax set forth in this chapter, the tax review board of a city or town shall find in favor of an appellant who shows that the property assessed:
    1. Was actively marketed during the privilege year; or
    2. Was occupied for substantial portions of the privilege year, notwithstanding its designation by the department of minimum housing.
    3. Was exempt pursuant to § 44-5.1-3(i) from the imposition of the tax set forth in that section.
  2. Nothing contained in this section shall be deemed to enlarge or diminish any other right of appeal that an appellant may possess pursuant to the general or public laws, or city or town ordinances.

History of Section. P.L. 1984, ch. 336, § 1; P.L. 2000, ch. 417, § 2; P.L. 2001, ch. 89, § 1.

44-5.1-7. Severability.

The provisions of this chapter are severable and if any provision, sentence, clause, section, or part of the chapter shall be held illegal, invalid, unconstitutional, or inapplicable to any person, circumstance, or time period, that illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, sentences, clauses, sections, or parts of the chapter or its application. It is declared to be the legislative intent that this chapter would have been adopted had those provisions not been included or that person, circumstance, or time period been expressly excluded from its coverage.

History of Section. P.L. 1984, ch. 336, § 1.

Chapter 5.2 Powers and Duties of Fire Districts in the Town of Coventry

44-5.2-1. Tax classification.

  1. Any fire district in the town of Coventry may adopt a tax classification plan, by a vote of the electors of the district, with the following limitations:
    1. The designated classes of property shall be limited to the four (4) classes as defined in subsection (b) of this section.
    2. The effective tax rate applicable to any class excluding class 4 shall not exceed by fifty percent (50%) the rate applicable to any other class.
    3. Any tax rate changes from one year to the next shall be applied such that the same percentage rate change is applicable to all classes, excluding class 4.
    4. Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable to wholesale and retail inventory within class 3 as defined in subsection (b) of this section are governed by § 44-3-29.1 .
    5. The tax rates applicable to motor vehicles within class 4 as defined in subsection (b) of this section are governed by § 44-34.1-1 .
    6. The provisions of chapter 35 of this title relating to property tax and fiscal disclosure applies to the reporting of and compliance with these classification restrictions.
  2. Classes of property.
    1. Class 1: Residential real estate consisting of no more than five (5) dwelling units, land classified as open space, and dwellings on leased land including mobile homes.
    2. Class 2: Commercial and industrial real estate, residential properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units.
    3. Class 3: All ratable tangible personal property.
    4. Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of this title.

History of Section. P.L. 2013, ch. 516, § 1.

44-5.2-2. Audit of accounts and installation of systems.

All fire districts located within the town of Coventry shall be required to provide for an independent annual audit.

History of Section. P.L. 2013, ch. 516, § 1.

44-5.2-3. Availability of funds upon failure of fire district to approve annual appropriation.

Unless otherwise provided by charter, if a fire district in the town of Coventry fails to approve an annual appropriation measure, the same amounts appropriated in the previous fiscal year shall be available.

History of Section. P.L. 2013, ch. 516, § 1.

44-5.2-4. [Repealed.]

History of Section. P.L. 2013, ch. 516, § 1; Repealed by P.L. 2019, ch. 88, art. 3, § 11, effective July 5, 2019.

Compiler’s Notes.

Former § 44-5.2-4 concerned compliance.

44-5.2-5. Application.

The powers and duties set forth in this chapter shall not apply if specifically prohibited by the charter of any fire district.

History of Section. P.L. 2013, ch. 516, § 1.

Chapter 6 Assessment and Collection of State Taxes

44-6-1. Notice to assessors of state tax on inhabitants or ratable estates.

Whenever any tax is ordered by the general assembly to be assessed and levied on the inhabitants or ratable estates within the state, and no special provision is otherwise made in the act ordering the tax, the secretary of state shall immediately send a certified copy of the act imposing the tax, to the clerk of every city or town, who shall notify the assessors of the act and deliver a copy to them; and the assessors shall immediately give notice and proceed to assess the tax or their city or town’s proportion of the tax, in the same manner as provided by law for city and town taxes.

History of Section. G.L. 1896, ch. 49, § 1; G.L. 1909, ch. 61, § 1; G.L. 1923, ch. 63, § 1; G.L. 1938, ch. 33, § 1; G.L. 1956, § 44-6-1 .

Cross References.

Duties of secretary of state, § 42-8-1 .

Powers and duties of department of administration, § 42-11-2 .

Comparative Legislation.

Collection and levy:

Conn. Gen. Stat. § 12-35 et seq.

Mass. Laws Ann. ch. 59, § 20 et seq.

44-6-2. Remedy against illegal or overtax — Deficiencies in collections.

Every person who shall be overtaxed, or illegally taxed, shall have the same remedy as if it were a city or town tax; and if, on petition, judgment is given that the person is overtaxed, or illegally taxed, or if any person’s tax for any cause is not collected, the deficiency caused by this in the tax or in the city or town’s proportion of the tax shall be paid to the state by the town treasurer, out of the city or town treasury.

History of Section. G.L. 1896, ch. 49, § 2; G.L. 1909, ch. 61, § 2; G.L. 1923, ch. 63, § 2; P.L. 1932, ch. 1945, § 7; G.L. 1938, ch. 33, § 2; G.L. 1956, § 44-6-2 .

44-6-3. Copy of assessment furnished to general treasurer.

The assessors, having completed the assessment, shall date, sign, and deposit the assessment in the office of the city or town clerk who shall immediately send a copy of the assessment to the general treasurer, with the names of the city or town treasurer and collector of taxes of the city or town, and their post office address.

History of Section. G.L. 1896, ch. 49, § 3; G.L. 1909, ch. 61, § 3; G.L. 1923, ch. 63, § 3; G.L. 1938, ch. 33, § 3; G.L. 1956, § 44-6-3 .

44-6-4. Warrant for collection of tax.

The general treasurer shall immediately issue and affix to the copy his or her warrant under his or her hand, and which does not need to be under seal, directed to the collector of the city or town, commanding him or her, in the name of the state, to collect the several sums expressed in the warrant against each person’s name, by the time as by law is limited, and to pay over the sums to him or her or his or her successors in office.

History of Section. G.L. 1896, ch. 49, § 4; G.L. 1909, ch. 61, § 4; G.L. 1923, ch. 63, § 4; G.L. 1938, ch. 33, § 4; G.L. 1956, § 44-6-4 .

44-6-5. Collection in manner of city or town taxes.

The collector shall immediately proceed to collect the state taxes in the same manner as is provided in case of city or town taxes.

History of Section. G.L. 1896, ch. 49, § 5; G.L. 1909, ch. 61, § 5; G.L. 1923, ch. 63, § 5; G.L. 1938, ch. 33, § 5; G.L. 1956, § 44-6-5 .

44-6-6. Action against delinquent collector.

The general treasurer may have his or her action against any delinquent city or town collector and his or her sureties, and proceedings shall be conducted as provided in §§ 44-7-16 44-7-18 .

History of Section. G.L. 1896, ch. 49, § 6; G.L. 1909, ch. 61, § 6; G.L. 1923, ch. 63, § 6; G.L. 1938, ch. 33, § 6; G.L. 1956, § 44-6-6 .

44-6-7. Distress warrant on failure of city or town treasurer to deliver delinquent collector’s bond.

If any city or town treasurer shall neglect or refuse to deliver to the general treasurer any delinquent collector’s bond for suit, the general treasurer shall immediately issue a warrant of distress against the city or town treasurer, directed to the sheriff or his or her deputy of the county in which the city or town treasurer resides.

History of Section. G.L. 1896, ch. 49, § 7; G.L. 1909, ch. 61, § 7; G.L. 1923, ch. 63, § 7; G.L. 1938, ch. 33, § 7; G.L. 1956, § 44-6-7 .

Cross References.

Distress warrants, § 10-8-1 .

44-6-8. Attachment and sale of city or town treasurer’s estate.

The deputy sheriff shall immediately attach and take possession of all the real and personal estate of the city or town treasurer, and sell it at public auction in the same manner as in the case of a delinquent collector.

History of Section. G.L. 1896, ch. 49, § 8; G.L. 1909, ch. 61, § 8; G.L. 1923, ch. 63, § 8; G.L. 1938, ch. 33, § 8; G.L. 1956, § 44-6-8 ; P.L. 2012, ch. 324, § 76.

44-6-9. Forfeiture by city or town on failure to assess or collect tax.

If the assessors neglect to assess, or the collector to collect, any city or town’s proportion of a state tax, or if any city or town neglects to appoint assessors or a collector, the city or town shall forfeit double the amount of their proportion of the tax, to be recovered by the general treasurer in an action of debt against the delinquent city or town, and to be collected on execution from the property of the city or town or the inhabitants of the city or town.

History of Section. G.L. 1896, ch. 49, § 9; G.L. 1909, ch. 61, § 9; G.L. 1923, ch. 63, § 9; G.L. 1938, ch. 33, § 9; G.L. 1956, § 44-6-9 .

Chapter 6.1 Tax Amnesty

44-6.1-1. Short title.

This chapter shall be known as the “Rhode Island Tax Amnesty Act”.

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-2. Definitions.

As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

  1. “Taxable period” means any period for which a tax return is required by law to be filed with the tax administrator and for which no return has been previously filed or for which an erroneous return has been filed.
  2. “Taxpayer” means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator.

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-3. Establishment of tax amnesty.

  1. The tax administrator shall establish a tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator and shall provide for specification by the taxpayer of the tax and the taxable period for which amnesty is being sought by the taxpayer.
  2. The amnesty program shall be conducted for a ninety (90) day period established by the tax administrator in the state fiscal year 1986-1987. The amnesty program shall provide that upon written application by any taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending prior to April 1, 1986, the tax administrator shall not seek to collect any penalties which may be applicable and shall not seek civil or criminal prosecution for any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period, who have paid the tax and interest due upon filing the amnesty tax return, or who have entered into an installment payment agreement for reasons of financial hardship upon the terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment at the time the installment payment is due under the agreement, the agreement shall cease to be effective and the balance of the amounts required to be paid under this agreement shall be due immediately. Failure to pay all amounts due to the state of Rhode Island shall invalidate any amnesty granted pursuant to this chapter. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer.
  3. Amnesty shall not be granted to taxpayers who are a party to any criminal investigations or to any civil or criminal litigation which is pending in any court of the United States or the state of Rhode Island for nonpayment, delinquency, or fraud in relation to any state tax imposed by any law of the state and collected by the tax administrator.

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-4. Interest under tax amnesty.

Notwithstanding any general or specific statute to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate of eleven and one-half percent (11.50%) annually from due date to time of payment.

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-5. Amnesty provisions not applicable.

The provisions of § 44-6.1-3 shall not apply to the underpayment of any tax imposed by any law for the state of Rhode Island, payable to the state of Rhode Island for any taxable period to the extent that before the written application for amnesty is filed:

  1. The taxable period for which a written application for amnesty has been filed is currently under audit by the tax administrator; or
  2. A notice of deficiency or bill with respect to the underpayment was mailed to the taxpayer.

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-6. Appropriation.

There is appropriated, out of any money in the treasury not otherwise appropriated for the fiscal year 1986-1987, the sum of one hundred thousand dollars ($100,000) to the division of taxation to carry out the purposes of this chapter and the state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment of the sum or so much of the sum as may be required from time to time upon receipt by him or her of properly authenticated vouchers.

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-7. Implementation.

Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including but not limited to procurement of printing and other services and expenditure of appropriated funds as provided for in § 44-6.1-6 .

History of Section. P.L. 1986, ch. 103, § 1.

44-6.1-8. Disposition of monies — Rules and regulations.

  1. All monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund.
  2. The tax administrator shall promulgate rules and regulations as are necessary to implement the provisions of this chapter.

History of Section. P.L. 1986, ch. 103, § 1.

Chapter 6.2 Rhode Island Tax Amnesty Act

44-6.2-1. Short title.

This chapter shall be known as the “1996 Rhode Island Tax Amnesty Act”.

History of Section. P.L. 1996, ch. 13, § 1.

44-6.2-2. Definitions.

As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

  1. “Taxable period” means any period for which a tax return is required by law to be filed with the tax administrator.
  2. “Taxpayer” means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator.

History of Section. P.L. 1996, ch. 13, § 1.

44-6.2-3. Establishment of tax amnesty.

  1. The tax administrator shall establish a tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator and shall provide for specificity by the taxpayer of the tax and the taxable period for which amnesty is being sought by the taxpayer.
  2. The amnesty program shall be conducted for a seventy-five (75) day period established by the tax administrator in the state fiscal year 1995-1996. The amnesty program shall provide that upon written application by any taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending prior to December 31, 1995, the tax administrator shall not seek civil or criminal prosecution for any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period, which have paid the tax and interest due upon filing the amnesty tax return, or who has entered into an installment payment agreement for reasons of financial hardship upon the terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment at the time the installment payment is due under the agreement, the agreement shall cease to be effective and the balance of the amounts required to be paid under this agreement shall be due immediately. Failure to pay all amounts due to the state of Rhode Island shall invalidate any amnesty granted pursuant to this chapter. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer.
  3. The provisions of this section shall include a taxable period for which a notice of deficiency determination or bill has been sent to the taxpayer and/or a taxable period in which an audit is completed but has not yet been billed.
  4. Amnesty shall not be granted to taxpayers who are a party to any criminal investigation or to any civil or criminal litigation which is pending in any court of the United States or the state of Rhode Island for fraud in relation to any state tax imposed by any law of the state and collected by the tax administrator.

History of Section. P.L. 1996, ch. 13, § 1.

44-6.2-4. Interest under tax amnesty.

Notwithstanding any general or specific statute to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate of twelve percent (12%) annually from due to time of payment.

History of Section. P.L. 1996, ch. 13, § 1.

44-6.2-5. Implementation.

Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including but not limited to procurement of printing and other services and expenditures of appropriated funds.

History of Section. P.L. 1996, ch. 13, § 1; P.L. 1996, ch. 404, § 35.

44-6.2-6. Disposition of monies — Rules and regulations.

  1. All monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund.
  2. The tax administrator shall promulgate rules and regulations as are necessary to implement the provisions of this chapter.

History of Section. P.L. 1996, ch. 13, § 1.

44-6.2-7. Analysis of amnesty program by tax administrator.

The tax administrator shall provide an analysis of the amnesty program to the chairpersons of the house finance committee and senate finance committee with copies to the members of the revenue estimating conference by September 1, 1996. The report shall include an analysis of revenues received by tax source, distinguishing between the tax collected and interest collected for each source. In addition, the report shall further delineate the amounts that are new revenues from that already included in the general revenue receivable taxes defined under generally accepted accounting principles and the state’s audited financial statements. The auditor general shall include review of the analysis as part of the activities involved in preparation of the combined annual financial report for fiscal year 1996.

History of Section. P.L. 1996, ch. 13, § 1.

Chapter 6.3 2006 Rhode Island Tax Amnesty Act

44-6.3-1. Short title.

This chapter shall be known as the “2006 Rhode Island Tax Amnesty Act”.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-2. Definitions.

As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

  1. “Taxable period” means any period for which a tax return is required by law to be filed with the tax administrator;
  2. “Taxpayer” means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-3. Establishment of tax amnesty.

  1. The tax administrator shall establish a tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator and shall provide that the taxpayer clearly specify the tax due and the taxable period for which amnesty is being sought by the taxpayer.
  2. The amnesty program shall be conducted for a seventy-five (75) day period ending on September 30, 2006. The amnesty program shall provide that, upon written application by a taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending prior to December 31, 2005, the tax administrator shall not seek to collect any penalties which may be applicable and shall not seek the civil or criminal prosecution of any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period who have paid the tax and interest due upon filing the amnesty tax return, or who have entered into an installment payment agreement for reasons of financial hardship and upon terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment due under the agreement, such an agreement shall cease to be effective and the balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer.
  3. The provisions of this section shall include a taxable period for which a bill or notice of deficiency determination has been sent to the taxpayer and a taxable period in which an audit has been completed but has not yet been billed.
  4. Amnesty shall not be granted to taxpayers who are under any criminal investigation or are a party to any civil or criminal proceeding, pending in any court of the United States or the state of Rhode Island, for fraud in relation to any state tax imposed by the law of the state and collected by the tax administrator.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-4. Interest under tax amnesty.

Notwithstanding any general or specific statute to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate of twelve percent (12%) annually from the due date to the time of payment.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-5. Appropriation.

There is hereby appropriated, out of any money in the treasury not otherwise appropriated for the 2007 fiscal year, the sum of two hundred thousand dollars ($200,000) to the division of taxation to carry out the purposes of this chapter. The state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of the sum or so much thereof as may be required from time to time and upon receipt by him of properly authenticated vouchers.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-6. Implementation.

Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including but not limited to procurement of printing and other services and expenditure of appropriated funds as provided for in § 44-6.3-5 .

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-7. Disposition of monies.

  1. Except as provided in subsection (b) within, all monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund.
  2. Monies collected for the establishment of the TDI Reserve Fund (§ 28-39-7 ), the Employment Security Fund (§ 28-42-18 ),the Employment Security Interest Fund (§ 28-42-75 ), the Job Development Fund (§ 28-42-83 ), and the Employment Security Reemployment Fund (§ 28-42-87 ) shall be deposited in said respective funds.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-8. Analysis of amnesty program by tax administrator.

The tax administrator shall provide an analysis of the amnesty program to the chairpersons of the house finance committee and senate finance committee, with copies to the members of the revenue estimating conference, by November 1, 2006. The report shall include an analysis of revenues received by tax source, distinguishing between the tax collected and interest collected for each source. In addition, the report shall further identify the amounts that are new revenues from those already included in the general revenue receivable taxes defined under generally accepted accounting principles and the state’s audited financial statements. The auditor general shall include a review of this analysis as part of the activities involved in preparation of the combined annual financial report for fiscal year 2007.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

44-6.3-9. Rules and regulations.

The tax administrator shall promulgate such rules and regulations as are necessary to implement the provisions of this chapter.

History of Section. P.L. 2006, ch. 246, art. 21, § 1.

Chapter 6.4 Rhode Island Tax Amnesty Act

44-6.4-1. Short title.

This chapter shall be known as the “2012 Rhode Island Tax Amnesty Act.”

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-2. Definitions.

As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

  1. “Taxable period” means any period for which a tax return is required by law to be filed with the tax administrator;
  2. “Taxpayer” means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator.

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-3. Establishment of tax amnesty.

  1. The tax administrator shall establish a tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator and shall provide that the taxpayer clearly specify the tax due and the taxable period for which amnesty is being sought by the taxpayer.
  2. The amnesty program shall be conducted for a seventy-five (75) day period ending on November 15, 2012. The amnesty program shall provide that, upon written application by a taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending on or prior to December 31, 2011, the tax administrator shall not seek to collect any penalties which may be applicable and shall not seek the civil or criminal prosecution of any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period who have paid the tax and interest due upon filing the amnesty tax return, or who have entered into an installment payment agreement for reasons of financial hardship and upon terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment due under the agreement, such an agreement shall cease to be effective and the balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer.
  3. The provisions of this section shall include a taxable period for which a bill or notice of deficiency determination has been sent to the taxpayer and a taxable period in which an audit has been completed but has not yet been billed.
  4. Amnesty shall not be granted to taxpayers who are under any criminal investigation or are a party to any civil or criminal proceeding, pending in any court of the United States or the state of Rhode Island, for fraud in relation to any state tax imposed by the law of the state and collected by the tax administrator.

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-4. Interest under tax amnesty.

Notwithstanding any provision of law to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate imposed under § 44-1-7 , reduced by twenty five percent (25%).

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-5. Appropriation.

There is hereby appropriated, out of any money in the treasury not otherwise appropriated for the 2013 fiscal year, the sum of three hundred thousand dollars ($300,000) to the division of taxation to carry out the purposes of this chapter. The state controller is hereby authorized and directed to draw his or her orders upon the general treasurer for the payment of the sum or so much thereof as may be required from time to time and upon receipt by him of properly authenticated vouchers.

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-6. Implementation.

Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including, but not limited to, procurement of printing and other services and expenditure of appropriated funds as provided for in § 44-6.4-5 .

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-7. Disposition of monies.

  1. Except as provided in subsection (b) within, all monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund.
  2. Monies collected for the establishment of the TDI Reserve Fund (§ 28-39-7 ), the Employment Security Fund (§ 28-42-18 ), the Employment Security Interest Fund (§ 28-42-75 ), the Job Development Fund (§ 28-42-83 ), and the Employment Security Reemployment Fund (§ 28-42-87 ) shall be deposited in said respective funds.

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-8. Analysis of amnesty program by tax administrator.

The tax administrator shall provide an analysis of the amnesty program to the chairpersons of the house finance committee and senate finance committee, with copies to the members of the revenue estimating conference, by January 1, 2013. The report shall include an analysis of revenues received by tax source, distinguishing between the tax collected and interest collected for each source. In addition, the report shall further identify the amounts that are new revenues from those already included in the general revenue receivable taxes, defined under generally accepted accounting principles and the state’s audited financial statements.

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

44-6.4-9. Rules and regulations.

The tax administrator may promulgate such rules and regulations as are necessary to implement the provisions of this chapter.

History of Section. P.L. 2012, ch. 241, art. 21, § 2.

Chapter 6.5 Rhode Island Tax Amnesty Act of 2017

44-6.5-1. Short title.

This chapter shall be known as the “Rhode Island Tax Amnesty Act of 2017.”

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-2. Definitions.

As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

  1. “Taxable period” means any period for which a tax return is required by law to be filed with the tax administrator.
  2. “Taxpayer” means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator.

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-3. Establishment of tax amnesty.

  1. The tax administrator shall establish a tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator and shall provide that the taxpayer clearly specify the tax due and the taxable period for which amnesty is being sought by the taxpayer.
  2. The amnesty program shall be conducted for a seventy-five day (75) period ending on February 15, 2018. The amnesty program shall provide that, upon written application by a taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending on or prior to December 31, 2016, the tax administrator shall not seek to collect any penalties that may be applicable and shall not seek the civil or criminal prosecution of any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period who have paid the tax and interest due upon filing the amnesty tax return, or who have entered into an installment payment agreement for reasons of financial hardship and upon terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment due under the agreement, such an agreement shall cease to be effective and the balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer.
  3. The provisions of this section shall include a taxable period for which a bill or notice of deficiency determination has been sent to the taxpayer.
  4. Amnesty shall not be granted to taxpayers who are under any criminal investigation or are a party to any civil or criminal proceeding, pending in any court of the United States or the state of Rhode Island, for fraud in relation to any state tax imposed by the law of the state and collected by the tax administrator.

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-4. Interest under tax amnesty.

Notwithstanding any provision of law to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate imposed under § 44-1-7 , reduced by twenty-five percent (25%).

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-5. Implementation.

Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including, but not limited to, procurement of printing and other services and expenditure of appropriated funds as provided for in § 44-6.4-5 .

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-6. Disposition of monies.

  1. Except as provided in subsection (b) within, all monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund.
  2. Monies collected for the establishment of the TDI Reserve Fund (§ 28-39-7 ), the Employment Security Fund (§ 28-42-18 ), the Employment Security Interest Fund (§ 28-42-75 ), the Job Development Fund (§ 28-42-83 ), and the Employment Security Reemployment Fund (§ 28-42-87 ) shall be deposited in said respective funds.

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-7. Analysis of amnesty program by tax administrator.

The tax administrator shall provide an analysis of the amnesty program to the chairpersons of the house finance committee and senate finance committee, with copies to the members of the revenue estimating conference, by April 30, 2018. The report shall include an analysis of revenues received by tax source, distinguishing between the tax collected and interest collected for each source. In addition, the report shall further identify the amounts that are new revenues from those already included in the general revenue receivable taxes, defined under generally accepted accounting principles and the state’s audited financial statements.

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

44-6.5-8. Rules and regulations.

The tax administrator may promulgate such rules and regulations as are necessary to implement the provisions of this chapter.

History of Section. P.L. 2017, ch. 302, art. 8, § 17.

Chapter 7 Collection of Taxes Generally

44-7-1. Definitions.

Terms used in chapters 7 — 9 of this title shall, unless another meaning is clearly apparent from the context, or unless inconsistent with the manifest intent of the legislature, be construed as follows:

  1. “Collector” means a person receiving a tax list and a warrant to collect the tax list.
  2. “Person” means a co-partnership, a corporation, private or municipal, a joint stock company, a trust, an estate, an association, or any other entity or group organization against which a tax may be assessed.
  3. “Publication,” as applied to any notice, advertisement, or other instrument, the publication of which is required by law, means the act of printing it once in a newspaper published in the city or town, if any, otherwise in the county, where the land or other property to which the notice or other instrument relates is situated. The publication shall be made at least fourteen (14) days prior to the date stated for the occurrence of the event to which the publication relates.
  4. “Town” includes city; “town clerk” includes city clerk; “town council” includes city council; “town treasurer” includes city treasurer; “collector” includes city collector.

History of Section. G.L. 1938, ch. 32, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-1 .

Comparative Legislation.

Collection:

Conn. Gen. Stat., §§ 12-35 et seq., 12-141 et seq.

Mass. Ann. Laws ch. 60, § 1 et seq.

44-7-2. Duty of collector to collect and pay over.

The collector shall collect all taxes levied by the city or town by the time directed for the payment of the taxes according to law, and shall pay over the taxes to the city or town treasurer by the time limited for the payment.

History of Section. G.L. 1896, ch. 48, § 1; G.L. 1909, ch. 60, § 1; G.L. 1923, ch. 62, § 1; G.L. 1938, ch. 32, §§ 1, 2; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-2 .

Cross References.

Delinquency lists furnished to registry of motor vehicles, § 31-3-6 .

Collateral References.

Compelling collection of taxes by mandamus. 58 A.L.R. 117.

44-7-3. Collector’s records.

All records kept by the collector shall be furnished by the city or town and shall be at all reasonable times open to the inspection of the auditor of the city or town or any other authorized agent of the city or town, and when the tax warrant has been executed and the accounts of the collector audited, the records showing the collection of all taxes or other disposition of the taxes shall be immediately returned to the city or town.

History of Section. G.L. 1938, ch. 32, § 3; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-3 .

Collateral References.

Tax returns, publicity of. 38 A.L.R. 1374.

44-7-4. Continuance in force of collection warrants.

All warrants for the collection of taxes shall continue in force until the whole tax is collected, notwithstanding the time appointed for collecting the tax, or the term of office of the collector, may have expired, and notwithstanding the collector may have paid the tax into the city or own treasury.

History of Section. G.L. 1896, ch. 48, § 34; G.L. 1909, ch. 60, § 36; G.L. 1923, ch. 62, § 36; G.L. 1938, ch. 32, §§ 4, 37; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-4 .

Cross References.

Powers of successor tax collectors, § 45-4-14 .

NOTES TO DECISIONS

In General.

Treasurer was not required to issue a new warrant to newly elected collector where a warrant had been previously issued to previous collector, who had collected a portion of the tax. Briggs v. Carr, 27 R.I. 477 , 63 A. 487, 1916 R.I. LEXIS 69 (1916).

44-7-5. Removal of collector from office — New collection warrant.

The collector of any city or town may be removed from office by the city or town council for cause shown. In that case a new warrant may issue to the new collector for the collection of the portion of any tax not collected.

History of Section. G.L. 1896, ch. 48, § 36; G.L. 1909, ch. 60, § 38; G.L. 1923, ch. 62, § 38; G.L. 1938, ch. 32, §§ 5, 39; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-5 .

44-7-6. City or town treasurer as collector.

In every city or town in which a collector is not elected or appointed the city or town treasurer performs all the duties and exercise all the powers which by law are imposed and conferred upon collectors of taxes.

History of Section. G.L. 1896, ch. 48, § 37; G.L. 1909, ch. 60, § 39; G.L. 1923, ch. 62, § 39; G.L. 1938, ch. 32, § 40; G.L. 1938, ch. 32, § 6; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-6 .

44-7-7. Notice by collector to taxpayer of amount of tax.

The collector, after receiving a tax list and warrant, shall immediately, at the expense of the city or town, send notice to each person assessed of the amount of his or her tax. The notice shall be mailed postpaid and directed to the address on file in the office of the city or town treasurer or the assessors of taxes. Failure by the collector to send or failure by the taxpayer to receive a notice shall not excuse the nonpayment of the tax or affect its validity or any proceedings for the collection of the tax.

History of Section. G.L. 1938, ch. 32, § 7; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-7 .

Collateral References.

What is “last known address” of taxpayer for purposes of mailing of notice of tax deficiency under § 6212(b) of the Internal Revenue Code of 1954 (26 USCS § 6212(b)). 58 A.L.R. Fed. 548.

44-7-7.1. Taxpayer information.

  1. When a municipality issues a property tax bill to each taxpayer, each bill shall state the amount by which the taxpayer’s rate of tax has been reduced by the distribution of state municipal revenue sharing and state aid for education. The bill shall also state the total amount of state municipal revenue sharing and state aid for education received by the municipality from the state. The statement shall read as follows:
  2. The director of revenue shall annually provide each municipality with the amount of state municipal revenue sharing and state aid for education subject to identification under this section.

Fiscal Year 19 _________ State Aid to City/Town of _____________

Total Amount _____________

Tax rate reduced by _____________

History of Section. P.L. 1987, ch. 118, art. 21, § 1; P.L. 2008, ch. 98, § 38; P.L. 2008, ch. 145, § 38.

44-7-7.2. Portsmouth — Tax bill contents.

The town of Portsmouth tax collector is hereby authorized to include on the town’s property tax bill a check-off provision, whereby a taxpayer may donate funds, in excess of his or her tax bill amount, for use by the Portsmouth Community Scholarship Fund.

History of Section. P.L. 2012, ch. 422, § 1; P.L. 2012, ch. 464, § 1.

Compiler’s Notes.

P.L. 2012, ch. 422, § 1, and P.L. 2012, ch. 464, § 1 enacted identical versions of this section.

44-7-8. Permissive excise tax collection agreement.

A tax collector or a finance director of any city or town may enter into an agreement with the administrator of the division of motor vehicles for the collection of motor vehicle excise taxes and/or motor vehicle registration fees and/or the issuance of motor vehicle registrations on a mutually agreed cost sharing basis.

History of Section. P.L. 1984, ch. 381, art. VI, § 1.

Repealed Sections.

Former §§ 44-7-8 and 44-7-9 (G.L. 1896, ch. 46, §§ 9, 10; G.L. 1909, ch. 58, §§ 9, 10; G.L. 1923, ch. 60, §§ 9, 10; G.L. 1938, ch. 31, §§ 9, 10; G.L. 1956, §§ 44-7-8 , 44-7-9 ) were repealed by P.L. 1969, ch. 197, art. 7, § 15.

Cross References.

Motor Vehicle and Trailer Excise Tax Elimination Act, § 44-34.1-1 et seq.

44-7-9. Delegated authority.

  1. Pursuant to an agreement made under § 44-7-8 , the administrator of the division of motor vehicles may delegate to a tax collector or finance director of any city and/or town, the authority to issue motor vehicle registrations, to collect motor vehicle registration fees, to retain a portion of the fee for administrative expenses, and/or to withhold the issuance of a motor vehicle registration until either the delinquent excise tax and interest on the tax has been paid in full to the tax collector, or the appropriate pro rata quarterly excise tax has been paid in full to the tax collector.
  2. Any tax collector or finance director may delegate to the administrator of the division of motor vehicles the authority to collect its excise taxes on motor vehicles at the time of registration and may reimburse the administrator a reasonable percentage of the tax collected for the cost of collection.

History of Section. P.L. 1984, ch. 381, art. VI, § 1.

44-7-10. Priority of city or town taxes in insolvency.

Whenever any person shall become insolvent, or die insolvent, city or town taxes due from him or her or his or her estate shall have preference, after debts or taxes due the United States and this state, over all other debts or demands, save those due for necessary funeral charges, and for attendance and medicine during his or her last sickness.

History of Section. G.L. 1896, ch. 50, § 3; G.L. 1909, ch. 62, § 3; G.L. 1923, ch. 64, § 3; G.L. 1938, ch. 36, § 3; G.L. 1956, § 44-7-10 .

NOTES TO DECISIONS

Assessment Prior to Receivership.

City was entitled to preference where assessment was made after company ceased doing business but prior to filing of insolvency petition, since tax was a debt when the receiver was appointed. In re Commercial Ins. Co., 20 R.I. 7 , 36 A. 930, 1897 R.I. LEXIS 21 (1897).

Attached Property.

Creditor who attached personalty before appointment of receiver had priority over claim for city taxes where tax claim had not become a lien at the time of the appointment. Bugbee v. Stoller-Hilgers Silk Mills, 45 R.I. 56 , 119 A. 760, 1923 R.I. LEXIS 20 (1923).

Cities.

This section clearly applies to city taxes. Willits v. Jencks Mfg. Co., 54 R.I. 164 , 171 A. 234, 1934 R.I. LEXIS 27 (1934).

Establishment of Claim.

Failure of city to establish its claim in the receivership proceedings will defeat any attempt to gain a priority. Conaty v. Guaranty Loan Co., 62 R.I. 470 , 6 A.2d 698, 1939 R.I. LEXIS 48 (1939).

Mortgaged Property.

A mortgage lien prior in point of time to a town tax lien retains its priority over the tax lien in the proceeds from sale of the property. Semonoff v. West Warwick, 78 R.I. 241 , 81 A.2d 285, 1951 R.I. LEXIS 65 (1951).

A town’s claim for taxes acquires no superior right over a previously recorded valid mortgage by reason of distraint of the mortgaged property. Semonoff v. West Warwick, 78 R.I. 241 , 81 A.2d 285, 1951 R.I. LEXIS 65 (1951).

Subrogation of Mortgagee.

Mortgagee who paid taxes on mortgaged property to prevent sale would be subrogated to preferential right of city against insolvent mortgagor’s general creditors where there were no oppressive or inequitable circumstances. Willits v. Jencks Mfg. Co., 54 R.I. 164 , 171 A. 234, 1934 R.I. LEXIS 27 (1934).

44-7-10.1. Exeter — Non-issuance and/or renewal of licenses or permits to applicants or licensees in arrears in local taxes, liensand assessments in the town.

  1. No license or permit issued by the town of Exeter, and required for the operation of a business as defined in this act, may be issued or renewed to any person or applicant who is in arrears for the payment of any local taxes, liens or other assessments applicable to the operation of the business, unless the matter has been duly appealed in a timely fashion to a court of competent jurisdiction.
  2. No building permit may be issued for new construction and/or the renovation or alteration of an existing structure if the party assessed or property owner is in arrears for the payment of any real property tax, lien or other town assessment on real property unless the matter has been duly appealed in a timely fashion to a court of competent jurisdiction. This prohibition applies only to that real property which is the subject of the building permit application. This section does not apply to construction, which serves to abate a pending notice of violation issued by the town of Exeter or any of its officials and/or representatives.
  3. Any applicant seeking any license or permit or any renewal of any license or permit must submit with his or her application, verification from the property tax or assessment collection agency of the town that all town taxes, liens and assessments are paid to date, the verification to be submitted with the application to the town council.

History of Section. P.L. 1999, ch. 299, § 1.

44-7-10.2. Glocester — Non-issuance of building and demolition permits to applicants in arrears in local taxes, liens, and assessments in town.

  1. No demolition or building permit may be issued for new construction and/or the renovation or alteration of an existing structure if the party assessed or property owner is in arrears for the payment of any real property tax, lien, or other town assessment on real property. This prohibition applies only to the real property which is the subject to the building permit application. This section does not apply to construction which serves to abate a pending notice of violation issued by the town of Glocester or any of its officials and/or representatives.
  2. No demolition permit or building permit for the renovation or alteration of a mobile or manufactured home may be issued if the party assessed or mobile or manufactured home owner is in arrears for the payment of any tax, lien, or other town assessment on the mobile or manufactured home. This prohibition applies only to that mobile or manufactured home which is the subject of the permit application.
  3. Any applicant seeking any demolition or building permit must submit verification from the property tax or assessment collection agency of the town that all town taxes, liens, and assessments are paid to date.

History of Section. P.L. 2013, ch. 448, § 1; P.L. 2013, ch. 476, § 1.

Compiler’s Notes.

P.L. 2013, ch. 448, § 1, and P.L. 2013, ch. 476, § 1 enacted identical versions of this section.

44-7-10.3. Barrington — Non-issuance and/or renewal of licenses or permits to applicants or licensees in arrears in local taxes, liens, and assessments in town.

  1. No license or permit issued by the town of Barrington, and required for the operation of a business, shall be issued or renewed to any person or applicant who is in arrears for the payment of any local taxes, liens, or other assessments applicable to the operation of the business, unless the matter has been duly appealed in a timely fashion to a court of competent jurisdiction.
  2. No demolition or building permit may be issued for new construction and/or the renovation or alteration of an existing structure if the party assessed or property owner is in arrears for the payment of any real property tax, lien, or other town assessment on real property. This prohibition applies only to the real property that is the subject of the building permit application. This section does not apply to construction that serves to abate a pending notice of violation issued by the town of Barrington or any of its officials and/or representatives.
  3. Any applicant seeking any license or permit or any renewal of any license or permit must submit verification from the property tax or assessment collection agency of the town that all town taxes, liens, and assessments are paid to date.
  4. The licensing or permitting authority has the discretion to issue a license or permit, notwithstanding the forgoing, if the applicant has entered an approved repayment plan for the tax arrearage and is current on making payments pursuant to that plan or other grounds that the licensing or permitting authority deems meritorious.

History of Section. P.L. 2020, ch. 22, § 1; P.L. 2020, ch. 48, § 1.

Compiler’s Notes.

P.L. 2020, ch. 22, § 1, and P.L. 2020, ch. 48, § 1 enacted identical versions of this section.

44-7-11. Collectors to furnish statements of liens.

  1. Cities, towns or fire districts.  The collector of taxes for any city, town, or fire district shall, on written application by any person, and within five (5) days thereafter, excluding Saturdays, Sundays, and holidays, furnish to the applicant a single certificate of all taxes and other assessments, including water rates and charges, which at the time constitute liens on the parcel of real estate specified in the application and are payable on account of the real estate. The certificate shall be itemized and shall show the amounts payable on account of all taxes and assessments, rates, fees and charges, so far as the amounts are fixed and ascertained, and if the amounts are not then ascertainable, it shall be expressed in the certificate. In addition, the tax certificate shall include: (1) a statement as to whether there are any tax sales scheduled which would affect the parcel of real estate noted in the certificate; and (2) a statement as to whether any of taxes or other assessments noted on the tax certificate as being paid in full were paid as the result of a sale held pursuant to the provisions of chapter 9 of this title within the twelve (12) month period immediately preceding issuance of the certificate. Any city or town officer or board doing any act toward establishing any tax assessment, lien, fees or charge upon any real estate in the city or town shall transmit a notice of that act to the collector of taxes. The collector of taxes shall charge not more than twenty-five dollars ($25.00) for each certificate so issued, and the money so received shall be paid into the city or town treasury. A certificate issued on or after October 1, 1966, under this section may be filed or recorded with the land evidence records of the city or town in which the real estate shall be situated within sixty (60) days after its date, and if filed or recorded shall operate to discharge the parcel of real estate specified from the liens for all taxes, assessments or portions, rates, fees and charges which do not appear by the certificate to constitute liens, except the taxes, assessments or portions, rates, fees and charges which have accrued within one year immediately preceding the date of the certificate; provided, that they are noted in the certificate, and the taxes, assessments or portions, rates, and charges concerning which a statement has been filed or recorded in the land evidence records. A certificate issued under this section shall not affect the obligation of any person liable for the payment of any tax, assessment, rate, fee, or charge.
  2. The fee to be paid for filing the certificate with the registry of deeds is eight dollars ($8.00).
  3. Barrington.  In the town of Barrington, the tax collector shall, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect all sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring the real estate.
  4. Warren.  In the town of Warren, the tax collector shall, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect all sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring the real estate.
  5. Smithfield.  In the town of Smithfield, the tax collector shall, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect the sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring any real estate. This section does not apply to refinancing transactions or to transfers of real estate within a family without consideration.
  6. City, town or fire district.  The collector of taxes for any city, town, or fire district may, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect all sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring any real estate. This section does not apply to refinancing transactions or to transfers of real estate within a family without consideration.
  7. Scituate.  In the town of Scituate, the tax collector shall, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect all sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring the real estate.
  8. Bristol.  In the town of Bristol, the tax collector shall, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect all sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring the real estate.
  9. East Greenwich.  In the town of East Greenwich, the tax collector shall, upon application for any municipal lien certificate, include and attach to the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect the sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring any real estate. This section does apply to refinancing transactions or to transfers of real estate within a family without consideration.
  10. North Providence.  In the town of North Providence, the tax collector shall, upon application for any municipal lien certificate, include and attach the certificate at no additional fee, a separate motor vehicle excise tax certificate setting forth all motor vehicle excise taxes which at the time are due and payable to the town on account of any owner of any real estate referenced in the application. The closing agent presiding at the closing on any transfer of the real estate shall collect the sums due as set forth on the motor vehicle excise tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring any real estate. This section does apply to refinancing transactions or to transfers of real estate within a family without consideration.
  11. Glocester.  In the town of Glocester, the tax collector shall, upon application for any municipal lien certificate for taxes assessed against a mobile or manufactured home, furnish a tax certificate setting forth all taxes which at the time are due and payable to the town on account of any owner of any mobile or manufactured home referenced in the application. The municipal lien certificate for mobile and manufactured homes shall be processed in accordance with subsection (a) as set forth above. The closing agent presiding at the closing on any transfer of a mobile or manufactured home shall collect all sums due as set forth on the tax certificate and transmit the sums to the tax collector along with the forwarding address of the owner transferring the mobile or manufactured home.

History of Section. G.L. 1938, ch. 32, § 8; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-11 ; P.L. 1966, ch. 278, § 1; P.L. 1981, ch. 237, § 1; P.L. 1986, ch. 127, § 1; P.L. 1986, ch. 331, § 4; P.L. 1986, ch. 464, § 1; P.L. 1993, ch. 123, § 1; P.L. 1994, ch. 414, § 1; P.L. 1996, ch. 56, § 1; P.L. 1996, ch. 368, § 1; P.L. 1996, ch. 415, § 1; P.L. 1996, ch. 420, § 1; P.L. 1997, ch. 220, § 1; P.L. 1997, ch. 234, § 1; P.L. 1998, ch. 164, § 1; P.L. 1998, ch. 197, § 1; P.L. 1998, ch. 206, § 1; P.L. 1998, ch. 207, § 1; P.L. 1998, ch. 218, § 1; P.L. 1998, ch. 220, § 1; P.L. 1998, ch. 224, § 1; P.L. 1998, ch. 227, § 1; P.L. 1998, ch. 246, § 1; P.L. 1998, ch. 247, § 1; P.L. 1998, ch. 271, § 1; P.L. 1998, ch. 462, § 1; P.L. 1998, ch. 463, § 1; P.L. 1998, ch. 465, § 1; P.L. 1998, ch. 466, § 1; P.L. 1999, ch. 69, § 1; P.L. 1999, ch. 113, § 1; P.L. 1999, ch. 312, § 1; P.L. 1999, ch. 329, § 1; P.L. 1999, ch. 409, § 1; P.L. 2000, ch. 41, § 1; P.L. 2000, ch. 301, § 1; P.L. 2001, ch. 337, § 1; P.L. 2004, ch. 51, § 1; P.L. 2004, ch. 373, § 1; P.L. 2009, ch. 24, § 1; P.L. 2009, ch. 38, § 1; P.L. 2011, ch. 286, § 1; P.L. 2012, ch. 415, § 8; P.L. 2012, ch. 488, § 1; P.L. 2013, ch. 328, § 1; P.L. 2013, ch. 388, § 1.

Compiler’s Notes.

This section was amended by two acts (P.L. 2012, ch. 415, § 8; P.L. 2012, ch. 488, § 1) as passed by the 2012 General Assembly. Since the two acts are not in conflict, the section is set out as amended by both acts.

P.L. 2013, ch. 328, § 1, and P.L. 2013, ch. 388, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2013, ch. 328, § 3, provides that the amendment to this section by that act take effect upon passage [July 15, 2013] and shall apply to taxes assessed December 31, 2012 and thereafter.

P.L. 2013, ch. 388, § 3, provides that the amendment to this section by that act take effect upon passage [July 15, 2013] and shall apply to taxes assessed December 31, 2012 and thereafter.

NOTES TO DECISIONS

Accurate Records.

The legislature has placed the burden of accurate record keeping on cities and towns in order that real estate transactions can be conducted with notice and in an orderly fashion. Fitzpatrick v. Tri-Mar Indus., Inc., 723 A.2d 285, 1999 R.I. LEXIS 20 (R.I. 1999).

The language of R.I. Gen. Law § 44-7-11 does not suggest that the title purchased at a tax sale is defeated merely by the subsequent issuance and recording of a municipal lien certificate that fails to list the tax sale. Since the hearing justice predicated his ruling on other grounds and simply did not address the issue of the municipal lien certificate, and since the city had not even been made a party to the proceedings when the issue was raised, any questions concerning the allegedly faulty lien certificate first should be addressed at a hearing in which the city is a full participant. 140 Reservoir Ave. Assocs. v. Sepe Invs., LLC, 941 A.2d 805, 2007 R.I. LEXIS 134 (R.I. 2007).

Bankruptcy Proceedings.

A superior court which issued a writ of mandamus in regard to the issuance of a tax certificate should have abstained from exercising jurisdiction unless and until the bankruptcy court involved either had (1) abstained, refused to re-open the case, or otherwise declined to pass on the merits of the parties’ dispute, or had (2) adjudicated the effect of the prior property owner’s default on the city’s tax lien. Nationwide Life Ins. Co. v. Annarino, 727 A.2d 200, 1999 R.I. LEXIS 81 (R.I. 1999).

Loss of Lien on “Unascertainable” Taxes.

This section requires the collectors of taxes to make the notation that there are other, “unascertainable,” taxes that have been assessed on the property, but imposes no sanctions should they fail to do so in respect to taxes which have accrued within one year prior to the date of the certificate. Therefore, this section will not result in the loss of a town’s lien regarding any taxes that have “accrued within one year”, even if they are not set forth in the certificate. Ask Properties v. Olobri, 565 A.2d 873, 1989 R.I. LEXIS 153 (R.I. 1989).

Collateral References.

Unpaid taxes against specific property, effect of certificate or statement of treasurer or other public official regarding. 107 A.L.R. 568; 21 A.L.R.2d 1273.

44-7-12. Action for recovery of tax.

  1. The collector of any tax may recover the amount of the tax in an action against the person taxed, and in the complaint it shall be sufficient to set forth that the action is to recover a specified sum of money, being a tax assessed against the defendant, specifying the city or town in which the tax was assessed and the time of ordering and assessing the tax.
  2. The court may award a reasonable attorney’s fee to the prevailing party in any civil action arising from the collection of a municipal tax levy in which the court:
    1. Finds that there was a complete absence of a justiciable issue of either law or fact raised by the losing party; or
    2. Renders a default judgment against the losing party.

History of Section. G.L. 1896, ch. 48, § 26; G.L. 1909, ch. 60, § 28; G.L. 1923, ch. 62, § 28; G.L. 1938, ch. 32, §§ 20, 27; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-12 ; P.L. 1990, ch. 371, § 1; P.L. 1993, ch. 370, § 1.

Cross References.

Collection by small claims procedure, § 10-16-1 et seq.

Estate and transfer taxes, powers of administrator, § 44-23-9 .

Sales and use taxes, powers of administrator, § 44-19-23 .

NOTES TO DECISIONS

Evidence of Notice.

It was permissible to introduce in evidence copies of newspapers containing notices where original notices had been lost. Pendleton v. Briggs, 37 R.I. 352 , 92 A. 1024, 1915 R.I. LEXIS 18 (1915).

Irregularities.

Recovery of taxes is not barred by mere irregularities unless jurisdictional or prejudicial to substantial rights of taxpayer. Pendleton v. Briggs, 37 R.I. 352 , 92 A. 1024, 1915 R.I. LEXIS 18 (1915).

Award of attorneys’ fees under R.I. Gen. Laws § 44-7-12(b) after the trial court’s order in the landowner’s case declaring the tax assessment scheme to be illegal was proper; that decision extended to all property owners affected by the scheme, including the taxpayers, and the assessment of taxes and the collection of taxes under § 44-7-12(b) were inextricably linked. Union Station Assocs. v. Rossi, 862 A.2d 185, 2004 R.I. LEXIS 184 (R.I. 2004).

Where the taxpayers sought attorneys’ fees under R.I. Gen. Laws § 44-7-12(b) in their mandamus action against the City of Providence seeking relief from the illegal tax reassessments, § 44-7-12(b) extended to the mandamus action; the mandamus action was civil in nature, and because the petition was necessitated solely by the conduct of the City arising from the collection of a municipal tax levy, it constituted a civil action within the ambit of § 44-7-12(b). Union Station Assocs. v. Rossi, 862 A.2d 185, 2004 R.I. LEXIS 184 (R.I. 2004).

Limitation of Actions.

Action on behalf of municipality for collection of personal property taxes is barred by statute of limitations properly pleaded. Ramsden v. Ford, 88 R.I. 144 , 143 A.2d 697, 1958 R.I. LEXIS 103 (1958).

Since the underlying civil action did not arise from the collection of a municipal tax levy, but rather from the assessment of taxes, and the city had raised justiciable issues, the company failed to meet two of the requirements under R.I. Gen. Laws § 44-7-12(b) . Weybosset Hill Invs., LLC v. Rossi, 896 A.2d 728, 2006 R.I. LEXIS 44 (R.I. 2006).

Malicious Prosecution.

A municipal corporation is not liable to proceedings for malicious prosecution when a tax collector has proceeded under the authority of this section. Horton v. Newell, 17 R.I. 571 , 23 A. 910, 1892 R.I. LEXIS 30 (1892).

Personal Action.

By virtue of this section the city can proceed in a personal action against the taxpayer instead of selling property under its tax lien. Harris v. Lucca, 47 R.I. 438 , 133 A. 815, 1926 R.I. LEXIS 79 (1926).

Pleadings.

Declaration for recovery of taxes was sufficient where it alleged a specific sum as a tax assessed against defendant, specified the town in which the tax was assessed, and the time of ordering and assessing of the tax. Kettelle v. Warwick & Coventry Water Co., 24 R.I. 485 , 53 A. 631, 1902 R.I. LEXIS 105 (1902).

If acts of general assembly specify the particular matters in which tax was validated it is not necessary in a declaration to recover the tax to specify the particular matters which were validated. Kettelle v. Warwick & Coventry Water Co., 24 R.I. 485 , 53 A. 631, 1902 R.I. LEXIS 105 (1902).

Qualifications of Collector.

In the absence of contrary evidence, collector need not prove that he has complied with all the statutory requisites to qualify for office. Kent v. Atlantic De Laine Co., 8 R.I. 305 , 1866 R.I. LEXIS 11 (1866).

Collateral References.

Barred claim of government against taxpayer as available to defeat or diminish claim of taxpayer against government, or vice versa. 109 A.L.R. 1354; 130 A.L.R. 838; 154 A.L.R. 1052; 12 A.L.R.2d 815.

Presentation of claim to executor before bringing action to recover taxes against property of decedent. 34 A.L.R. 387.

44-7-13. Judgment for collector — Execution and levy.

If judgment is rendered in favor of the collector, he or she shall have an allowance for his or her reasonable trouble in attending to the suit, to be taxed by the court in the bill of costs, and execution shall issue against the real and personal estate of the defendant, and the levy of the execution upon any real estate, upon which a lien for the tax is created by chapter 9 of this title, shall be deemed to relate back, and take effect from the time of commencement of the lien.

History of Section. G.L. 1896, ch. 48, § 27; G.L. 1909, ch. 60, § 29; G.L. 1923, ch. 62, § 29; G.L. 1938, ch. 32, §§ 21, 28; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-13 .

NOTES TO DECISIONS

Costs.

Costs in favor of a tax collector do not include an allowance for counsel fees. Kent v. Atlantic De Laine Co., 8 R.I. 305 , 1866 R.I. LEXIS 11 (1866).

44-7-14. Cancellation of taxes — Erroneous, uncollectible, or illegal taxes — Incentive to rehabilitate property — Exeter — equitable cancellation in the town.

The city or town council of any city or town may cancel in whole or in part, taxes assessed upon personal, mixed, or real property:

  1. When there is a mistake in the assessment of a tax, and the tax assessors have certified to the fact, in writing, to the body authorized by the provisions of this section to cancel taxes, setting forth the nature of the mistake, the valuation of the property, the amount of the tax assessed, and the name of the person to whom the property was taxed.
  2. When a person dies leaving no estate, or removes from the state and owns no property or interest in property within the state, and the tax collector or person acting in the capacity of tax collector certifies, in writing, to the body authorized by the provisions of this section to cancel taxes, as to the facts in the case.
  3. When the council is advised by the city or town solicitor, or the person acting in the capacity of the solicitor, by written opinion that a tax is illegal, and the tax administrator concurs in the opinion.
  4. When the council is acting pursuant to §§ 45-44-1 45-44-13 or a properly enacted city or town ordinance intended to encourage the renovation, rehabilitation, or construction of tax delinquent properties.
  5. Exeter.  The town council of the town of Exeter may cancel or forgive, in whole or in part, taxes assessed in the town of Exeter prior to January 1, 1994, when the taxpayer, under oath, proves to the satisfaction of the Exeter town council:
    1. That the subject tax was paid or that the nonpayment of the tax was the direct result of the material error, neglect or omission of the Exeter tax collector;
    2. That the taxpayer relied in good faith to his or her detriment upon the error, neglect or omission; and
    3. That a gross inequity would arise if the tax, penalty and any interest accrued on the tax or penalty, were to be charged or collected accordingly.

History of Section. G.L. 1923, ch. 62, § 40; P.L. 1931, ch. 1711, § 1; P.L. 1935, ch. 2259, § 3; G.L. 1938, ch. 32, §§ 41, 58; impl. am. P.L. 1939, ch. 660, § 70; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-14 ; P.L. 1978, ch. 132, § 1; P.L. 1997, ch. 242, § 1; P.L. 1997, ch. 355, § 1.

44-7-15. Certificate of cancellation — Attachment to tax list.

Whenever any tax is cancelled in accordance with the provisions of § 44-7-14 , the body canceling the tax shall certify to the tax collector, or person acting in the capacity of tax collector, that the tax has been cancelled, and the tax collector or person acting in the capacity of tax collector shall, upon receipt of the certification, immediately attach the certification to the tax list, whereupon it shall become a part of the list, and shall strike the cancelled tax from the list or correct the amount in the list, as the case may be. The liability of the collector of taxes or person acting in the capacity of collector of taxes and the surety on his or her bond shall be measured and determined by the tax list as amended by cancellations made under the provisions of this chapter, in the same manner and to the same extent as if it were the original list.

History of Section. G.L. 1923, ch. 62, § 41; P.L. 1931, ch. 1711, § 1; G.L. 1938, ch. 32, §§ 42, 59; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-15 .

44-7-16. Action by city or town treasurer against delinquent collector.

The city or town treasurer may have his or her action against any collector and his or her sureties, who shall neglect to pay in any tax to the city or town treasury by the time limited therefor.

History of Section. G.L. 1896, ch. 48, § 31; G.L. 1909, ch. 60, § 33; G.L. 1923, ch. 62, § 33; G.L. 1938, ch. 32, §§ 34, 60; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-16 .

Cross References.

Action against collector for delinquencies in state taxes, § 44-6-6 .

44-7-17. Execution against delinquent collectors.

In every execution issued by any court against any delinquent collector or his or her sureties, the words “and real estate” shall be inserted immediately after the words “goods and chattels,” and the officer charged shall immediately attach and take possession of all the estate, real and personal, of the collector within his or her precinct, and shall immediately advertise the estate to be sold within twenty (20) days after this at public auction; and he or she shall cause enough of the estate to be sold to pay the amount of the execution, and all incidental costs and expenses; and the sale may be adjourned from time to time.

History of Section. G.L. 1896, ch. 48, § 32; G.L. 1909, ch. 60, § 34; G.L. 1923, ch. 62, § 34; G.L. 1938, ch. 32, §§ 35, 61; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-17 .

44-7-18. Execution against sureties of delinquent collector.

If no estate of the collector can be found in the precinct of the officer, or if the estate is insufficient, the officer shall make return to the clerk’s office, and an alias execution shall immediately be issued against the sureties of the collector, for the amount unpaid, and costs and expenses, which shall be levied upon their estates, and proceeded with in the manner as directed by this chapter concerning collectors.

History of Section. G.L. 1896, ch. 48, § 33; G.L. 1909, ch. 60, § 35; G.L. 1923, ch. 62, § 35; G.L. 1938, ch. 32, §§ 36, 62; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-18 .

44-7-19. Action by co-tenant for contribution to tax.

A tenant in common or a joint tenant who pays the entire tax assessed for property held in common, or jointly, may recover from his co-tenants jointly or severally the proportion of the tax payable by the co-tenants in an action of the case.

History of Section. G.L. 1938, ch. 32, § 63; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-19 .

44-7-20. Actions for refund of taxes.

No action to recover back a tax shall be maintained unless commenced within three (3) months after payment of the tax, nor unless the tax is paid under a written protest. In an action founded on an error or irregularity in the assessment or apportionment of the tax, only the amount in excess of the tax for which the plaintiff was liable shall be recoverable, and no sale, contract, or levy shall be avoided solely by reason of the error or irregularity.

History of Section. G.L. 1938, ch. 32, § 64; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-20 .

Collateral References.

Action to recover for taxes paid by one who mistakenly believed himself the owner of the property. 104 A.L.R. 609.

Amending claim for refund of taxes after time for filing has expired. 113 A.L.R. 1291.

Bankruptcy trustee’s right to claim against government for tax refund. 102 A.L.R. 168.

Barred claim of government against taxpayer as available to defeat or diminish claim of taxpayer against government, or vice versa. 109 A.L.R. 1354; 130 A.L.R. 838; 154 A.L.R. 1052; 12 A.L.R.2d 815.

Buyer’s right to recover from seller amount of invalid or excess tax that has been refunded to the latter. 115 A.L.R. 667; 132 A.L.R. 706.

Constitutionality of statute providing for refund of taxes illegally or erroneously exacted. 98 A.L.R. 284.

Effect of delay in receipt or negotiation of refund check in determining right to interest under § 6611 of the Internal Revenue Code (26 USCA § 6611). 145 A.L.R. Fed. 437.

Excessive assessments as within contemplation of statute providing for refunding of taxes “erroneously or illegally charged.” 110 A.L.R. 670.

Grounds stated in protest against payment of property tax as a limitation of grounds upon which recovery back of tax may be claimed. 113 A.L.R. 1479.

Judicial decision denying power of state to levy tax as supporting recovery of taxes paid at time when power of state to levy tax had been judicially upheld. 115 A.L.R. 641.

Limitation period for filing applications for refunds, when begins to run. 175 A.L.R. 1100.

Mandatory or permissive character of legislation in relation to refund of taxes illegally exacted. 103 A.L.R. 817.

Mistake, right of one who pays taxes because of, to recover against person benefited by payment. 91 A.L.R. 389.

Recovery of tax paid on exempt property. 25 A.L.R.4th 186.

Right to interest on tax refund or credit. 88 A.L.R.2d 823.

Right to refund or recovery back of taxes paid on property not owned by taxpayer. 165 A.L.R. 879.

Time for claiming refund where tax is paid in instalments. 94 A.L.R. 978.

Unconstitutional statute or ordinance, recovery of tax paid under. 48 A.L.R. 1381; 74 A.L.R. 1301.

Validity and applicability of statutory time limit concerning taxpayer’s claim for state tax refund. 1 A.L.R.6th 1.

When right to refund of state or local taxes accrues, within statute limiting time for applying for refund. 46 A.L.R.2d 1350.

Who, as between grantor and grantee, immediate or remote, is entitled to refund of tax. 105 A.L.R. 698.

44-7-21. Severability.

The powers granted and the duties imposed by chapters 7 — 9 of this title and their applicability to any persons, tax districts, or circumstances shall be construed to be independent and severable, and if any one or more sections, clauses, sentences, or parts of these chapters, or their applicability to any persons, tax districts, or circumstances shall be adjudged unconstitutional or invalid, the judgment shall not affect, impair, or invalidate the remaining provisions of these chapters, or their applicability to other persons, tax districts, or circumstances, but shall be confined in its operation to the specific provisions held unconstitutional and invalid and to the persons, tax districts, and circumstances affected by that invalidity.

History of Section. G.L. 1938, ch. 32, § 65; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-7-21 .

44-7-22. Remedy not exclusive.

The remedy provided by chapters 7 — 9 of this title shall be cumulative and shall not exclude or prevent the exercise of any other right, remedy, or process previously allowed by law or by previous enactment of the legislature.

History of Section. P.L. 1957, ch. 126, § 1.

44-7-23. Exemption on uninhabited buildings.

No city or town council may cancel or abate, in whole or in part, taxes assessed upon any real property consisting of an uninhabited, boarded up, or otherwise uninhabitable building unless the property is or will be subject to eminent domain proceedings by the state or local government or an agency of these, and the state or local government or an agency of these participating in the eminent domain proceedings certifies that fact in writing to the city or town council.

History of Section. P.L. 1968, ch. 283, § 1.

44-7-24. Legislatively created bodies — Collection of taxes, assessments, and other charges.

No legal entity created by the general assembly, which is authorized to collect taxes, fees, assessments, rates, or other charges, including, but not limited to the Providence Water Supply Board and the city of Providence, shall refuse to accept cash-in-hand in payment of taxes, fees, assessments, rates, charges, or any other liability. Any legislatively created body shall be open for the collection of taxes, fees, assessments, rates, and charges during reasonable business hours. Failure of any legislatively created body to accept from any person cash-in-hand in payment of those liabilities set forth in this section shall discharge that person from the duty to pay that liability.

History of Section. P.L. 1983, ch. 48, § 1.

44-7-25. Sale of rights to uncollected taxes that are due and payable.

The collector, with the approval of the city or town council, is authorized to sell to a bank or other financial institution the rights of the city or town to receive taxes, which are due and payable as of the end of the city or town’s fiscal year and are uncollected at the time of the sale. Any agreement executed under this section shall be filed with the city or town clerk, but does not need to be filed or recorded under the Uniform Commercial Code, title 6A. The collector shall act as the sole collecting agent for the bank or financial institution and shall exercise the rights under chapters 7 — 9 of this title as to collection, enforcement of liens, and sale for nonpayment with respect to those taxes.

History of Section. P.L. 1983, ch. 329, § 1; P.L. 1984, ch. 329, § 1; P.L. 1986, ch. 198, § 54.

Compiler’s Notes.

Section 2 of P.L. 1983, ch. 329 provided for the expiration of this section, as amended by P.L. 1984, ch. 239, § 1, on January 1, 1985. Section 53 of P.L. 1986, ch. 198, however, repealed Section 2 of P.L. 1983, ch. 329 and P.L. 1986, ch. 198, § 54 enacted a § 44-7-25 identical to that appearing in P.L. 1984, ch. 239, § 1. Since § 55 of P.L. 1986, ch. 198 provides that §§ 53 and 54 of that Act shall take effect upon passage (June 18, 1986) and shall be applied retroactively to December 31, 1984, P.L. 1986, ch. 198, § 54 has been treated as an amendment to § 44-7-25 as enacted by P.L. 1983, ch. 329, § 1 and amended by P.L. 1984, 239, § 1, rather than as an enactment of a new § 44-7-25.

44-7-26. Jeopardy collections of taxes.

  1. If, between the assessment date and the tax due date, any tax collector believes that the collection of any tax will be jeopardized by delay, he or she shall, subject to the provisions of this section, collect the tax immediately.
  2. He or she may enforce collection of the tax by using any one or more of the methods provided in chapters 8 and 9 of this title, or in any other section relating to the collection of taxes.
  3. If the amount of the tax has been definitely fixed by the assessors, the collector shall collect that amount. If the assessment of the property represented by the tax has been fixed by the assessors but the tax rate has not been laid, the collector shall, subject to the provisions of this section, enforce collection of a tax obtained by multiplying the fixed assessment by the tax rate of the next preceding year. If neither the assessment of the property nor the tax rate has been fixed, the tax collector shall make application to the assessors for a valuation on the property. The assessors shall, immediately, value the property and the valuation placed upon the property by the assessors, together with the tax rate of the preceding year, shall be used by the collector in determining the amount of tax to be collected.
  4. If, after the payment of any tax in conformity with the provisions of this section, it is found that the amount paid is in excess of the amount which would have been paid on the tax due date or after appeal to the courts, the excess paid shall be returned to the taxpayer upon written application by him or her to the treasurer of the municipality. The written application shall contain a recital of the facts, shall show the amount of rebate to which the applicant believes he or she is entitled, shall be approved by the tax collector, and shall be made within the period of one year from the date of the definite determination of the tax.
  5. The person against whom jeopardy collection proceedings have been begun, may obtain a stay of collection of the whole or any part of the amount of the tax represented by the proceedings by filing with the tax collector a bond in an amount not exceeding double the amount as to which the stay is desired, and with the surety as the tax collector deems necessary, conditioned upon the payment of the amount, the collection of which is stayed by the bond as is found to be due from the person when the tax roll has been completed and the tax rate fixed or as is determined by a court of competent jurisdiction after appeal to it. The amount of the tax which is stayed by the bond shall be paid on notice and demand of the tax collector at any time after the tax due date. The person subject to jeopardy collection proceedings under the provisions of this section, who has obtained a stay of collection in whole or in part, shall have the right to waive the stay at any time in respect to the whole or any part of the amount covered by the bond and if, as the result of the waiver, any part of the amount covered by the bond is paid, the bond shall, at the request of the taxpayer, be proportionately reduced.

History of Section. P.L. 1984, ch. 381, art. IV, § 1.

44-7-27. Newport — Cancellation of real property taxes in the city.

In addition to the provisions of § 44-7-14 , the council of the city of Newport may cancel in whole or in part taxes, including late payment penalties and interest, assessed upon the following real property:

  1. Real property located at Washington Street South Pier, tax assessor’s plat 16, lot 244, for any period of time after April 1, 1985, at which time ownership of the real property was transferred to the state of Rhode Island and the Rhode Island economic development corporation for the purpose of constructing berthing facilities for commercial fishing vessels.
  2. Real property located at Washington Street, tax assessor’s plat 16, lots 113, 111.4 and 223, for any period of time after August 1, 1986, at which time ownership of the real property was transferred to the state of Rhode Island for the purpose of constructing a transportation and visitors’ center for the Newport Gateway project.

History of Section. P.L. 1986, ch. 516, § 1; P.L. 1987, ch. 45, § 1; P.L. 1987, ch. 259, § 1.

44-7-28. Glocester, Coventry and Burrillville tax lien on mobile or manufactured home in the town.

  1. Taxes assessed against any person in the towns of Glocester, Coventry, and Burrillville for either a mobile or manufactured home shall constitute a lien on the mobile or manufactured home. The lien shall arise and attach as of the date of assessment of the taxes, as defined in § 44-5-1 .
  2. The lien shall terminate at the expiration of twenty (20) years. The lien shall be superior to any other lien, encumbrance, or interest in the mobile or manufactured home whether by way of attachment or otherwise.

History of Section. P.L. 2013, ch. 328, § 2; P.L. 2013, ch. 388, § 2; P.L. 2014, ch. 494, § 1; P.L. 2014, ch. 527, § 1; P.L. 2018, ch. 336, § 1; P.L. 2018, ch. 338, § 1.

Compiler’s Notes.

P.L. 2013, ch. 328, § 2, and P.L. 2013, ch. 388, § 2 enacted identical versions of this section.

P.L. 2014, ch. 494, § 1, and P.L. 2014, ch. 527, § 1 enacted identical amendments to this section.

P.L. 2018, ch. 336, § 1, and P.L. 2018, ch. 338, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2013, ch. 328, § 3, provides that the enactment of this section by that act take effect upon passage [July 15, 2013] and shall apply to taxes assessed December 31, 2012 and thereafter.

P.L. 2013, ch. 388, § 3, provides that the enactment of this section by that act take effect upon passage [July 15, 2013] and shall apply to taxes assessed December 31, 2012 and thereafter.

Chapter 8 Collection by Distress

44-8-1. Property subject to distraint.

The collector may distrain personal property, except that which is exempt from attachment or distress by the laws of this state or of the United States, and may sell the property in the manner directed by this chapter.

History of Section. G.L. 1896, ch. 48, §§ 17, 18; G.L. 1909, ch. 60, §§ 19, 20; G.L. 1923, ch. 62, §§ 19, 20; G.L. 1938, ch. 32, §§ 9, 18, 19; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-1 .

Cross References.

Definition of terms, § 44-7-1 .

Distress warrants, § 10-8-1 .

Estate and transfer taxes, powers of administrator, § 44-23-9 .

Sales and use taxes, powers of administrator, § 44-19-23 .

Town treasurer failing to deliver delinquent tax collector’s bond, § 44-6-7 .

Comparative Legislation.

Distress:

Conn. Gen. Stat., § 12-35 et seq.

Mass. Ann. Laws ch. 60, § 24 et seq.

NOTES TO DECISIONS

In General.

Personalty that had not been distrained prior to appointment of receiver was subject first to the claims of a creditor who attached before the appointment. Bugbee v. Stoller-Hilgers Silk Mills, 45 R.I. 56 , 119 A. 760, 1923 R.I. LEXIS 20 (1923).

Collateral References.

Enforcement against tax exempt property of tax on nonexempt property or on owner of tax exempt property. 159 A.L.R. 461.

44-8-2. Notice of sale of personal property distrained.

In all cases where personal property shall be levied on by any collector, the collector shall cause notice of the levy, and of the time and place of sale, to be left at the last and usual place of abode of the owner, or personally to be given to the owner, at least five (5) days previous to the appointed time of sale, if the owner has a last and usual place of abode in the state or if personal notice can be given to the owner. The collector shall also in all cases advertise the sale once a week for three (3) successive weeks in a newspaper, if there is one published in the town, if not, in the county, and shall also post up notices in three (3) public places in the city or town, at least twenty (20) days previous to the appointed time of sale.

History of Section. G.L. 1896, ch. 48, §§ 19, 20; G.L. 1909, ch. 60, §§ 21, 22; G.L. 1923, ch. 62, §§ 21, 22; G.L. 1938, ch. 32, §§ 10, 20, 21; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-2 .

Collateral References.

Right of interested party receiving due notice of tax sale or of right to redeem to assert failure or insufficiency of notice to other interested party. 45 A.L.R.4th 447.

Sufficiency of notice of sale of property, under 26 USCS § 6335, seized for failure to pay federal taxes. 26 A.L.R. Fed. 381.

What is “last known address” of taxpayer for purposes of mailing of notice of tax deficiency under § 6212(b) of the Internal Revenue Code of 1954 (26 USCS § 6212(b)). 58 A.L.R. Fed. 548.

44-8-3. Sale of property — Disposition of surplus proceeds or property.

If the owner does not pay the amount of the tax, with the interest or percentage and all costs and charges, by the time appointed for the sale, the collector shall sell the property, or enough to pay the sums due, at public auction. Any remaining property or surplus of money shall be returned to the owner or person entitled to receive it. If no owner or person entitled to receive the property or surplus of money can be found by the collector, the collector shall deliver the property or surplus of money to the city or town treasurer, who shall hold it subject to the call of the owner or person entitled to receive the property or surplus of money.

History of Section. G.L. 1896, ch. 48, §§ 21, 22; G.L. 1909, ch. 60, §§ 23, 24; G.L. 1923, ch. 62, §§ 23, 24; G.L. 1938, ch. 32, §§ 11, 22, 23; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-3 .

Cross References.

Fees of local officials in case of distraint, 44-2-1 .

Collateral References.

Inadequacy of price as basis for setting aside execution or sheriff ’s sale—modern cases. 5 A.L.R.4th 794.

Sale under distress warrant, right of officer conducting, to refuse to accept best bid because inadequate. 110 A.L.R. 1077.

44-8-4. Removal of property to advantageous place for sale.

Any collector may, with the consent of the owner, remove personal property for sale to any city or town or place, where it may be sold to the best advantage, giving notice to the owner, and giving notice as provided by § 44-8-2 , in the city or town or place where the sale is to be made.

History of Section. G.L. 1896, ch. 48, § 23; G.L. 1909, ch. 60, § 25; G.L. 1923, ch. 62, § 25; G.L. 1938, ch. 32, § 24; G.L. 1938, ch. 32, § 12; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-4 .

44-8-5. Collection of tax after removal of person or property to another city or town.

If any person or property taxed in one city or town removes or is removed into another city or town before the tax is collected, the collector may follow the person or property into any city or town and levy or collect the tax with the same power as if the person or property was not removed.

History of Section. G.L. 1896, ch. 48, § 24; G.L. 1909, ch. 60, § 26; G.L. 1923, ch. 62, § 26; G.L. 1938, ch. 32, §§ 13, 25; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-5 .

44-8-6. Adjournment of sales.

Any sale of real or personal estate or of any interest in an estate, liable for the payment of taxes by the provisions of this chapter, may be adjourned from time to time.

History of Section. G.L. 1896, ch. 48, § 25; G.L. 1909, ch. 60, § 27; G.L. 1923, ch. 62, § 27; G.L. 1938, ch. 32, §§ 14, 26; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-6 .

NOTES TO DECISIONS

Continuance of Sale.

A collector can reasonably continue a sale from time to time beyond the period prescribed by § 44-9-1 without losing the lien if sale was first advertised to be held on a date within the statutory period. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

44-8-7. Summons of person holding property of nonresident or absent taxpayer.

If any person legally taxed shall be out of the state, or depart from the state, leaving no property liable for the tax, the collector may summon the attorney, agent, factor, trustee, or debtor of the person before the district court of the district in which the city or town where the tax is assessed is situated, to declare on oath how much property, if any, of the absent person, he or she has in his or her possession; and if he or she has sufficient property, he or she shall pay the tax and charges, or deliver to the collector sufficient property to pay the tax and charges.

History of Section. G.L. 1896, ch. 48, § 28; G.L. 1909, ch. 60, § 30; G.L. 1923, ch. 62, § 30; G.L. 1938, ch. 32, §§ 15, 29; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-7 .

44-8-8. Distress warrant against person holding property of nonresident or absentee.

If any person summoned shall neglect to appear, or refuse to make oath, or having made oath shall refuse to pay the tax and charges, or to deliver to the collector sufficient property to pay the tax and charges, if the person has sufficient property, the district court shall grant to the collector a warrant of distress against the proper goods and chattels of the person summoned, and the collector may distrain and sell the goods and chattels wherever found, or so much of the goods and chattels as will pay the tax and all interest and expenses, in the manner provided by this chapter; and the district court shall have jurisdiction in the premises, although the amount involved shall exceed one thousand dollars ($1,000).

History of Section. G.L. 1896, ch. 48, § 29; G.L. 1909, ch. 60, § 31; G.L. 1923, ch. 62, § 31; G.L. 1938, ch. 32, §§ 16, 30; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-8 .

44-8-9. Payment of tax barring action by nonresident or absentee for property.

If the person summoned shall pay the tax and charges, or deliver property for this purpose, or have his or her own property sold for this purpose, this proceeding shall be sufficient to bar any action brought for this purpose by the absent person.

History of Section. G.L. 1896, ch. 48, § 30; G.L. 1909, ch. 60, § 32; G.L. 1923, ch. 62, § 32; G.L. 1938, ch. 32, §§ 17, 31; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-9 .

44-8-10. Distress warrant against delinquent corporation.

If any corporation shall neglect for the space of thirty (30) days to pay the tax imposed upon the corporation, the general treasurer shall issue his or her warrant of distress against the corporation, directed to the sheriff or his or her deputy of the county in which the corporation is located, for the amount of the tax, commanding him or her, in the name of the state, to collect from the corporation the amount, with interest on this from the time the amount was payable to the time of its receipt by the officer, with his or her lawful fees, and to make return of the warrant within ninety (90) days from the date of the warrant.

History of Section. G.L. 1896, ch. 29, § 17; G.L. 1909, ch. 39, § 17; G.L. 1923, ch. 37, § 13; G.L. 1938, ch. 32, §§ 18, 32; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-10 .

44-8-11. Attachment and sale of corporate property.

The officer charged with the service of the warrant shall levy and collect the sum set forth in the warrant by attachment and seizure of the real and personal estate of the corporation against whom the warrant was issued, and shall sell the estate at public auction, giving thirty (30) days previous notice of the time and place of the sale by posting up two (2) notices in the city or town in which the corporation is located. A deed of the estate made by the officer shall vest in the purchaser all the right, title, and interest, which the corporation had in the estate at the time of the attachment and seizure of the estate.

History of Section. G.L. 1896, ch. 29, § 18; G.L. 1909, ch. 39, § 18; G.L. 1923, ch. 37, § 14; G.L. 1938, ch. 32, §§ 19, 33; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-8-11 .

Cross References.

Severability of provisions, § 44-7-21 .

Chapter 9 Tax Sales

44-9-1. Tax titles on real estate.

  1. Taxes assessed against any person in any city or town for either personal property or real estate shall constitute a lien on the real estate. The lien shall arise and attach as of the date of assessment of the taxes, as defined in § 44-5-1 .
  2. The lien shall terminate at the expiration of three (3) years after it first arises if the estate has in the meantime been alienated and the instrument alienating the estate has been recorded and no action for the enforcement of the lien has commenced; otherwise, it shall continue until a recorded alienation of the estate. The lien shall be superior to any other lien, encumbrance, or interest in the real estate whether by way of mortgage, attachment, receivership order, or otherwise, except easements, restrictions, and prior tax title(s) held by the Rhode Island housing and mortgage finance corporation. A final decree foreclosing all rights of redemption under this title shall constitute an alienation within the meaning of this section. The tax sale shall constitute an enforcement of the lien, but itself shall not constitute an alienation.

History of Section. G.L. 1896, ch. 48, §§ 2, 3; G.L. 1909, ch. 60, §§ 2, 3; P.L. 1912, ch. 769, § 44; G.L. 1923, ch. 62, §§ 2, 3; G.L. 1938, ch. 32, §§ 2, 3, 22; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-1 ; P.L. 2018, ch. 351, § 1.

Cross References.

Definition of terms, § 44-7-1 .

Levy of execution, retroactive effect, § 44-7-13 .

Comparative Legislation.

Tax sales:

Conn. Gen. Stat., § 12-155 et seq.

Mass. Ann. Laws ch. 60, § 37 et seq.

NOTES TO DECISIONS

Alienation.

Sale under power in mortgage was effective to block enforcement of tax lien where sale was made after statutory period and before attempted enforcement of tax lien. Rathbun v. Allen, 63 R.I. 109 , 7 A.2d 273, 1939 R.I. LEXIS 68 (1939).

Where real estate on which taxes were twenty-two years delinquent was conveyed and the deed recorded prior to its sale for taxes, such real estate was liable only for the taxes levied since said conveyance and a sale for all of said taxes was void. Antuono v. Faraone, 106 R.I. 721 , 263 A.2d 111, 1970 R.I. LEXIS 980 (1970).

When the city took absolute title to the property upon foreclosure of the right of redemption, all prior tax liens were extinguished and any liens that accrued after the property owner acquired the property terminated after three years when the property was transferred: thus, the city was liable to the property owner for all taxes which the city erroneously assessed against the property owner. United Lending Corp. v. City of Providence, 827 A.2d 626, 2003 R.I. LEXIS 179 (R.I. 2003).

The Rhode Island Supreme Court found no basis in R.I. Gen. Laws § 44-9-1 for the trial court’s declaration that a mortgagee could evade the consequences of its mortgagor’s failure to pay taxes by allowing a last-minute conveyance to the mortgagee; once the tax lien foreclosure process had truly begun, it was too late for such an alienation. First Bank & Trust Co. v. City of Providence, 827 A.2d 606, 2003 R.I. LEXIS 181 (R.I. 2003).

Commencement of Enforcement Proceedings.

Entry by collector in tax levy book prior to termination of statutory period was timely and lien was preserved, since signed levy was equivalent to institution of proceeding for collection of taxes. In re Shawmut Finishing Co., 197 F. 230, 1912 U.S. Dist. LEXIS 1416 (D.R.I. 1912).

Sale of land for taxes would be enjoined where first advertisement was made more than statutory period after assessment, even though collector made entry in public book within statutory period and where property had been transferred before advertisement. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

Rhode Island’s tax sale statutes, R.I. Gen. Laws § 44-9-1 et seq., failed to provide meaningful notice of the right to redeem, and the omission violated the Due Process Clause of the Fourteenth Amendment; the United States Bankruptcy Court for the District of Rhode Island declared the city’s tax sale of the debtor’s property void. Pontes v. Lapatin (In re Pontes), 280 B.R. 20, 2002 Bankr. LEXIS 718 (Bankr. D.R.I. 2002), aff'd, 310 F. Supp. 2d 447, 2004 U.S. Dist. LEXIS 5227 (D.R.I. 2004).

Where a prior owner failed to redeem a tax lien pursuant to R.I. Gen. Laws § 44-9-29 , and where the city’s demolition liens and various nominal boarding liens terminated after three years pursuant to R.I. Gen. Laws § 44-9-1 and, in accordance with R.I. Gen. Laws § 23-27.3-125.7 , were treated in the same manner as a regular tax sale, and where the city and the prior owner were properly served, in accordance with R.I. Super. Ct. R. Civ. P. 4 and R.I. Gen. Laws § 44-9-27 , with notice of the purchasers’ intent to foreclose their redemption rights in the tax lien and did not answer by the return day in accordance with R.I. Gen. Laws § 44-9-31 , the city and the prior owner were subject to the consequences of the purchasers’ foreclosure. Karayiannis v. Ibobokiwe, 839 A.2d 492, 2003 R.I. LEXIS 171 (R.I. 2003).

Where defendants city tax collector and tax sale purchaser partners appealed an order of the bankruptcy court that held the Tax Sales Statute, R.I. Gen. Laws , § 44-9-1 et seq. was unconstitutional in failing to provide notice of the right of redemption, depriving the debtor of due process under the Fourteenth Amendment, the district court upheld the bankruptcy court’s order; under the Rhode Island scheme, requiring notice of the right of redemption until the end of the tax sale process under R.I. Gen. Laws § 44-9-29 effectively deprived the debtor of the right of redemption itself. Pontes v. Cunha (In re Pontes), 310 F. Supp. 2d 447, 2004 U.S. Dist. LEXIS 5227 (D.R.I. 2004).

Continuance of Sale.

A collector can reasonably continue a sale from time to time beyond the period prescribed by this section without losing the lien if sale was first duly advertised to be held on a date within that time. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

Nature of Lien.

Municipal taxes that are assessed against a person’s real or personal property are a lien against his real estate for a period of at least three years and are superior to any other lien, encumbrance or interest in the property with the exception of an easement or a restriction. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

The trial court did not err in denying the plaintiff ’s claim for injunctive relief to prevent the defendant mortgagee from conducting a foreclosure sale on the plaintiff ’s property which had already been sold pursuant to a tax sale to collect delinquent taxes on the property. The plaintiff ’s argument that since the tax lien is superior to a mortgage the tax sale held by the city extinguished the bank’s mortgage was not a proper application of the statute, since the implication of the wording of the statute does not mean that a tax sale destroys the mortgage. Hashway v. Sawmut Bank, 615 A.2d 1021, 1992 R.I. LEXIS 260 (R.I. 1992).

Where a property was sold well beyond the three-year statutory time limit, the trial justice correctly found that the seven-year-old outstanding property tax was not a “valid lien,” but merely an unsecured tax obligation. Fitzpatrick v. Tri-Mar Indus., Inc., 723 A.2d 285, 1999 R.I. LEXIS 20 (R.I. 1999).

Personal Property.

This section did not create a lien on personalty. Semonoff v. West Warwick, 78 R.I. 241 , 81 A.2d 285, 1951 R.I. LEXIS 65 (1951).

Property Settlements.

Where property settlement agreement provided that the husband should pay the wife the fair value of any liens on the real estate, husband was required to pay only the taxes which were due and owing at the time of signing the agreement and not for the taxes which were a lien under the provisions of this section, but which had not yet been certified. Abedon v. Abedon, 121 R.I. 366 , 398 A.2d 1137, 1979 R.I. LEXIS 1786 (1979).

Collateral References.

Conditionally sold property, lien on. 110 A.L.R. 1501.

Dischargeability of claim for taxes under 1966 amendment to § 17A(1) of bankruptcy Act (11 USC § 35(a)(1)) as affecting government’s right to enforce tax lien against after-acquired property of bankrupt. 5 A.L.R. Fed. 1004.

Easement, servitude, or covenant as affected by sale for taxes. 7 A.L.R.5th 187.

Other taxing unit of same state, lien for tax as affected by lien or sale for tax imposed by. 135 A.L.R. 1464.

Rights in respect of real estate taxes where property is taken in eminent domain. 45 A.L.R.2d 522.

Sufficiency of designation of taxpayer in recorded notice of federal tax lien. 3 A.L.R.3d 633.

Tax sale of realty as discharging owner’s personal liability for tax. 66 A.L.R. 621.

44-9-1.1. Cumberland Hill fire district tax liens.

  1. Taxes assessed against any person by the Cumberland Hill fire district for either personal property or real estate shall constitute a lien on the real estate. The lien shall arise and attach as of the date of assessment of the taxes, as defined in § 44-5-1 .
  2. The lien shall be superior to any other lien, encumbrance or interest in the real estate, whether by way of mortgage, attachment, or otherwise, except easements and restrictions.
  3. Every deed or mortgage presented for recording in connection with property located in the Cumberland Hill fire district shall be accompanied by a certificate issued by the Cumberland Hill fire district stating that all outstanding taxes assessed against the property by the Cumberland Hill fire district have been paid.

History of Section. P.L. 2009, ch. 70, § 1; P.L. 2009, ch. 136, § 1.

44-9-2. Taxes for which particular property liable.

If any person is taxed for several parcels of real estate, each of the parcels shall be liable for the payment of the tax assessed against it, even though the parcel may have been alienated, but no parcel shall be liable for any tax assessed against any other parcel. If any person is taxed for real estate and for personal estate in the same tax, the whole of the person’s tax may be collected either out of the real or personal estate. If any person is taxed for several parcels of real estate and for personal estate in the same tax, the tax on personal estate may be collected out of the real estate, and each of the parcels shall be liable for the payment of the tax assessed against it, together with the portion of the tax on the personal estate as the assessed value of the parcel bears to the aggregate assessed values of all parcels.

History of Section. G.L. 1896, ch. 48, § 7; P.L. 1898, ch. 586, § 1; G.L. 1909, ch. 60, § 9; G.L. 1923, ch. 62, § 9; G.L. 1938, ch. 32, §§ 9, 23; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-2 .

NOTES TO DECISIONS

Alienation.

The word “aliened” as used in this statute did not include a mortgage with the mortgagor remaining in possession, so that collector could sell the mortgaged real estate to pay the total taxes assessed against all real estate owned by the mortgagor and there was no violation of R.I. Const., Art. I, Sec. 12 or Sec. 16. People's Sav. Bank v. Tripp, 13 R.I. 621 , 1882 R.I. LEXIS 53 (1882) (decision prior to 1898 amendment).

This section must be read in pari materia with § 44-9-1 and the lien of taxes for more than three years was terminated by the conveyance of the taxed real estate. Antuono v. Faraone, 106 R.I. 721 , 263 A.2d 111, 1970 R.I. LEXIS 980 (1970).

Liability Between Purchasers.

Land retained by owner when conveying another tract became primarily liable for the tax on all and this primary liability remained, as against the first purchaser, when the land was sold to another. Bull v. Griswold, 14 R.I. 22 , 1882 R.I. LEXIS 9 (1882) (decided prior to 1898 amendment).

Sale in One Lot.

Where taxes had been assessed against several parcels, sale of parcels as one lot to satisfy taxes on all was illegal because it deprived owner of his right to redeem a portion. Hebert v. Baker, 44 R.I. 81 , 115 A. 463, 1921 R.I. LEXIS 52 (1921).

Collateral References.

Personal property taxes, statutory lien of, upon real property subject to existing lien. 47 A.L.R. 378; 65 A.L.R. 677.

Rights in respect of real estate taxes where property is taken in eminent domain. 45 A.L.R.2d 522.

Undivided tract, enforceability against, of tax levied against part of it at one rate and part at another. 112 A.L.R. 73.

44-9-3. Lien of fire district, lighting district, water district, sewer district and road district.

All taxes, charges, assessments, assessed against any person in any fire district, water district, sewer district, road district and lighting district within this state, pursuant to the act of incorporation of the district, for either real or personal estate, shall constitute a lien upon that person’s real estate in the district for the space of three (3) years after the assessment, and, if the real estate is not alienated, then until the taxes or fees are collected.

History of Section. P.L. 1898, ch. 575, § 1; G.L. 1909, ch. 60, § 4; G.L. 1923, ch. 62, § 4; G.L. 1938, ch. 32, §§ 4, 24; P.L. 1946, ch. 1800, § 1; P.L. 1952, ch. 3021, § 1; G.L. 1956, § 44-9-3 ; P.L. 2003, ch. 262, § 1.

NOTES TO DECISIONS

Foreclosure.

Because § 44-9-3 pertains only to tax titles that are founded upon sales of tax properties sold without foreclosure, title to property conveyed by the city tax collector pursuant to § 44-9-12 was subject to the former owner’s right to redeem that property until such time as that right was foreclosed by petition filed pursuant to § 44-9-25 . Finnegan v. Bing, 772 A.2d 1070, 2001 R.I. LEXIS 151 (R.I. 2001).

44-9-4. Collector of taxes — Powers, privileges, duties and liabilities of fire district, water district, sewer district, road district and lighting district.

The collector of taxes of every fire district, water district, sewer district, road district and lighting district shall have all the powers and privileges and be subject to all the duties and liabilities which are conferred or imposed upon collectors of taxes in cities or towns.

History of Section. P.L. 1898, ch. 575, § 3; G.L. 1909, ch. 60, § 5; G.L. 1923, ch. 62, § 5; G.L. 1938, ch. 32, §§ 5, 25; P.L. 1946, ch. 1800, § 1; P.L. 1952, ch. 3021, § 1; G.L. 1956, § 44-9-4 ; P.L. 2003, ch. 262, § 1.

44-9-5. Agreements between cities or towns and fire districts, water districts, sewer districts, road districts, lighting districts, and lien priorities.

  1. Cities and towns and fire districts, water districts, sewer districts, road districts, and lighting districts are authorized to make agreements with respect to the parcel of property upon which they respectively own tax titles in respect to the disposition of the liens, of the parcel of property subject to the liens, and of the proceeds of a tax sale of the property.
  2. If no agreement is in place, liens arising under § 44-9-1 shall be superior to any other lien.

History of Section. G.L. 1938, ch. 32, § 26; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-5 ; P.L. 2003, ch. 262, § 1; P.L. 2018, ch. 351, § 1.

44-9-6. Primary liability of life estate.

In case of a life estate, the interest of the tenant for life shall first be liable for the tax, and the remainderman, if assessed, shall be secondarily liable.

History of Section. G.L. 1896, ch. 48, § 8; G.L. 1909, ch. 60, § 10; G.L. 1923, ch. 62, § 10; G.L. 1938, ch. 32, §§ 10, 27; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-6 ; P.L. 2003, ch. 262, § 1.

NOTES TO DECISIONS

Income Beneficiary.

Beneficiary who was to receive net income for life or, in lieu thereof, to be allowed to live on the land, was required to pay taxes during lifetime. In re Martin, 25 R.I. 1 , 54 A. 589, 1903 R.I. LEXIS 3 (1903).

Collateral References.

Duty to pay real-property taxes as affected by time of commencement or termination of life estate. 8 A.L.R.4th 643.

44-9-7. Advertising and taking or sale of real estate.

The collector may advertise and take, or sell any real estate liable for taxes in the manner directed.

History of Section. G.L. 1896, ch. 48, § 9; G.L. 1909, ch. 60, § 11; G.L. 1923, ch. 62, § 11; G.L. 1938, ch. 32, §§ 11, 28; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-7 ; P.L. 1997, ch. 42, § 1; P.L. 1997, ch. 74, § 1.

Cross References.

Estate and transfer taxes, powers of administrator, § 44-23-9 .

Sales and use taxes, powers of administrator, § 44-19-23 .

NOTES TO DECISIONS

Foreclosure.

A sale without foreclosure is conducted pursuant to § 44-9-36 , rather than § 44-9-7 , is conducted by the municipality’s treasurer and involves property that has been acquired by the municipality at a previous tax sale at least one year earlier and which the treasurer believes is of insufficient value to meet taxes and other expenses due. Finnegan v. Bing, 772 A.2d 1070, 2001 R.I. LEXIS 151 (R.I. 2001).

Collateral References.

Agent’s right to object to sale. 2 A.L.R. 1057.

Discretion of court to refuse confirmation of tax sale where all proceedings are in compliance with statutory requirements. 152 A.L.R. 887.

Necessity of consent of court to tax sale of property in custody of court or of receiver or trustee appointed by it. 3 A.L.R.2d 893.

Prohibition to prevent sale of property for taxes. 115 A.L.R. 20; 159 A.L.R. 627.

Property owner’s liability for unpaid taxes following acquisition of property by another at tax sale. 100 A.L.R.3d 593.

44-9-8. Sale of undivided part or whole of land.

If the taxes are not paid, the collector shall, at the time and place appointed for the sale, sell by public auction for the amount of the taxes, assessments, rates, liens, interest, and necessary intervening charges, the smallest undivided part of the land which will bring the amount, but not less than one percent (1%), or the whole for the amount if no person offers to take an undivided part.

History of Section. G.L. 1896, ch. 48, § 10; G.L. 1909, ch. 60, § 12; G.L. 1923, ch. 62, § 12; P.L. 1934, ch. 2100, § 1; G.L. 1938, ch. 32, §§ 12, 29; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-8 ; P.L. 2002, ch. 385, § 1.

NOTES TO DECISIONS

In General.

Sheriff could not exempt from sale the interest of one of the remaindermen since this would result in the other interests bearing a portion of the tax not properly attributable to them. Weaver v. Arnold, 15 R.I. 53 , 23 A. 41, 1885 R.I. LEXIS 51 (1885).

Where taxes had been assessed against several parcels, sale of parcels as one lot to satisfy taxes on all was illegal because it deprived owner of his right to redeem a portion. Hebert v. Baker, 44 R.I. 81 , 115 A. 463, 1921 R.I. LEXIS 52 (1921).

Highest Bidder.

The tax collector in conducting a tax sale is not looking for the highest bidder as that term is commonly understood, he is required to sell the smallest undivided portion which brings into the municipality the money due it and he may sell the whole only in the event that no person offers to take a smaller portion. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

Collateral References.

Public sale, what constitutes. 4 A.L.R.2d 575.

44-9-8.1. Taking for taxes.

  1. Notwithstanding the provisions of § 44-9-8 , upon a determination that the property is necessary for redevelopment, revitalization, or municipal purposes by the redevelopment agency of a municipality or, if there is no redevelopment agency and the city or town council makes that determination, then the municipality may take the land for the city or town.
  2. If a tax on land is not paid within fourteen (14) days after demand for the tax and remains unpaid at the date of taking, the collector may take the land for the city or town, first giving fourteen (14) days’ notice of his or her intention to exercise the power of taking, the notice may be served in the manner required by law for the service of civil cases or may be published. The notice shall contain a substantially accurate description of the lots or divisions of land to be sold, which shall be furnished to the collector by the assessors upon demand of the collector, the amount of tax assessed on each, and the names of all owners known to the collector. The notice of the sale of the undivided real estate of a deceased person assessed to his or her heirs or devisees or assessed in general terms to his or her estate shall contain the names of all the heirs or devisees interested in the real estate, if the probate records of the county where the land lies disclose their identity. The collector shall also, fourteen (14) days before the taking, post a conforming notice in two (2) or more convenient and public places.
  3. Whenever the collector of taxes of a city or town shall have taken land in the city or town he or she may, in the name and on behalf of the city or town, take immediate possession of the land and, until the tax title acquired is redeemed, collect the rent and other income from the land, this rent and income, after the payment of all necessary expenses in the care, repair, and management of the land shall be applied on account of the taxes, assessments, rates, charges, interest, and costs due the city or town on the land, with any balance remaining being paid to the person entitled to this rent and income.
  4. Upon petition of any person having a right to redeem the tax title, the superior court for the county where the land lies, if it adjudges justice and the circumstances warrant, may, upon any terms that it deems equitable, enjoin a taking of possession under this section or command the surrender of a possession taken. A city or town must designate a detailed purpose and plan for any land it takes at a tax sale within one year, or that land will be offered at the next tax sale.
  5. Neither the city or town nor any of its officers, agents or employees is liable or accountable to the owner or to any other person having an interest in the land for failure to collect rent or other income from the land; and neither the city or town nor any of its officers, agents, or employees is liable for injury or damage caused by the possession of land under this section to the land or to the person or property of any person.

History of Section. P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 2.

44-9-8.2. Deed of taking.

The instrument of taking shall be under the hand and seal of the collector and shall contain a statement of the cause of taking, a substantially accurate description of each parcel of land taken, the name of the person to whom the tax was assessed, the amount of the tax, and the incidental expenses and costs to the date of taking, and if notice of the sale was given to the Rhode Island Housing and Mortgage Finance Corporation and/or to the department of elderly affairs under the provisions of § 44-9-10 , an affirmative certification as to which entity received notice and the date(s) on which each such notice was given shall be set forth in the instrument. This instrument of taking is not valid unless recorded within sixty (60) days of the date of taking. If recorded, it is prima facie evidence of all facts essential to the validity of the title taken. Title to the land taken shall vest in the city or town, subject to the right of redemption. The title shall, until redemption or until the right of redemption is foreclosed, be held as security for the repayment of the taxes with all intervening costs, terms imposed for redemption, and charges, with interest. The premises taken, both before and after either redemption or foreclosure, is also subject to and has the benefit of all easements and restrictions lawfully existing in, upon or over the land or appurtenant to the land, and all covenants and agreements running with the premises either at law or in equity, when taken.

History of Section. P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 2; P.L. 2006, ch. 534, § 4; P.L. 2006, ch. 537, § 4.

44-9-8.3. Sale of owner-occupied residential property to housing agency.

  1. Where the property subject to tax sale is owner-occupied residential and contains three (3) or less units, the Rhode Island Housing and Mortgage Finance Corporation shall have a right of first refusal to acquire the tax lien at tax sale, and may assist the owner to discharge the lien or take title and acquire the property in its own name pursuant to regulations to be developed by the corporation, consistent with its purposes. The corporation shall notify the collector of its intention to exercise this right by the later of: (i) thirty (30) days from its receipt of the certified mail notice set forth in § 44-9-10 ; or (ii) ten (10) days before the date of sale or any adjournment of the sale. Failure of the corporation to notify the collector as provided herein shall extinguish the right of first refusal provided in this section.
  2. There shall be an advisory board consisting of six (6) members: one person appointed by the Rhode Island League of Cities and Towns; one person appointed by the Consumer Credit Counseling Services of Rhode Island; one person appointed by Rhode Island Legal Services; one person appointed by the Housing Network of Rhode Island, one appointed by the Urban League of Rhode Island and one appointed by the Center for Hispanic Policy and Advocacy. The advisory committee shall provide advice and recommendations to the governing board of the Rhode Island Housing and Mortgage Finance Corporation regarding that corporation’s activities under this section. The members of the advisory board shall receive no compensation for the performance of their duties, but may be reimbursed for reasonable expenses incurred in carrying out their duties.

History of Section. P.L. 2006, ch. 534, § 2; P.L. 2006, ch. 537, § 2.

44-9-9. Notice and advertisement of sale.

Before the sale, the collector shall give notice of the time and place of sale posted in two (2) or more public places in the city or town at least three (3) weeks before the time of the sale. The collector shall also cause to be published in some public newspaper published in the city or town, if there is one, and if there is no public newspaper published in the city or town, then in some public newspaper published in the county, a statement concerning the time and place of sale, the real estate liable for payment of taxes, and the name of the person against whom the real estate was assessed, with a list of the parcel or parcels to be offered for sale by the recorded plat and lot number, or by assessors’ plat and lot number, or by other adequate description. The newspaper notice giving this full description shall be inserted, once, at least three (3) weeks prior to the date of the advertised sale, and thereafter a weekly formal legal notice, between the date of original advertisement and the time of sale specified in the notice, shall be inserted, stating that the collector will sell at public auction the real estate advertised. The subsequent formal legal notice shall include reference to the original advertisement, which gave a full description. Whenever an advertised tax sale is continued or postponed, a formal legal notice giving the new date shall be inserted at least one week prior to the new date. Any notice of sale shall inform any party entitled to notice of its right of redemption and shall explain to such party the manner in which said right shall be exercised and inform said party of the penalties and forfeiture that may occur if the right of redemption is not exercised.

History of Section. G.L. 1896, ch. 48, § 10; G.L. 1909, ch. 60, § 12; G.L. 1923, ch. 62, § 12; P.L. 1934, ch. 2100, § 1; G.L. 1938, ch. 32, §§ 12, 29; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-9 ; P.L. 2003, ch. 262, § 1.

NOTES TO DECISIONS

Continuance in Sale.

A collector can reasonably continue a sale from time to time beyond the period specified by § 44-9-1 without losing the lien if sale was first advertised to be held on a date within that time. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

Preservation of Lien.

Collector could not sell land for taxes where first advertisement was made more than statutory period after assessment, even though collector made entry in public record book within statutory period, and where property had been transferred before advertisement. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

Strict Construction.

Statutes giving authority for sale of land for taxes will be strictly construed in favor of the owner. Parker v. MacCue, 54 R.I. 270 , 172 A. 725, 1934 R.I. LEXIS 65 (1934); Kettelle v. MacCue, 54 R.I. 276 , 172 A. 728, 1934 R.I. LEXIS 66 (1934).

Sufficiency of Notice.

Notice published in a daily newspaper on Mondays and Thursdays for three successive weeks complied with the notice required by R.S. 1857, ch. 40, § 11, and it was not necessary that the notice be published in every issue. Thurston v. Miller, 10 R.I. 358 , 1872 R.I. LEXIS 37 (1872).

Collateral References.

Abbreviations, use of, in description of land in tax proceedings. 1 A.L.R. 1228.

Description of land in notice of tax sale, sufficiency of. 67 A.L.R. 890.

Evidence of regularity of proceedings as to advertising and notice of sale, tax deeds and recitals therein as. 88 A.L.R. 264.

Failure of advertisement in judicial proceeding for sale of land for delinquent taxes or foreclosure of tax lien, to describe the lands affected, as contrary to due process of law or other constitutional objection. 107 A.L.R. 285.

Map, plat, or survey, sufficiency of description of property by reference to in tax proceedings. 137 A.L.R. 184.

Misnomer of landowner or delinquent taxpayer in notice, advertisement, etc. of tax foreclosure or sale, effect of. 43 A.L.R.2d 967.

Name, use of initial instead of first or middle name in publication of notice in tax proceeding. 53 A.L.R. 903.

Place of sale, indefiniteness of notice as regards. 120 A.L.R. 660.

Sufficiency of notice of sale of property, under 26 USCS § 6335, seized for failure to pay federal taxes. 26 A.L.R. Fed. 381.

Validity of notice of tax sale or of a tax sale proceeding which fails to state tax year or kind or type of taxes covered by tax assessments. 43 A.L.R.2d 988.

Who are entitled to notice in order to perfect tax title. 54 A.L.R. 756; 169 A.L.R. 686.

44-9-10. Notice of sale to taxpayer.

  1. Whether or not the person or general partnership to whom the estate is taxed as of December 31st prior to the tax sale is a resident of this state, the collector shall, in addition to the foregoing, notify the taxpayer of the time and place of sale first by first-class mail not less than ninety (90) days before the date of sale or any adjournment of the sale, and again by certified mail not less than forty (40) days before the date of sale or any adjournment of the sale, sent postpaid to the street address of the real estate liable for payment of taxes, and, if different, to the taxpayer’s address listed with the tax assessor’s office of the city or town where the real estate is located or to any other address which the taxpayer designates by written notice to the tax assessor, or to the address of the taxpayer stated on the deed recorded in the land evidence records of the city or town where the real estate is located or to the last-known address of the taxpayer or be left at the taxpayer’s last-known address or personally served on the taxpayer not less than thirty (30) days before the date of sale or any adjournment of the sale, but no notice of adjournments shall be necessary other than the announcement made at the sale. Copies of such notices shall be provided to Rhode Island Housing and Mortgage Finance Corporation by mail or hand delivery, or a manifest of such notices shall be electronically delivered in a machine-readable format through secure means established by the Rhode Island Housing and Mortgage Finance Corporation not less than forty (40) days before the date of sale or any adjournment of the sale. Failure to notify the Rhode Island Housing and Mortgage Finance Corporation as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given.
  2. Persons aged sixty-five (65) years and over or persons suffering from a disability may designate a third party to whom notice may be sent as required pursuant to this section by advising the tax assessor of the name and address of the person.
  3. If the estate taxed is a corporation, the notice may be sent either by registered or certified mail to its place of business or left at the business office of the corporation with some person employed there.
  4. In the event the person to whom the estate is taxed is listed in the records of the assessor and/or collector as having applied for and been granted a property tax abatement based wholly or partially on the age of the taxpayer, then the collector shall also notify the office of healthy aging by mail, hand delivery, or a manifest of such notices shall be electronically delivered in a machine-readable format through the secure means established by the Rhode Island Housing and Mortgage Finance Corporation pursuant to subsection (a), not less than forty (40) days before the date of sale. Failure to notify the office of healthy aging as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given.
  5. Within ninety (90) days after the end of each calendar year, the office of healthy aging shall prepare and submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state. The report shall contain information concerning the number of notices received by the office of healthy aging pursuant to this section of law during the calendar year and information concerning the identity of the specific parcels that might be sold in each city or town as well as a description of exactly what action followed on each such notice. The report shall conclude by indicating the present status of each case in which the division received such a notice as well as an indication as to whether each such case is open or closed.

History of Section. G.L. 1896, ch. 48, § 11; G.L. 1909, ch. 60, § 13; G.L. 1923, ch. 62, § 13; G.L. 1938, ch. 32, §§ 13, 30; P.L. 1946, ch. 1800, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-10 ; P.L. 1986, ch. 277, § 1; P.L. 1987, ch. 120, § 2; P.L. 1990, ch. 473, § 1; P.L. 2002, ch. 140, § 1; P.L. 2002, ch. 245, § 1; P.L. 2006, ch. 534, § 3; P.L. 2006, ch. 537, § 3; P.L. 2011, ch. 242, § 1; P.L. 2011, ch. 258, § 1; P.L. 2016, ch. 25, § 1 P.L. 2016, ch. 30, § 1.

Compiler’s Notes.

P.L. 2016, ch. 25, § 1, and P.L. 2016, ch. 30, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2016, ch. 25, § 2, provides that the amendment to this section by that act takes effect on October 1, 2016.

P.L. 2016, ch. 30, § 2, provides that the amendment to this section by that act takes effect on October 1, 2016.

NOTES TO DECISIONS

Condominium Associations.

Although the condominium association was not entitled to the statutory notice since it was not the record owner of the condominium units sold at tax sale, as an interested party it was entitled to some sort of notice. The evidence indicating that the association received notice by certified mail demonstrated sufficient notice. Harvey Realty v. Killingly Manor Condo. Ass'n, 787 A.2d 465, 2001 R.I. LEXIS 260 (R.I. 2001).

Decedents’ Estates.

This section did not apply where tax was assessed to the estate of a decedent. In re Crafts, 41 R.I. 63 , 102 A. 753, 1918 R.I. LEXIS 11 (1918).

Divided Interests.

A sale of the entire estate is void if it is owned by several persons and only one is notified; but a sale relating only to the interest of the person notified would be valid as to such interest. Thurston v. Miller, 10 R.I. 358 , 1872 R.I. LEXIS 37 (1872).

Record Owner.

Superior court erred by invalidating a tax sale for lack of notice to the record owner under the provisions of R.I. Gen. Laws § 44-9-10 , as R.I. Gen. Laws § 34-11-22 provided that a foreclosure conducted by statutory power of sale was a bar against the mortgagor, and thus, any interest that may have reposed in the record owner was forever barred by the foreclosure sale that occurred two days before the tax sale because the record owner was the successor in interest to the mortgagor; at the time of the tax sale, the record owner no longer held an interest in the property and could not have claimed a right to notice under R.I. Gen. Laws § 44-9-10 . 140 Reservoir Ave. Assocs. v. Sepe Invs., LLC, 941 A.2d 805, 2007 R.I. LEXIS 134 (R.I. 2007).

Service on Corporations.

Notice to corporate owner must be made by personal service on some officer authorized to act in its behalf, since § 43-3-6 would make the personal service provisions of this section applicable even though originally intended to apply only to individuals. Barone Lumber Co. v. Sowden, 51 R.I. 166 , 153 A. 308, 1931 R.I. LEXIS 13 (1931). (Decision prior to 1946 amendment.)

Successor in Interest.

If the recorded owner was not personally notified of sale, the successor in interest of recorded owner was not bound by the tax sale. Baxter v. Patenaude, 32 R.I. 197 , 78 A. 625, 1911 R.I. LEXIS 10 (1911).

Usual Place of Abode.

In connection with a 1993 tax sale, the tax collector’s mailing to an address listed by the taxpayers over four years earlier in a 1989 tax deed as evidence of the defendants’ last and usual place of abode was not the type of notice reasonably calculated to apprise the defendants of a pending tax sale of their property, at least in the situation in which the address used in the notice was not in fact the defendants’ last and usual place of abode. Since the tax collector did not comply with the statutory-notice provision mandated by subsection (a), the trial court did not err in voiding the tax sale and denying the plaintiff’s petition to foreclose the right of redemption. L. Brayton Foundry Bldg. v. Santilli, 676 A.2d 1364, 1996 R.I. LEXIS 173 (R.I. 1996).

Where notice of a tax delinquency and impending tax sale was provided both by (unclaimed) certified letter to the owners’ last known residence address and by publication, a trial court should not have set aside the subsequent tax sale, because it complied fully with all statutory requirements; nonetheless, the trial court’s decision to allow late redemption by the owners of their interest was the correct one, and the trial court on remand was ordered to determine what expenses the tax sale buyer was entitled to recover. Amy Realty v. Gomes, 839 A.2d 1232, 2004 R.I. LEXIS 18 (R.I. 2004).

Collateral References.

Mail, service by, of notice in tax proceedings, sufficiency of compliance with statute providing for. 155 A.L.R. 1279.

44-9-11. Notice to mortgagees and other parties in interest.

  1. In case the collector shall advertise for sale any property, real, personal, or mixed, in which any person other than the person to whom the tax is assessed has an interest, it shall not be necessary for the collector to notify the interested party, except for the following interested parties, provided that their interest was of record at least ninety (90) days prior to the date set for the sale: the present owner of record; mortgagees of record and mortgage assignees of record; former fee holders whose right to redeem has not been foreclosed; holders of tax title; federal agencies having a recorded lien on the subject property; holders of life estates of record and vested remainder, whose identity can be ascertained from an examination of the land or probate records of the municipality conducting the sale; and/or their assignees of record who shall be notified by the collector, either by registered or certified mail sent postpaid not less than twenty (20) days before the date of sale or any adjournment of the sale to an agent authorized by appointment or by law to receive service of process; or to the address of the party in interest set forth in the recorded mortgage document or the recorded assignment; or to the last known address of the party in interest; but no notice of adjournments shall be necessary other than the announcement made at the sale. The posting and publication of the notice of the time and place of sale in the manner provided by § 44-9-9 shall be deemed sufficient notice to all other interested parties. This provision shall apply to all taxes levied prior to and subsequent to 1896. This provision shall be subject to the notice requirements of § 44-9-10 . It shall not be necessary, however, to provide the names of the mortgagees and other parties in interest under this section to the Rhode Island Housing and Mortgage Finance Corporation or to the office of healthy aging. In the event that the Rhode Island Housing and Mortgage Finance Corporation does in fact pay the tax and acquire a lien on the subject property, then the Rhode Island Housing and Mortgage Finance Corporation shall, within ninety (90) days of making the tax payment, notify those mortgagees of record and mortgagee assignees of record whose interests in the property was of record at least ninety (90) days prior to the date set for the tax sale as identified in the recorded collector’s deed of the fact that the taxes have been paid by the Rhode Island Housing and Mortgage Finance Corporation and that a tax lien has been acquired by the Rhode Island Housing and Mortgage Finance Corporation.
  2. Only a person or entity failing to receive notice in accordance with the provisions of this section and §§ 44-9-9 and 44-9-10 shall be entitled to raise the issue of lack of notice or defective notice to void the tax sale. The right to notice shall be personal to each party entitled to it and shall not be asserted on behalf of another party in interest. If there is a defect in notice, the tax sale shall be void only as to the party deprived of adequate notice, but shall be valid as to all other parties in interest who received proper notice of the tax sale.
  3. Once a petition is filed under § 44-9-25 , and any party in interest entitled to notice of the tax sale receives actual notice of the pendency of the petition to foreclose, the party must raise the notice defense in accordance with the provisions of § 44-9-31 or be estopped from alleging lack of notice in any action to vacate a final decree entered in accordance with § 44-9-30 .

History of Section. G.L. 1896, ch. 48, § 12; G.L. 1909, ch. 60, § 14; G.L. 1923, ch. 62, § 14; G.L. 1938, ch. 32, §§ 14, 31; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-11 ; P.L. 2001, ch. 192, § 1; P.L. 2002, ch. 140, § 1; P.L. 2003, ch. 262, § 1; P.L. 2006, ch. 534, § 3; P.L. 2006, ch. 537, § 3; P.L. 2015, ch. 247, § 1; P.L. 2015, ch. 271, § 1.

Compiler’s Notes.

P.L. 2015, ch. 247, § 1, and P.L. 2015, ch. 271, § 1 enacted identical amendments to this section.

NOTES TO DECISIONS

Devisees.

Although the probate and record of a will was sufficient to pass title to the devisees and constituted notice to tax assessors and city treasurer of provisions of such will, city treasurer was not required to give personal notice of levy and sale of such real estate to devisees where the will named no particular persons and made no division among them. In re Crafts, 41 R.I. 63 , 102 A. 753, 1918 R.I. LEXIS 11 (1918).

Failure to Give Notice.

This section’s notice requirement concerning mortgagees is impliedly incorporated into § 46-21-52’s requirements for the proper procedure for executing a tax sale, and the failure to abide thereby render the subsequent tax sale of real estate void ab initio. Ashness v. Tomasetti, 643 A.2d 802 (R.I.), cert. denied, 513 U.S. 963, 115 S. Ct. 425, 130 L. Ed. 2d 339 (1994); overruled in part on other grounds, Kildeer Realty v. Brewster Realty Corp., 826 A.2d 961, 2003 R.I. LEXIS 173 (R.I. 2003).

Where a readily-identifiable remainderman held a vested remainder property interest in real estate prior to a tax sale, he held an interest which was significantly affected by such a sale, and was entitled to notice reasonably calculated to apprise him of the sale. Robert P. Quinn Trust v. Ruiz, 723 A.2d 1127, 1999 R.I. LEXIS 45 (R.I. 1999).

Because this section does not provide for mail or personal notice to readily identifiable interested parties, the statute is unconstitutional, and a tax sale was held invalid. Robert P. Quinn Trust v. Ruiz, 723 A.2d 1127, 1999 R.I. LEXIS 45 (R.I. 1999).

Although a purchaser at a mortgage foreclosure sale was entitled to notice of a subsequent tax sale because at the time of the tax sale, the controlling statute, former R.I. Gen. Laws § 44-9-11 , had not been amended, and the revised statute, R.I. Gen. Laws § 44-9-11 , amended by 2002 R.I. Pub. Laws ch. 140, § 1, was not retroactively controlling in the instant appeal, the purchaser was bound by the mandates governing foreclosure petitions; R.I. Gen. Laws § 44-9-31 explicitly provided that the failure to raise any question concerning the validity of a tax title on or before the return day would result in the party’s being forever barred from contesting or raising the question in any other proceeding, and furthermore, pursuant to R.I. Gen. Laws § 44-9-30 , once a default was entered, or if redemption was not timely made, a decree would be entered which would forever bar all rights of redemption. Kildeer Realty v. Brewster Realty Corp., 826 A.2d 961, 2003 R.I. LEXIS 173 (R.I. 2003).

Court granted the mortgagors’ motion for judgment on the pleadings in which they sought a decree setting aside the tax sale and the subsequent decree foreclosing equity of redemption because the complete lack of notice to the mortgagors of the tax sale and petition to foreclose redemption was both substantial and misleading in violation of state law governing tax sales, R.I. Gen. Laws § 44-9-35 , R.I. Gen. Laws § 44-9-11 . Burns v. Conley, 526 F. Supp. 2d 235, 2007 U.S. Dist. LEXIS 81679 (D.R.I. 2007).

Invalid Tax Deed.

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

Sale After Foreclosure Sale.

Superior court erred by invalidating a tax sale for lack of notice to the record owner under the provisions of R.I. Gen. Laws § 44-9-10 , as R.I. Gen. Laws § 34-11-22 provided that a foreclosure conducted by statutory power of sale was a bar against the mortgagor, and thus, any interest that may have reposed in the record owner was forever barred by the foreclosure sale that occurred two days before the tax sale because the record owner was the successor in interest to the mortgagor; at the time of the tax sale, the record owner no longer held an interest in the property and could not have claimed a right to notice under R.I. Gen. Laws § 44-9-10 . 140 Reservoir Ave. Assocs. v. Sepe Invs., LLC, 941 A.2d 805, 2007 R.I. LEXIS 134 (R.I. 2007).

Collateral References.

Right of interested party receiving due notice of tax sale or of right to redeem to assert failure or insufficiency of notice to other interested party. 45 A.L.R.4th 447.

44-9-12. Collector’s deed — Rights conveyed to purchaser — Recording.

  1. The collector shall execute and deliver to the purchaser a deed of the land stating the cause of sale; the price for which the land was sold; the places where the notices were posted; the name of the newspaper in which the advertisement of the sale was published; the names and addresses of all parties who were sent notice in accordance with the provisions of §§ 44-9-10 and 44-9-11 ; the residence of the grantee; and if notice of the sale was given to the Rhode Island housing and mortgage finance corporation or to the office of healthy aging under the provisions of § 44-9-10 . The deed shall convey the land to the purchaser, subject to the right of redemption. The conveyed title shall, until redemption or until the right of redemption is foreclosed, be held as security for the repayment of the purchase price with all intervening costs, terms imposed for redemption, and charges, with interest; and the premises conveyed, both before and after either redemption or foreclosure, shall also be subject to, and have the benefit of, all easements and restrictions lawfully existing in, upon, or over the land or appurtenant to the land. The deed is not valid against any intervening interests unless recorded within sixty (60) days after the sale. If the deed is recorded, it is prima facie evidence of all facts essential to the validity of the title conveyed by the deed. It shall be the duty of the collector to record the deed within sixty (60) days of the sale and to forward said deed promptly to the tax sale purchaser. The applicable recording fee shall be paid by the purchaser. The purchaser shall be reimbursed for said fee upon redemption by the redeeming party, if any. Except as provided, no sale shall give to the purchaser any right to either the possession, or the rents or profits of the land until the expiration of one year after the date of the sale, nor shall any sale obviate or transfer any responsibility of an owner of property to comply with any statute of this state or ordinance of any municipality governing the use, occupancy, or maintenance or conveyance of property until the right of redemption is foreclosed.
  2. The rents to which the purchaser shall be entitled after the expiration of one year and prior to redemption shall be those net rents actually collected by the former fee holder or a mortgagee under an assignment of rents. Rents shall not include mere rental value of the land, nor shall the purchaser be entitled to any rent for owner-occupied, single-unit residential property. For purposes of redemption, net rents shall be computed by deducting from gross rents actually collected any sums expended directly or on behalf of the tenant from whom the rent was collected. Such expenditure shall include utilities furnished, repairs made to the tenanted unit, and services provided for the benefit of the tenant. However, mortgagee payments, taxes, and sums expended for general repair and renovation (i.e. capital improvements) shall not be deductible expenses in the computation of the rent.
  3. This tax title purchaser shall not be liable for any enforcement or penalties arising from violations of environmental or minimum-housing standards prior to the expiration of one year from the date of the tax sale, or five (5) years from the date of the tax sale if the Rhode Island housing and mortgage finance corporation is the tax title purchaser pursuant to § 44-9-8.3 , except for violations that are the result of intentional acts by the tax sale purchaser or his or her agents.
  4. Upon the expiration of one year after the date of the sale, the tax title holder shall be jointly and severally liable with the owner for all responsibility and liability for the property and shall be responsible to comply with any statute of this state or ordinance of any municipality governing the use, occupancy, or maintenance or conveyance of the property even prior to the right of redemption being foreclosed; except, however, that if the Rhode Island housing and mortgage finance corporation is the tax title holder pursuant to § 44-9-8.3 , then joint and several liability shall arise upon the expiration of five (5) years after the date of the sale. Nothing in this section shall be construed to confer any liability upon a city or town that receives tax title as a result of any bids being made for the land offered for sale at an amount equal to the tax and charges.
  5. In the event that the tax title is acquired by the Rhode Island housing and mortgage finance corporation, and the corporation has paid the taxes due, title shall remain with the owner of the property, subject to the right of the corporation to take the property in its own name, pursuant to applicable statutes and any regulations duly adopted by the corporation. Upon such notice by the corporation, the collector shall execute and deliver a deed to the corporation as herein provided.
  6. The priority of any tax title with respect to other tax titles shall be determined by the chronological order in which the underlying tax sales were conducted, with subsequent tax titles being superior to earlier tax titles.
  7. The holder of an earlier tax title shall be entitled to exercise the right of redemption with respect to any subsequent tax title, in the manner provided in this chapter, unless and until the right to redeem the subsequent tax title is foreclosed in accordance with this chapter. The holder of an earlier tax title shall be entitled to notice of any proceedings to foreclose the right of redemption with respect to a subsequent tax title.
  8. The mere existence of a subsequent tax title shall have no effect upon:
    1. The existence or validity of an earlier tax title; or
    2. The validity of any proceedings to foreclose the right of redemption with respect to the earlier tax title, so long as the right of redemption with respect to a subsequent tax title has not been foreclosed.
  9. Any proceeding to foreclose the right of redemption with respect to an earlier tax title shall have no effect upon a subsequent tax title, and in any such proceeding, the holder of a subsequent tax title is not a necessary party.

History of Section. G.L. 1938, ch. 32, § 32; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-12 ; P.L. 1985, ch. 448, § 1; P.L. 1997, ch. 42, § 1; P.L. 1997, ch. 74, § 1; P.L. 2003, ch. 262, § 1; P.L. 2006, ch. 534, § 3; P.L. 2006, ch. 537, § 3; P.L. 2010, ch. 239, § 40; P.L. 2015, ch. 247, § 1; P.L. 2015, ch. 271, § 1; P.L. 2016, ch. 112, § 1; P.L. 2016, ch. 121, § 1; P.L. 2017, ch. 210, § 1; P.L. 2017, ch. 324, § 1; P.L. 2018, ch. 351, § 1.

Compiler’s Notes.

P.L. 2015, ch. 247, § 1, and P.L. 2015, ch. 271, § 1 enacted identical amendments to this section.

P.L. 2016, ch. 112, § 1, and P.L. 2016, ch. 121, § 1 enacted identical amendments to this section.

P.L. 2017, ch. 210, § 1, and P.L. 2017, ch. 324, § 1 enacted identical amendments to this section.

NOTES TO DECISIONS

Deed as Notice of Tax Sale.

The tax collector’s deed was evidence that the city served petitioners for redemption either personally or by certified mail, and the collector’s assertions gave rise to an inference that despite the petitioners’ professed concern about the lack of a certified letter, they were all aware of the tax sale. Picerne v. Sylvestre, 122 R.I. 85 , 404 A.2d 476, 1979 R.I. LEXIS 2068 (1979).

Form and Content of Deed.

Purchaser at tax sale was entitled to deed conveying all the estate, right, and title of the owners at the time tax was assessed, where such realty was, at time of assessment, undivided among numerous residuary legatees. In re Crafts, 41 R.I. 63 , 102 A. 753, 1918 R.I. LEXIS 11 (1918).

The information required to be given in a tax deed must be accurate and a sale under claim of an alleged lien of twenty-two years’ back taxes when all but one year had been lost by conveyance was void. Antuono v. Faraone, 106 R.I. 721 , 263 A.2d 111, 1970 R.I. LEXIS 980 (1970).

After the tax sale is held, the tax collector is required to execute and deliver to the purchaser a deed which conveys a “title” which shall be held as security for the repayment of the purchase price plus all intervening taxes, costs, interest and penalties, and a deed recorded within 60 days of the sale is prima facie evidence of the validity of the title conveyed. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

Recording of Deed.

A deed recorded within 51 days of the sale was recorded in time. Jamestown v. Pennsylvania Co. for Banking & Trusts, 101 R.I. 274 , 221 A.2d 821, 1966 R.I. LEXIS 382 (1966).

Because of the 1964 sheriff sale and subsequent deed, respondents who were record holders at time of tax sale had no standing to question the late recording of the tax collector and no right to redeem the property. Green Acres Realty v. Rocchio, 115 R.I. 407 , 347 A.2d 407, 1975 R.I. LEXIS 1164 (1975).

Relief From Invalid Deed.

Complainant could proceed in equity to have declared invalid a tax deed that was valid on its face. Barone Lumber Co. v. Sowden, 51 R.I. 166 , 153 A. 308, 1931 R.I. LEXIS 13 (1931).

Right of Redemption.

Because § 44-9-3 pertains only to tax titles that are founded upon sales of tax properties sold without foreclosure, title to property conveyed by the city tax collector pursuant to § 44-9-12 was subject to the former owner’s right to redeem that property until such time as that right was foreclosed by petition filed pursuant to § 44-9-25 . Finnegan v. Bing, 772 A.2d 1070, 2001 R.I. LEXIS 151 (R.I. 2001).

Where defendants city tax collector and tax sale purchaser partners appealed an order of the bankruptcy court that held the Tax Sales Statute, R.I. Gen. Laws , § 44-9-1 et seq. was unconstitutional in failing to provide notice of the right of redemption, depriving the debtor of due process under the Fourteenth Amendment, the district court upheld the bankruptcy court’s order; under the Rhode Island scheme, requiring notice of the right of redemption until the end of the tax sale process under R.I. Gen. Laws § 44-9-29 effectively deprived the debtor of the right of redemption itself. Pontes v. Cunha (In re Pontes), 310 F. Supp. 2d 447, 2004 U.S. Dist. LEXIS 5227 (D.R.I. 2004).

Right to Possession or Rent.

The purchaser of realty at a tax sale has no right to either seek possession or demand rent until one year after sale. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

Use of the word “until” in the last sentence means that upon the arrival of the one-year period following the tax collector’s sale, the prohibition against possessing or collecting rents by the tax-sale purchase will end. Driscoll v. Karroo Land Co., 600 A.2d 722, 1991 R.I. LEXIS 178 (R.I. 1991).

A tax-title holder is entitled to the net rents beginning from the thirteenth month following the tax sale to the date of redemption irrespective of the purchaser’s control or management of the subject property. Ashness v. Burr's Lane Assocs., 640 A.2d 522, 1994 R.I. LEXIS 123 (R.I. 1994).

Trial court did not err in awarding Federal National Mortgage Association (FNMA) possession of certain premises because FNMA sent a notice of termination of tenancy by sufferance to the owner, the owner’s general appearance constituted a consent to the court’s jurisdiction, the owner failed to rebut the presumption that FNMA was entitled to possession of the property, the trial justice did not err in failing to enforce the owner’s subpoenas, and FNMA had redeemed the title to the property. Fannie Mae v. Malinou, 101 A.3d 860, 2014 R.I. LEXIS 133 (R.I. 2014).

Collateral References.

Adverse possession, purchase at tax sale as payment within limitation statutes requiring payment of taxes as condition of. 132 A.L.R. 248.

Application for tax deed, necessity and sufficiency of statement in notice of, as regards time for redemption. 82 A.L.R. 502.

Cloud on title, invalid tax deed as. 78 A.L.R. 95; 263.

Defective description of property in tax deed as affecting time limitation for attack on tax title. 133 A.L.R. 570.

Delay in payment of bid as affecting validity of sale and rights and remedies of purchaser. 104 A.L.R. 823.

Easement, servitude, or covenant as affected by sale for taxes. 7 A.L.R.5th 187.

Enforceability as between the parties of agreement to purchase property at tax sale for their joint benefit. 14 A.L.R.2d 1267.

Improvements made by purchaser of invalid tax title, measure of recovery for. 129 A.L.R. 1354.

Injunction to restrain waste, to protect lien of purchaser at tax sale. 103 A.L.R. 385.

Mortgagee’s purchase of the mortgaged property at tax sale as affecting his right to personal judgment for mortgage debt. 95 A.L.R. 98.

Oral agreement to buy or bid in land for another at tax sale, rights of parties under. 27 A.L.R.2d 285.

Other taxing unit of same state, tax lien as affected by sale for tax imposed by. 135 A.L.R. 1464.

Rents and profits, or rental value, during the redemption period following tax sale, who entitled to. 147 A.L.R. 1084.

Requirements Under State Law for Foreclosure on Home Equity Conversion Mortgages or So-Called Reverse Mortgages. 21 A.L.R.7th Art. 4 (2017).

Respective rights and estates of persons claiming real property through sales by different taxing agencies to enforce taxes or special assessments as between which there is parity of lien. 167 A.L.R. 1001.

Rights of purchaser at tax sale where property is taken in eminent domain. 45 A.L.R.2d 522.

Successive estates or different interests, quantum of estate acquired by purchaser at tax sale of property which is subject to. 75 A.L.R. 416.

Tax deed and recitals therein as evidence of regularity of tax proceedings as to advertising and notice of sale, and as to time, manner, and place of sale. 30 A.L.R. 8; 88 A.L.R. 264.

Time prescribed by statute, effect of failure to make report, return, or record of tax sale within. 117 A.L.R. 726.

Validity of statute requiring recordation of tax certificate or perfecting of title within designated time. 111 A.L.R. 258.

What constitutes “execution” of tax deed beginning or ending period for redemption from tax sale. 166 A.L.R. 853.

44-9-13. Entry by collector not required — Recording of tax sale list.

  1. No entry upon the land by the collector shall be deemed necessary, but the collector in all cases of sales of real estate shall deliver to the clerk’s or recorder’s office a list of those properties sold at tax sale that the clerk or recorder shall record or post in the land evidence records for their city or town within five (5) business days after the sale of real estate. The recorded or posted list shall include the assessed owner’s name, the address of the property, and the assessor’s plat and lot, and the recorded or posted list shall be conclusive evidence of the facts stated in the list.
  2. No properties shall be sold at tax sale to any bidder who is delinquent in the paying of taxes or is an officer, more than ten percent (10%) shareholder or owner of a partnership or corporation or limited-liability company that is delinquent in the paying of taxes on any property located within the city or town in which the tax sale is held, unless the bidder has agreed to a written payment plan approved by the collector and is current on any and all payments required by the plan; provided, however, that no bidder shall be deemed to be delinquent for the purposes of this subsection if that bidder owes property taxes solely on properties wherein the right of redemption under § 44-9-25 has not yet been foreclosed. The collector may require a bidder or an authorized officer or partner of the bidder to execute an affidavit that the bidder is qualified under this provision.

History of Section. G.L. 1896, ch. 48, § 14; G.L. 1909, ch. 60, § 16; G.L. 1923, ch. 62, § 16; G.L. 1938, ch. 32, §§ 15, 33; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-13 ; P.L. 1993, ch. 123, § 2; P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 1; P.L. 2003, ch. 262, § 1; P.L. 2018, ch. 351, § 1.

NOTES TO DECISIONS

Commencement of Period.

Sale referred to by this section means the auction sale and not the transaction completed by the deed. Clark v. Baker, 47 R.I. 1 , 129 A. 609, 1925 R.I. LEXIS 53 (1925).

Delivery of Deed.

Tax deed is invalid where not executed and delivered within the period prescribed by this section. Canal St. Garage & Auto Servicing Co. v. Allen, 66 R.I. 129 , 17 A.2d 850, 1941 R.I. LEXIS 8 (1941).

Necessity of Return.

Prior to the enactment of § 44-9-12 the importance of the return was to furnish notice to the delinquent taxpayer, but such notice is now effected by the recording of the deed and a late or defective filing of the collector’s return is not fatal where there is no substantial injury to the taxpayer. Jamestown v. Pennsylvania Co. for Banking & Trusts, 101 R.I. 274 , 221 A.2d 821, 1966 R.I. LEXIS 382 (1966).

Parol Evidence.

It is competent in an action to recover possession of land purchased at a tax sale to show by parol evidence that the collector’s return was, in fact, filed within the time prescribed, and the deed is not invalidated even though the return does not state all of the proceedings of the collector so long as it can be proved that the statutory requirements were met. Thurston v. Miller, 10 R.I. 358 , 1872 R.I. LEXIS 37 (1872).

Payment of Price.

This section requires the payment of the amount of the bid prior to execution of return by collector. Clark v. Baker, 47 R.I. 1 , 129 A. 609, 1925 R.I. LEXIS 53 (1925).

44-9-13.1. Tax title holders — Filing required statements.

Prior to receiving a deed, whoever has purchased a title to land under a sale for nonpayment of taxes or other assessment, shall file with the treasurer of the city or town and in the registry of deeds of the city or town a statement of his or her residence and place of business, with the street and number, if any. That person, who is not a resident of the city or town where the tax sale is held, shall also appoint an agent residing within the state, authorized to release the land. He or she shall also file the statement required by this section in which he or she shall also state the name of the agent and his or her residence and place of business, with the street number, if any. Whenever a person holding tax title changes his or her residence or place of business or agent, he or she shall file a new certificate. Tender of payment to, and service of process upon, the agent shall be sufficient tender to, or service upon, the holder of the tax title.

History of Section. P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 2.

44-9-14. Purchase by collector for city or town.

If at the time and place of sale no person bids an amount equal to the tax and charges for the land offered for sale, the collector shall then and there make public declaration of the fact; and, if no bid equal to the tax and charges is then made, the collector shall give public notice that the collector purchases for the city or town by which the tax is assessed the land as offered for sale at the amount of the tax and the charges and expenses of the levy and sale. This amount, together with the cost of recording the deed of purchase, shall be allowed the collector in his or her settlement with the city or town; provided, that the collector causes the deed to be duly recorded within sixty (60) days after the purchase and to be delivered to the city or town treasurer.

History of Section. G.L. 1923, ch. 62, §§ 42, 43; P.L. 1935, ch. 2259, § 4; G.L. 1938, ch. 32, §§ 34, 43, 44; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-14 .

NOTES TO DECISIONS

Expenses.

An attorney’s fee is a necessary “expense” within the contemplation of this section. Jamestown v. Pennsylvania Co. for Banking & Trusts, 101 R.I. 274 , 221 A.2d 821, 1966 R.I. LEXIS 382 (1966).

Collateral References.

Acquisition by state or other governmental body of title to land, otherwise than at tax sale, as affecting validity of sale for previously levied taxes. 158 A.L.R. 563.

44-9-15. Recital in deed to city or town.

If the city or town becomes the purchaser, the deed to it, in addition to the statements required by § 44-9-12 , shall set forth the fact that no sufficient bid was made at the sale or that the land was taken by the city or town and shall confer upon the city or town the rights and duties of an individual purchaser.

History of Section. G.L. 1923, ch. 43; P.L. 1935, ch. 2259, § 4; G.L. 1938, ch. 32, §§ 35, 44; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-15 ; P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 1.

44-9-16. Conveyance of several unimproved parcels by single deed — Apportionment of costs.

If any unimproved and unoccupied parcels of land are sold for nonpayment of taxes assessed against the same person, the collector may convey in one deed to the same purchaser, or convey to the city or town any number of lots so advertised and sold, and the deed shall state the amount of the taxes and costs due for each lot. The cost of the sale shall be apportioned equally among all the lots sold, and the cost of the deed shall be apportioned equally among all the lots conveyed by the deed.

History of Section. G.L. 1923, ch. 62, § 48; P.L. 1937, ch. 2533, § 1; G.L. 1938, ch. 32, §§ 37, 49; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-16 .

NOTES TO DECISIONS

In General.

Deed was void where it failed to set forth the costs assessed against each lot conveyed even though it did set forth the amount of the tax against each lot, but decree finding that original owner was the owner was too broad, since purchaser should have been granted permission to obtain a proper deed. Spencer v. Kilbourn, 80 R.I. 38 , 90 A.2d 782, 1952 R.I. LEXIS 6 (1952).

Collateral References.

More than one tax assessment for which land was sold, or more than one tract, inclusion of, as affecting sufficiency of tax redemption notice. 155 A.L.R. 1198.

Violation of direction of decree or order as regards sale of lands in parcels or in gross as affecting validity of sale and title of purchaser. 84 A.L.R. 324.

44-9-17. Lien for taxes assessed subsequent to sale.

Whenever a city or town shall have purchased real estate for payment of taxes, the lien of the city or town on the real estate, for all taxes assessed subsequently to the assessment for payment of which the estate was purchased, shall continue, and it shall be unnecessary for the city or town to sell the real estate for nonpayment of the subsequent taxes, costs, and interest; and on either redemption from or foreclosure of the right of redemption under that purchase, the subsequent taxes, costs, and interest shall be paid to the city or town, and the payment shall be made a part of the terms of redemption. A city or town which has assigned a tax title held by it shall, after the assignment, have all the rights and powers to sell the real estate affected by the tax title, for the nonpayment of taxes, which it would have possessed had the city or town never been the holder of the tax title.

History of Section. G.L. 1938, ch. 32, §§ 38, 43; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-17 .

NOTES TO DECISIONS

Redemption.

This section and § 44-9-19 , read together, would indicate that a person who wishes to exercise the right of redemption would be required to pay all taxes, including the amount for which the property was originally purchased and all sums accruing subsequent to that time down to the date of redemption, together with the statutory penalties. Rhodes Assocs. v. Woonsocket, 523 A.2d 878, 1987 R.I. LEXIS 437 (R.I. 1987).

44-9-18. Management and sale of land purchased by city or town — Assignment of tax title.

  1. Cities or towns may make regulations for the possession, management, and sale of land purchased or taken for taxes not inconsistent with law or with the right of redemption. The treasurer of any city or town holding a tax title, upon payment to the city or town of a sum not less or more than the amount necessary for redemption, may assign and transfer the tax title to any person, and may execute and deliver on behalf of the city or town any instrument necessary for this purpose. The treasurer shall send notice of the intended assignment to the owner of record at the owner’s last known address, by registered or certified mail, at least ten (10) days prior to the assignment, but failure to receive the notice shall not affect the validity of the assignment. The instrument of assignment shall be recorded within sixty (60) days from its date and if recorded shall be prima facie evidence of all facts essential to its validity. Except as provided, all provisions of law applicable in cases where the original purchaser at a tax sale is other than the city or town shall after this apply in the case of an assignment, as if the assignee had been a purchaser for the original sum at the original sale and had paid to the city or town the subsequent taxes and charges included in the sum paid for the assignment (Forms 1 and 2).
  2. Neither a city or town nor any of its officers, agents or employees shall be liable or accountable to the owner or to any other person having an interest in the land for failure to collect rent or other income from the land; and neither the city or town nor any of its officers, agents or employees shall be liable for injury or damage caused by the possession of land or to the person or property of any person.

History of Section. G.L. 1938, ch. 32, § 39; P.L. 1946, ch. 1800, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-18 ; P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 1.

Cross References.

Forms, § 44-9-46 .

NOTES TO DECISIONS

In General.

A cloud on title to realty of last assessed owner acquired by redemption from town more than one year after tax sale might reasonably result where town council did not approve, authorize, or ratify execution of deed by town treasurer to such owner. Swanson v. Fielder, 68 R.I. 214 , 27 A.2d 184, 1942 R.I. LEXIS 58 (1942).

Failure to Notify Last Assessed Owner.

Tax collector’s failure to notify last assessed owner of approved offer to buy realty held by town on tax deed did not cast cloud on such owner’s title where the only offer was for redemption by the former owner. Swanson v. Fielder, 68 R.I. 214 , 27 A.2d 184, 1942 R.I. LEXIS 58 (1942).

Collateral References.

Amount of taxes, penalties, and costs, sale of property for more or less than, as affecting its validity. 97 A.L.R. 842; 147 A.L.R. 1141.

44-9-18.1. Barrington — Assignments to The Barrington Land Conservation Trust, Incorporated.

Notwithstanding the provisions of § 44-9-18 , the town treasurer of the town of Barrington may transfer and assign any or all tax titles held by the town for no monetary consideration to The Barrington Land Conservation Trust, Incorporated, a non-profit Rhode Island corporation, and further shall not be required to send notice of any intended transfer or assignment to the owner of record. The transfer or assignment shall not confer upon The Barrington Land Conservation Trust, Incorporated, any greater rights or responsibilities than those granted to or imposed upon the town of Barrington as original holder of the tax title. The Barrington Land Conservation Trust, Incorporated, shall hold any tax title transferred or assigned subject to any and all rights of redemption held by the owner of record and/or his or her successors and assigns in title. Notwithstanding the foregoing, The Barrington Land Conservation Trust, Incorporated, shall also hold and be permitted to exercise any rights that the town of Barrington previously held, including the right to petition for foreclosure of any rights of redemption.

History of Section. P.L. 1992, ch. 304, § 1.

44-9-18.2. Cities and towns — Assignments to redevelopment agencies.

Notwithstanding the provisions of § 44-9-18 , the treasurer may transfer and assign any or all tax titles held by a city or town for no monetary consideration to the redevelopment agency of the city or town. The transfer shall not confer upon the redevelopment agency any greater rights or responsibilities than those granted to or imposed upon the city or town as the original holder of the tax title. The redevelopment agency shall hold any tax title transferred or assigned subject to any and all rights of redemption held by the owner of record and/or his or her successors and assigns in title. Notwithstanding the foregoing, the redevelopment agency shall also hold and be permitted to exercise any rights that the city or town previously held, including the right to petition for foreclosure of any rights of redemption.

History of Section. P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 2.

44-9-18.3. Tiverton — Assignments to the Tiverton land trust.

Notwithstanding the provisions of § 44-9-18 , the town treasurer of the town of Tiverton, with the approval of the town council, may transfer and assign any or all tax titles held by the town for no monetary consideration to the Tiverton Land Trust, Incorporated, a non-profit Rhode Island corporation, and further shall not be required to send notice of any intended transfer or assignment to the owner of record. The transfer or assignment shall not confer upon the Tiverton Land Trust, Incorporated any greater rights or responsibilities than those granted to or imposed upon the town of Tiverton as original holder of the tax title. The Tiverton Land Trust, Incorporated shall hold any tax title transferred or assigned subject to any and all rights of redemption held by the owner of record and/or his or her successors and assigns in title. Any and all statutory redemption costs shall be paid to the town of Tiverton and the Tiverton Land Trust, Incorporated. Notwithstanding the foregoing, the Tiverton Land Trust, Incorporated shall also hold and be permitted to exercise any rights that the town of Tiverton previously held, including the right to petition for foreclosure of any rights of redemption.

History of Section. P.L. 2006, ch. 410, § 1; P.L. 2006, ch. 485, § 1.

44-9-18.4. Westerly — Assignments to the Westerly land trust.

Notwithstanding the provisions of § 44-9-18 , the tax collector of the town of Westerly, with the approval of the town council, may transfer and assign any or all tax titles held by the town, for no monetary consideration, to the Westerly Municipal Land Trust, established by chapter 165 of the 2002 Public Laws and further shall not be required to send notice of any intended transfer or assignment to the owner of record. The transfer or assignment shall not confer upon the Westerly Municipal Land Trust any greater rights or responsibilities than those granted to or imposed upon the town of Westerly as original holder of the tax title. The Westerly Municipal Land Trust shall hold any tax title transferred or assigned subject to any and all rights of redemption held by the owner of record and/or his or her successors and assigns in title. Any and all statutory redemption costs shall be paid to the town of Westerly and the Westerly Municipal Land Trust. Notwithstanding the foregoing, the Westerly Municipal Land Trust shall also hold and be permitted to exercise any rights that the town of Westerly previously held, including the right to petition for foreclosure of any rights of redemption.

History of Section. P.L. 2007, ch. 153, § 1; P.L. 2007, ch. 327, § 1.

44-9-19. Right of redemption from city or town.

  1. Any person having an interest in land sold for nonpayment of taxes, or his or her heirs or assigns, at any time prior to the filing of a petition for foreclosure under § 44-9-25 , if the land has been purchased by the city or town and has not been assigned, may redeem the land by paying or tendering to the treasurer the sum for which the real estate was purchased, plus a penalty which shall be ten percent (10%) of the purchase price if redeemed within six (6) months after the date of the collector’s sale, and an additional one percent (1%) of the purchase price for each succeeding month, together with all charges lawfully added for intervening taxes, which have been paid to the municipality, plus interest thereon at a rate of one percent (1%) per month, and expenses assessed subsequently to the collector’s sale.
  2. The certificate of redemption shall be recorded by the treasurer on the land records within twenty (20) days after the entire redemption amount has been paid to the municipality. The recording costs for the certificate of redemption shall be paid by the redeeming party.
  3. The right of redemption may be exercised only by those entitled to notice of the sale pursuant to §§ 44-9-10 and 44-9-11 .

History of Section. G.L. 1896, ch. 48, § 16; G.L. 1909, ch. 60, § 18; G.L. 1923, ch. 62, § 18; P.L. 1936, ch. 2374, § 1; G.L. 1938, ch. 32, §§ 17, 40; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-19 ; P.L. 2003, ch. 262, § 1.

NOTES TO DECISIONS

In General.

This section and § 44-9-17 , read together, would indicate that a person who wishes to exercise the right of redemption would be required to pay all taxes, including the amount for which the property was originally purchased and all sums accruing subsequent to that time down to the date of redemption, together with the statutory penalties. Rhodes Assocs. v. Woonsocket, 523 A.2d 878, 1987 R.I. LEXIS 437 (R.I. 1987).

Collateral References.

Construction and application of § 6337(d) of Internal Revenue Code of 1954 (26 USCS § 6337(b)), providing for redemption of real estate after tax sale. 12 A.L.R. Fed. 979.

Disability, right of person under, to redeem from tax sale. 65 A.L.R. 582; 159 A.L.R. 1467.

Imprisonment as extending time for redemption. 18 A.L.R. 531.

Misinformation or incomplete information by public officials, or refusal to give information, as excusing taxpayer’s failure to redeem. 21 A.L.R.2d 1273.

Mortgagee who redeems from tax sale of mortgaged property, for protection of his security, rights and remedies of. 84 A.L.R. 1384; 123 A.L.R. 1248.

Public officer’s redemption from tax sale for benefit of owner. 66 A.L.R. 1035.

Receiver’s exercise of insolvent’s right to redeem from tax sale. 35 A.L.R. 262.

Rents and profits, of rental value, during the redemption period following tax sale, who entitled to. 147 A.L.R. 1084.

Tender under protest of amount required for redemption from tax sale. 142 A.L.R. 1198.

Trust arising from oral agreement to permit owner to redeem property or to redeem it for him. 42 A.L.R. 85; 135 A.L.R. 232; 27 A.L.R.2d 1285.

Voluntary character of payment of tax made for purpose of redemption after tax sale. 64 A.L.R. 118; 84 A.L.R. 294.

44-9-20. City or town treasurer’s release.

If land sold to a city or town for nonpayment of taxes, which has not been assigned, is redeemed, the treasurer shall sign, execute, and deliver on behalf of the city or town a release of all the right, title, and interest, which it acquired by the purchase in and to the land redeemed. The delivery of the instrument shall extinguish all right and title under the collector’s deed. If a person other than the owner of the fee rightfully redeems, the instrument when duly recorded shall be notice to all persons of the payment. If the amount so paid for redemption is paid by a holder of a mortgage on the premises, pays the amount so paid may be added to the mortgage debt (Form 3).

History of Section. G.L. 1938, ch. 32, § 40; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-20 .

Cross References.

Forms, § 44-9-46 .

44-9-21. Redemption from purchaser other than city or town.

Any person may redeem by paying or tendering to a purchaser, other than the city or town, his or her legal representatives, or assigns, or to the person to whom an assignment of a tax title has been made by the city or town, at any time prior to the filing of the petition for foreclosure, in the case of a purchaser the original sum and any intervening taxes that have been paid to the municipality plus interest thereon at the rate of one percent (1%) per month and costs paid by him or her, plus a penalty as provided in § 44-9-19 , or in the case of an assignee of a tax title from a city or town, the amount stated in the instrument of assignment, plus the above-mentioned penalty. He or she may also redeem the land by paying or tendering to the treasurer the sum that he or she would be required to pay to the purchaser or to the assignee of a tax title, in which case the city or town treasurer shall be constituted the agent of the purchaser or assignee until the expiration of one year from the date of sale and not thereafter. The right of redemption may be exercised only by those entitled to notice of the sale pursuant to §§ 44-9-10 and 44-9-11 .

History of Section. G.L. 1896, ch. 48, § 16; G.L. 1909, ch. 60, § 18; G.L. 1923, ch. 62, § 18; P.L. 1936, ch. 2374, § 1; G.L. 1938, ch. 32, §§ 17, 40; P.L. 1939, ch. 695, § 1; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-21 ; P.L. 2003, ch. 262, § 1; P.L. 2018, ch. 351, § 1.

NOTES TO DECISIONS

Parcels.

Where taxes had been assessed against several parcels, sale of parcels as one lot to satisfy taxes on all was illegal because it deprived owner of his right to redeem a portion. Hebert v. Baker, 44 R.I. 81 , 115 A. 463, 1921 R.I. LEXIS 52 (1921).

Refund.

Since the tax sale was invalid, the redemption price paid by the buyer should be returned to the buyer, minus the amount of any taxes that the buyer would have been obligated to pay if the buyer had retained unchallenged possession of the property from the time of the receiver’s conveyance of the property to the buyer. Phoenix Realty v. Rhode Island Depositors Economic Protection Corp., 669 A.2d 544, 1996 R.I. LEXIS 20 (R.I. 1996).

Right of Redemption.

Where defendants city tax collector and tax sale purchaser partners appealed an order of the bankruptcy court that held the Tax Sales Statute, R.I. Gen. Laws , § 44-9-1 et seq. was unconstitutional in failing to provide notice of the right of redemption, depriving the debtor of due process under the Fourteenth Amendment, the district court upheld the bankruptcy court’s order; under the Rhode Island scheme, requiring notice of the right of redemption until the end of the tax sale process under R.I. Gen. Laws § 44-9-29 effectively deprived the debtor of the right of redemption itself. Pontes v. Cunha (In re Pontes), 310 F. Supp. 2d 447, 2004 U.S. Dist. LEXIS 5227 (D.R.I. 2004).

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

Tenant in Common.

Tenant in common seeking to redeem must tender entire amount of tax and statutory additions, not just the portion applicable to his interest in the property. Chace v. Durfee, 16 R.I. 248 , 14 A. 919, 1888 R.I. LEXIS 46 (1888).

Collateral References.

Construction and application of § 6337(d) of Internal Revenue Code of 1954 (26 USCS § 6337(b)), providing for redemption of real estate after tax sale. 12 A.L.R. Fed. 979.

44-9-22. Proceedings as to low value lands unaffected by redemption provisions.

Nothing in §§ 44-9-19 44-9-21 nor in §§ 44-9-25 44-9-33 shall be construed to prevent the title of a person or a city or town purchasing land at a sale under §§ 44-9-36 44-9-38 from becoming absolute without any foreclosure proceedings under these sections.

History of Section. G.L. 1938, ch. 32, § 40; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-22 .

44-9-23. Certificate of redemption money paid to treasurer.

The treasurer shall receive any money paid to him or her instead of the purchaser or assignee of a tax title, and, if the period of one year has not passed from the date of sale, give to the person paying it a certificate specifying the amount paid, the name of the person to whom and the real estate on which the tax was originally assessed, and the registry of deeds and the book and page of the records where the collector’s deed and the instrument of assignment, if any, is recorded; and the recording of the certificate in the registry shall extinguish all right and title acquired under the collector’s deed (Form 4).

History of Section. G.L. 1938, ch. 32, § 41; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-23 ; P.L. 2002, ch. 140, § 1.

Cross References.

Forms, § 44-9-46 .

NOTES TO DECISIONS

In General.

This section puts the owner in the same position he occupied before the tax sale occurred. Pratt v. Woolley, 117 R.I. 154 , 365 A.2d 424, 1976 R.I. LEXIS 1609 (1976).

Collateral References.

Voluntary character of payment of tax made for purpose of redemption after tax sale. 64 A.L.R. 118; 84 A.L.R. 294.

44-9-24. Title absolute after foreclosure of redemption — Jurisdiction of proceedings.

The title conveyed by a tax collector’s deed shall be absolute after foreclosure of the right of redemption by decree of the superior court as provided in this chapter. Notwithstanding the rules of civil procedure or the provisions of chapter 21 of title 9, no decree shall be vacated except in a separate action instituted within six (6) months following entry of the decree and in no event for any reason, later than six (6) months following the entry of decree. Furthermore, the action to vacate shall only be instituted for inadequacy of notice of the petition amounting to a denial of due process or for the invalidity of the tax sale because the taxes for which the property was sold had been paid or were not due and owing because the property was exempt from the payment of such taxes. The superior court shall have exclusive jurisdiction of the foreclosure of all rights of redemption from titles conveyed by a tax collector’s deed, and the foreclosure proceedings shall follow the course of equity in a proceeding provided for in §§ 44-9-25 44-9-33 .

History of Section. G.L. 1938, ch. 32, § 42; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-24 ; P.L. 2002, ch. 140, § 1; P.L. 2003, ch. 262, § 1; P.L. 2006, ch. 534, § 4; P.L. 2006, ch. 537, § 4; P.L. 2018, ch. 351, § 1.

NOTES TO DECISIONS

In General.

Once the foreclosure decree has been entered the title conveyed by the tax collector’s deed becomes “absolute.” Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

When the city took absolute title to the property upon foreclosure of the right of redemption, all prior tax liens were extinguished and any liens that accrued after the property owner acquired the property terminated after three years when the property was transferred: thus, the city was liable to the property owner for all taxes which the city erroneously assessed against the property owner. United Lending Corp. v. City of Providence, 827 A.2d 626, 2003 R.I. LEXIS 179 (R.I. 2003).

Safeguards of this statute did not apply to a final decree entered after a default in an action to foreclose on a redemption period because the default was entered in error, making the final decree a voidable judgment that was properly vacated. Rafaelian v. Perfecto Iron Works, Inc., 68 A.3d 57, 2013 R.I. LEXIS 100 (R.I. 2013).

Former property owner’s action to vacate a final decree that foreclosed her right of redemption following a tax sale was properly denied because pursuant to R.I. Gen. Laws § 44-9-24 , the only grounds for vacatur were lack of notice of the petition to foreclose or because no taxes were due at the time of the tax sale, neither of which was shown. Johnson v. QBAR Assocs., 78 A.3d 48, 2013 R.I. LEXIS 134 (R.I. 2013).

Invalid Tax Deed.

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

Notice.

The superior court properly vacated a default judgment which purported to foreclose the defendant’s rights of redemption because the plaintiff ’s notice to the defendants was premature, since it was sent prior to the setting of a return day and prior to the presentation of a title examiner’s report to the superior court. Zeus Realty Co. v. Jaral Realty, 653 A.2d 70, 1995 R.I. LEXIS 12 (R.I. 1995).

Where a borrower failed to answer or appear to assert any claim to an interest in the property, thus leading to a default judgment entered against him, and a stipulation order adequately adjudicated the issue of whether the mortgagee received notice of the tax sale, the borrower failed to protect his right in the property. Medeiros v. Bankers Trust Co., 38 A.3d 1112, 2012 R.I. LEXIS 26 (R.I. 2012).

Collateral References.

Easement, servitude, or covenant as affected by sale for taxes. 7 A.L.R.5th 187.

Marketability of title based on tax sale. 57 A.L.R. 1456.

Tax title as affected by fact that tax had been paid before sale. 26 A.L.R. 622.

44-9-25. Petition for foreclosure of redemption.

  1. After one year from a sale of land for taxes, except as provided in §§ 44-9-19 44-9-22 , whoever then holds the acquired title may bring a petition in the superior court for the foreclosure of all rights of redemption under the title. The petition shall set forth a description of the land to which it applies, with its assessed valuation, the petitioner’s source of title, giving a reference to the place, book, and page of record, and other facts as may be necessary for the information of the court. Two (2) or more parcels of land may be included in any petition brought by any purchaser of a title or titles, if the parcels are in the same record ownership at the time of bringing the petition (Form 5).
  2. No more than one foreclosure petition may be filed for each tax deed regardless of the number of tax title holders having an interest under such deed. If more than one petition is filed, the petitions shall be consolidated for hearing by the court. The court shall not award more than one attorneys’ fee to the petitioners.
  3. Notwithstanding the provisions of subsection (a) of this section, no petition for foreclosure of redemption shall be filed or entertained by any court with respect to any property or title acquired by the Rhode Island Housing and Mortgage Corporation pursuant to § 44-9-8.3 of the general laws until after five (5) years from the sale of said property or title for taxes.

History of Section. G.L. 1938, ch. 32, § 43; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-25 ; P.L. 2003, ch. 262, § 1; P.L. 2006, ch. 534, § 3; P.L. 2006, ch. 537, § 3.

Cross References.

Forms, § 44-9-46 .

NOTES TO DECISIONS

In General.

The general rule is that both the right of redemption of the delinquent taxpayer or those claiming under or through him and the rights of the tax sale purchaser are to be determined by the laws in force at the time of sale and this act is applicable to a sale in 1950 of land for taxes for the years 1936-1949. Jamestown v. Pennsylvania Co. for Banking & Trusts, 101 R.I. 274 , 221 A.2d 821, 1966 R.I. LEXIS 382 (1966).

In a proceeding to foreclose redemption rights the superior court may hear only claims related to those rights, and the court therefore could not cancel the tax purchaser’s promissory note on the property sought to be redeemed. Pratt v. Woolley, 117 R.I. 154 , 365 A.2d 424, 1976 R.I. LEXIS 1609 (1976).

Adverse Possession.

A tax-sale purchaser and his successors in interest may extinguish the right of redemption by adverse possession if that possession continued for the statutory period of 10 years. Sleboda v. Heirs at Law of Harris, 508 A.2d 652, 1986 R.I. LEXIS 456 (R.I. 1986).

Due Process.

Where defendants city tax collector and tax sale purchaser partners appealed an order of the bankruptcy court that held the Tax Sales Statute, R.I. Gen. Laws , § 44-9-1 et seq. was unconstitutional in failing to provide notice of the right of redemption, depriving the debtor of due process under the Fourteenth Amendment, the district court upheld the bankruptcy court’s order; under the Rhode Island scheme, requiring notice of the right of redemption until the end of the tax sale process under R.I. Gen. Laws § 44-9-29 effectively deprived the debtor of the right of redemption itself. Pontes v. Cunha (In re Pontes), 310 F. Supp. 2d 447, 2004 U.S. Dist. LEXIS 5227 (D.R.I. 2004).

Court granted the mortgagors’ motion for judgment on the pleadings in which they sought a decree setting aside the tax sale and the subsequent decree foreclosing equity of redemption because the complete lack of notice to the mortgagors of the tax sale and petition to foreclose redemption was both substantial and misleading in violation of state law governing tax sales, R.I. Gen. Laws § 44-9-35 , R.I. Gen. Laws § 44-9-11 . Burns v. Conley, 526 F. Supp. 2d 235, 2007 U.S. Dist. LEXIS 81679 (D.R.I. 2007).

Son had adequate notice of a tax sale purchaser’s petition to foreclose the son’s right of redemption because the son had actual notice and raised no defense, estopping the son, pursuant to § 44-9-11 , from raising notice in a separate suit to vacate a foreclosure of the son’s right of redemption. Izzo v. Victor Realty, 132 A.3d 680, 2016 R.I. LEXIS 26 (R.I. 2016).

Filing Petition.

Following the expiration of the one-year period subsequent to the tax sale of the realty, whoever holds the tax title may bring a petition in the superior court to foreclose all rights of redemption thereunder. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

Jurisdiction.

A hearing court entertaining a petition to foreclose rights of redemption may only consider matters that the tax statute specifically empowers him to hear and may not invoke his equitable jurisdiction to fashion remedies for the parties. Finnegan v. Bing, 772 A.2d 1070, 2001 R.I. LEXIS 151 (R.I. 2001).

Possession.

There is no requirement that the purchaser take possession before laying claim to the real estate purchased at a tax sale. Picerne v. Sylvestre, 122 R.I. 85 , 404 A.2d 476, 1979 R.I. LEXIS 2068 (1979).

Res Judicata.

Even though there was an identity of parties and the superior court previously granted a default judgment against the plaintiff on the issue of whether the plaintiff had a right-of-redemption on a particular piece of property, res judicata did not bar the plaintiff from relitigating this matter in a separate lawsuit, since notice for the initial suit was defective and, hence, the initial default judgment was void. Such a void judgment does not preclude, therefor, the plaintiff ’s subsequent lawsuit to enjoin the defendants from enforcing their default judgment. Gaudreau v. Blasbalg, 618 A.2d 1272, 1993 R.I. LEXIS 11 (R.I. 1993).

Where a borrower failed to answer or appear to assert any claim to an interest in the property, thus leading to a default judgment entered against him, and a stipulation order adequately adjudicated the issue of whether the mortgagee received notice of the tax sale, the borrower failed to protect his right in the property. Medeiros v. Bankers Trust Co., 38 A.3d 1112, 2012 R.I. LEXIS 26 (R.I. 2012).

Validity of Sale.

One year limitation period applied to redemption proceeding and did not bar an action attacking validity of sale though not filed within one year after sale. Struthers v. Potter, 30 R.I. 444 , 75 A. 867, 1910 R.I. LEXIS 36 (1910).

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

44-9-25.1. Foreclosure of the rights of redemption on account of abandonment.

Notwithstanding the provisions of § 44-9-25 , following a sale of land for taxes, whoever holds the acquired title, may bring an immediate petition in the superior court for the foreclosure of all rights of redemption upon a finding by the superior court of abandonment. The petition shall include a description of the land to which it applies, with its assessed valuation, the petitioner’s source of title, giving reference to the place, book, and page of the record, and other facts as may be necessary for the information of the court. A finding of abandonment shall be made under the following circumstances:

  1. The summons initiating the proceedings for the foreclosure of all rights of redemption and directed to the taxpayer at the taxpayer’s premises, or at the last known address of the taxpayer, if known by the petitioner to be different from that of the taxpayer’s premises, is returned not found.
  2. Upon the return of the summons as “not found,” the petitioner may move the court, notice of the motion having been sent to the taxpayer by certified mail at the taxpayer’s last known address, for the appointment of the code enforcement officer of the city or town or other appropriate person as an officer of the court to make a personal inquiry into the whereabouts of the taxpayer. The inquiry shall include visits to the taxpayer’s premises, and inquiries with neighbors, known relatives, employers, and any other person or entity who the officer may reasonably conclude has information to the whereabouts of the taxpayer.
  3. If the officer of the court, upon inquiry, is unable to ascertain the whereabouts of the taxpayer, the court may, upon hearing the report of the officer and being satisfied as to its thoroughness, enter a finding that the taxpayer’s premises are abandoned, and order that all rights of redemption be immediately foreclosed on account of the abandonment.
  4. If the inquiry of the officer results in the location of the taxpayer, the taxpayer shall be ordered by the court to appear for the limited purpose of declaring his or her intention with regard to exercising his or her right of redemption over the property. If, upon making an appearance, the taxpayer states that neither he or she nor anyone holding under him or her intends to occupy the mortgaged premises, the court may order that all rights of redemption be immediately foreclosed on account of that abandonment.
  5. Any person who willfully misrepresents facts regarding the finding of abandonment of taxpayer’s premises or who engages in harassment or pressure to cause taxpayers to abandon premises or otherwise fraudulently obtains a finding of abandonment or a finding that premises have not been abandoned, shall be guilty of a misdemeanor punishable by a fine of not less than one thousand dollars ($1,000) or thirty (30) days in prison.
  6. Actions brought under this section to foreclose the right of redemption on account of abandonment in the superior court shall be given precedence on the calendar and shall be heard not later than thirty (30) days from the initiation of the proceedings.

History of Section. P.L. 1976, ch. 310, § 1.

44-9-25.2. Foreclosure of the rights of redemption on account of constructive abandonment by a city or town.

  1. Notwithstanding the provisions of § 44-9-25 , following a sale or taking of land for taxes, whenever the city or town holds the acquired title, the city or town may at any time foreclose all rights of redemption upon a finding by the superior court of constructive abandonment.
  2. If the inspector of buildings determines that the buildings or unimproved land are abandoned property he or she shall notify the record owner, and, if appropriate, the mortgagee or lessee, of his or her finding. The notice shall include a statement that the inspection was conducted at the request of the local treasurer and that the failure of the record owner, or other interested party, to correct the conditions described in the notice within thirty (30) days of receipt or publication of the notice will result in proceedings to foreclose the record owner’s right of redemption. The notice may be served in the manner required by law for the service in civil cases or may be published. The inspector of buildings shall also, at the time of service or publication, post a copy of the notice in two (2) or more convenient public places.
  3. If at the expiration of the thirty (30) day period, the inspector of buildings is of the opinion that action has not been initiated to correct the condition described in the notice, he or she shall immediately notify the local treasurer in writing under penalties of perjury, that the buildings on the land or the unimproved land itself have been found to be abandoned property. The written notice shall include the facts and circumstances which formed the basis of his or her findings, and a copy of the notice served on the record owner, or if service was by publication, an account of the steps taken to locate the record owner and a copy of the published notice as well as information appearing in the records of the assessors and of the collector and tending to establish the validity of tax title on the land.
  4. If the treasurer is of the opinion that the facts and circumstances as found by the inspector of buildings are sufficient to establish that the buildings on the land or the unimproved land taken or purchased are abandoned property and that the facts essential to the validity of the tax title on the land have been adequately established, he or she shall make an affidavit of that finding which shall be recorded in the registry of deeds for the district where the land lies. The treasurer shall incorporate in his or her affidavit the statements of the inspector of buildings and the treasurer, or portions of the statements he or she finds pertinent, and when recorded, shall be prima facie evidence of those facts.
  5. The treasurer shall make an affidavit and shall bring a petition in the superior court pursuant to § 45-9-25 for the foreclosure of all rights of redemption of the land. The petition shall include a description of the land to which it applies, with its assessed valuation, the source of title giving reference to the place, book and page of record, and other facts as may be necessary for the information of the court. A finding of constructive abandonment will be made in a situation where the owner of a property has manifested constructive abandonment with some act or failure to act. In determining whether an owner has constructively abandoned a property, the court shall consider the following:
    1. Whether or not the property is vacant;
    2. Whether or not housing and building code violations have not been addressed;
    3. Whether or not the grounds are maintained;
    4. Whether or not the building’s interior is sound;
    5. Whether or not any vandalism or damage to the building has not been repaired;
    6. Whether or not dumping regularly occurs on the property;
    7. Whether or not the property is regularly maintained (i.e. grass, litter control, etc.); and
    8. The length of time any of the above conditions have existed.
  6. Actions brought under this section to foreclose the right of redemption on account of constructive abandonment in the superior court shall be given precedence on the calendar and shall be heard not later than thirty (30) days from the initiation of the proceedings.

History of Section. P.L. 1997, ch. 42, § 2; P.L. 1997, ch. 74, § 2; P.L. 2006, ch. 347, § 2; P.L. 2006, ch. 466, § 2.

44-9-25.3. Expedited foreclosure of the rights of redemption on account of vacancy.

  1. Notwithstanding the provisions of §§ 44-9-25 and 44-9-25 .1 following a sale of property for taxes or fees, whomever then holds the title thereby acquired may bring a petition to the superior court for the foreclosure of all rights of redemption after the passage of sixty (60) days from the date of recording of the tax sale deed upon a finding by the superior court that the structure(s) thereon are vacant and either vandalized and/or in a non-code compliant condition. A certificate from the local building official attesting to the vacant and vandalized and/or non-code compliant condition of the structure(s) shall be prima facie evidence of the condition, but additional evidence may be presented to the court to affirm the conditions alleged in the petition. A municipality, by and through its building official, may choose to issue a certificate as referenced in this section, however, neither a municipality nor its building official are obligated under this section to issue said certificate. The issuance of said certificate is discretionary and not mandatory.
  2. In the event that a petition to foreclose the right of redemption is filed under the provisions of this section, notice of the filing of the petition shall be given to the taxing authority that conducted the sale by in person service, upon the taxing authority’s collector, thereby ending the period during which the taxpayer may redeem through the taxing authority.
  3. A petitioner who has utilized this expedited foreclosure process shall commence, or cause to be commenced, substantial rehabilitation of the structure(s) on the parcel within six (6) months following the entry of the final foreclosure decree or be immediately subject to the non-utilization penalty set forth in chapter 5.1 of title 44.

History of Section. P.L. 2018, ch. 351, § 2.

44-9-26. Deposit by petitioner to cover costs.

The petitioner, at the time of filing his or her petition, shall deposit with the clerk of the superior court a sum sufficient to cover the costs of the proceedings as estimated by the court.

History of Section. G.L. 1938, ch. 32, § 49; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-26 .

44-9-27. Examination of title — Notice to interested parties of foreclosure petition.

  1. Upon the filing of a petition, the petitioner shall, at his or her own cost, select, with the approval of the court, a title company or an attorney familiar with the examination of land titles. This company or attorney shall make an examination of the title sufficient only to determine the persons who may be interested in the title, and the petitioner shall, upon the filing of the examiner’s report, notify all persons appearing to be interested, whether as equity owners, mortgagees, lienors, attaching creditors, or otherwise, as well as the tax collector in the municipality where the subject property is located, of the pendency of the petition, the notice to be sent to each by registered or certified mail and return of receipt required. In the event that any item mailed by certified mail is returned unopened, the petitioner shall send that notice to the addressee at the same address by first class regular mail, postage prepaid, and also, if the subject property is residential, petition the court for leave to serve the addressee by tacking said notice to the front door of the subject property. Other and further notice by publication or otherwise shall be given as the court may at any time order.
  2. The notice, to be addressed “To all whom it may concern,” shall contain the name of the petitioner, the names of all known respondents, a description of the land, and a statement of the nature of the petition, shall fix the time when appearance may be entered, and shall contain a statement that, unless the notified party shall appear within the fixed time, a default will be recorded, the petition taken as confessed, and the right of redemption forever barred (Form 6).

History of Section. G.L. 1938, ch. 32, § 44; P.L. 1946, ch. 1800, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-27 ; P.L. 2002, ch. 140, § 1; P.L. 2006, ch. 534, § 3; P.L. 2006, ch. 537, § 3.

Cross References.

Forms, § 44-9-46 .

NOTES TO DECISIONS

Notice.

Since the certified letter legally described the piece of property and twelve out of thirteen letters of the mortgagor’s name were correct, the misspelling of the surname was neither substantial nor misleading under § 44-9-35 and could have been overcome with ordinary diligence. Murray v. Schillace, 658 A.2d 512, 1995 R.I. LEXIS 146 (R.I. 1995).

Where a prior owner failed to redeem a tax lien pursuant to R.I. Gen. Laws § 44-9-29 , and where the city’s demolition liens and various nominal boarding liens terminated after three years pursuant to R.I. Gen. Laws § 44-9-1 and, in accordance with R.I. Gen. Laws § 23-27.3-125.7 , were treated in the same manner as a regular tax sale, and where the city and the prior owner were properly served, in accordance with R.I. Super. Ct. R. Civ. P. 4 and R.I. Gen. Laws § 44-9-27 , with notice of the purchasers’ intent to foreclose their redemption rights in the tax lien and did not answer by the return day in accordance with R.I. Gen. Laws § 44-9-31 , the city and the prior owner were subject to the consequences of the purchasers’ foreclosure. Karayiannis v. Ibobokiwe, 839 A.2d 492, 2003 R.I. LEXIS 171 (R.I. 2003).

Although tax notices incorrectly referenced the tax collector as the Town of Cumberland, rather than the North Cumberland Fire District, the owner did not contest that she was personally served with a citation that correctly referenced the North Cumberland Fire District. She retained counsel, and she requested several continuances, receiving due process, and any error was insubstantial under R.I. Gen. Laws § 44-9-35 . Johnson v. QBAR Assocs., 78 A.3d 48, 2013 R.I. LEXIS 134 (R.I. 2013).

Mother received adequate notice of a petition to foreclose the mother’s right of redemption as to property sold at a tax sale, even though she did not have actual notice, as the tax sale purchaser sent statutorily compliant notice by certified mail with return receipt requested to the mother’s last known address. Although the mother’s son, who signed for the notice, did not tell the mother about the petition, the notice was reasonably calculated to apprise her of the petition and allow her to present objections. Izzo v. Victor Realty, 132 A.3d 680, 2016 R.I. LEXIS 26 (R.I. 2016).

Collateral References.

Who are entitled to notice, or are necessary parties, in order to perfect tax title. 54 A.L.R. 760; 169 A.L.R. 686.

44-9-28. Order as to parties in default.

After the fixed return day, to be at least twenty (20) days after the time of the actual issuance of notice, the court, if satisfied that the notice has been properly given, on motion of the petitioner shall enter an order defaulting all persons failing to file a timely answer, and decreeing that the petition as to them be taken as confessed (Form 8).

History of Section. G.L. 1938, ch. 32, § 45; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-28 ; P.L. 2018, ch. 351, § 1.

Cross References.

Forms, § 44-9-46 .

NOTES TO DECISIONS

Notice.

Superior court properly foreclosed an owner’s right of redemption to the real property that was the subject of a tax sale because the 20-day period for doing so had elapsed, the owner failed to respond to the citation it received from the buyer and provided no justification for the failure, and, even if the redemption statement constituted an offer to allow a later redemption, there existed no indication of mutual agreement. Conley v. Crown Realty, LLC, 223 A.3d 768, 2020 R.I. LEXIS 6 (R.I. 2020).

44-9-29. Redemption by party to foreclosure proceedings.

Any person claiming an interest, on or before the return day or within that further time as may on motion be allowed by the court, providing the motion is made prior to the fixed return day, shall, if he or she desires to redeem, file an answer setting forth his or her right in the land, and an offer to redeem upon the terms as may be fixed by the court. Where an answer has been timely filed, the court shall hear the parties, and may in its discretion make a finding allowing the party to redeem, within a time fixed by the court, upon payment to the petitioner of an amount sufficient to cover the original sum, costs, penalties, and all subsequent taxes, costs, and interest to which the petitioner may be entitled, together with the costs of the proceeding and counsel fee as the court deems reasonable. The court may impose other terms as justice and the circumstances warrant.

History of Section. G.L. 1938, ch. 32, § 46; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-29 ; P.L. 2018, ch. 351, § 1.

NOTES TO DECISIONS

In General.

Any person having an interest in land sold for nonpayment of taxes has the opportunity to redeem the property by the payment of the requisite amount to the purchaser even up to the time the petition to foreclose is pending in court. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

This section permits the court to impose conditions of redemption beyond those specified, but is not a blanket authorization to decide collateral issues. Pratt v. Woolley, 117 R.I. 154 , 365 A.2d 424, 1976 R.I. LEXIS 1609 (1976).

Where a prior owner failed to redeem a tax lien pursuant to R.I. Gen. Laws § 44-9-29 , and where the city’s demolition liens and various nominal boarding liens terminated after three years pursuant to R.I. Gen. Laws § 44-9-1 and, in accordance with R.I. Gen. Laws § 23-27.3-125.7 , were treated in the same manner as a regular tax sale, and where the city and the prior owner were properly served, in accordance with R.I. Super. Ct. R. Civ. P. 4 and R.I. Gen. Laws § 44-9-27 , with notice of the purchasers’ intent to foreclose their redemption rights in the tax lien and did not answer by the return day in accordance with R.I. Gen. Laws § 44-9-31 , the city and the prior owner were subject to the consequences of the purchasers’ foreclosure. Karayiannis v. Ibobokiwe, 839 A.2d 492, 2003 R.I. LEXIS 171 (R.I. 2003).

Ability to Redeem.

The only proper basis for denying redemption is that the party seeking to redeem is financially incapable of so doing. Albertson v. Leca, 447 A.2d 383, 1982 R.I. LEXIS 956 (R.I. 1982).

When the facts elicited at a tax foreclosure proceeding reveal that the party seeking to redeem is ready, willing, and able to do so, the Superior Court judge must allow redemption. Albertson v. Leca, 447 A.2d 383, 1982 R.I. LEXIS 956 (R.I. 1982).

Since a conveyor of premises by quitclaim deed made a unilateral mistake by omitting an amount due for a tax deed, the redemption deed was not invalidated, and the motion justice properly determined that foreclosure of the right of redemption in respect to a tax sale was not permitted. Finnegan v. L.K. Goodwin Co., 768 A.2d 422, 2001 R.I. LEXIS 77 (R.I. 2001).

Although a purchaser at a mortgage foreclosure sale was entitled to notice of a subsequent tax sale because at the time of the tax sale, the controlling statute, former R.I. Gen. Laws § 44-9-11 , had not been amended, and the revised statute, R.I. Gen. Laws § 44-9-11 , amended by 2002 R.I. Pub. Laws ch. 140, § 1, was not retroactively controlling in the instant appeal, the purchaser was bound by the mandates governing foreclosure petitions; R.I. Gen. Laws § 44-9-29 required that any person claiming an interest and seeking to redeem land subject to a foreclosure proceeding had to, on or before the return day, file an answer setting forth his or her right in the land, and an offer to redeem upon the terms as might be fixed by the court, which the purchaser failed to do. Kildeer Realty v. Brewster Realty Corp., 826 A.2d 961, 2003 R.I. LEXIS 173 (R.I. 2003).

Where a trial court foreclosed a city’s rights of redemption to property it negligently permitted to be sold at a tax sale, the city’s failure to file an answer with specifications setting forth the matters upon which it relied to defeat the title was fatal to its claim, amounted to a waiver of all defenses, and was in essence a failure to respond. Thus, there was no valid offer to redeem either before or during the foreclosure proceeding. Smith v. City of Providence, 828 A.2d 536, 2003 R.I. LEXIS 184 (R.I. 2003).

Where defendants city tax collector and tax sale purchaser partners appealed an order of the bankruptcy court that held the Tax Sales Statute, R.I. Gen. Laws , § 44-9-1 et seq. was unconstitutional in failing to provide notice of the right of redemption, depriving the debtor of due process under the Fourteenth Amendment, the district court upheld the bankruptcy court’s order; under the Rhode Island scheme, requiring notice of the right of redemption until the end of the tax sale process under R.I. Gen. Laws § 44-9-29 effectively deprived the debtor of the right of redemption itself. Pontes v. Cunha (In re Pontes), 310 F. Supp. 2d 447, 2004 U.S. Dist. LEXIS 5227 (D.R.I. 2004).

Given the fact that a bank’s motion to file a late answer should have been denied, the bank was in default because of its failure to file an answer setting forth its right to the property on or before the return date provided for in the petition to foreclose. The bank should not have been permitted to redeem the property, and a decree should have been entered barring the bank’s right of redemption. Conley v. Fontaine, 138 A.3d 756, 2016 R.I. LEXIS 62 (R.I. 2016).

Costs of Redemption.

When the trial court ordered redemption, it did not do so in response to a petition to foreclose a right of redemption under R.I. Gen. Laws § 44-9-29 , but pursuant to the terms of the parties’ redemption agreement, which had no provisions regarding taxes, rents, or capital improvements. Therefore, the tax sale purchaser ’s award was properly limited to the balance due under the agreement, plus interest and counsel fees; it was not entitled to the other costs allowable under § 44-9-29 . Pleasant Mgmt., LLC v. Carrasco, 960 A.2d 216, 2008 R.I. LEXIS 112 (R.I. 2008).

Discretion of Court.

A Superior Court justice’s discretion under this section is not to determine which party would be the more responsible landowner, but to determine whether the party seeking to redeem can meet the financial burdens imposed by statute, and if he can, on what terms payment to the purchaser should be made. Albertson v. Leca, 447 A.2d 383, 1982 R.I. LEXIS 956 (R.I. 1982).

Jurisdiction of Court.

This section directs the court to determine the rights only of parties claiming an interest in the land; a party’s assertion that it had a lien for repairs to the property was not an interest in the land and therefore could not be entertained in foreclosure proceedings. Pratt v. Woolley, 117 R.I. 154 , 365 A.2d 424, 1976 R.I. LEXIS 1609 (1976).

Notice.

The superior court properly vacated a default judgment which purported to foreclose the defendant’s rights of redemption because the plaintiff ’s notice to the defendants was premature, since it was sent prior to the setting of a return day and prior to the presentation of a title examiner’s report to the superior court. Zeus Realty Co. v. Jaral Realty, 653 A.2d 70, 1995 R.I. LEXIS 12 (R.I. 1995).

Where notice of a tax delinquency and impending tax sale was provided both by (unclaimed) certified letter to the owners’ last known residence address and by publication, a trial court should not have set aside the subsequent tax sale, because it complied fully with all statutory requirements; nonetheless, the trial court’s decision to allow late redemption by the owners of their interest was the correct one, and the trial court on remand was ordered to determine what expenses the tax sale buyer was entitled to recover. Amy Realty v. Gomes, 839 A.2d 1232, 2004 R.I. LEXIS 18 (R.I. 2004).

Superior court properly foreclosed an owner’s right of redemption to the real property that was the subject of a tax sale because the 20-day period for doing so had elapsed, the owner failed to respond to the citation it received from the buyer and provided no justification for the failure, and, even if the redemption statement constituted an offer to allow a later redemption, there existed no indication of mutual agreement. Conley v. Crown Realty, LLC, 223 A.3d 768, 2020 R.I. LEXIS 6 (R.I. 2020).

44-9-30. Decree barring redemption.

If a default is entered under § 44-9-28 , or if redemption is not made within the time and upon the terms fixed by the court under § 44-9-29 , or if at the time fixed for the hearing the person claiming the right to redeem does not appear to urge his or her claim, after having filed a timely answer, or if upon hearing the court determines that the facts shown do not entitle the person to redeem, a decree shall be entered which shall forever bar all rights of redemption.

History of Section. G.L. 1938, ch. 32, § 47; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 1; G.L. 1956, § 44-9-30 ; P.L. 2018, ch. 351, § 1.

NOTES TO DECISIONS

Ability to Redeem.

Although a purchaser at a mortgage foreclosure sale was entitled to notice of a subsequent tax sale because at the time of the tax sale, the controlling statute, former R.I. Gen. Laws § 44-9-11 , had not been amended, and the revised statute, R.I. Gen. Laws § 44-9-11 , amended by 2002 R.I. Pub. Laws ch. 140, § 1, was not retroactively controlling in the instant appeal, the purchaser was bound by the mandates governing foreclosure petitions; R.I. Gen. Laws § 44-9-31 explicitly provided that the failure to raise any question concerning the validity of a tax title on or before the return day would result in the party’s being forever barred from contesting or raising the question in any other proceeding, and furthermore, pursuant to R.I. Gen. Laws § 44-9-30 , once a default was entered, or if redemption was not timely made, a decree would be entered which would forever bar all rights of redemption. Kildeer Realty v. Brewster Realty Corp., 826 A.2d 961, 2003 R.I. LEXIS 173 (R.I. 2003).

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

Given the fact that a bank’s motion to file a late answer should have been denied, the bank was in default because of its failure to file an answer setting forth its right to the property on or before the return date provided for in the petition to foreclose. The bank should not have been permitted to redeem the property, and a decree should have been entered barring the bank’s right of redemption. Conley v. Fontaine, 138 A.3d 756, 2016 R.I. LEXIS 62 (R.I. 2016).

Redemption Barred.

Where a borrower failed to answer or appear to assert any claim to an interest in the property, thus leading to a default judgment entered against him, and a stipulation order adequately adjudicated the issue of whether the mortgagee received notice of the tax sale, the borrower failed to protect his right in the property. Medeiros v. Bankers Trust Co., 38 A.3d 1112, 2012 R.I. LEXIS 26 (R.I. 2012).

Former property owner’s action to vacate a final decree that foreclosed her right of redemption following a tax sale was properly denied because pursuant to R.I. Gen. Laws § 44-9-24 , the only grounds for vacatur were lack of notice of the petition to foreclose or because no taxes were due at the time of the tax sale, neither of which was shown. Johnson v. QBAR Assocs., 78 A.3d 48, 2013 R.I. LEXIS 134 (R.I. 2013).

Superior court properly foreclosed an owner’s right of redemption to the real property that was the subject of a tax sale because the 20-day period for doing so had elapsed, the owner failed to respond to the citation it received from the buyer and provided no justification for the failure, and, even if the redemption statement constituted an offer to allow a later redemption, there existed no indication of mutual agreement. Conley v. Crown Realty, LLC, 223 A.3d 768, 2020 R.I. LEXIS 6 (R.I. 2020).

44-9-31. Contest of validity of tax title.

If a person claiming an interest desires to raise any question concerning the validity of a tax title, the person shall do so by answer filed in the proceeding on or before the return day, or within that further time as may on motion be allowed by the court, providing the motion is made prior to the fixed return date, or else be forever barred from contesting or raising the question in any other proceeding. He or she shall also file specifications setting forth the matters upon which he or she relies to defeat the title; and unless the specifications are filed, all questions of the validity or invalidity of the title, whether in the form of the deed or proceedings relating to the sale, shall be deemed to have been waived. Upon the filing of the specifications, the court shall hear the parties and shall enter a decree in conformity with the law on the facts found.

History of Section. G.L. 1938, ch. 32, § 48; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-31 ; P.L. 2018, ch. 351, § 1.

Law Reviews.

2002 Survey of Rhode Island Law, see 8 Roger Williams U.L. Rev. 421 (2003).

NOTES TO DECISIONS

In General.

A person claiming an interest in the real estate who wishes to raise any question concerning the validity of the petitioner’s title is required to file an answer which specifically sets forth the matter upon which he relies or else be forever barred from contesting or raising the question in any other proceeding. Picerne v. Sylvestre, 113 R.I. 598 , 324 A.2d 617, 1974 R.I. LEXIS 1214 (1974).

To contest the validity of a tax sale, a person needed to file an answer in the proceeding on or before the return day or else be forever barred from raising the question or contesting the tax sale in any other proceeding; where creditor failed to file an answer in the tax sale proceeding, it was barred from later contesting tax sale. Norwest Mortg., Inc. v. Masse, 799 A.2d 259, 2002 R.I. LEXIS 128 (R.I. 2002).

Although a purchaser at a mortgage foreclosure sale was entitled to notice of a subsequent tax sale because at the time of the tax sale, the controlling statute, former R.I. Gen. Laws § 44-9-11 , had not been amended, and the revised statute, R.I. Gen. Laws § 44-9-11 , amended by 2002 R.I. Pub. Laws ch. 140, § 1, was not retroactively controlling in the instant appeal, the purchaser was bound by the mandates governing foreclosure petitions; R.I. Gen. Laws § 44-9-31 explicitly provided that the failure to raise any question concerning the validity of a tax title on or before the return day would result in the party’s being forever barred from contesting or raising the question in any other proceeding, and furthermore, pursuant to R.I. Gen. Laws § 44-9-30 , once a default was entered, or if redemption was not timely made, a decree would be entered which would forever bar all rights of redemption. Kildeer Realty v. Brewster Realty Corp., 826 A.2d 961, 2003 R.I. LEXIS 173 (R.I. 2003).

Because the city ignored the foreclosure petition and failed to comply with the provisions of R.I. Gen. Laws § 44-9-31 , it was forever barred from contesting the water board’s tax sale. United Lending Corp. v. City of Providence, 827 A.2d 626, 2003 R.I. LEXIS 179 (R.I. 2003).

The language of R.I. Gen. Law § 44-7-11 does not suggest that the title purchased at a tax sale is defeated merely by the subsequent issuance and recording of a municipal lien certificate that fails to list the tax sale. Since the hearing justice predicated his ruling on other grounds and simply did not address the issue of the municipal lien certificate, and since the city had not even been made a party to the proceedings when the issue was raised, any questions concerning the allegedly faulty lien certificate first should be addressed at a hearing in which the city is a full participant. 140 Reservoir Ave. Assocs. v. Sepe Invs., LLC, 941 A.2d 805, 2007 R.I. LEXIS 134 (R.I. 2007).

Where a borrower failed to answer or appear to assert any claim to an interest in the property, thus leading to a default judgment entered against him, and a stipulation order adequately adjudicated the issue of whether the mortgagee received notice of the tax sale, the borrower failed to protect his right in the property. Medeiros v. Bankers Trust Co., 38 A.3d 1112, 2012 R.I. LEXIS 26 (R.I. 2012).

Filing of Specifications.

This section requires the filing of specifications on or before the return day. Albertson v. Leca, 447 A.2d 383, 1982 R.I. LEXIS 956 (R.I. 1982).

Where a prior owner failed to redeem a tax lien pursuant to R.I. Gen. Laws § 44-9-29 , and where the city’s demolition liens and various nominal boarding liens terminated after three years pursuant to R.I. Gen. Laws § 44-9-1 and, in accordance with R.I. Gen. Laws § 23-27.3-125.7 , were treated in the same manner as a regular tax sale, and where the city and the prior owner were properly served, in accordance with R.I. Super. Ct. R. Civ. P. 4 and R.I. Gen. Laws § 44-9-27 , with notice of the purchasers’ intent to foreclose their redemption rights in the tax lien and did not answer by the return day in accordance with R.I. Gen. Laws § 44-9-31 , the city and the prior owner were subject to the consequences of the purchasers’ foreclosure. Karayiannis v. Ibobokiwe, 839 A.2d 492, 2003 R.I. LEXIS 171 (R.I. 2003).

Where a trial court foreclosed a city’s rights of redemption to property it negligently permitted to be sold at a tax sale, the city’s failure to file an answer with specifications setting forth the matters upon which it relied to defeat the title was fatal to its claim, amounted to a waiver of all defenses, and was in essence a failure to respond. Thus, there was no valid offer to redeem either before or during the foreclosure proceeding. Smith v. City of Providence, 828 A.2d 536, 2003 R.I. LEXIS 184 (R.I. 2003).

Invalid Tax Deed.

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

Collateral References.

Direct attack upon purchase by attorney of client’s property at or through tax sale. 20 A.L.R.2d 1280.

Discretion of court to set aside tax sale where all proceedings are in compliance with statutory requirements. 152 A.L.R. 887.

Invalid tax sale, reimbursement of purchaser at, as condition of right of owner to cancelation or setting aside of tax deed. 86 A.L.R. 1208.

Mortgage foreclosure proceedings, right to litigate in, validity of tax title. 85 A.L.R. 1073.

Payment of taxes prior to sale of property for delinquency as ground for setting aside tax deed as cloud on title. 26 A.L.R. 629.

44-9-32. Recording of notices of foreclosure petition and final disposition.

Notice of filing the petition for foreclosure and notice of the final disposition shall be recorded in the proper registry of deeds (Forms 7 and 10).

History of Section. G.L. 1938, ch. 32, § 50; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-32 .

Cross References.

Forms, § 44-9-46 .

44-9-33. Practice following course of equity.

Practice and procedure under chapters 7 — 9 of this title, not provided for in this title, shall follow the course of equity so far as equity is applicable.

History of Section. G.L. 1938, ch. 32, § 51; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-33 .

NOTES TO DECISIONS

In General.

Principle that equity abhors a forfeiture requires Superior Court justices to grant redemption to persons financially capable of redeeming. Albertson v. Leca, 447 A.2d 383, 1982 R.I. LEXIS 956 (R.I. 1982).

44-9-34. Holding and disposition of land foreclosed by city or town.

After foreclosure by a city or a town of the rights of redemption under a tax title, the land shall be held and disposed of like any land belonging to it and held for municipal purposes, and shall not while held be assessed for taxes. The land may be disposed of without the necessity of giving the notice provided for by § 45-3-12 .

History of Section. G.L. 1938, ch. 32, § 52; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-34 .

NOTES TO DECISIONS

In General.

When the city took absolute title to the property upon foreclosure of the right of redemption, all prior tax liens were extinguished and any liens that accrued after the property owner acquired the property terminated after three years when the property was transferred; thus, the city was liable to the property owner for all taxes which the city erroneously assessed against the property owner. United Lending Corp. v. City of Providence, 827 A.2d 626, 2003 R.I. LEXIS 179 (R.I. 2003).

44-9-35. Errors and irregularities in proceedings.

No tax title shall be held to be invalid by reason of any error or irregularity which is neither substantial nor misleading, whether the error or irregularity occurs in the proceedings of the collector or the assessors or in the proceedings of any other official or officials charged with duties in connection with the establishment of the tax title, or in the proceedings to foreclose the rights of redemption as set forth in §§ 44-9-25 44-9-33 . Failure of notice under §§ 44-9-9 , 44-9-10 and 44-9-11 may only be raised by a party who was not sent notice and, if failure of notice is proved, the collector’s sale shall be invalid only as to that party and no other.

History of Section. G.L. 1923, ch. 62, § 49; G.L. 1937, ch. 2533, § 1; G.L. 1938, ch. 32, §§ 50, 53; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-35 ; P.L. 2003, ch. 262, § 1.

NOTES TO DECISIONS

Constructive Notice.

Where plaintiff had constructive notice from a tax collector’s report that the subject property had been sold for nonpayment of taxes, the fact that the deed was not recorded was insufficient to establish that plaintiff had been misled, and the tax sale was valid in regard to him. Rhodes Assocs. v. Woonsocket, 523 A.2d 878, 1987 R.I. LEXIS 437 (R.I. 1987).

Since the certified letter legally described the piece of property and twelve out of thirteen letters of the mortgagor’s name were correct, the misspelling of the surname was neither substantial nor misleading under this section and could have been overcome with ordinary diligence. Murray v. Schillace, 658 A.2d 512, 1995 R.I. LEXIS 146 (R.I. 1995).

Defective Filing.

A tax sale is not invalidated by a late or defective filing of the collector’s return where there is no substantial injury to the delinquent taxpayer. Jamestown v. Pennsylvania Co. for Banking & Trusts, 101 R.I. 274 , 221 A.2d 821, 1966 R.I. LEXIS 382 (1966).

Failure to Give Notice.

Court granted the mortgagors’ motion for judgment on the pleadings in which they sought a decree setting aside the tax sale and the subsequent decree foreclosing equity of redemption because the complete lack of notice to the mortgagors of the tax sale and petition to foreclose redemption was both substantial and misleading in violation of state law governing tax sales, R.I. Gen. Laws § 44-9-35 , R.I. Gen. Laws § 44-9-11 . Burns v. Conley, 526 F. Supp. 2d 235, 2007 U.S. Dist. LEXIS 81679 (D.R.I. 2007).

Insufficient Irregularities.

The deletion of a single letter from a name is neither substantial nor misleading. Murray v. Schillace, 658 A.2d 512, 1995 R.I. LEXIS 146 (R.I. 1995).

Although tax notices incorrectly referenced the tax collector as the Town of Cumberland, rather than the North Cumberland Fire District, the owner did not contest that she was personally served with a citation that correctly referenced the North Cumberland Fire District. She retained counsel, and she requested several continuances, receiving due process, and any error was insubstantial under R.I. Gen. Laws § 44-9-35 . Johnson v. QBAR Assocs., 78 A.3d 48, 2013 R.I. LEXIS 134 (R.I. 2013).

Void Tax Sale.

This section does not protect the title of a purchaser at a tax sale that was void because the lien of all but one year of the taxes for which the property was sold had been lost by conveyance under § 44-9-1 . Antuono v. Faraone, 106 R.I. 721 , 263 A.2d 111, 1970 R.I. LEXIS 980 (1970).

As defendant’s tax deed purported to convey the wrong property, defendant’s corrective deed was insufficient to remedy an error of this magnitude and, moreover, was not recorded within 60 days of the tax sale as required by R.I. Gen. Laws § 44-9-11 ; therefore, the trial court properly held the tax deed void and vacated the foreclosure decree under R.I. Gen. Laws § 44-9-24 , notwithstanding plaintiff mortgagees’ non-compliance with R.I. Gen. Laws §§ 44-9-30 and 44-9-31 . Mortgage Elec. Registration Sys. v. DePina, 63 A.3d 871, 2013 R.I. LEXIS 51 (R.I. 2013).

Collateral References.

Right to relief, under 42 USCS § 1983, for alleged unlawful action by state or local tax officials. 50 A.L.R. Fed. 773.

Taxpayer’s right under 28 USCS § 2410(a) to challenge procedures followed in imposing and enforcing federal tax lien on his property. 38 A.L.R. Fed. 900.

44-9-36. Sale by city or town treasurer without foreclosure.

After one year from the purchase by a city or town of any parcels of land for nonpayment of taxes, if the treasurer is of the opinion that the parcels are of insufficient value to meet the taxes, interest, and charges and all subsequent taxes and assessments, together with the expenses of a foreclosure under § 44-9-25 , and that the facts essential to the validity of the tax title on the lands have been adequately established, he or she may sell all the parcels, severally or together, at public auction to the highest bidder, first giving notice of the time and place of sale by publication in some public newspaper at least once a week for three (3) successive weeks before the sale, the first publication of which shall be at least twenty-one (21) days before the day of sale, including the day of the first publication in the computation. The treasurer at the auction may reject any bid which he or she deems inadequate. The treasurer shall execute and deliver to the highest bidder, whose bid has not been rejected as inadequate, a deed without covenant, except that the sale has in all particulars been conducted according to law. The deed shall not be valid unless recorded within sixty (60) days after the sale. Title taken pursuant to a sale under this section shall be absolute upon the recording of the deed of the treasurer in the proper registry of deeds within sixty (60) days (Forms 11 to 13).

History of Section. G.L. 1938, ch. 32, § 54; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-36 ; P.L. 1965, ch. 178, § 1.

Cross References.

Forms, § 44-9-46 .

44-9-37. Surplus proceeds from sale without foreclosure.

If the amount received from the sale is more than the taxes, interest and charges, and subsequent taxes and assessments, on all land included in the sale, together with the expenses of the sale, the balance shall be deposited with the city or town treasurer to be paid to the person entitled to it if demanded within five (5) years, otherwise it shall enure to the city or town. If the surplus results from the sale of several parcels for a lump sum, it shall be held for the several owners in proportion to the prices at which the several parcels were originally assessed by the city or town.

History of Section. G.L. 1938, ch. 32, § 54, P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-37 .

44-9-38. Purchase by city or town at sale without foreclosure.

If no person bids at a sale, or if no bid deemed adequate by the treasurer is made at a sale, the treasurer shall then and there make public declaration of the fact, and if no bid or no bid deemed adequate is then made, the treasurer shall give public notice that the treasurer purchases the land for the city or town by which the tax is assessed; or if the person to whom the land is sold does not within ten (10) days pay to the treasurer the sum bid by him or her, the sale shall be void and the city or town shall be deemed to be the purchaser of the land. If the city or town becomes the purchaser, the treasurer shall execute to it a deed, which shall set forth the fact that no bid or no bid deemed adequate was made at the sale, or that the purchaser failed to pay the amount bid, as the case may be. The deed shall not be valid unless recorded within sixty (60) days after the sale under this section, and the title of the city or town to land conveyed shall be absolute upon the recording of the deed in the proper registry of deeds within sixty (60) days (Form 14).

History of Section. G.L. 1938, ch. 32, § 55; P.L. 1946, ch. 1800, § 1; G.L. 1956, § 44-9-38 .

Cross References.

Forms, § 44-9-46 .

44-9-39. Bar of persons notified of sale without foreclosure.

Any person having a right of redemption or any other interest in the land conveyed or purporting to be conveyed under § 44-9-36 or 44-9-38 , upon whom service of the notice of sale provided in § 44-9-36 has been made by registered or certified mail, who, prior to the sale, neither redeems the land nor brings proceedings to enjoin the sale, shall, upon the recording of the deed as required by § 44-9-36 or 44-9-38 , be forever barred from raising any question concerning the validity of the title conveyed, and a statement contained in the treasurer’s deed that service has been made, naming the persons who were served by registered or certified mail, shall be prima facie evidence of service (Form 12).

History of Section. G.L. 1938, ch. 32, § 56; P.L. 1946, ch. 1800, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-39 .

Cross References.

Forms, § 44-9-46 .

44-9-40. Petition to establish title based on sale without foreclosure.

The holder of a title acquired under § 44-9-36 or 44-9-38 may file in the superior court a petition to establish his or her title by requiring all persons who would have an interest in the land involved, except for either the petitioner’s title or his or her claim of title originating under § 44-9-36 or 44-9-38 , to show cause why they should not bring an action to try any claim or claims which they may have adverse to the petitioner’s title arising out of the tax proceedings upon which the title was based. The petition shall set forth on oath the petitioner’s source of title, giving a reference to the place, book, and page of record of the deed under § 44-9-36 or 44-9-38 upon which the petitioner relies, the description of the land involved which appeared in the tax deed upon which the deed under § 44-9-36 or 44-9-38 was based, the names of all persons known to the petitioner, and other facts as may be necessary for the information of the court; but the petitioner need not allege in the petition nor show during the hearing any error or irregularity in the tax proceedings upon which the title depends or any other defect in the title. The petition shall be in the alternative praying that the persons be ordered to show cause why they should not bring action to try the claim or claims or, if the persons do not appear within the time fixed or, having appeared, disobey the lawful order of the court to try their claim or claims, that the court enter a decree that they be forever barred from having or enforcing any claim or claims adversely to the petitioner, his or her heirs or assigns, in the land described (Form 15).

History of Section. G.L. 1938, ch. 32, § 57; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 2; G.L. 1956, § 44-9-40 .

Cross References.

Forms, § 44-9-46 .

44-9-41. Notice of petition to establish title.

Upon the filing of the petition, the petitioner shall notify all interested persons of the pendency of the petition, the notice to be sent to each interested person by registered or certified mail and the return of receipt to be required. Other and further notice by publication or otherwise shall be given as the court may at any time order. The notice, to be addressed “To all whom it may concern,” shall contain the name of the petitioner, the names of all respondents named in the petition, the description of the land, and a statement of the nature of the petition, shall fix the time when appearance may be entered, and shall contain a statement that unless the notified persons shall appear within the fixed time, they shall forever be barred from having or enforcing any adverse claim or claims to the petitioner, his or her heirs or assigns, in the described land.

History of Section. G.L. 1938, ch. 32, § 57; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 2; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-41 .

44-9-42. Decree on petition to establish title.

The notified persons shall by answer show why they should not be required to bring an action to try their claim or claims, and the court shall enter an appropriate decree relative to bringing and prosecuting the action. If the notified persons do not appear within the fixed time or, having appeared, disobey the lawful order of the court to try their claim or claims, the court shall enter a decree that they are forever barred from having or enforcing any adverse claim or claims to the petitioner, his or her heirs or assigns, in the described land.

History of Section. G.L. 1938, ch. 32, § 57; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 2; G.L. 1956, § 44-9-42 .

44-9-43. Refund of purchase price when title based on collector’s sale, treasurer’s assignment, or sale without foreclosure adjudged invalid.

  1. If, as the result of a petition, the title based on a collector’s sale, treasurer’s assignment, or sale without foreclosure is determined to be invalid by the superior court because of errors or irregularities in the tax proceedings upon which it was based, the clerk, upon request, shall issue a certificate to that effect. The treasurer of the city or town where the land affected by the title is situated, upon receipt of a deed from the petitioner conveying all of the interest that he or she may have under it, together with the certificate, shall refund to the holder the amount paid, therefor plus statutory interest at the rate of one percent (1%) per month from the date of payment until the date of refund, notwithstanding the provisions of § 45-15-5 . The taxing authority may recover any interest paid to a tax sale purchaser under this section from the delinquent assessed owner of the property as if the tax sale of the property had not been held.
  2. If, prior to the filing of a petition, the title based on a collector’s sale, treasurer’s assignment, or sale without foreclosure is determined to be invalid by mutual agreement of the municipality and tax title holder, because of errors or irregularities in the tax proceedings upon which it was based, the treasurer of the city or town where the land affected by the title is situated, upon receipt of a deed from the tax title holder conveying all of the interest that they may have under it, shall refund to the holder the amount paid therefor plus statutory interest at the rate of one percent (1%) per month from the date of payment until the date of refund, notwithstanding the provisions of § 45-15-5 . The taxing authority may recover any interest paid to a tax sale purchaser under this section from the delinquent assessed owner of the property as if the tax sale of the property had not been held. Nothing in this subsection shall abrogate the authority of a municipality’s tax collector to redeem from a tax sale purchaser, in accordance with § 44-9-21 , before an action to foreclose the right of redemption under § 44-9-25 has been filed, any property sold at tax sale where the collector determines administrative error has occurred.

History of Section. G.L. 1938, ch 32, § 57; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 2; G.L. 1956, § 44-9-43 ; P.L. 2003, ch. 262, § 1; P.L. 2006, ch. 534, § 4; P.L. 2006, ch. 537, § 4; P.L. 2018, ch. 351, § 1.

44-9-44. Recording of notices in proceeding to establish title.

Notice of filing the petition and notice of the final disposition of the petition shall be recorded in the proper registry of deeds.

History of Section. G.L. 1938, ch. 32, § 57; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 2; G.L. 1956, § 44-9-44 .

44-9-45. Jurisdiction of proceedings to establish title — Practice and procedure.

The superior court shall have jurisdiction of petitions under §§ 44-9-40 44-9-44 and, except as provided in this chapter, practice and procedure under these sections shall conform as nearly as possible to the superior court practice, rules, regulations, and procedure.

History of Section. G.L. 1938, ch. 32, § 57; P.L. 1946, ch. 1800, § 1; P.L. 1953, ch. 3192, § 2; G.L. 1956, § 44-9-45 .

44-9-46. Forms.

The following forms may be used in proceedings for the collection of taxes under this chapter, and, if substantially followed, they shall be deemed sufficient for the proceedings to which they relate; but other suitable forms may also be used.

Form No. 1 § 44-9-18 This notice to be sent by registered or certified mail. NOTICE OF INTENTION TO ASSIGN TAX TITLE State of Rhode Island Name of City or Town OFFICE OF THE TREASURER , 20 (Name of owner of record) (Last known address) You are hereby notified that after the expiration of ten (10) days from the date of this notice I, , Treasurer of the City – Town of , intend to assign and transfer to the tax title on the hereinafter described land upon the payment by him or her of a sum not less than the amount necessary for redemption, the tax title having been acquired by the city or town under a tax collector’s deed dated , 20 , and recorded in the Registry of Deeds, Book , Page . DESCRIPTION OF LAND Treasurer of Name of City or Town

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Form No. 2 § 44-9-18 INSTRUMENT OF ASSIGNMENT OF TAX TITLE (This instrument must be recorded within sixty (60) days from its date) STATE OF RHODE ISLAND Name of City or Town OFFICE OF THE TREASURER I, , Treasurer of the City – Town of , pursuant to the provisions of , in consideration of /100 dollars to me paid, do hereby on behalf of the city – town assign and transfer to (Name of Assignee) of (No., Street, City, State), the tax title acquired by the city – town on the hereinafter described land under a tax collector’s deed dated 20 , and recorded in the Registry of Deeds, Book , Page § 44-9-18 DESCRIPTION OF LAND The above-mentioned sum is not less than the amount necessary for redemption, and includes all taxes assessed on the land subsequent to the assessment, for nonpayment of which the land was so purchased, and which have not been paid. On , 20 , notice of intended assignment was sent by registered or certified mail to the owner of record as follows: (Name) (Last known address) In Witness Whereof, I have hereunto set my hand and seal this day of , 20 . WITNESS Treasurer STATE OF RHODE ISLAND, County of In the of this day of 20, personally appeared before me , Treasurer of the City – Town of , known to me and known by me to be the person who executed the foregoing instrument, and acknowledged the instrument, by him or her signed in that capacity to be his or her free and voluntary act and deed. . Notary Public

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Form No. 3 § 44-9-20 FORM OF DEED WHEN ESTATE IS REDEEMED UNDER SECTION 44-9-19 KNOW ALL MEN BY THESE PRESENTS, That the of , in consideration of , to it paid by of , the receipt whereof is hereby acknowledged, does hereby remise, release, and forever quitclaim unto all the right, title, and interest which of acquired, by or under a deed made to it by the Collector of Taxes for the city – town of , dated 20 , and recorded in Deed Book Page in and to the following parcel of real estate: (Description) To have and to hold the above-released premises, with all the privileges and appurtenances to the premises belonging, to , h heirs and assigns, to h and their use and behoof forever. In witness whereof, etc. By: Treasurer Acknowledgment. See Form 2.

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Form No. 4 § 44-9-23 TREASURER’S CERTIFICATE OF RECEIPT OF MONEY PAID FOR PURPOSE OF REDEMPTION STATE OF RHODE ISLAND Name of City or Town OFFICE OF THE TREASURER I, , Treasurer of the City – Town of , hereby certify that on this day of , 20 , pursuant to the provisions of – 44-9-23 , (Name of person redeeming) , residing at (No., Street, City or Town, and State), who claims to be the holder of an interest in – a mortgage on the land hereinafter described, which was purchased for nonpayment of the 20 tax assessed thereon to , has paid to me as Treasurer of the city – town the amount of /100 dollars for the purpose of redeeming the land from the tax title thereby held by (Present holder of tax title), residing at (No., Street, City or Town, and State) , under a tax collector’s deed dated , 20 , and recorded in Registry of Deeds, Book , Page . § 44-9-19 (If there has been no assignment, strike out the following reference) the tax title having been assigned to the above-named (present holder of tax title) by instrument of assignment dated , 20 , and recorded in the registry, Book , Page . The above-mentioned amount is computed as follows: (Strike out whichever computation is inapplicable) TITLE HELD BY ORIGINAL TITLE HELD BY ASSIGNEE PURCHASER Original Sum for which Amount Stated in Land was Sold $ Instrument of Assignment $ Intervening Taxes and Taxes and Costs Paid Costs Paid by Pur- by Assignee since chaser Assignment Interest According to Interest According to Law Law Recording Recording TOTAL AMOUNT PAID $ TOTAL AMOUNT PAID $ DESCRIPTION OF LAND In Witness, etc. By: Treasurer Acknowledgment. See Form 2.

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Form No. 5 § 44-9-25 STATE OF RHODE ISLAND PETITION TO FORECLOSE RIGHT OF REDEMPTION To the Honorable Judges of the Superior Court: The undersigned hereby represents that the land hereinafter described was sold on (Date of sale) for nonpayment of taxes by the town or city of in the County of by instrument dated and duly recorded on (Date) in Book , Page ; that more than one year from the date of the sale has elapsed and no redemption has been made; that these proceedings have been conducted according to law; that the deed was recorded within sixty (60) days from date of sale – that the undersigned now holds title under the instrument; that the following are the names and addresses of all persons known to the undersigned who have any interest in the land, other than the petitioner to wit: (Also give name of wife or husband of the equity owner) Name Address Nature of Interest that the assessed value of the land and buildings is $; and that the land is described as follows: (Description) WHEREFORE your petitioner prays that the rights of all persons entitled to redeem from the proceedings may be foreclosed, that the Court enter a decree that the title of the petitioner to the land under the proceedings is absolute, and that all rights of redemption are barred, and for such other and further relief as may seem meet and proper to the Court. Name Address On this day of , 20 , personally appeared before me the within named, known to me to be the signer of the foregoing petition, and made oath that the statements therein contained so far as made of own knowledge are true and so far as made upon information and belief that believe them to be true. Before me Notary Public Attorney for Petitioner

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Form No. 6 § 44-9-27 CITATION STATE OF RHODE ISLAND OFFICE OF THE CLERK OF THE SUPERIOR COURT PETITION TO FORECLOSE RIGHT OF REDEMPTION No. TO ALL WHOM IT MAY CONCERN, and to Whereas, a petition has been presented to the Court by of in the County of and the State to foreclose all rights of redemption from the lien proceedings described in the petition in and concerning a certain parcel of land situate in the County of and in the State, bounded and described in the petition as follows: (Description) If you desire to make any objection or defense to the petition, you or your attorney must file a written appearance and an answer, under oath, setting forth clearly and specifically your objections or defense to each part of the petition, in the office of the Superior Court in on or before the day of next, that you may then and there show cause, if any, why the prayer of the petition should not be granted. Unless your appearance is filed by or for you, your default will be recorded, the petition will be taken as confessed, and you will be forever barred from contesting the petition or any decree entered thereon. And in addition to the usual service of this notice as required by law, it is ordered that the foregoing citation be published once each week for three (3) successive weeks in the a newspaper published in (optional). Witness, the Seal of our Superior Court at this day of , 20 . Clerk CERTIFICATE OF SERVICE BY REGISTERED OR CERTIFIED MAIL I hereby certify that I have this day served the foregoing citation by causing to be mailed a duly attested copy thereof of each respondent named therein whose address was furnished by the petitioner or otherwise known to me, the copies being sent by mail and return receipts required. Attorney for Petitioner CERTIFICATE OF SERVICE BY PUBLICATION 20 I hereby certify that I have caused the foregoing citation to be published once each week for three (3) successive weeks in the a newspaper published in , in the County of , and the State, to wit: on the day of , the day of , and the day of , 20 , a copy of which publication is hereto annexed. Attorney for Petitioner

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Form No. 7 § 44-9-32 (To be recorded in the Registry of Deeds) NOTICE OF FILING PETITION STATE OF RHODE ISLAND SUPERIOR COURT To all whom it may concern: hereby give notice that, on the day of , 20 filed in the Court a petition against* to foreclose the right of redemption acquired under a certain tax deed (or deeds) from the Collector of Taxes for the City (or Town) of , in the County of and the State, to me dated , and recorded with Deeds in Book , Page the deed (or deeds) covers a certain parcel of land situated in in the County of and the State, which is described as follows: (Description) *Name all respondents as in petition.

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Form No. 8 § 44-9-28 MOTION FOR DECREE PRO CONFESSO STATE OF RHODE ISLAND SUPERIOR COURT No. In the matter of the Petition of And now comes the petitioner in the above-entitled case and moves that a general default of all parties respondent, whether named in the notice or not, who have not appeared or answered, be recorded, and that the application as to them be taken for confessed. Attorney for Petitioner

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Form No. 9 § 44-9-30 FINAL DECREE IN TAX LIEN CASE STATE OF RHODE ISLAND SUPERIOR COURT Case No. vs. DECREE This case came on to be heard and was argued by counsel, and thereupon, upon consideration thereof, it is ORDERED, ADJUDGED AND DECREED that all rights of redemption are forever foreclosed and barred under the deed given by the Collector of Taxes for the of in the County of and the State, dated and duly recorded in Book , Page By the Court. Attest: Clerk Dated

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Form No. 10 § 44-9-32 NOTICE OF DISPOSAL IN TAX LIEN CASE STATE OF RHODE ISLAND SUPERIOR COURT This is to certify that the petition of vs. to foreclose the right of redemption under certain deed for nonpayment of taxes, given by the Collector of Taxes for the in the County of and the State, dated and duly recorded in Book , Page was filed in this Court on . Thereafter due proceedings under the petition were instituted according to law, and finally on , a decree forever foreclosing and barring all rights of redemption under the deed was entered, and this notice of final disposition of the petition is directed to be recorded in the Registry of Deeds for the City of in County, pursuant to . § 44-9-32 By the Court, Attest: Clerk Dated

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Form No. 11 § 44-9-36 NOTICE OF SALE – LAND OF LOW VALUE STATE OF RHODE ISLAND Name of City or Town OFFICE OF THE TREASURER , 20 NOTICE IS HEREBY GIVEN THAT ON the day of , 20 , at o’clock M., at (Place of Sale) pursuant to the provisions of – 44-9-45 , I SHALL OFFER FOR SALE AT PUBLIC AUCTION, severally or together, certain parcels of land of low value listed below, these parcels having been purchased by the City – Town of for nonpayment of the taxes due thereon. §§ 44-9-36 (List of Parcels) Treasurer of (Name of City or Town) To be posted in some convenient and public place in the city or town at least fourteen (14) days before the sale.

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Form No. 12 § 44-9-36 NOTICE OF SALE LAND OF LOW VALUE STATE OF RHODE ISLAND Name of City or Town OFFICE OF THE TREASURER , 20 NOTICE IS HEREBY GIVEN THAT on , 20 , at M., at (Place of Sale) , pursuant to the provisions of – 44-9-45 , I SHALL OFFER FOR SALE AT PUBLIC AUCTION, severally or together, certain parcels of land of low value listed below, these parcels having been purchased by the City – Town of for nonpayment of the taxes due thereon. §§ 44-9-36 (List of parcels) Further notice is given that the following land in which you appear to have an interest is included in the sale. (Description as given in original notice of sale) Amount Required for Redemption on Above Date of Sale, $ Your attention is directed to as follows: § 44-9-39 “Any person having a right of redemption or any other interest in the land conveyed or purporting to be conveyed under or , upon whom service of the notice of sale provided in has been made by registered or certified mail, who, prior to the sale, neither redeems the land nor brings proceedings to enjoin the sale, shall, upon the recording of the deed as required by or , be forever barred from raising any question concerning the validity of the title conveyed, and a statement contained in the treasurer’s deed that service has been made, naming the persons who were served by registered or certified mail, shall be prima facie evidence of service.” § 44-9-36 § 44-9-38 § 4-9-36 § 44-9-36 § 44-9-38 Treasurer of City – Town of – Send this notice by registered or certified mail, return receipt requested, at least fourteen (14) days before the sale, to any person having a right of redemption or any other interest in any of the parcels to be sold.

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Form No. 13 § 44-9-36 This deed is not valid unless recorded in the proper registry of deeds within sixty (60) days after the sale. TREASURER'S DEED TO A PERSON – LAND OF LOW VALUE STATE OF RHODE ISLAND Name of city or town OFFICE OF THE TREASURER I, , Treasurer of the City – Town of pursuant to the provisions of , in consideration of /100 dollars to me paid, hereby grant to of the parcel-parcels of land described in the tax collector's deed to which reference is made in the following schedule: § 44-9-36 Name of Person Assessed Names of Interested in the Year of the Tax for Recorded Persons served by which the land was taken registered or or sold. certified mail with notice of sale under . § 44-9-39 Location of Parcel Book Page The land hereby granted was assessed for $ and was offered for sale at public auction on , 20 , in accordance with a notice of sale posted on , 20 , in (Specify place where notice was posted) ; and was sold to the above-named grantee (at the original time and place appointed for the sale – at an adjournment of the sale on , 20 ,) that grantee being the highest bidder whose bid was not rejected as inadequate. This deed is given with the covenant that the sale was in all particulars conducted according to law. In Witness, etc. Treasurer of Name of City or Town Acknowledgment. See Form 2.

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Form No. 14 § 44-9-38 This deed is not valid unless recorded in the proper registry of deeds within sixty (60) days after the sale. TREASURER’S DEED TO MUNICIPALITY – LAND OF LOW VALUE STATE OF RHODE ISLAND Name of City or Town OFFICE OF THE TREASURER I, , Treasurer of the City — Town of , pursuant to the provisions of — 44-9-38 , hereby grant to the city — town the parcel-parcels of land described in the tax collector’s deed to which reference is made in the following schedule: §§ 44-9-36 Name of Person Assessed Names of Interested in the Year of the Tax for Recorded Persons served by which the land was taken registered or or sold. certified mail with notice of sale under . § 44-9-39 Location of Parcel Book Page The land hereby granted was assessed for $ and was offered for sale at public auction on , 20 , in accordance with a notice of sale posted on , 20 , in (Specify place where notice of sale posted). (Strike out Paragraph (A) or (B) as the Circumstances Require) No bid (A) No bid deemed adequate by me was made at the time and place appointed for the sale or at any adjournment thereof, and the city – town therefore became the purchaser at an adjournment of the sale on , 20 (B) The purchaser failed to pay the amount bid by him or her at the original time and place appointed for the sale, or an adjournment of the sale on , 20 , within ten (10) days thereafter, wherefore the sale became void and the city – town became the purchaser. In Witness, etc. Treasurer of Name of City or Town Acknowledgment. See Form 2.

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Form No. 15 § 44-9-40 STATE OF RHODE ISLAND Petition to Establish Title Acquired under or . To the Honorable, the Judges of the Superior Court. § 44-9-36 § 44-9-38 The undersigned hereby represent that the land hereinafter described was sold on for the nonpayment of taxes by , County of . Pursuant to and , the land was conveyed to by instrument dated and recorded in Book , Page , that the undersigned now hold title under an instrument from dated , and duly recorded in Book , Page , that the following are the names and addresses of all persons known to the undersigned who have any interest in the land other than the petitioner to wit: §§ 44-9-36 44-9-38 that the assessed value of the land and buildings is $ ; and that the land is described as follows: (Description) Wherefore your petitioner prays that all persons having an interest in the above-described premises show cause why they should not bring an action to try any claim or claims which they may have adverse to your petitioner's title. And if such persons do not appear within the time fixed or having appeared disobey the lawful Order of the Court to try their claim or claims, that the Court enter a decree that they be forever barred from having or enforcing any claim or claims adversely to the petitioner, his or her heirs or assigns, in the land described. On this day of , 20 , personally appeared before me the within named , known to me to be the signers of the foregoing petition, and made oath that the statements therein contained so far as made of their own knowledge are true and so far as made upon information and belief that they believe them to be true. Before me Notary Public

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History of Section. G.L. 1938, ch. 32, § 67; P.L. 1946, ch. 1800, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-9-46 ; P.L. 1986, ch. 172, § 1.

Compiler's Notes.

In 2021, “AND PROVIDENCE PLANTATIONS” was deleted following “STATE OF RHODE ISLAND” in this section at the direction of the Law Revision Director to reflect the 2020 amendments to the state constitution that changed the state’s name.

Cross References.

Severability of provisions, § 44-7-21 .

NOTES TO DECISIONS

Notice of Hearing.

Son was not entitled to notice of a hearing on a tax sale purchaser’s petition to foreclose the son’s right of redemption because, having received actual notice of the petition in the statutory form, the son filed no answer or written appearance. Izzo v. Victor Realty, 132 A.3d 680, 2016 R.I. LEXIS 26 (R.I. 2016).

44-9-47. Definitions.

As used in §§ 44-9-47 44-9-53 , unless the context requires otherwise:

  1. “Goods” means goods as defined in § 6A-9-102(a)(44) .
  2. “Lien” means the lien to secure the payment of personal property taxes described in § 44-9-48 .
  3. “Municipality” means any town or city of the state.
  4. “Proceeds” means proceeds as defined in § 6A-9-102(a)(64) .
  5. “Purchase money security interest” means purchase money security interest as defined in § 6A-9-103 .
  6. “Secured party” means a municipality.
  7. “Tax collector” means the person receiving the tax list of a municipality and the warrant to collect the tax list.
  8. “Taxpayer” means a person with respect to whom personal property taxes have been levied by a municipality.

History of Section. P.L. 1989, ch. 281, § 1; P.L. 2005, ch. 410, § 30.

44-9-48. Lien — Perfection — Priority.

If any personal property tax, other than a tax on a motor vehicle, due any municipality is not paid within the time limited by law following the assessment date for the tax, then the municipality shall have a lien, upon perfection, upon the goods situated in this state and owned by the taxpayer upon the date of perfection, or upon the goods thereafter acquired by the taxpayer. The lien shall attach and become perfected at the time when a notice of lien is filed pursuant to the filing provisions of part 5 of chapter 9 of title 6A, except that the signature of the taxpayer against whose property the lien is claimed shall not be required on the notice of lien. Except as provided in this chapter, upon perfection, the lien shall have priority over all subsequently perfected liens and security interests. The lien shall not attach to or be applicable to proceeds nor shall the municipality filing the notice of lien have the status of a lien creditor, as defined in § 6A-9-102(a)(52) .

History of Section. P.L. 1989, ch. 281, § 1; P.L. 2005, ch. 410, § 30.

44-9-49. Notice of lien — Taxpayer.

Prior to the lien being filed with the secretary of state, the taxpayer shall be notified by certified mail, return receipt requested, that a lien will be filed against all goods situated in the state if the outstanding tax is not paid within seven (7) business days of receipt of this notice.

History of Section. P.L. 1989, ch. 281, § 1.

44-9-50. Notice of lien — Secretary of state.

  1. The notice of lien, in the form prescribed in this section, will be filed in the office of the secretary of state.
  2. The notice of lien will be in writing and will:
    1. Give the names of the taxpayer and the municipality party;
    2. Be signed by the tax collector of the municipality (whose signature may be a facsimile signature);
    3. Give the mailing addresses of the municipality party and the taxpayer;
    4. Contain a statement indicating the types, or describing the items, of collateral;
    5. State the amount of taxes and interest accrued (through a date specified in the notice of lien) claimed to be due to the municipality; and
    6. State the tax year or years for which the taxes were assessed.
  3. A notice of lien in the form of the financing statement prescribed by part 4 of chapter 9 of title 6A, which is adapted to comply with the requirements of subsection (b), will be sufficient for the purposes of the filing required by this section.

History of Section. P.L. 1989, ch. 281, § 1.

44-9-51. Notice to taxpayer — After lien has been perfected.

After the lien has been filed with the secretary of state, the taxpayer shall be notified by certified mail, return receipt requested, that a lien has been perfected and the taxpayer has seven (7) business days from receipt of the certified letter to pay any outstanding taxes or request a hearing with the city or town tax collector or designee.

History of Section. P.L. 1989, ch. 281, § 1.

44-9-52. Effective period of lien — Limitation period.

The lien shall be effective for a period of five (5) years from the date of filing of the notice of lien unless discharged as provided in § 44-9-55 . A notice of lien shall not be effective if filed more than two (2) years from the date of assessment for the taxes claimed to be due.

History of Section. P.L. 1989, ch. 281, § 1.

44-9-53. Rights and remedies of municipality and taxpayer.

A municipality which has filed a notice of tax lien and the taxpayer against whom the lien has been filed shall have the rights and remedies of a secured party and debtor, respectively, as provided for in chapter 9 of title 6A, except that the municipality shall not have the right to propose to retain any property in satisfaction of the obligation as provided in § 6A-9-620 . In a proceeding to enforce the lien, the municipality shall observe the procedures applicable to a secured party under part 6 of chapter 9 of title 6A.

History of Section. P.L. 1989, ch. 281, § 1; P.L. 2005, ch. 410, § 30.

44-9-54. Validity of liens.

Even though notice of a lien has been filed by a municipality, the lien is not valid:

  1. With respect to tangible personal property purchased at retail, as against a purchaser in the ordinary course of the seller’s trade or business, unless at the time of the purchase the purchaser intends the purchase to, or knows the purchase will, hinder, evade, or defeat the collection of any tax under part 6 of chapter 9 of title 6A.
  2. With respect to a purchase money security interest, if the purchase money security interest would be prior to a conflicting security interest in the same collateral under § 6A-9-324 .

History of Section. P.L. 1989, ch. 281, § 1; P.L. 1999, ch. 354, § 29; P.L. 2005, ch. 410, § 30.

44-9-55. Discharge.

If any lien created under §§ 44-9-47 44-9-55 is discharged, then a certificate of discharge shall promptly be filed by the tax collector of the municipality which originally filed the notice of lien, or by the tax collector’s successor, in the office of the secretary of state in the same manner as termination statements are filed under § 6A-9-513 . The municipal officer who has filed the notice of lien shall file a notice of discharge of the lien in the manner provided in this section if: (1) the taxes for which the lien has been filed are fully paid together with all interest due on the taxes; or (2) a cash bond or surety company bond is furnished to the municipality conditioned upon the payment of the amount of the taxes together with interest due on the taxes, for which the notice of lien has been filed, within the effective period of the lien; or (3) a final judgment is rendered in favor of the taxpayer or others claiming an interest in the property subject to the lien determining that the tax is not owed, or that the lien is not valid. If the judgment determines that the tax is partially owed, then the officer who filed the notice of lien or his or her successor shall within ten (10) days of the rendition of the final judgment of the court file an amended tax lien for the actual amount of tax found to be due by the court, which amended lien shall be effective as to the revised amount of the lien as of the date of the filing of the original notice of tax lien, and the officer or his or her successor at the time of the filing of the amended tax lien shall also file a discharge of the original tax lien.

History of Section. P.L. 1989, ch. 281, § 1; P.L. 2005, ch. 410, § 30.

44-9-56. Filing fees.

Municipalities will not be liable for the payment of any filing fees with respect to the filing of notices of lien or certificates of discharge in the office of the secretary of state.

History of Section. P.L. 1989, ch. 281, § 1.

Chapter 10 Unincorporated Business Tax [Repealed.]

44-10-1 — 44-10-25. Repealed.

History of Section. P.L. 1942, ch. 1212, art. 9, §§ 1 to 9; P.L. 1942, ch. 1212, art. 9, §§ 11, 12; P.L. 1953, ch. 3217, § 2; P.L. 1943, ch. 1339, § 1; P.L. 1944, ch. 1506, § 1; P.L. 1947, ch. 1887, art. 5, § 1; P.L. 1948, ch. 2096, § 1; P.L. 1953, ch. 3217, § 1; P.L. 1954, ch. 3335, § 1; G.L. 1956, §§ 44-10-1 to 44-10-25; R.P.L. 1957, ch. 86, § 1; P.L. 1958, ch. 147, § 1; P.L. 1959, ch. 158, § 1; P.L. 1960, ch. 74, § 21; P.L. 1960, ch. 207, § 1; P.L. 1964, ch. 200, §§ 1 to 4; P.L. 1966, ch. 113, § 1; P.L. 1966, ch. 262, § 2; P.L. 1970, ch. 60, §§ 2, 5); Repealed by P.L. 1971, ch. 8, art. 2, § 1.

Chapter 11 Business Corporation Tax

44-11-1. Definitions.

For the purpose of this chapter:

    1. “Captive REIT” means a corporation, trust or association:
      1. That is considered a real estate investment trust for the taxable year under section 856 of the Internal Revenue Code;
      2. That is not regularly traded on an established securities market; and
      3. More than fifty percent (50%) of the voting power or value of the beneficial interests or shares of which at any time during the last half of the taxable year, is owned or controlled, directly or indirectly, by a single entity that is subject to the provisions of Subchapter C of Chapter 1 of the Internal Revenue Code; and
    2. “Captive REIT” does not include:
      1. A corporation, trust or association more than fifty percent (50%) of the voting power or value of the beneficial interests or shares of which, at any time during which the corporation, trust or association satisfies item (1)(iii) of this subsection, is owned or controlled, directly or indirectly, by:
        1. A real estate investment trust other than a real estate investment trust described in item (i) of this subsection; or
        2. A person exempt from taxation under § 501(a) of the Internal Revenue Code; or
        3. A listed Australian Property Trust; and
      2. Subject to regulations that the tax administrator adopts, a real estate investment trust that is intended to become regularly traded on an established securities market and that satisfies the requirements of § 865(A)(5) and (6) of the Internal Revenue Code by reason of § 856(h)(2) of the Internal Revenue Code; and
    3. For purposes of this section, the constructive ownership rules prescribed under § 318(a) of the Internal Revenue Code, as modified by § 856(d)(5) of the Internal Revenue Code, shall apply in determining the ownership of stock, assets or net profits of any person.
  1. “Combined group” means a group of two or more corporations in which more than fifty percent (50%) of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or non-corporate, or by one or more of the member corporations, and that are engaged in a unitary business.
  2. “Common ownership” means more than fifty percent (50%) of the voting control of each member of the group is directly or indirectly owned by a common owner or owners, either corporate or non-corporate, whether or not owner or owners are members of the combined group.
  3. “Corporation” means every corporation, joint-stock company, or association, wherever incorporated, a real estate investment trust, a regulated investment company, a personal holding company registered under the Federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., and also a trustee or trustees conducting a business where interest or ownership is evidenced by certificates or other written instruments, deriving any income from sources within this state or engaging in any activities or transactions within this state for the purpose of profit or gain, whether or not an office or place of business is maintained in this state, or whether or not the income, activities, or transactions are connected with intrastate, interstate, or foreign commerce, except:
    1. State banks, mutual savings banks, federal savings banks, trust companies, national banking associations, building and loan associations, credit unions, and loan and investment companies;
    2. Public service corporations included in chapter 13 of this title, except as otherwise provided in § 44-13-2.2 ;
    3. Insurance and surety companies;
    4. Corporations specified in § 7-6-4 , incorporated hospitals, schools, colleges, and other institutions of learning not organized for business purposes and not doing business for profit and no part of the net earnings of which inures to the benefit of any private stockholder or individual, whether incorporated under any general law of this state or by any special act of the general assembly of this state;
    5. Fraternal beneficiary societies as set forth in § 27-25-1 ;
    6. Any corporation expressly exempt from taxation by charter;
    7. Corporations which together with all corporations under direct or indirect common ownership that satisfies the other requirements of this paragraph employ not less than five (5) full-time equivalent employees in the state; which maintain an office in the state; and activities within the state which are confined to the maintenance and management of their intangible investments or of the intangible investments of corporations or business trusts registered as investment companies under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., and the collection and distribution of the income from those investments or from tangible property physically located outside the state. For purposes of this paragraph, “intangible investments” includes, without limitation, investments in stocks, bonds, notes, and other debt obligations, including debt obligations of affiliated corporations, patents, patent applications, trademarks, trade names, copyrights, and similar types of intangible assets.
  4. “Fiscal year” means an accounting period of twelve (12) months ending on the last day of any month other than December.
  5. “Member”  means a corporation included in a unitary business.
  6. “Place of business” means a regular place of business, which, in turn, means any bona fide office, other than a statutory office, factory, warehouse, or other space which is regularly used by the taxpayer in carrying on its business. Where, as a regular course of business, property of the taxpayer is stored by it in a public warehouse until it is shipped to customers, the warehouse is considered a regular place of business of the taxpayer and, where as a regular course of business, raw material or partially furnished goods of a taxpayer are delivered to an independent contractor to be converted, processed, finished, or improved and the finished goods remain in the possession of the independent contractor until shipped to customers, the plant of the independent contractor is considered a regular place of business of the taxpayer. The mere consignment of goods by the taxpayer to an independent factor outside this state for sale at the consignee’s discretion does not constitute the taxpayer as having a regular place of business outside this state.
  7. “Tax haven” means a jurisdiction that, during the tax year in question has no or nominal effective tax on the relevant income and;
    1. Has laws or practices that prevent effective exchange of information for tax purposes with other governments on taxpayers benefiting from the tax regime;
    2. Has a tax regime which lacks transparency. A tax regime lacks transparency if the details of legislative, legal, or administrative provisions are not open and apparent, or are not consistently applied among similarly situated taxpayers, or if the information needed by tax authorities to determine a taxpayer’s correct tax liability, such as accounting records and underlying documentation is not adequately available;
    3. Facilitates the establishment of foreign-owned entities without the need for a local substantive presence or prohibits these entities from having any commercial impact on the local economy;
    4. Explicitly or implicitly excluded the jurisdiction’s resident taxpayers from taking advantage of the tax regime benefits or prohibits enterprisers that benefit from the regime from operating in the jurisdiction’s domestic market; or
    5. Has created a tax regime which is favorable for tax avoidance, based upon an overall assessment of relevant factors, including whether the jurisdiction has a significant untaxed offshore financial/other services sector relative to its overall economy.
  8. “Taxable year” means the calendar year or the fiscal year ending during the calendar year upon the basis of which the net income is computed under this chapter. “Taxable year” means, in the case of a return made for a fractional part of a year under the provisions of this chapter or under regulations prescribed by the tax administrator, the period for which the return is made.
  9. “Taxpayer” means and includes any corporation subject to the provisions of this chapter.
  10. “Unitary business” means the activities of a group of two (2) or more corporations under common ownership that are sufficiently interdependent, integrated, or interrelated through their activities so as to provide mutual benefit and produce a significant sharing or exchange of value among them or a significant flow of value between the separate parts. The term unitary business shall be construed to the broadest extent permitted under the United States Constitution.
  11. “United States” means the fifty (50) states of the United States, the District of Columbia, the United States’ territories and possessions.

History of Section. G.L. 1938, ch. 37, § 1; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-1 ; P.L. 1961, ch. 83, § 1; P.L. 1964, ch. 66, § 2; P.L. 1972, ch. 155, art. 2, § 1; P.L. 1977, ch. 133, § 1; P.L. 1984, ch. 380, § 7; P.L. 1984, ch. 444, § 1; P.L. 1987, ch. 174, § 1; P.L. 1994, ch. 93, § 1; P.L. 1997, ch. 357, § 6; P.L. 2007, ch. 73, art. 7, § 14; P.L. 2014, ch. 145, art. 12, § 15.

Applicability.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

Cross References.

Consumers’ cooperatives, application to, § 7-8-19 .

Comparative Legislation.

Corporation taxes:

Conn. Gen. Stat., § 12-213 et seq.

Mass. Ann. Laws ch. 63, § 1 et seq.

NOTES TO DECISIONS

Regular Place of Business.

The system by which taxpayer corporation sold goods out of state qualified taxpayer to compute its taxes on the basis that it maintained regular places of business out of state: independent manufacturer’s representatives, acting as agents for taxpayer, maintained inventories of taxpayer’s goods at out-of-state warehouse locations; taxpayer retained title to the goods and determined both the price of the goods and the size of the inventory; taxpayer paid all freight charges; payment for purchased goods was made directly to taxpayer; finally this was a regular activity involving the physical movement of taxpayer’s product from its manufacturing plant to the warehouse for permanent storage until final sale and distribution. Narragansett Wire Co. v. Norberg, 118 R.I. 596 , 376 A.2d 1, 1977 R.I. LEXIS 1500 (1977).

The conclusion of the trial judge that taxpayer corporation had regular places of business outside Rhode Island pursuant to subdivision (e) was a question of law and thus § 42-35-15(g) does not bind the judge to the tax administrator’s determination to the contrary. Narragansett Wire Co. v. Norberg, 118 R.I. 596 , 376 A.2d 1, 1977 R.I. LEXIS 1500 (1977).

Collateral References.

Association or joint-stock company, meaning of, within statutes taxing associations or joint-stock companies as corporations. 144 A.L.R. 1050; 166 A.L.R. 1461.

Charitable organization, exemption of, from income taxes. 62 A.L.R. 340; 108 A.L.R. 284.

Co-operative association and its patrons or members, income and excess profits tax of. 8 A.L.R.2d 925.

Publication or sale of literature by religious, educational, or charitable body, use of income for, as affecting exemption. 154 A.L.R. 895.

Religious body or society, exemption of, from income tax. 168 A.L.R. 1262.

When will income received by organization exempt from federal income tax under § 501 of Internal Revenue Code of 1954 (26 USCS § 501) be deemed income from unrelated trade or business taxable under §§ 511-513 of Code (26 USCS §§ 511-513). 70 A.L.R. Fed. 229.

44-11-2. Imposition of tax.

  1. Each corporation shall annually pay to the state a tax equal to nine percent (9%) of net income, as defined in § 44-11-11 , qualified in § 44-11-12 , and apportioned to this state as provided in §§ 44-11-13 44-11-15 , for the taxable year. For tax years beginning on or after January 1, 2015, each corporation shall annually pay to the state a tax equal to seven percent (7.0%) of net income, as defined in § 44-11-13 44-11-15 , for the taxable year.
  2. A corporation shall pay the amount of any tax as computed in accordance with subsection (a) after deducting from “net income,” as used in this section, fifty percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if for the taxable year:
    1. The corporation is engaged in buying, selling, dealing in, or holding securities on its own behalf and not as a broker, underwriter, or distributor;
    2. Its gross receipts derived from these activities during the taxable year amounted to at least ninety percent (90%) of its total gross receipts derived from all of its activities during the year. “Gross receipts” means all receipts, whether in the form of money, credits, or other valuable consideration, received during the taxable year in connection with the conduct of the taxpayer’s activities.
  3. A corporation shall not pay the amount of the tax computed on the basis of its net income under subsection (a), but shall annually pay to the state a tax equal to ten cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the corporation is either a “personal holding company” registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., “regulated investment company,” or a “real estate investment trust” as defined in the federal income tax law applicable to the taxable year. “Gross income” means gross income as defined in the federal income tax law applicable to the taxable year, plus:
    1. Any interest not included in the federal gross income; minus
    2. Interest on obligations of the United States or its possessions, and other interest exempt from taxation by this state; and minus
    3. Fifty percent (50%) of the excess of capital gains over capital losses realized during the taxable year.
    1. A small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except that the corporation shall be subject to the provisions of subsection (a), to the extent of the income that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after January 1, 2015, a small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall be subject to the minimum tax under § 44-11-2(e) .
    2. The shareholders of the corporation who are residents of Rhode Island shall include in their income their proportionate share of the corporation’s federal taxable income.
    3. [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]
    4. [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]
  4. Minimum tax.  The tax imposed upon any corporation under this section, including a small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be less than four hundred fifty dollars ($450). For tax years beginning on or after January 1, 2017, the tax imposed shall not be less than four hundred dollars ($400).

History of Section. G.L. 1938, ch. 37, § 2; P.L. 1947, ch. 1887, art. 1, § 1; P.L. 1949, ch. 2168, § 1; P.L. 1951, ch. 2733, art. 1, § 1; P.L. 1952, ch. 3026, art. 1, § 1; P.L. 1953, ch. 3150, art. 1, § 1; P.L. 1954, ch. 3254, art. 1, § 1; P.L. 1955, ch. 3521, art. 1, § 1; G.L. 1956, § 44-11-2 ; P.L. 1956, ch. 3739, art. 1, § 1; P.L. 1957, ch. 44, art. 1, § 1; P.L. 1958, ch. 17, art. 3, § 1; P.L. 1959, ch. 169, art. 2, § 1; P.L. 1960, ch. 66, art. 2, § 1; P.L. 1965, ch. 34, § 1; P.L. 1966, ch. 238, § 1; P.L. 1966, ch. 245, § 7; P.L. 1968, ch. 263, art. 5, §§ 1, 2; P.L. 1970, ch. 139, art. 1, § 1; 1970, ch. 226, § 1; P.L. 1974, ch. 151, art. 4, § 1; impl. am. P.L. 1974, ch. 200, art. 2, § 2; P.L. 1977, ch. 133, § 2; P.L. 1983, ch. 2, art. 8, § 1; P.L. 1988, ch. 12, § 1; P.L. 1989, ch. 126, art. 20, § 1; P.L. 1992, ch. 15, art. 4, § 1; P.L. 2004, ch. 595, art. 17, § 6; P.L. 2004, ch. 595, art. 29, § 1; P.L. 2014, ch. 145, art. 12, § 15; P.L. 2015, ch. 141, art. 11, § 1; P.L. 2016, ch. 142, art. 13, § 9.

Effective Dates.

P.L. 2015, ch. 141, art. 11, § 22, provides that the amendment to this section by that act take effect for tax years beginning on or after January 1, 2016.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect on January 1, 2017.

Applicability.

P.L. 2004, ch. 595, art. 17, § 12, and P.L. 2004, ch. 595, art. 29, § 4, provide that the amendment to this section by that act takes effect upon passage [July 30, 2004] and shall apply to tax years beginning on or after January 1, 2004.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

NOTES TO DECISIONS

Constitutionality.

The fact that an unincorporated business is not subject to tax and an incorporated business is, does not deny equal protection, as the one engaged in business may determine whether his interests are best served by operating as an individual or as a corporation. Kalian v. Langton, 96 R.I. 367 , 192 A.2d 12, 1963 R.I. LEXIS 101 (1963).

“Gross Income” Construed.

The words “gross receipts” include a variety of activities derived from the buying, selling, dealing, and holding of securities and not just dividend and interest income. Consequently, a holding company’s income derived from management fees which arose out of management services provided by the company to its customers qualified as income derived from the holding, buying, selling, and dealing in securities as required to satisfy the 90% test qualifying the corporation for tax exempt status. Cookson America v. Clark, 610 A.2d 1095, 1992 R.I. LEXIS 127 (R.I. 1992).

Collateral References.

Excise or privilege tax on corporations measured by income or receipts, constitutionality of. 71 A.L.R. 256.

Right of owner of all shares of corporation or association taxable as a corporation to have its income taxed as his personal income. 162 A.L.R. 996.

Separate recognition of corporation and business organization of individual stockholders. 24 A.L.R.2d 470.

44-11-2.1. Surtax.

Each corporation whose taxable year ends on or after March 31, 1991 and before January 1, 1994 shall annually pay to the state a surtax of 11% on the amount of the tax computed under § 44-11-2 . The surtax shall be added to the amount of the tax computed under § 44-11-2 in computing the total tax due by the corporation for the taxable year or years under this chapter. The estimated tax provisions of chapter 26 of this title shall apply to the surtax.

History of Section. P.L. 1991, ch. 6, art. 28, § 1; P.L. 1992, ch. 133, art. 40, § 1; P.L. 1993, ch. 138, art. 59, § 1.

44-11-2.2. Pass-through entities — Definitions — Withholding — Returns.

  1. Definitions.
    1. “Administrative adjustment request” means an administrative adjustment request filed by a partnership under IRC section 6227.
    2. “Audited partnership” means a partnership or an entity taxed as a partnership federally subject to a partnership level audit resulting in a federal adjustment.
    3. “Direct partner” means a partner that holds an interest directly in a partnership or pass-through entity.
    4. “Federal adjustment” means a change to an item or amount determined under the Internal Revenue Code (IRC) that is used by a taxpayer to compute Rhode Island tax owed whether that change results from action by the IRS, including a partnership level audit, or the filing of an amended federal return, federal refund claim, or an administrative adjustment request by the taxpayer. A federal adjustment is positive to the extent that it increases state taxable income as determined under Rhode Island state laws and is negative to the extent that it decreases state taxable income as determined under Rhode Island state laws.
    5. “Final determination date” means if the federal adjustment arises from an IRS audit or other action by the IRS, the final determination date is the first day on which no federal adjustments arising from that audit or other action remain to be finally determined, whether by IRS decision with respect to which all rights of appeal have been waived or exhausted, by agreement, or, if appealed or contested, by a final decision with respect to which all rights of appeal have been waived or exhausted. For agreements required to be signed by the IRS and the taxpayer, the final determination date is the date on which the last party signed the agreement.
    6. “Final federal adjustment” means a federal adjustment after the final determination date for that federal adjustment has passed.
    7. “Indirect partner” means a partner in a partnership or pass-through entity that itself holds an interest directly, or through another indirect partner, in a partnership or pass-through entity.
    8. “Member” means an individual who is a shareholder of an S corporation; a partner in a general partnership, a limited partnership, or a limited liability partnership; a member of a limited liability company; or a beneficiary of a trust;
    9. “Nonresident” means an individual who is not a resident of or domiciled in the state, a business entity that does not have its commercial domicile in the state, and a trust not organized in the state.
    10. “Partner” means a person that holds an interest directly or indirectly in a partnership or other pass-through entity.
    11. “Partnership” means an entity subject to taxation under Subchapter K of the IRC.
    12. “Partnership level audit” means an examination by the IRS at the partnership level pursuant to Subchapter C of Title 26, Subtitle F, Chapter 63 of the IRC, as enacted by the Bipartisan Budget Act of 2015, Public Law 114-74, which results in Federal Adjustments.
    13. “Pass-through entity” means a corporation that for the applicable tax year is treated as an S Corporation under IRC § 1362(a) [26 U.S.C. § 1362(a)], and a general partnership, limited partnership, limited liability partnership, trust, or limited liability company that for the applicable tax year is not taxed as a corporation for federal tax purposes under the state’s check-the-box regulation.
    14. “Tiered partner” means any partner that is a partnership or pass-through entity.
  2. Withholding.
    1. A pass-through entity shall withhold income tax at the highest Rhode Island withholding tax rate provided for individuals or seven percent (7%) for corporations on the member’s share of income of the entity that is derived from or attributable to sources within this state distributed to each nonresident member and pay the withheld amount in the manner prescribed by the tax administrator. The pass-through entity shall be liable for the payment of the tax required to be withheld under this section and shall not be liable to the member for the amount withheld and paid over in compliance with this section. A member of a pass-through entity that is itself a pass-through entity (a “lower-tier pass-through entity”) shall be subject to this same requirement to withhold and pay over income tax on the share of income distributed by the lower-tier pass-through entity to each of its nonresident members. The tax administrator shall apply tax withheld and paid over by a pass-through entity on distributions to a lower-tier pass-through entity to the withholding required of that lower-tier pass-through entity.
    2. A pass-through entity shall, at the time of payment made pursuant to this section, deliver to the tax administrator a return upon a form prescribed by the tax administrator showing the total amounts paid or credited to its nonresident members, the amount withheld in accordance with this section, and any other information the tax administrator may require. A pass-through entity shall furnish to its nonresident member annually, but not later than the fifteenth day of the third month after the end of its taxable year, a record of the amount of tax withheld on behalf of the member on a form prescribed by the tax administrator.
  3. Notwithstanding subsection (b), a pass-through entity is not required to withhold tax for a nonresident member if:
    1. The member has a pro rata or distributive share of income of the pass-through entity from doing business in, or deriving income from sources within, this state of less than $ 1,000 per annual accounting period;
    2. The tax administrator has determined by regulation, ruling, or instruction that the member’s income is not subject to withholding;
    3. The member elects to have the tax due paid as part of a composite return filed by the pass-through entity under subsection (d); or
    4. The entity is a publicly traded partnership as defined by 26 U.S.C. § 7704(b) that is treated as a partnership for the purposes of the Internal Revenue Code and that has agreed to file an annual information return reporting the name, address, taxpayer identification number, and other information requested by the tax administrator of each unitholder with an income in the state in excess of $ 500.
  4. Composite return.
    1. A pass-through entity may file a composite income tax return on behalf of electing nonresident members reporting and paying income tax at the state’s highest marginal rate on the members’ pro rata or distributive shares of income of the pass-through entity from doing business in, or deriving income from sources within, this State.
    2. A nonresident member whose only source of income within a state is from one or more pass-through entities may elect to be included in a composite return filed pursuant to this section.
    3. A nonresident member that has been included in a composite return may file an individual income tax return and shall receive credit for tax paid on the member’s behalf by the pass-through entity.
  5. Partnership level audit.
    1. A partnership shall report final federal adjustments pursuant to IRC section 6225(a)(2) arising from a partnership level audit or an administrative adjustment request and make payments by filing the applicable supplemental return as prescribed under § 44-11-2.2(e)(1)(ii) , and as required under § 44-11-19(b) , in lieu of taxes owed by its direct and indirect partners.
      1. Failure of the audited partnership or tiered partner to report final federal adjustments pursuant to IRC section 6225(a) and 6225(c) or pay does not prevent the tax administrator from assessing the audited partnership, direct partners, or indirect partners for taxes they owe, using the best information available, in the event that a partnership or tiered partner fails to timely make any report or payment required by § 44-11-19(b) for any reason.
      2. The tax administrator may promulgate rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter.

History of Section. P.L. 2004, ch. 595, art. 29, § 2; P.L. 2017, ch. 302, art. 8, § 9; P.L. 2019, ch. 88, art. 5, § 7.

Applicability.

P.L. 2004, ch. 595, art. 29, § 4, provides that this section takes effect upon passage [July 30, 2004] and applies to tax years beginning on or after January 1, 2004.

Federal Act References.

The bracketed reference to the United States Code were inserted by the compiler.

44-11-2.3. Pass-through entities — Election to pay state income tax at the entity level.

  1. Definitions.  As used in this section:
    1. “Election” means the annual election to be made by the pass-through entity by filing the prescribed tax form and remitting the appropriate tax.
    2. “Net income” means the net ordinary income, net rental real estate income, other net rental income, guaranteed payments, and other business income less specially allocated depreciation and deductions allowed pursuant to § 179 of the United States Revenue Code (26 U.S.C. § 179), all of which would be reported on federal tax form schedules C and E. Net income for purposes of this section does not include specially allocated investment income or any other types of deductions.
    3. “Owner” means an individual who is a shareholder of an S Corporation; a partner in a general partnership, a limited partnership, or a limited-liability partnership; a member of a limited-liability company, a beneficiary of a trust; or a sole proprietor.
    4. “Pass-through entity” means a corporation that for the applicable tax year is treated as an S Corporation under I.R.C. 1362(a)(26 U.S.C. § 1362(a)), or a general partnership, limited partnership, limited-liability partnership, trust, limited-liability company or unincorporated sole proprietorship that for the applicable tax year is not taxed as a corporation for federal tax purposes under the state’s regulations.
    5. “State tax credit” means the amount of tax paid by the pass-through entity at the entity level that is passed through to an owner on a pro rata basis.
  2. Elections.
    1. For tax years beginning on or after January 1, 2019, a pass-through entity may elect to pay the state tax at the entity level at the rate of five and ninety-nine hundredths percent (5.99%).
    2. If a pass-through entity elects to pay an entity tax under this subsection, the entity shall not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident owners. In that instance, the entity shall not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident owners.
  3. Reporting.
    1. The pass-through entity shall report the pro rata share of the state income taxes paid by the entity which sums will be allowed as a state tax credit for an owner on his or her personal income tax return.
    2. The pass-through entity shall also report the pro rata share of the state income taxes paid by the entity as an income (addition) modification to be reported by an owner on his or her personal income tax returns.
  4. State tax credit shall be the amount of tax paid by the pass-through entity, at the entity level, which is passed through to the owners, on a pro rata basis.
  5. A similar type of tax imposed by another state on the owners’ income paid at the state entity level shall be deemed to be allowed as a credit for taxes paid to another jurisdiction in accordance with the provisions of § 44-30-18 .
  6. “Combined reporting” as set forth in § 44-11-4.1 shall not apply to reporting under this section.

History of Section. P.L. 2019, ch. 88, art. 5, § 8.

44-11-3. Filing of returns — Due date.

  1. For tax years beginning before January 1, 2016, a return, in the form and containing the information that the tax administrator may prescribe, shall be filed with the tax administrator by the taxpayer:
    1. In case the taxable year of the taxpayer is the calendar year, on or before March 15 in the year following the close of the taxable year; and
    2. In case the taxable year of the taxpayer is a fiscal year, on or before the fifteenth (15th) day of the third (3rd) month following the close of the fiscal year.
  2. For tax years beginning after December 31, 2015, a return, in the form and containing the information as the tax administrator may prescribe, shall be filed with the tax administrator by the taxpayer taxed as an S corporation and shall be filed on or before the date a federal tax return is due to be filed, without regard to extension.
  3. For tax years beginning after December 31, 2015, a return, in the form and containing the information that the tax administrator may prescribe, shall be filed with the tax administrator by the taxpayer taxed as a C corporation and shall be filed on or before the date a federal return is due to be filed, without regard to extension.
  4. Notwithstanding the provisions of subsections (a) and (c), a C corporation with a tax year ending June 30 shall, in accordance with federal tax filing requirements, not change its filing date until mandated by federal law which is currently due to be effective close of fiscal year ending June 30, 2026.

History of Section. G.L. 1938, ch. 37, § 3; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-3 ; P.L. 1968, ch. 263, art. 5, § 2.1; P.L. 2016, ch. 142, art. 13, § 10.

Applicability.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect upon passage [June 24, 2016] and shall apply to tax years beginning on or after January 1, 2016.

44-11-4. Returns of affiliated groups of corporations.

For tax years beginning before January 1, 2015, an affiliated group of corporations may file a consolidated return for the taxable year in lieu of separate returns; provided, that all the corporations which constitute the affiliated group at any time during the period for which the return is made and which are subject to taxation under this chapter shall consent to the making of the consolidated return. The tax administrator may prescribe rules and regulations as he or she may deem necessary in order that the tax liability of any affiliated group of corporations making a consolidated return and of each corporation in the group, liable to taxation under this chapter, both during and after the period of affiliation, may be determined, computed, assessed, collected, and adjusted in a manner as clearly to reflect the net income and the corporate excess and to prevent avoidance of tax liability.

History of Section. G.L. 1938, ch. 37, § 3; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-4 ; P.L. 2014, ch. 145, art. 12, § 15.

Applicability.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

NOTES TO DECISIONS

Constitutionality of Rule on Consolidated Returns.

The tax rule governing consolidated tax returns of corporations, Regulation Re: Consolidated Returns VI(b), which articulates a formula for the computation of consolidated net worth, does not exceed the tax administrator’s authority, nor does it violate R.I. Constitution, art. VI, § 2 (legislative power). Great Am. Nursing Ctrs. v. Norberg, 567 A.2d 354, 1989 R.I. LEXIS 168 (R.I. 1989).

Collateral References.

Returns of affiliated corporations with respect to “net operating loss” and its carry-back and carry-over. 9 A.L.R.2d 330.

44-11-4.1. Combined reporting.

  1. For tax years beginning on or after January 1, 2015, each C corporation which is part of an unitary business with one or more other corporations must file a return, in a manner prescribed by the tax administrator, for the combined group containing the combined income, determined under this section, of the combined group.
  2. An affiliated group of C corporations, as defined in section 1504 of the Internal Revenue Code, may elect to be treated as a combined group with respect to the combined reporting requirement imposed by § 44-11-4.1(a) for the taxable year in lieu of an unitary business group. The election shall be upon the condition that all C corporations which at any time during the taxable year have been members of the affiliated group consent to be included in such group. The filing of a consolidated return for the combined group shall be considered as such consent. Such election may not be revoked in less than five (5) years unless approved by the tax administrator.
  3. The use of a combined report does not disregard the separate identities of the taxpayer members of the combined group. Each taxpayer member is responsible for tax based on its taxable income or loss apportioned to this state.
  4. Members of a combined group shall exclude as a member and disregard the income and apportionment factors of any corporation not incorporated in the United States (a “non US corporation”) if the sales factors outside the United States is eighty percent (80%) or more. If a non US corporation is includible as a member in the combined group, to the extent that such non US corporation’s income is subject to the provisions of a federal income tax treaty, such income is not includible in the combined group net income. Such member shall also not include in the combined report any expenses or apportionment factors attributable to income that is subject to the provisions of a federal income tax treaty. For purposes of this chapter, “federal income tax treaty” means a comprehensive income tax treaty between the United States and a foreign jurisdiction, other than a foreign jurisdiction which is defined as a tax haven; provided, however, that if the tax administrator determines that a combined group member non US corporation is organized in a tax haven that has a federal income treaty with the United States, its income subject to a federal income tax treaty, and any expenses or apportionment factors attributable to such income, shall not be included in the combined group net income or combined report if: (i) the transactions conducted between such non US corporation and other members of the combined group are done on an arm’s length basis and not with the principal purpose to avoid the payment of taxes due under this chapter; or (ii) the member establishes that the inclusion of such net income in combined group net income is unreasonable.
  5. Net operating losses.  A tracing protocol shall apply to net operating losses created before January l, 2015. Such net operating losses shall be allowed to offset only the income of the corporation that created the net operating loss; the net operating loss cannot be shared with other members of the combined group. No deduction is allowable for a net operating loss sustained during any taxable year in which a taxpayer was not subject to Rhode Island business corporation tax. For net operating losses created in tax years beginning on or after January 1, 2015 such loss allowed shall be the same as the net operating loss deduction allowed under section 172 of the internal revenue code for the combined group, except that:
    1. Any net operating loss included in determining the deduction shall be adjusted to reflect the inclusions and exclusions from entire net income required by § 44-11-11 (a) and § 44-11-11.1 ;
    2. The deduction shall not include any net operating loss sustained during any taxable year in which the member was not subject to the tax imposed by this chapter; and
    3. The deduction shall not exceed the deduction for the taxable year allowable under section 172 of the internal revenue code; provided, that the deduction for a taxable year may not be carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the five (5) succeeding taxable years.
  6. Tax credits and tax rate reduction.
    1. A tracing protocol shall apply to Rhode Island tax credits earned before tax years beginning on or before January 1, 2015. Such Rhode Island tax credits shall be allowed to offset only the tax liability of the corporation that earned the credits; the Rhode Island tax credits cannot be shared with other members of the combined group. Rhode Island tax credits earned in tax years beginning on or after January 1, 2015, may be applied to other members of the group.
    2. The tax rate reductions authorized under chapter 64.5 of title 42 (Jobs Development Act) and chapter 64.14 of title 42 (I-195 Redevelopment Act of 2011) shall be allowed against the net income of the entire combined group.
  7. The tax administrator shall prescribe and amend, from time to time, rules and regulations as he or she may deem necessary in order that the tax liability of any group of corporations filing as a combined group and each corporation in the combined group, liable to taxation under this chapter, may be determined, computed, assessed, collected, and adjusted in a manner as to clearly reflect the combined income of the combined group and the individual income of each member of the combined group. Such rules and regulations, shall include but are not be limited to, issues such as the inclusion or exclusion of a corporation in the combined group, the characterization and sourcing of each member’s income, and whether certain common activities constitute the conduct of a unitary business.
  8. The tax administrator shall on or before March 15, 2018, based upon the actual tax filings of companies under this act for a two year period, submit a report to the chairperson of the house finance committee and the senate finance committee and the house fiscal advisor and the senate fiscal advisor analyzing the policy and fiscal ramifications of the changes enacted to business corporations tax statutes, as enacted in budget article 12 of the Fiscal Year 2015 appropriations act. The report shall include but not be limited to the impact upon categories of business, size of business and similar information as contained in § 44-11-45 [repealed], which required the original report.

History of Section. P.L. 2014, ch. 145, art. 12, § 16.

Applicability.

P.L. 2014, ch. 145, art. 12, § 22, provides that this section takes effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

44-11-5. Extension of time for filing of returns.

The tax administrator may grant reasonable extensions of time for filing returns under rules and regulations as he or she shall prescribe.

History of Section. G.L. 1938, ch. 37, § 3; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-5 .

44-11-6. Determination and payment of tax due — Hearings and redeterminations.

  1. At the time of the filing of the return, the taxpayer shall pay to the tax administrator the amount of the tax as computed by it on the basis of its net income under § 44-11-2(a) or other provision as applicable. As soon as possible after the filing of the return, the tax administrator shall determine the correct tax payable under this chapter by the taxpayer, and if the tax determined shall exceed the amount which the taxpayer has paid at the time of filing its return, the tax administrator shall mail to the taxpayer a notice of the additional tax due indicating the basis on which the tax was determined.
  2. If any taxpayer is not satisfied with the amount of tax determined, the tax administrator, upon being notified, in writing, within thirty (30) days from the date of the mailing of the notice, shall fix an early date at his or her office when the taxpayer can be heard to show cause why the tax should be changed, and after which the tax administrator may redetermine the amount of that tax.
  3. If it shall appear subsequent to the mailing of any notice that the amount of the tax was erroneously stated, the tax administrator shall mail a corrected notice and fix a day when the taxpayer can be heard.
  4. The additional tax required to be paid by any taxpayer shall be due and payable within thirty (30) days after the mailing of the notice or corrected notice by the tax administrator.

History of Section. G.L. 1938, ch. 37, § 3; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-6 ; P.L. 1975, ch. 188, art. 1, § 1; P.L. 1988, ch. 12, § 1; P.L. 1993, ch. 459, § 1.

Cross References.

Assessment and collection by tax administrator, § 44-1-2 .

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

44-11-7. Interest on delinquency payments.

If any tax imposed by this chapter is not paid when due, a taxpayer shall be required to pay as part of the tax interest on the tax at the annual rate provided by § 44-1-7 from that time.

History of Section. G.L. 1938, ch. 37, § 3; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-7 ; P.L. 1962, ch. 30, § 1; P.L. 1974, ch. 77, § 1; P.L. 1992, ch. 388, § 1.

44-11-7.1. Limitations on assessment.

  1. General.  Except as provided in this section, the amount of the Rhode Island corporate income tax shall be assessed within three (3) years after the return was filed, whether or not the return was filed on or after the prescribed date. For this purpose, a tax return filed before the due date shall be considered as filed on the due date.
  2. Exceptions.
    1. The tax may be assessed at any time if:
      1. No return is filed.
      2. A false or fraudulent return is filed with intent to avoid tax.
    2. Where, before the expiration of the time prescribed in this section for the assessment of tax, or before the time as extended, both the tax administrator and the taxpayer have consented, in writing, to its assessment after that time, the tax may be assessed at any time prior to the expiration of the agreed upon period.
    3. If a taxpayer’s deficiency is attributable to an excessive net operating loss carryback allowance, it may be assessed at any time that a deficiency for the taxable year of the loss may be assessed.
    4. An erroneous refund shall be considered to create an underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous refund may be made at any time within three (3) years thereafter, or at any time if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.
  3. Notwithstanding the provisions of this section, the tax may be assessed at any time within six (6) years after the return was filed if a taxpayer omits from its Rhode Island income an amount properly includable therein that is in excess of twenty-five percent (25%) of the amount of Rhode Island income stated in the return. For this purpose there shall not be taken into account any amount that is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the item.
  4. The running of the period of limitations on assessment or collection of the tax or other amount, or of a transferee’s liability, shall, after the mailing of a notice of deficiency, be suspended for any period during which the tax administrator is prohibited from making the assessment or from collecting by levy, and for sixty (60) days thereafter.
  5. No period of limitations specified in any other law shall apply to the assessment or collection of Rhode Island corporate income tax. Under no circumstances shall the tax administrator issue any notice of deficiency determination for Rhode Island business corporation tax due and payable more than ten (10) years after the date upon which the return was filed or due to be filed, nor shall the tax administrator commence any collection action for any business corporation tax due and payable unless the collection action is commenced within ten (10) years after a notice of deficiency determination became a final collectible assessment; provided however, that the tax administrator may renew a statutory lien that was initially filed within the ten-year (10) period for collection actions. Both of the aforementioned ten-year (10) periods are tolled for any period of time the taxpayer is in federal bankruptcy or state receivership proceedings. “Collection action” refers to any activity undertaken by the division of taxation to collect on any state tax liabilities that are final, due, and payable under Rhode Island law. “Collection action” may include, but is not limited to, any civil action involving a liability owed under chapter 11 of title 44.
  6. The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation periods set forth in this section.

History of Section. P.L. 1979, ch. 300, § 1; P.L. 1988, ch. 12, § 1; P.L. 2019, ch. 192, § 4; P.L. 2019, ch. 215, § 4.

Compiler’s Notes.

P.L. 2019, ch. 192, § 4, and P.L. 2019, ch. 215, § 4 enacted identical amendments to this section.

Applicability.

P.L. 2019, ch. 192, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

P.L. 2019, ch. 215, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

Collateral References.

Suspension of running of period of limitation, under 26 U.S.C.S. § 6503, for federal tax assessment or collection. 160 A.L.R. Fed. 1.

44-11-8. Lien on real estate.

The amount of any tax, penalty, and interest charge imposed upon any corporation under the provisions of this chapter shall, until collected, constitute a lien upon the corporation’s real estate located in this state, and this lien shall take precedence over any other lien or encumbrance on the real estate.

History of Section. G.L. 1938, ch. 37, § 3; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-8 .

44-11-9. Records, statements, and rules and regulations.

Each taxpayer shall keep records, render statements, make returns, and comply with rules and regulations, not inconsistent with law, as the tax administrator may from time to time prescribe to carry into effect the provisions of this chapter.

History of Section. G.L. 1938, ch. 37, § 4; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-9 .

44-11-10. Returns and statements required to show whether corporation liable.

The tax administrator may, whenever in his or her judgment if it is necessary, require any corporation, association, or organization, by notice served upon it, to make a return, render statements, or keep records as the tax administrator deems sufficient to show whether or not the corporation, association, or organization is liable for any tax under this chapter.

History of Section. G.L. 1938, ch. 37, § 4; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-10 .

44-11-11. “Net income” defined.

    1. “Net income” means, for any taxable year and for any corporate taxpayer, the taxable income of the taxpayer for that taxable year under the laws of the United States, plus:
      1. Any interest not included in the taxable income;
      2. Any specific exemptions;
      3. The tax imposed by this chapter;
      4. For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount of the loan forgiven exceeds $250,000; and minus:
      5. Interest on obligations of the United States or its possessions, and other interest exempt from taxation by this state; and
      6. The federal net operating loss deduction.
    2. All binding federal elections made by or on behalf of the taxpayer applicable either directly or indirectly to the determination of taxable income shall be binding on the taxpayer except where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode Island taxable income shall not include the “gross-up of dividends” required by the federal Internal Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the foreign tax credit.
  1. A net operating loss deduction shall be allowed, which shall be the same as the net operating loss deduction allowed under 26 U.S.C. § 172, except that:
    1. Any net operating loss included in determining the deduction shall be adjusted to reflect the inclusions and exclusions from entire net income required by subsection (a) of this section and § 44-11-11.1 ;
    2. The deduction shall not include any net operating loss sustained during any taxable year in which the taxpayer was not subject to the tax imposed by this chapter; and
    3. The deduction shall not exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the five (5) succeeding taxable years.
  2. “Domestic international sales corporations” (referred to as DISCs), for the purposes of this chapter, will be treated as they are under federal income tax law and shall not pay the amount of the tax computed under § 44-11-2(a) . Any income to shareholders of DISCs is to be treated in the same manner as it is treated under federal income tax law as it exists on December 31, 1984.
  3. A corporation that qualifies as a “foreign sales corporation” (FSC) under the provisions of subchapter N, 26 U.S.C. § 861 et seq., and that has in effect for the entire taxable year a valid election under federal law to be treated as a FSC, shall not pay the amount of the tax computed under § 44-11-2(a) . Any income to shareholders of FSCs is to be treated in the same manner as it is treated under federal income tax law as it exists on January 1, 1985.
  4. For purposes of a corporation’s state tax liability, any deduction to income allowable under 26 U.S.C. § 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer for at least seven years. The division of taxation shall promulgate, in its discretion, rules and regulations relative to the accelerated application of deductions under 26 U.S.C. § 1400Z-2(c).

History of Section. G.L. 1938, ch. 37, § 5; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-11 ; P.L. 1974, ch. 200, art. 2, § 1; P.L. 1975, ch. 188, art. 1, § 2(a); P.L. 1977, ch. 133, § 3; P.L. 1983, ch. 95, § 1; P.L. 1984, ch. 206, art. II, § 1; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 485, § 1; P.L. 1992, ch. 15, art. 3, § 1; P.L. 2007, ch. 73, art. 7, § 2; P.L. 2007, ch. 73, art. 7, § 14; P.L. 2014, ch. 145, art. 12, § 17; P.L. 2019, ch. 88, art. 12, § 4; P.L. 2021, ch. 162, art. 6, § 11, effective July 6, 2021.

Applicability.

P.L. 2007, ch. 73, art. 7, § 15, provides that the amendment to this section by that act takes effect upon passage [July 1, 2007] and applies to tax years beginning on or after January 1, 2008.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

NOTES TO DECISIONS

Constitutionality.

This section facially discriminates against foreign commerce and therefore violates the Foreign Commerce Clause, U.S. Const., art. 1, § 8. Dart Indus. v. Clark, 657 A.2d 1062, 1995 R.I. LEXIS 139 (R.I. 1995).

Carrying Forward Losses.

Losses incurred in years prior to 1975 cannot be utilized to reduce income in a subsequent year, but losses incurred in 1975 and thereafter may be carried forward in the manner prescribed by Internal Revenue Code, 26 U.S.C. § 172. Hospital Trust Leasing Corp. v. Norberg, 491 A.2d 982, 1985 R.I. LEXIS 487 (R.I. 1985).

Deductions.

When the legislature allowed a corporate taxpayer to use gross income in beginning its computations, it decided to allow the taxpayer to reassess its deductions against income without reference to the federal return. George, Inc. v. Norberg, 444 A.2d 868, 1982 R.I. LEXIS 855 (R.I.), cert. denied, 459 U.S. 908, 103 S. Ct. 214, 74 L. Ed. 2d 170, 1982 U.S. LEXIS 3842 (1982).

Foreign Taxes.

Corporate taxpayer could deduct foreign taxes on its state return although it had not elected to deduct these taxes on its federal return and had elected to take a credit against its federal tax liability. George, Inc. v. Norberg, 444 A.2d 868, 1982 R.I. LEXIS 855 (R.I.), cert. denied, 459 U.S. 908, 103 S. Ct. 214, 74 L. Ed. 2d 170, 1982 U.S. LEXIS 3842 (1982).

— Foreign Dividends.

Unlike its federal counterpart, this section does not allow a corporation receiving foreign dividend income to credit that income against its Rhode Island tax liability for any portion of the foreign taxes attributable to foreign dividend income. Dart Indus. v. Clark, 657 A.2d 1062, 1995 R.I. LEXIS 139 (R.I. 1995).

Collateral References.

“Bad debt” deduction, transactions between affiliated corporations as basis of. 128 A.L.R. 1251.

Business bad debt deduction, stockholder’s loan to corporation as basis for. 25 A.L.R.2d 633.

Conformity with federal income tax law, deductions pursuant to provisions of state law providing for. 166 A.L.R. 524; 42 A.L.R.2d 797.

Construction and application of state corporate income tax statutes allowing net operating loss deductions. 33 A.L.R.5th 509.

Corporate stock, bonds, or other obligations, premium or discount at which corporation issues or sells, or purchases or retires, as deductible in computing income tax of corporation. 112 A.L.R. 186.

Decision to take foreign income taxes as federal credit under § 901 of the Internal Revenue Code (26 USC § 901) as precluding their deduction for state income tax purposes. 77 A.L.R.4th 823.

Dividend in kind or stock dividend as affecting corporation’s income tax. 7 A.L.R.2d 750.

Gain or loss to corporation in dealing in its own stock. 160 A.L.R. 1085.

Income of subsidiary as taxable to it or to parent corporation. 10 A.L.R.2d 576.

Loss on sale of securities by corporate taxpayer as fully deductible trade or business expense under 26 USCS § 162(a) of uncompensated loss under 26 USCS § 165(a), or as partially deductible loss incurred on sale of capital asset under 26 USCS § 165(f). 34 A.L.R. Fed. 699.

Purchase by corporation of own obligations at discount as creating taxable income. 7 A.L.R.2d 871.

Sale by corporation to stockholder, or vice versa, as basis for deduction for loss in computing income tax. 102 A.L.R. 505.

State corporate income taxation of foreign dividends. 17 A.L.R.6th 623.

What educational expenses are deductible as expenses incurred in carrying on a trade or business within federal income tax statute (26 USCS (1954 IRC) § 162). 3 A.L.R.3d 829.

44-11-11.1. Amortization of air or water pollution prevention or hazardous solid waste control facilities.

    1. General rule.  Every taxpayer, at his or her election, is entitled to a deduction with respect to the amortization of the adjusted basis, for determining gain, of any treatment facility, as defined in subsection (d) of this section, based on a period of sixty (60) months. The amortization deduction shall be an amount, with respect to each month of the period within the taxable year, equal to the adjusted basis of the facility at the end of the month divided by the number of months, including the month for which the deduction is computed, remaining in the period. The adjusted basis at the end of the month shall be computed without regard to the amortization deduction for the month.
    2. The amortization deduction with respect to any month shall be in lieu of the depreciation deduction with respect to the facility for the month provided for under § 44-11-11 . The sixty (60) month period shall begin as to any prevention or treatment facility, at the election of the taxpayer, with the month following the month in which the facility was completed, or with the succeeding taxable year.
  1. Election of amortization.  The election of the taxpayer under subsection (a) of this section to take the amortization deduction and to begin the sixty (60) month period with the month following the month in which the facility was completed shall be made only by a statement to that effect in the return for the taxable year in which the facility was completed. The election of the taxpayer under subsection (a) of this section to take the amortization deduction and to begin the period with the taxable year succeeding the year shall be made only by a statement to that effect in the return for the succeeding taxable year.
  2. Termination of amortization deduction.  A taxpayer which has elected under subsection (b) of this section to take the amortization deduction provided in subsection (a) of this section may, at any time after making the election, discontinue the amortization deduction with respect to the remainder of the amortization period, the discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice, in writing, filed with the tax administrator before the beginning of the month. The depreciation deduction provided for under § 44-11-11 shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the taxpayer shall not be entitled to any further amortization deduction with respect to the treatment facility.
  3. Treatment facility.  For purposes of this section, “treatment facility” means any land, facility, device, building, machinery, or equipment, the construction, reconstruction, erection, installation, or acquisition of which: (1) is in furtherance of or in compliance with federal or state requirements or standards for the control of water or air pollution or contamination; (2) has been made by the taxpayer primarily to control the pollution or chapter 25 of title 23, respectively; and (3) has been certified as approved in an order contamination of the water or the air of the state as defined in chapter 12 of title 46 and entered by the director of environmental management. This provision applies only to water and air pollution control properties and facilities that are installed for the treatment of waste waters and air contaminants resulting from industrial processing. It applies only to water or air pollution control properties and facilities placed in operation for the first time after April 13, 1970.
  4. Prevention facility.  For purposes of this section, “prevention facility” means any land, facility, device, building, machinery, or equipment, the construction, reconstruction, erection, installation, or acquisition of which: (1) is in furtherance of or in compliance with federal or state requirements or standards for the prevention of water or air pollution or contamination; (2) has been made by the taxpayer primarily to prevent the pollution or contamination of the water or the air of the state as defined in chapter 12 of title 46 and chapter 25 of title 23, respectively; and (3) has been certified as approved by the director of environmental management. This provision applies only to water and air pollution prevention properties and facilities that are installed for the prevention of wastewaters, air contaminants, and hazardous solid wastes resulting from industrial processing. The prevention facility amortization deduction shall be available prospectively on July 13, 2000.
  5. Certificate of compliance.  Any taxpayer who has adopted a “treatment facility” as defined in subsection (d) of this section shall be entitled to the deduction afforded in subsection (a) of this section; provided, that in no event shall an amortization deduction be allowed in respect to any “treatment facility” for any taxable year unless an attested copy of the order of approval of the facility entered by the director of environmental management and a written statement of the department certifying that the installation of the facility has been completed and that it is in proper operation are provided to the tax administrator at the time of filing of the taxpayer’s return.
  6. Deduction from apportioned net income.  The deduction taken under subsection (a) of this section on any treatment facility shall, in the case of a taxpayer whose income is subject to apportionment under the provisions of § 44-11-14 , be deducted from the portion of its entire net income allocated to this state; provided, that its entire net income is computed without any deduction for depreciation or amortization of any facility.
  7. Amortization not to exceed cost.  The total of all deductions for depreciation and amortization of any treatment facility allowed pursuant to the provisions of this and the succeeding section shall not exceed its cost.
  8. Amortization in excess of depreciation.  Gain from the sale or exchange of any treatment facility which has been sold or exchanged by a taxpayer which has been constructed, reconstructed, erected, installed, or acquired the facility as provided under subsection (f) of this section and has taken the deduction provided by subsection (a) of this section, to the extent that the adjusted basis of the facility is less than its adjusted basis determined by the method provided for under § 44-11-11 , shall be considered additional net income. In the case of a taxpayer whose net income is subject to apportionment under the provisions of § 44-11-14 , the additional net income shall be specifically allocated to this state and is not subject to apportionment.

History of Section. P.L. 1966, ch. 262, § 3; P.L. 1970, ch. 60, §§ 3, 5; P.L. 1977, ch. 182, § 16; P.L. 2000, ch. 246, § 1.

44-11-11.2. Definition of “treatment facility”.

For the purpose of § 44-11-11.1(a) and (h), “treatment facility” also means any tangible personal property exempt from taxation under § 44-3-3(26).

History of Section. P.L. 1985, ch. 363, § 3.

44-11-11.3. Accelerated amortization deductions for certain manufacturers.

  1. Any taxpayer engaged in manufacturing activities in Rhode Island that has on the average over the five (5) previous years annually produced goods at facilities located in Rhode Island which generate net sales of at least ten million dollars ($10,000,000) and where on the average at least eighty percent (80%) of that production has been for eventual sale to a branch of the United States armed services may, if it represents that it anticipates the need to reduce its reliance on the sales, elect to amortize the unrecovered basis of all or a portion of its depreciable assets over a sixty (60) month period in equal monthly installments. This election shall be effective as of the first day of the fiscal year of the taxpayer in which the election is made and shall apply only to assets located in this state as of the effective date of the election. In the event any asset covered by this election is sold or disposed of during the sixty (60) month period following the effective date of the election, or if the asset is transferred to another location outside of Rhode Island and is not replaced at a location in this state by an asset of at least equal value and with a similar function, all deductions claimed with respect to the property under this section shall be immediately included in the taxpayer’s income for Rhode Island income tax purposes in the year of the sale, disposition, or transfer.
  2. If in any year during the five (5) year period following the effective date of the election, the average annual level of its full-time employees in this state drops below one thousand (1,000), the company shall recapture twenty percent (20%) of any benefit resulting from the election for each decrease of one hundred (100) full-time employees below the level up to a maximum of one hundred percent (100%) of the benefit.

History of Section. P.L. 1994, ch. 304, § 1.

44-11-12. Dividends and interest excluded from net income.

There shall not be included in a taxpayer’s net income:

  1. Dividends received from the shares of stock of:
    1. Any banking institution liable to a tax under chapter 14 of this title; or
    2. Any corporation liable to a tax imposed by this chapter; or
  2. Dividends received from the shares of stock of, or interest received on, the bonds, debentures, or other evidences of indebtedness or the distributive share of the taxable income of any public service corporation or company liable to a tax imposed by chapter 13 of this title.

History of Section. G.L. 1938, ch. 37, § 5; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-12 ; P.L. 1989, ch. 130, § 2.

44-11-13. Entire net income of business wholly within state.

In the case of a taxpayer deriving all its income from sources within this state or engaging in activities or transactions wholly within this state for the purpose of profit or gain, or where the taxpayer does not have a regular place of business outside this state other than a statutory office, its entire net income shall be apportioned to this state.

History of Section. G.L. 1938, ch. 37, § 6; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-13 ; P.L. 1961, ch. 83, § 1; P.L. 1964, ch. 66, § 2.

44-11-14. Allocation of income from business partially within state.

  1. In the case of a taxpayer deriving its income from sources both within and outside of this state or engaging in any activities or transactions both within and outside of this state for the purpose of profit or gain, its net income shall be apportioned to this state by means of an allocation fraction to be computed as a simple arithmetical mean of three (3) fractions:
    1. The first of these fractions shall represent that part held or owned within this state of the average net book value of the total tangible property (real estate and tangible personal property) held or owned by the taxpayer during the taxable year, without deduction on account of any encumbrance thereon;
    2. The second fraction shall represent that part of the taxpayer’s total receipts from sales or other sources during the taxable year which is attributable to the taxpayer’s activities or transactions within this state during the taxable year; meaning and including within that part, as being thus attributable, receipts from:
      1. Gross sales of its tangible personal property (inventory sold in the ordinary course of business) where:
        1. Shipments are made to points within this state; or
        2. Shipments are made from an office, store, warehouse, factory or other place of storage in this state and the taxpayer is not taxable in the state of the purchase.
      2. Gross income from services performed within the state;
      3. Gross income from rentals from property situated within the state;
      4. Net income from the sale of real and personal property, other than inventory sold in the ordinary course of business as described in paragraph (i) of this subdivision, or other capital assets located in the state;
      5. Net income from the sale or other disposition of securities or financial obligations; and
      6. Gross income from all other receipts within the state;
    3. The third fraction shall represent that part of the total wages, salaries, and other compensation to officers, employees, and agents paid or incurred by the taxpayer during the taxable year which is attributable to services performed in connection with the taxpayer’s activities or transactions within this state during the taxable year.
  2. For tax years beginning on or after January 1, 2015, all taxpayers organized under subchapter C of the Internal Revenue Code deriving income from sources both within and outside of this state, or engaging in any activities or transactions both within and outside of this state for the purpose of profit or gain, its net income shall be apportioned to this state by means of an allocation fraction to be computed as a simple arithmetical of the following factors:
    1. The factor shall represent that part of the taxpayer’s total receipts from sales or other sources during the taxable year which is attributable to the taxpayer’s activities or transactions within this state during the taxable year; meaning and including within that part, as being thus attributable, receipts from:
      1. Gross sales of its tangible personal property (inventory sold in the ordinary course of business) where:
        1. Shipments are made to points within this state; or
        2. Shipments are made from an office, store, warehouse, factory or other place of storage in this state and the taxpayer is not taxable in the state of the purchase.
      2. Gross income from the performance of services where the recipient of the service receives all of the benefit of the service in this state. If the recipient of the service receives some of the benefit of the service in this state, gross income which shall be included in the numerator of the apportionment factor in proportion to the extent the recipient receives benefit of the service in this state;
      3. Gross income from rentals from property situated within the state;
      4. Net income from the sale of real and personal property, other than inventory sold in the ordinary course of business as described in subsection (b)(1)(i) of this section, or other capital assets located in the state;
      5. Net income from the sale or other disposition of securities or financial obligations; and
      6. Gross income from all other receipts within the state.
      7. Except as otherwise provided under this section, each unitary business group member shall include all receipts in this state without regard to whether the member has nexus in this state. Receipts between members included in a unitary business group must be eliminated in calculating the receipts factor.
  3. Notwithstanding any of the provisions of this section, revenue and expenses subject to the gross earnings tax pursuant to chapter 13 of this title shall not be included in the calculation described in this section.

History of Section. G.L. 1938, ch. 37, § 6; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-14 ; P.L. 1961, ch. 83, § 1; P.L. 1964, ch. 66, § 3; P.L. 1974, ch. 200, art. 2, § 1; P.L. 1975, ch. 188, art. 1, § 1; P.L. 1982, ch. 291, § 1; P.L. 1997, ch. 357, § 6; P.L. 2007, ch. 73, art. 7, § 4; P.L. 2008, ch. 475, § 15; P.L. 2014, ch. 145, art. 12, § 17.

Applicability.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

NOTES TO DECISIONS

Outside State.

Before a corporation can apportion its income pursuant to this section, it must first satisfy the provision of § 44-11-13 that it has “a regular place of business outside this state other than a statutory office.” Narragansett Wire Co. v. Norberg, 118 R.I. 596 , 376 A.2d 1, 1977 R.I. LEXIS 1500 (1977).

The system by which taxpayer corporation sold goods out of state qualified taxpayer to compute its taxes on the basis that it maintained regular places of business out of state: independent manufacturer’s representatives, acting as agents for taxpayer, maintained inventories of taxpayer’s goods at out-of-state warehouse locations; taxpayer retained title to the goods and determined both the price of the goods and the size of the inventory; taxpayer paid all freight charges; payment for purchased goods was made directly to taxpayer; finally this was a regular activity involving the physical movement of taxpayer’s product from its manufacturing plant to the warehouse for permanent storage until final sale and distribution. Narragansett Wire Co. v. Norberg, 118 R.I. 596 , 376 A.2d 1, 1977 R.I. LEXIS 1500 (1977).

Where taxpayer received distributive shares from various partnerships, none of which had conducted business in Rhode Island, it was manifestly inequitable for the tax administrator to have excluded the proportionate partnerships’ payroll, receipt, and property factors from the apportionate equation that included the income derived from the partnerships, and the tax administrator should have employed § 44-11-15 to modify this section for that purpose. Homart Dev. Co. v. Norberg, 529 A.2d 115, 1987 R.I. LEXIS 534 (R.I. 1987).

Tax-Exempt Obligations.

The inclusion of interest derived from, and proceeds from a sale of, tax-exempt United States government obligations in the allocation formula used to measure the amount of corporation’s net income subject to tax by the state of Rhode Island was an impermissible attempt to indirectly levy a tax on tax-exempt federal securities. Federal Prods. Corp. v. Norberg, 429 A.2d 447, 1981 R.I. LEXIS 1143 (R.I. 1981).

Tax administrator’s inclusion of tax-exempt federal securities in computing corporation’s net worth was improper. A. Carlotti & Co. v. Norberg, 437 A.2d 119, 1981 R.I. LEXIS 1403 (R.I. 1981).

Collateral References.

Affiliated corporations, transactions between, which attempt to evade state income tax in respect of business that extends into other state. 130 A.L.R. 1217.

Doing business, business done, or the like, outside the state, what constitutes, for purposes of allocating income in determining amount of tax. 167 A.L.R. 943.

44-11-14.1. Certified facility apportionment exclusion.

  1. In the event that the taxpayer has a Rhode Island facility which is both certified and registered by the United States Food and Drug Administration (USFDA) and is considered manufacturing as defined by the US Standard Industrial Classification Code(s)(SIC Code) 283, and 384, the taxpayer may exclude from the allocation formula set forth in § 44-11-14 :
    1. From the numerator of the fraction set forth in § 44-11-14(a)(1) , the amount, if any, by which the net book value of qualified property in the tax year for which an exclusion is claimed under this section exceeds the net book value of qualified property in the preceding tax year. For purposes of this section, “qualified property” means real estate and tangible personal property used solely and exclusively in all of the taxpayer’s certified Rhode Island facilities.
    2. From the numerator of the fraction set forth in § 44-11-14(a)(3) , the amount, if any, by which total qualified payroll expenses of the taxpayer in the tax year for which an exclusion is claimed under this section exceeds the total qualified payroll expenses of the taxpayer in the immediately preceding tax year. For purposes of this section, “qualified payroll” means the total amount of salaries, wages and other compensation paid to employees and to officers, except officers who have a direct or indirect ownership interest in the taxpayer in excess of five percent (5%) or who are substantial creditors of the taxpayer, which is attributable solely and exclusively to services performed in connection with the taxpayer’s activities or transactions at all of the taxpayer’s certified Rhode Island facilities.
  2. In the event that a facility is certified during the taxpayer’s tax year or in the event that a facility ceases to be certified during the taxpayer’s tax year, the taxpayer shall prorate the amounts determined under subdivisions (a)(1) and (2) of this section.
  3. The taxpayer shall attach to the return for each tax year for which an exclusion is claimed under this section detailed calculations substantiating each exclusion and proof that the taxpayer has satisfied the conditions relating to registration and certification by USFDA contained in this section.

History of Section. P.L. 1992, ch. 257, § 1.

44-11-14.2. Allocation and apportionment of regulated investment companies and securities brokerage services.

  1. Notwithstanding any other provisions of the general laws, any taxpayer located within the state which sells management, distribution or administration services (including without limitations, transfer agent, fund accounting, custody and other similar or related services) as described in this section to or on behalf of a regulated investment company (as defined in the Internal Revenue Code of 1986, as amended) may elect the allocation and apportionment method for the taxpayer’s net income provided for in this section. The election, if made, shall be irrevocable for successive periods of five (5) years. All net income derived directly or indirectly from the sale of management, distribution, or administration services to or on behalf of regulated investment companies, including net income received directly or indirectly from trustees, and sponsors or participants of employee benefit plans which have accounts in a regulated investment company, shall be apportioned to Rhode Island only to the extent that shareholders of the regulated investment company are domiciled in Rhode Island as follows:
    1. Net income shall be multiplied by a fraction, the numerator of which shall be Rhode Island receipts from the services during the taxable year and the denominator of which shall be the total receipts everywhere from the services for the same taxable year.
    2. For purposes of this section, Rhode Island receipts shall be determined by multiplying total receipts for the taxable year from each separate regulated investment company for which the services are performed by a fraction. The numerator of the fraction shall be the average of the number of shares owned by the regulated investment company’s shareholders domiciled in this state at the beginning of and at the end of the regulated investment company’s taxable year, and the denominator of the fraction shall be the average of the number of the shares owned by the regulated investment company shareholders everywhere at the beginning of and at the end of the regulated investment company’s taxable year.
  2. Notwithstanding any other provisions of the general laws, any taxpayer which provides securities brokerage services and which operates within the state may elect the allocation and apportionment method for the taxpayer’s net income provided for in this section. The election, if made, shall be irrevocable for successive periods of five (5) years. All net income derived directly or indirectly from the sale of securities brokerage services by a taxpayer shall be apportioned to Rhode Island only to the extent that securities brokerage customers of the taxpayer are domiciled in Rhode Island. The portion of net income apportioned to Rhode Island shall be determined by multiplying the total net income from the sale of the services by a fraction determined in the following manner:
    1. The numerator of the fraction shall be the brokerage commissions and total margin interest paid in respect of brokerage accounts owned by customers domiciled in Rhode Island for the taxpayer’s taxable year; and
    2. The denominator of the fraction shall be the brokerage commissions and total margin interest paid in respect of brokerage accounts owned by all of the taxpayer’s customers for the same taxable year.

History of Section. P.L. 1995, ch. 370, art. 34, § 6.

44-11-14.3. Credit card banks — Allocation and apportionment of income.

Notwithstanding any other provisions of the general laws, any banking institution whose business activities are taxable within and outside of this state and whose activities are limited to those described in Section 2(c)(2)(F) of the Bank Holding Company Act (12 U.S.C. § 1841(c)(2)(F)) may elect the allocation and apportionment method for the taxpayer’s net income provided for in this section. The election, if made, shall be irrevocable for successive periods of five (5) years. All net income derived directly or indirectly from the banking institution shall be apportioned to Rhode Island only to the extent that customers of the taxpayer are domiciled in Rhode Island. The portion of net income apportioned to Rhode Island shall be determined by multiplying the total net income from the sale of the services by a fraction determined in the following manner:

  1. The numerator of the fraction shall be the income derived from accounts owned by customers domiciled in Rhode Island for the banking institution’s taxable year; and
  2. The denominator of the fraction shall be income derived from accounts owned by all of the banking institution’s customers for the same taxable year.

History of Section. P.L. 1996, ch. 236, § 1.

44-11-14.4. Allocation and apportionment — Retirement and pension plans.

Notwithstanding any provisions of this chapter, any taxpayer located within the state that sells management, distribution or administration services, including without limitations, transfer agent, fund accounting, custody and other similar or related services, as described in this section to or on behalf of an employee retirement plan or pension plan may elect the allocation and apportionment method for the taxpayer’s net income provided for in this section. The election, if made, shall be irrevocable for successive periods of five (5) years. All net income derived directly and indirectly from the sale of the management, distribution, or administration services to or on behalf of a retirement plan or pension plan, including net income received directly or indirectly from trustees, sponsors or participants of such a retirement plan or pension plan, shall be apportioned to Rhode Island only to the extent that the beneficiaries or participants of a retirement plan or pension plan are domiciled in Rhode Island as follows:

  1. Net income shall be multiplied by a fraction, the numerator of which shall be Rhode Island receipts from the services during the taxable year and the denominator of which shall be the total receipts everywhere from the services for the same taxable year.
  2. For the purposes of this section, Rhode Island receipts shall be determined by multiplying total receipts for the taxable year from a retirement plan or pension plan for which the services are performed by a fraction. The numerator of the fraction shall be the average of the number of total beneficiaries or participants of each retirement plan or pension plan domiciled in this state at the beginning of and at the end of taxable year of the taxpayer, and the denominator of the fraction shall be the average of the number of total beneficiaries or participants of the retirement plan or pension plan everywhere at the beginning of and at the end of each taxable year of the taxpayer.

History of Section. P.L. 1996, ch. 258, § 1.

44-11-14.5. International investment management service income.

  1. Notwithstanding any other provisions of the general laws, any qualified taxpayer located within the state which sells international investment management services to non-U.S. persons or non-U.S. investment funds shall exclude from its net income any income derived directly or indirectly from the sale of international investment management services.
  2. For purposes of this section, “non-U.S. persons” means any person who is not a citizen of the United States and who is domiciled outside of the United States during the entire taxable year; “non-U.S. investment funds” means any collective investment fund the sole beneficiaries of which are non-U.S. persons.
  3. For purposes of this section, “international investment management services” shall include, without limitation, investment advice, investment research, investment consulting, portfolio management, administration or distribution services (including, without limitation, transfer agent, fund accounting, customary and other similar or related services) rendered to or on behalf of non-U.S. persons and non-U.S. investment funds.
  4. For purposes of this section, a “qualified taxpayer” is one which during the taxable year employs, or together with affiliated taxpayers with which it is eligible to file a consolidated tax return for federal income tax purposes, an average of not less than five hundred (500) full-time equivalent employees in the state.

History of Section. P.L. 1997, ch. 84, § 1.

44-11-14.6. Allocation and apportionment — Manufacturers.

Notwithstanding any other provision of the general laws, a taxpayer, as described in § 44-11-14(a) , whose principal business is described in sector 31, 32, or 33 of the North American Industry Classification System, as adopted by the United States Office of Management and Budget and as revised from time to time, may, in lieu of apportioning its net income to this state based on the allocation fraction described in § 44-11-14(a) , elect for any year to apportion its net income to this state based on the following allocation fraction:

  1. for the tax year beginning on or after January 1, 2004, but before January 1, 2005, thirty percent (30%) of the property factor determined pursuant to § 44-11-14(a)(1) (the “property factor”), thirty percent (30%) of the payroll factor determined pursuant to § 44-11-14(a)(3) (the “payroll factor”), and forty percent (40%) of the sales factor determined pursuant to § 44-11-14(a)(2) (the “sales factor”);
  2. for tax years beginning on or after January 1, 2005, twenty-five percent (25%) of the property factor, twenty-five percent (25%) of the payroll factor and fifty percent (50%) of the sales factor.

History of Section. P.L. 2003, ch. 376, art. 7, § 1.

44-11-15. Variation of method of allocating income.

If at any time the tax administrator, on his or her own motion or acting upon a complaint by a taxpayer, determines that the methods of allocation provided are inequitable either to the state or to the taxpayer, the tax administrator, after affording the taxpayer reasonable opportunity to be heard, may apply any other method of allocation that is equitable and, if necessary, shall redetermine the tax.

The division of taxation shall establish an independent appeals process to attempt to resolve disputes between the tax administrator and the taxpayer with respect to the method of allocation applied. The decision resulting from the independent appeals process shall not prohibit either party from pursuing any legal remedy otherwise available if the issue is not resolved as a result of the appeal process. The decision resulting from the independent appeals process can be used as evidence.

History of Section. G.L. 1938, ch. 37, § 6; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-15 ; P.L. 2014, ch. 145, art. 12, § 21.

Applicability.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

44-11-16 — 44-11-18. Repealed.

History of Section. G.L. 1938, ch. 37, §§ 7, 8; P.L. 1947, ch. 1887, art. 1, § 1; P.L. 1950, ch. 2601, § 1; P.L. 1974, ch. 200, art. 2, §§ 1, 2a; P.L. 1987, ch. 563, § 1; Repealed by P.L. 1975, ch. 188, art. 1, § 3 and P.L. 1988, ch. 12, § 2.

Compiler’s Notes.

Former 44-11-16 — 44-11-18 concerned net worth and exemption of intangibles.

44-11-19. Supplemental returns — Additional tax or refund.

  1. Any taxpayer who or that fails to include in the return any items of income or assets or any other information required by this chapter or by regulations prescribed in pursuance of this chapter shall make a supplemental return disclosing these facts. Except in the case of final federal adjustments that are required to be reported by a partnership and its partners using the procedures under subsection (b), any taxpayer whose return to the collector of internal revenue, or whose net income returned, shall be changed or corrected by any official of the United States government in any respect affecting a tax imposed by this chapter including a return or other similar report filed pursuant to IRC section 6225(c)(2), shall, within sixty (60) days after receipt of a notification of the final adjustment and determination of the change or correction, make the supplemental return required by this subsection.
  2. Except for the distributive share of adjustments that have been reported as required under subsection (a), partnerships and partners shall, within one hundred and eighty (180) days after receipt of notification of the final federal adjustments arising from a partnership level audit or an administrative adjustment, make the supplemental return and make payments as required by this subsection.
  3. Upon the filing of a supplemental return the tax administrator shall examine the return and shall determine any additional tax or refund that may be due and shall notify the taxpayer. Any additional tax shall be paid within fifteen (15) days after the notification together with interest at the annual rate provided by § 44-1-7 from the original due date of the return for the taxable year to the date of payment of the additional tax. Any refund shall be made by the tax administrator together with interest at the annual rate provided by § 44-1-7 .1 from the date of payment of the tax to the date of the refund.

History of Section. G.L. 1938, ch. 37, § 9; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-19 ; P.L. 1964, ch. 59, § 1; P.L. 1992, ch. 388, § 1; P.L. 2019, ch. 88, art. 5, § 7.

44-11-20. Claims for refund — Hearing upon denial.

  1. Any taxpayer may file a claim for refund with the tax administrator at any time within three (3) years after the tax has been paid, or in the case of a change or correction of its taxable income by any official of the United States government, within three (3) years after receiving notice of the change or correction. If the tax administrator determines that the tax has been overpaid, he or she shall make a refund with interest at the annual rate provided by § 44-1-7.1 from the date of payment.
  2. If the claim for refund relates to an overpayment attributable to a net operating loss carryback or a capital loss carryback, a taxpayer may file a claim for refund with the tax administrator within the period which ends with the expiration of the 15th day of the 39th month following the end of the taxable year of the net operating loss or net capital loss which results in the carryback, or the period prescribed in subsection (a) of this section in respect of the taxable year, whichever expires later.
  3. Any taxpayer whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall so notify the applicant.

History of Section. G.L. 1938, ch. 37, § 9; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-20 ; P.L. 1964, ch. 59, § 2; P.L. 1975, ch. 188, art. 1, § 2(a); P.L. 1984, ch. 206, art. 2, § 2; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1987, ch. 57, art. 1, § 1; P.L. 1992, ch. 388, § 1; P.L. 1999, ch. 171, § 1.

NOTES TO DECISIONS

Procedure.

Section 44-1-11 does not provide for an alternative independent method of seeking a tax refund; taxpayer seeking a refund must follow the administrative requirements of this section. International Packaging Corp. v. Mayer, 715 A.2d 636, 1998 R.I. LEXIS 260 (R.I. 1998).

Collateral References.

Validity and applicability of statutory time limit concerning taxpayer’s claim for state tax refund. 1 A.L.R.6th 1.

What constitutes payment for purposes of commencing limitations period under Internal Revenue Code (26 U.S.C.S. § 6511(a)) for refund of tax overpayments. 160 A.L.R. Fed. 137.

44-11-21. Information confidential — Types of disclosure authorized — Penalties for unauthorized disclosure.

  1. It is unlawful for any state official or employee to divulge or to make known to any person in any manner not provided by law the amount or source of income, profits, losses, expenditures, or any particular set forth or disclosed in any return, or to permit any return or copy or any book containing any abstract or particulars to be seen or examined by any person except as provided by law. It is unlawful for any person to print or publish in any manner not provided by law any return or any part or source of income, profits, losses, or expenditures appearing in any return.
  2. Any offense against this provision is punishable by a fine not exceeding one thousand dollars ($1,000) or by imprisonment not exceeding one year, or both, at the discretion of the court. If the offender is an officer or employee of the state of Rhode Island, he or she may be dismissed from office or discharged from employment; provided, that the tax administrator may authorize examination of the return by the tax officials regularly in the employ of another state or of the federal government if a reciprocal arrangement exists.
  3. In addition, the tax administrator may disclose to the secretary of state the name, state of incorporation, address and other contact information for any corporation that files a tax return with this state; provided, however, that such disclosure shall not include any other information, including any financial information of the corporation. The secretary of state and all employees thereof shall be subject to the confidentiality provision of subsection (a) and the penalty provisions of subsection (b) hereof and shall be prohibited from printing, publishing, divulging and/or disseminating any information received from the tax administrator in any manner not otherwise authorized by law.

History of Section. G.L. 1938, ch. 37, § 10; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-21 ; P.L. 2013, ch. 25, § 1; P.L. 2013, ch. 39, § 1.

Compiler’s Notes.

P.L. 2013, ch. 25, § 1, and P.L. 2013, ch. 39, § 1 enacted identical amendments to this section.

Cross References.

Confidentiality in alcoholic beverages tax, § 3-10-9 .

Collateral References.

Recovery of damages under § 7431(c)(1)(B) of Internal Revenue Code (26 USCA § 7431(c)(1)(B)) based on improper release of confidential tax return information. 154 A.L.R. Fed. 537.

Validity, construction, and effect of state laws requiring public officials to protect confidentiality of income tax returns or information. 1 A.L.R.4th 959.

What are matters “related solely to the internal personnel rules and practices of an agency” exempted from disclosure under Freedom of Information Act (5 USCS § 552(b)(2)). 28 A.L.R. Fed. 645.

44-11-22. Tax administrator’s power to summon witnesses and evidence.

The tax administrator may summon any corporation, or officer, agent, or employee of any corporation, or any other person, to appear before him or her and produce records and documents at a time and place named in the summons and to give testimony and to answer interrogatories, under oath, respecting any matter which the tax administrator deems pertinent or material to the administration of this chapter.

History of Section. G.L. 1938, ch. 37, § 11; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-22 .

44-11-23. Service of summons.

The summons may be sent by registered or certified mail to the corporation, or to any officer, agent, or employee of the corporation, or to any other person, or may be left by any authorized agent of the tax administrator with the corporation, or with any officer, agent, or employee of the corporation, or any other person, or left at his or her last and usual place of abode. When the summons requires the production of records or documents, it shall be sufficient if the records and documents are described with reasonable certainty.

History of Section. G.L. 1938, ch. 37, § 11; P.L. 1947, ch. 1887, art. 1, § 1 impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-11-23 .

44-11-24. Enforcement of summons.

Whenever any person or corporation summoned under the provisions of §§ 44-11-22 and 44-11-23 neglects or refuses to obey the summons or to give testimony or to answer interrogatories as required, the tax administrator may apply to the sixth (6th) division of the district court for a citation against that person or corporation as for a contempt. Any judge of the court may hear the application and, if satisfactory proof is made, shall issue a citation for the arrest of the person, or of any officer of the corporation, and upon the person or officer being brought before the judge, he or she shall proceed to a hearing of the case; and upon the hearing the judge shall have power to make an order that he or she deems proper. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the rules of appellate procedure of the supreme court.

History of Section. G.L. 1938, ch. 37, § 11; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-24 ; P.L. 1976, ch. 140, § 21.

44-11-25. Determination of tax without return.

If any corporation fails to file a return at the time and as prescribed by law, the tax administrator shall proceed to determine the tax from any information he or she can obtain.

History of Section. G.L. 1938, ch. 37, § 12; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-25 .

44-11-26. Pecuniary penalty for failure to file return or to pay tax or for negligence.

  1. In the case of any failure to file a return within the time prescribed by law, there shall be added to the tax five percent (5%) if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when a return is filed after the time prescribed by law and it is shown that the failure to file the return at the prescribed time was due to reasonable cause and not due to willful neglect, no addition to the tax shall be made.
  2. In the case of any failure to pay the tax as imposed by this chapter with the return on or before the date prescribed by law (determined with regard to any extension of time for payment), there shall be added to the amount shown as tax on the return five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when the failure is due to reasonable cause and not to willful neglect, no addition to the tax shall be made.
  3. In the case of any failure to pay any amount in respect of any tax required to be shown on a return, which is not shown, including an assessment made as a result of mathematical error, within thirty (30) days of the date of the notice and demand, there shall be added to the amount of tax stated in the notice and demand five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when the failure is due to reasonable cause and not to willful neglect, no addition to the tax shall be made.
  4. If any part of a deficiency is due to negligence or intentional disregard of the Rhode Island business corporation tax law or rules or regulations hereunder, but without intent to defraud, five percent (5%) of that part of the deficiency shall be added to the tax. This amount shall be in lieu of any other additional amount imposed by subsection (b) of this section.

History of Section. G.L. 1938, ch. 37, § 12; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-26 ; P.L. 1975, ch. 188, art. 1, § 1.

Collateral References.

What constitutes “reasonable cause” under state statutes imposing penalty on taxpayer for failure to file timely tax return unless such failure was due to “reasonable cause”. 29 A.L.R.4th 413.

44-11-26.1. Revocation of articles or authority to transact business for nonpayment of tax.

  1. The tax administrator may, after July 15 of each year, make up a list of all corporations that have failed to pay the corporate tax defined in § 44-11-2 for one year after the tax became due and payable, and the failure is not the subject of a pending appeal. The tax administrator shall certify to the correctness of the list. Upon receipt of the certified list, the secretary of state may initiate revocation proceedings as defined in §§ 7-1.2-1310 and 7-1.2-1414 .
  2. With respect to any information provided by the division of taxation to the secretary of state pursuant to this chapter, the secretary of state, together with the employees or agents thereof, shall be subject to all state and federal tax confidentiality laws applying to the division of taxation and the officers, agents, and employees thereof, and which restrict the acquisition, use, storage, dissemination, or publication of confidential taxpayer data.

History of Section. P.L. 2017, ch. 371, § 4; P.L. 2017, ch. 376, § 4.

Compiler’s Notes.

P.L. 2017, ch. 371, § 4, and P.L. 2017, ch. 376, § 4 enacted identical versions of this section.

Effective Dates.

P.L. 2017, ch. 371, § 5 provides that this section takes effect on July 1, 2019.

P.L. 2017, ch. 376, § 5 provides that this section takes effect on July 1, 2019.

44-11-27. Pecuniary penalty for fraud.

In case a false or fraudulent return is made with intent to evade any tax imposed by this chapter, the tax administrator shall add to the tax fifty percent (50%) of its amount.

History of Section. G.L. 1938, ch. 37, § 12; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-27 .

44-11-28. Collection of pecuniary penalties.

The amount added to any tax under §§ 44-11-26 and 44-11-27 shall be collected as a part of and at the same time and in the same manner as the tax, unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount so added shall be collected in the same manner as the tax.

History of Section. G.L. 1938, ch. 37, § 12; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-28 .

44-11-29. Notice to tax administrator of sale of assets — Tax due.

  1. The sale or transfer of the major part in value of the assets of a domestic corporation, domestic limited liability company, domestic limited partnership, or any other domestic business entity, or of the major part in value of the assets situated in this state of a foreign corporation, foreign limited liability company, foreign limited partnership, or any other foreign business entity, other than in the ordinary course of trade and in the regular and usual prosecution of business by said corporation, limited liability company, limited partnership, or any other business entity whether domestic or foreign, and the sale or transfer of the major part in value of the assets of a domestic corporation, domestic limited liability company, domestic limited partnership, or any other domestic corporation business entity, or of the major part in value of the assets situated in this state of a foreign corporation, foreign limited liability company, foreign limited partnership, or any other foreign business entity that is engaged in the business of buying, selling, leasing, renting, managing, or dealing in real estate, shall be fraudulent and void as against the state unless the corporation, limited liability company, limited partnership, or any other business entity, whether domestic or foreign, at least five (5) business days before the sale or transfer, notifies the tax administrator of the proposed sale or transfer and of the price, terms, and conditions of the sale or transfer and of the character and location of the assets by requesting a letter of good standing from the tax division. Whenever a corporation, limited liability company, limited partnership, or any other business entity, whether domestic or foreign, makes such a sale or transfer, any and all tax returns required to be filed under this title must be filed and any and all taxes imposed under this title shall become due and payable at the time when the tax administrator is so notified of the sale or transfer, or, if he or she is not so notified, at the time when he or she should have been notified of the sale or transfer.
  2. This section shall not apply to sales by receivers, assignees under a voluntary assignment for the benefit of creditors, trustees in bankruptcy, debtors in possession in bankruptcy, or public officers acting under judicial process.

History of Section. G.L. 1938, ch. 37, § 13; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-29 ; P.L. 1964, ch. 65, § 1; P.L. 2017, ch. 302, art. 8, § 9.

44-11-29.1. Letters of good standing — Fees.

There shall be a fee of fifty dollars ($50.00) for any letter of good standing issued upon the request of a taxpayer. All fees collected under this section shall be allocated to the tax administrator for enforcement and collection of all taxes.

History of Section. P.L. 1993, ch. 138, art. 35, § 1; P.L. 2011, ch. 151, art. 19, § 16.

44-11-30. Examination of taxpayer’s records — Witnesses.

The tax administrator, for the purpose of ascertaining the correctness of any return or for the purpose of determining the amount of any tax imposed by this chapter, may, by any of his or her officers or employees designated by him or her for that purpose, examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person executing the return or of any officer or employee of any corporation, association, or organization, or the attendance of any other person, and may examine him or her under oath respecting any matter which the tax administrator deems pertinent or material in determining the liability of any corporation, association, or organization to a tax imposed by this chapter.

History of Section. G.L. 1938, ch. 37, § 14; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-30 .

44-11-31. Examinations as to liability of transferee.

The tax administrator, for the purpose of determining the liability of a transferee of the property of any corporation with respect to any tax imposed upon the corporation, may, by any of his or her officers or employees designated by him or her for that purpose, examine any books, papers, records, or memoranda bearing upon the liability, and may require the attendance of the corporation or transferee, or of any officer or employee of the corporation or transferee, or the attendance of any other person having knowledge in the premises, and may take testimony with reference to the matter, with power to administer oaths to any officer, employee, or other person.

History of Section. G.L. 1938, ch. 37, § 14; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-31 .

Collateral References.

Liability of parent or successor corporation, or corporate shareholders, in action pursuant to Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (42 USCS §§ 9601-9675). 121 A.L.R. Fed. 173.

Validity and construction of state statute making successor corporation liable for taxes of predecessor. 65 A.L.R.3d 1181.

44-11-32. Violations by corporations.

Whenever any corporation delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the corporation is guilty of a felony and upon conviction shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. G.L. 1938, ch. 37, § 15; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-32 ; P.L. 1986, ch. 103, § 2.

44-11-33. Violations by individuals.

Whenever any person delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the person is guilty of a felony and upon conviction thereof shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. G.L. 1938, ch. 37, § 15; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-33 ; P.L. 1986, ch. 103, § 2.

44-11-34. Criminal penalty for failure to file return.

Any taxpayer, or any officer or agent of the taxpayer, who willfully fails to file any return or statement, including a supplemental return, required to be made under the provisions of this chapter within the time fixed or extended is guilty of a felony and upon conviction shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. G.L. 1938, ch. 37, § 15; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-34 ; P.L. 1986, ch. 103, § 2.

Collateral References.

Reliance on advice of attorney, accountant, or tax expert as defense in criminal prosecution for attempt to evade federal income tax under § 7201 of the Internal Revenue Code of 1954 (26 USCS § 7201). 3 A.L.R. Fed. 665.

Test of “wilfulness” in prosecution for wilful failure to pay tax, file tax return, etc., under § 7203 of the Internal Revenue Code of 1954 (26 USCS § 7203). 22 A.L.R.3d 1173.

44-11-35. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal shall be expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the taxpayer is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. G.L. 1938, ch. 37, § 16; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-35 ; P.L. 1964, ch. 59, § 3; P.L. 1976, ch. 140, § 21; P.L. 1982, ch. 388, §§ 3, 8; P.L. 1984, ch. 183, § 3.

NOTES TO DECISIONS

Effect of Administrative Procedures Act.

The 30-day limitation period of § 42-35-15 has supplanted the four-month limitation period of this section. Great Am. Nursing Ctrs. v. Norberg, 439 A.2d 249, 1981 R.I. LEXIS 1422 (R.I. 1981) (decided prior to 1984 amendment).

Failure of taxpayers to comply with the Administrative Procedures Act provision, § 42-35-15 , requiring appeals to be brought within 30 days of the tax administrator’s decision precluded relief in the district court. Great Am. Nursing Ctrs. v. Norberg, 439 A.2d 249, 1981 R.I. LEXIS 1422 (R.I. 1981) (decided prior to 1984 amendment).

44-11-36. Liability of fiduciaries.

Any receiver, liquidator, trustee, trustee in bankruptcy, assignee, conservator, or other fiduciary conducting or liquidating the business or selling the assets of any corporation shall, except as provided in § 44-11-29(b) , be subject to the provisions of and the tax imposed by this chapter in the same manner and to the same extent as if the business were being conducted or liquidated or the assets sold by the agents or officers of the corporation.

History of Section. G.L. 1938, ch. 37, § 17; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-36 .

44-11-37. General collection powers.

The tax administrator shall receive and collect any tax imposed under this chapter in the same manner and with the same powers as are prescribed for and given to collectors of taxes by chapters 7 — 9 of this title.

History of Section. G.L. 1938, ch. 37, § 18; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-37 .

44-11-38. Collection by writ of execution.

If any tax or penalty imposed by this chapter is not paid within thirty (30) days after the tax or penalty shall become due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth (6th) division of the district court for a writ of execution, setting forth the nonpayment of the tax or penalty. The court shall appoint a time for a hearing and shall cause a reasonable notice to be given to the adverse party, and at the time and place of the return of the notice shall summarily proceed to hear the parties. If upon the hearing it shall appear that the tax or penalty is unpaid, the court shall issue an execution for the collection of the tax or penalty, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the corporation as may be taken on execution, and the officer charged with the service of the execution shall serve the execution as commanded, and shall sell the property seized as property is sold when taken on execution in actions at law, or the court shall take any other action as it may deem proper to enforce the payment of the tax by the appointment of a receiver of the property of the corporation or otherwise. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. G.L. 1938, ch. 37, § 18; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-38 ; P.L. 1976, ch. 140, § 21.

44-11-39. Tax as debt to state.

Any tax imposed under the provisions of this chapter, together with all increases, penalties, charges, and interest, shall also become, from the time the same are due and payable, a debt due to the state of Rhode Island from the corporation liable for the payment of the tax.

History of Section. G.L. 1938, ch. 37, § 18; P.L. 1947, ch. 1887, art. 1, § 1; G.L. 1956, § 44-11-39 .

Compiler’s Notes.

Section 44-1-7 provides the calculation for determining the amount of interest per annum on delinquent taxes.

44-11-40. Severability.

If any provision of this chapter or the application of this chapter to any corporation or circumstances is held invalid, the remainder of this chapter and the application of the provisions to the other corporations or circumstances shall not be affected.

History of Section. P.L. 1961, ch. 83, § 2.

44-11-41. Tax credit for machine tool, metal trade or plastic process technician apprenticeships.

  1. Any taxpayer who employs a machine tool and metal trade apprentice or plastic process technician apprentice duly enrolled and registered under the terms of a qualified program (as determined by the state apprenticeship council) is entitled to a tax credit for each eligible apprentice for fifty percent (50)% of actual wages paid, or four thousand eight hundred dollars ($4,800), whichever is less; provided, that the apprenticeships meet the following requirements:
    1. The tax credit is limited to qualified Machine Tool, Metal Trade and Plastics Process Technician programs with apprenticeship periods of duration which are more than four thousand (4,000) hours and less than ten thousand (10,000) hours.
    2. The apprentice must be employed on a full-time basis, which is defined as working a minimum of one hundred twenty (120) hours per month at the trade. Up to eighty (80) hours may be applied during the tax year against the one hundred twenty (120) hour limitation.
    3. Pre-apprentices are not counted as apprenticeships begun and wages earned by pre-apprentices are not eligible for tax credits under this regulation.
    4. The number of apprenticeships for which tax credit is allowed must exceed the average number of apprenticeships begun during the five (5) preceding income years.
  2. The tax credit is limited to the following trade: machinist, toolmaker, tool and diemaker, model maker, gage maker, patternmaker, tool and machine setter, diesinker, moldmaker, machine tool repairer, plastic process technician and in similar occupations which, as above, involve multiple work processes including the shaping of metals by machine tool equipment designed to perform cutting, grinding, milling, turning, drilling, boring, planing, hobbing, and abrading operations.

History of Section. P.L. 1996, ch. 284, § 1.

44-11-42. Repealed.

History of Section. P.L. 1998, ch. 112, § 1; P.L. 2001, ch. 175, § 1; Repealed by P.L. 2004, ch. 595, art. 17, § 4, effective July 30, 2004, and applicable to tax years ending on or after January 1, 2004. Section 44-11-42 was repealed again by P.L. 2005, ch. 117, art. 16, § 1.

Compiler’s Notes.

Former § 44-11-42 concerned tax credit for quality certification.

Section 44-11-42 was amended by P.L. 2004, ch. 606, § 1, and P.L. 2004, ch. 613, § 1, however, the amendments to this section by those acts are not set out due to the repeal of the section by P.L. 2004, ch. 595, art. 17, § 4.

44-11-43. Passive investment treatment.

  1. Notwithstanding any amendments or revisions to, or the repeal of, § 44-11-1(1)(vii), or any other law, or new legislative action that shall serve to repeal or limit the benefits conferred therein, the provisions of that statute as in effect on the date of passage of this section shall continue to be applicable until December 31, 2014, for a “qualifying business” that meets the requirements set forth herein.
  2. A “qualifying business” for the purposes of this chapter shall mean a business which meets the terms and conditions imposed by the board of directors of the Rhode Island economic development corporation and is designated as such upon a finding of fact that:
    1. The business has committed to relocate from outside the state to a Rhode Island location no less than an annual tax year average of two hundred and fifty (250) full-time employees with a combined payroll of no less than twelve million dollars ($12,000,000) annually within twenty-eight (28) months following such designation; for the purposes of this section “full-time employee” means any employee of the qualified business who works a minimum of thirty (30) hours per week within the state;
    2. The business would not relocate such jobs to the state but for such a designation of a qualifying business; and
    3. The annual salary of each employee counted in subdivision (b)(1) shall be no less than twenty-five thousand dollars ($25,000) per year, plus benefits typical to the industry.
  3. The division of taxation shall require annual reports from a qualified business, which shall include, but not be limited to, the number of individuals employed by the company within the state, the job descriptions, and the annual salaries. The division of taxation shall verify these annual reports and certify that they are correct. The certification shall be sent to the board of directors of the economic development corporation, president of the senate, speaker of the house, the chairperson of the senate finance committee, the chairperson of the house finance committee, the senate fiscal advisor, and the house fiscal advisor. If the division of taxation finds that the qualified business no longer meets the criteria set forth in subdivision (b)(1) or (3), and if, sixty (60) days after receipt of written notice from the division of taxation describing such finding in detail, the business has reasonably cured the noticed violations, then such business will continue to receive the benefits offered under the provisions of subsection (f) as if such violation had not occurred, otherwise that business shall no longer be considered a qualified business and shall no longer be entitled to any further benefits under any agreement made under the provisions of subsection (f) and such provisions shall become null and void.
  4. The economic development corporation shall certify only one company pursuant to this section, and such certification shall be issued prior to August 31, 2004.
  5. The economic development corporation shall be authorized to enter into such agreements as it may deem necessary or prudent in order to memorialize and effect the intent of the provisions of this section. The terms of such agreements shall not extend beyond December 31, 2014. Any such agreement shall include provisions for recapture of some portion of lost tax revenue, if any, resulting from the conveyance of the benefits contemplated hereunder, if the division of taxation finds that the qualified business has failed to maintain its qualified status pursuant to subsection (c) above. Such recapture provisions shall be in place for the first five (5) years of the agreement, and shall require the recapture of the value of any tax revenue lost in the last tax year that the company was a qualified company. Such recapture shall only apply to tax revenue lost through the amendment or revision to, or the repeal of, § 44-11-1(1)(vii), or any other law, or new legislative action that shall serve to repeal or limit the benefits conferred therein, and the subsequent avoidance of such newly imposed tax by the company through the function of this section. Calculation of any amount recaptured shall take into account other preferential tax treatments, credits, or other benefits in order to assure that the company is treated no less favorably under the recapture calculation than they would have been if they had not become a qualifying company under the provisions of this section. The corporation may, within the terms of the contract, include as a condition of default the failure to maintain employment criteria more rigorous than the criteria set forth in subdivision (b)(1) or (3); however, a default for violation of such higher contractual standards shall not necessitate a recapture of lost revenues as contemplated herein.

Notwithstanding the foregoing, upon a finding the violation was caused by natural disaster, acts of terrorism, acts of war, or other similar events reasonably beyond the control of the business, the division of taxation may extend the cure period hereunder for up to twelve months.

History of Section. P.L. 2004, ch. 334, § 1; P.L. 2004, ch. 358, § 1.

44-11-44. Annual Rhode Island corporate income and tax data report.

No later than March 15, 2010 and every March 15th thereafter, the division of taxation shall annually submit a report for the previous calendar year of Rhode Island corporate income and tax data by size of federal taxable income to the chairpersons of the house finance committee and senate finance committee, and the house fiscal advisor and the senate fiscal advisor. The report should be as similar as practical to the business and income tax data for Rhode Island federal taxpayers issued by the Statistics of Income Division of the Internal Revenue Service.

History of Section. P.L. 2009, ch. 68, art. 16, § 4.

44-11-45. Repealed.

History of Section. P.L. 2011, ch. 151, art. 19, § 4; Repealed by P.L. 2014, ch. 145, art. 12, § 18, effective June 19, 2014.

Compiler’s Notes.

Former § 44-11-45 concerned combined reporting study.

Chapter 11.1 Political Organization Tax

44-11.1-1. Definitions.

For the purpose of this chapter:

  1. “Political organization” means a political organization as defined under § 527 of the Internal Revenue Code;
  2. “Taxpayer” means and includes any political organization subject to the provisions of this chapter.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-2. Imposition of tax.

Each political organization shall annually pay to the state a tax equal to seven and one-half percent (7.5%) of political organization taxable income, as defined under § 527(c) of the Internal Revenue Code; provided, that no tax shall be payable or a tax return filed under this section unless the political organization has at least one hundred dollars ($100) or more of political organization taxable income under § 527(c) of the Internal Revenue Code.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-3. Filing of tax returns — Due date.

A tax return in the form and containing the information that the tax administrator may prescribe shall be filed with the tax administrator by the political organization:

  1. In case the taxable year of the taxpayer is the calendar year, on or before March 15 in the year following the close of the taxable year; and
  2. In case the taxable year of the taxpayer is a fiscal year, on or before the fifteenth (15th) day of the third (3rd) month following the close of the fiscal year.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-4. Extension of time for filing of returns.

The tax administrator may grant reasonable extensions of time for filing returns under rules and regulations as he or she shall prescribe.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-5. Determination and payment of tax due — Hearings and redeterminations.

  1. At the time of the filing of the return, the taxpayer shall pay to the tax administrator the amount of the tax as computed by it on the basis of its political organization taxable income under § 527 of the Internal Revenue Code or other provision as applicable. As soon as possible after the filing of the return, the tax administrator shall determine the correct tax payable under this chapter by the taxpayer, and if the tax determined shall exceed the amount which the taxpayer has paid at the time of filing its return, the tax administrator shall mail to the taxpayer a notice of the additional tax due indicating the basis on which the tax was determined.
  2. If any taxpayer is not satisfied with the amount of tax determined, the tax administrator, upon being notified, in writing, within thirty (30) days from the date of the mailing of the notice, shall fix an early date at his or her office when the taxpayer can be heard to show cause why the tax should be changed, and after which the tax administrator may redetermine the amount of that tax.
  3. If it shall appear subsequent to the mailing of any notice that the amount of the tax was erroneously stated, the tax administrator shall mail a corrected notice and fix a day when the taxpayer can be heard.
  4. The additional tax required to be paid by any taxpayer shall be due and payable within thirty (30) days after the mailing of the notice or corrected notice by the tax administrator.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-6. Interest on delinquency payments.

If any tax imposed by this chapter is not paid when due, a taxpayer shall be required to pay as part of the tax interest on the tax at the annual rate provided by § 44-1-7 from that time.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-7. Lien on real estate.

The amount of any tax, penalty, and interest charge imposed upon any political organization under the provisions of this chapter shall, until collected, constitute a lien upon the political organization’s real estate located in this state, and this lien shall take precedence over any other lien or encumbrance on the real estate.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-8. Records, statements, and rules and regulations.

Each taxpayer shall keep records, render statements, make returns, and comply with rules and regulations, not inconsistent with law, as the tax administrator may from time to time prescribe to carry into effect the provisions of this chapter.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-9. Returns and statements required to show whether political organization is liable.

The tax administrator may, whenever in his or her judgment if it is necessary, require any political organization, by notice served upon it, to make a return, render statements, or keep records as the tax administrator deems sufficient to show whether or not the political organization is liable for any tax under this chapter.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-10. Supplemental returns — Additional tax or refund.

  1. Any taxpayer which fails to include in its return any items of income or assets or any other information required by this chapter or by regulations prescribed in pursuance of this chapter shall make a supplemental return disclosing these facts. Any taxpayer whose return to the collector of internal revenue, or whose net income returned, shall be changed or corrected by any official of the United States government in any respect affecting a tax imposed by this chapter shall, within sixty (60) days after receipt of a notification of the final adjustment and determination of the change or correction, make the supplemental return required by this section.
  2. Upon the filing of a supplemental return the tax administrator shall examine the return and shall determine any additional tax or refund that may be due and shall notify the taxpayer. Any additional tax shall be paid within fifteen (15) days after the notification together with interest at the annual rate provided by § 44-1-7 from the original due date of the return for the taxable year to the date of payment of the additional tax. Any refund shall be made by the tax administrator together with interest at the annual rate provided by § 44-1-7 .1 from the date of payment of the tax to the date of the refund.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-11. Claims for refund — Hearing upon denial.

  1. Any taxpayer may file a claim for refund with the tax administrator at any time within three (3) years after the tax has been paid, or in the case of a change or correction of its taxable income by any official of the United States government, within three (3) years after receiving notice of the change or correction. If the tax administrator determines that the tax has been overpaid, he or she shall make a refund with interest at the annual rate provided by § 44-1-7.1 from the date of payment.
  2. Any taxpayer whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall so notify the applicant.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-12. Information confidential — Types of disclosure authorized — Penalties for unauthorized disclosure.

  1. It is unlawful for any state official or employee to divulge or to make known to any person in any manner not provided by law the amount or source of income, profits, losses, expenditures, or any particular set forth or disclosed in any return, or to permit any return or copy or any book containing any abstract or particulars to be seen or examined by any person except as provided by law. It is unlawful for any person to print or publish in any manner not provided by law any return or any part or source of income, profits, losses, or expenditures appearing in any return.
  2. Any offense against this provision is punishable by a fine not exceeding one thousand dollars ($1,000) or by imprisonment not exceeding one year, or both, at the discretion of the court. If the offender is an officer or employee of the state of Rhode Island, he or she may be dismissed from office or discharged from employment; provided, that the tax administrator may authorize examination of the return by the tax officials regularly in the employ of another state or of the federal government if a reciprocal arrangement exists.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-13. Tax administrator’s power to summon witnesses and evidence.

The tax administrator may summon any political organization, or officer, agent, or employee of any political organization, or any other person, to appear before him or her and produce records and documents at a time and place named in the summons and to give testimony and to answer interrogatories, under oath, respecting any matter which the tax administrator deems pertinent or material to the administration of this chapter.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-14. Service of summons.

The summons may be sent by registered or certified mail to the political organization, or to any officer, agent, or employee of the political organization, or to any other person, or may be left by any authorized agent of the tax administrator with the political organization, or with any officer, agent, or employee of the political organization, or any other person, or left at his or her last and usual place of abode. When the summons requires the production of records or documents, it shall be sufficient if the records and documents are described with reasonable certainty.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-15. Enforcement of summons.

Whenever any person or political organization summoned under the provision of §§ 44-11.1-13 and 44-11.1-14 neglects or refuses to obey the summons or to give testimony or to answer interrogatories as required, the tax administrator may apply to the sixth division of the district court for a citation against that person or political organization as for a contempt. Any judge of the court may hear the application and, if satisfactory proof is made, shall issue a citation for the arrest of the person, or of any officer of the political organization, and upon the person or officer being brought before the judge, he or she shall proceed to a hearing of the case; and upon the hearing the judge shall have power to make an order that he or she deems proper. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the rules of appellate procedure of the supreme court.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-16. Determination of tax without return.

If any political organization fails to file a return at the time and as prescribed by law, the tax administrator shall proceed to determine the tax from any information he or she can obtain.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-17. Pecuniary penalty for failure to file return or to pay tax or for negligence.

  1. In the case of any failure to file a return within the time prescribed by law, there shall be added to the tax five percent (5%) if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when a return is filed after the time prescribed by law and it is shown that the failure to file the return at the prescribed time was due to reasonable cause and not due to willful neglect, no addition to the tax shall be made.
  2. In the case of any failure to pay the tax as imposed by this chapter with the return on or before the date prescribed by law (determined with regard to any extension of time for payment), there shall be added to the amount shown as tax on the return five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five- tenths percent (0.5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when the failure is due to reasonable cause and not to willful neglect, no addition to the tax shall made.
  3. In the case of any failure to pay any amount in respect of any tax required to be shown on a return, which is not shown, including an assessment made as a result of mathematical error, within thirty (30) days of the date of the notice and demand, there shall be added to the amount of tax stated in the notice and demand five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when the failure is due to reasonable cause and not to willful neglect, no addition to the tax shall be made.
  4. If any part of a deficiency is due to negligence or intentional disregard of the Rhode Island political organization tax law or rules or regulations hereunder, but without intent to defraud, five percent (5%) of that part of the deficiency shall be added to the tax. This amount shall be in lieu of any other additional amount imposed by subsection (b) of this section.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-18. Pecuniary penalty for fraud.

In case a false or fraudulent return is made with intent to evade any tax imposed by this chapter, the tax administrator shall add to the tax fifty percent (50%) of its amount.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-19. Collection of pecuniary penalties.

The amount added to any tax under §§ 44-11.1-17 and 44-11.1-18 shall be collected as a part of and at the same time and in the same manner as the tax, unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount so added shall be collected in the same manner as the tax.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-20. Examination of taxpayer’s records — Witnesses.

The tax administrator, for the purpose of ascertaining the correctness of any return or for the purpose of determining the amount of any tax imposed by this chapter, may, by any of his or her officers or employees designated by him or her for that purpose, examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person executing the return or of any officer or employee of any political organization, or the attendance of any other person, and may examine him or her under oath respecting any matter which the tax administrator deems pertinent or material in determining the liability of any political organization to a tax imposed by this chapter.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-21. Violations by political organizations.

Whenever any political organization delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the corporation is guilty of a felony and upon conviction shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-22. Violations by individuals.

Whenever any person delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the person is guilty of a felony and upon conviction thereof shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-23. Criminal penalty for failure to file return.

Any taxpayer, or any officer or agent of the taxpayer, who willfully fails to file any return or statement, including a supplemental return, required to be made under the provisions of this chapter within the time fixed or extended is guilty of a felony and upon conviction shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-24. Appeals.

Appeals from administrative orders or decision made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal shall be expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the taxpayer is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in § 44-1-7.1

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-25. General collection powers.

The tax administrator shall receive and collect any tax imposed under this chapter in the same manner and with the same powers as are prescribed for and given to collectors of taxes by chapters 7 — 9 of this title.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-26. Collection by writ of execution.

If any tax or penalty imposed by this chapter is not paid within thirty (30) days after the tax or penalty shall become due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth division of the district court for a writ of execution, setting forth the nonpayment of the tax or penalty. The court shall appoint a time for a hearing and shall cause a reasonable notice to be given to the adverse party, and at the time and place of the return of the notice shall summarily proceed to hear the parties. If upon the hearing it shall appear that the tax or penalty is unpaid, the court shall issue an execution for the collection of the tax or penalty, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the political organization as may be taken on execution, and the officer charged with the service of the execution shall serve the execution as commanded, and shall sell the property seized as property is sold when taken on execution in actions at law, or the court shall take any other action as it may deem proper to enforce the payment of the tax by the appointment of a receiver of the property of the political organizational or otherwise. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-27. Tax as debt to state.

Any tax imposed under the provisions of this chapter, together with all increases, penalties, charges, and interest, shall also become, from the time the same are due and payable, a debt due to the state of Rhode Island from the political organization liable for the payment of the tax.

History of Section. P.L. 2010, ch. 136, § 1.

44-11.1-28. Severability.

If any provision of this chapter or the application of this chapter to any corporation or circumstances is held invalid, the remainder of this chapter and the application of the provisions to the other corporations or circumstances shall not be affected.

History of Section. P.L. 2010, ch. 136, § 1.

Chapter 12 Franchise Tax

44-12-1. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1916, ch. 1362, § 1; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, § 1; P.L. 1940, ch. 872, § 1; P.L. 1945, ch. 1567, art. 2, § 1; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-1 ; P.L. 1969, ch. 197, art. 4, § 1; P.L. 1977, ch. 133, § 4; P.L. 1992, ch. 15, art. 4, § 2; P.L. 2004, ch. 595, art. 17, § 7; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-1 concerned tax imposed; corporations liable; credit for tax on income; and reduced rate where no business done.

44-12-2. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1916, ch. 1362, § 1; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, § 1; P.L. 1940, ch. 872, § 1; P.L. 1945, ch. 1567, art. 2, § 1; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-2 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-2 concerned filing of returns and contents.

44-12-3. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, § 1; P.L. 1940, ch. 872, § 1; P.L. 1945, ch. 1567, art. 2, § 1; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-3 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-3 concerned valuation of no-par stock.

44-12-4. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1916, ch. 1362, § 1; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, § 1; P.L. 1940, ch. 872, § 1; P.L. 1945, ch. 1567, art. 1, § 2; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-4 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-4 concerned assessment of tax and notice of amount.

44-12-4.1. Repealed.

History of Section. P.L. 1987, ch. 57, art. 2, § 1; P.L. 1993, ch. 459, § 2; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-4.1 concerned hearing by tax administrator on application.

44-12-5. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1916, ch. 1362, § 1; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, § 1; P.L. 1940, ch. 872, § 1; P.L. 1945, ch. 1567, art. 2, § 1; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-5 ; P.L. 1992, ch. 388, § 2; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-5 concerned payment of tax and collection powers.

44-12-5.1. Repealed.

History of Section. P.L. 1987, ch. 57, art. 2, § 1; P.L. 1992, ch. 388, § 2; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-5.1 concerned claims for refund and hearing upon denial.

44-12-6. Repealed.

History of Section. P.L. 1940, ch. 872, § 1; G.L. 1938, ch. 39, § 1; P.L. 1945, ch. 1567, art. 2, § 1; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-6 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-6 concerned penalty for failure to make return.

44-12-7. Repealed.

History of Section. P.L. 1940, ch. 872, § 1; G.L. 1938, ch. 39, § 1; P.L. 1945, ch. 1567, art. 2, § 1; P.L. 1947, ch. 1887, art. 1, § 3; P.L. 1950, ch. 2633, § 1; G.L. 1956, § 44-12-7 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-7 concerned lien on real estate.

44-12-8. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1916, ch. 1362, § 1; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, § 1; P.L. 1940, ch. 872, § 2; G.L. 1938, ch. 39, § 2, as enacted by P.L. 1951, ch. 2796, § 1; G.L. 1956, § 44-12-8 ; P.L. 2005, ch. 36, § 32; P.L. 2005, ch. 72, § 32; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-8 concerned forfeiture of charter or articles for nonpayment of tax.

44-12-9. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, §§ 1, 2; P.L. 1940, ch. 872, § 2; P.L. 1951, ch. 2796, § 1; G.L. 1956, § 44-12-9 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-9 concerned publication of forfeitures and vacation on payment of tax.

44-12-10. Repealed.

History of Section. P.L. 1912, ch. 769, § 49; P.L. 1919, ch. 1736, § 1; P.L. 1921, ch. 2022, § 1; G.L. 1923, ch. 38, § 31; G.L. 1938, ch. 39, §§ 1, 2; P.L. 1940, ch. 872, § 2; P.L. 1951, ch. 2796, § 1; G.L. 1956, § 44-12-10 ; P.L. 1976, ch. 140, § 22; P.L. 1982, ch. 388, § 22; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-10 concerned appeal of forfeitures.

44-12-11. Repealed.

History of Section. G.L. 1923, ch. 38, §§ 32, 33; P.L. 1924, ch. 555, § 1; P.L. 1926, ch. 774, § 1; P.L. 1929, ch. 1428, § 3; P.L. 1932, ch. 1894, § 1; G.L. 1938, ch. 39, §§ 2, 3; P.L. 1939, ch. 659, § 2; P.L. 1940, ch. 872, § 3; P.L. 1942, ch. 1250, § 1; G.L. 1956, § 44-12-11 ; P.L. 1984, ch. 380, § 8; P.L. 1984, ch. 444, § 1; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-11 concerned corporations exempt.

44-12-12. Repealed.

History of Section. G.L. 1938, ch. 39, § 4; P.L. 1939, ch. 665, § 4; G.L. 1956, § 44-12-12 ; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-12 concerned declarations under penalty of perjury.

44-12-13. Repealed.

History of Section. P.L. 1987, ch. 57, art. 2, § 1; Repealed by P.L. 2014, ch. 145, art. 12, § 20, effective June 19, 2014.

Compiler’s Notes.

Former § 44-12-13 concerned appeals and interest on refunds.

Chapter 13 Public Service Corporation Tax

44-13-1. Domestic corporations subject to tax — “Gross earnings” defined — Deductions.

  1. Every corporation enumerated in § 44-13-4 , incorporated under the laws of this state, shall annually pay a tax or excise to the state for the privilege of existing as a corporation during any part of the preceding calendar year. The tax shall be in addition to any tax upon its real estate and tangible personal property locally or otherwise assessed and shall be measured by its gross earnings, determined as provided, for the preceding calendar year or for the portion of the year that the corporation has been incorporated and shall be computed at the rates prescribed in § 44-13-4 ; provided, that the Narragansett Pier Railroad Company, a corporation incorporated under the laws of the state of Rhode Island, shall not be subject to any tax imposed by the provisions of this chapter in any year until and unless the net receipts of the railroad applicable to dividends or other form of distribution of corporate earnings shall in the year amount to a sum that is not less than four percent (4%) of the aggregate valuation of the property of the railroad as determined by the public utility administrator.
  2. “Gross earnings” includes all income of the same types as are classified as operating revenues by the public utilities control authority in the uniform systems of accounts prescribed by the authority for operations, whether or not the corporation is regulated by the public utilities control authority, except those subject to the Rhode Island business corporation tax, within the tax year and, with respect to each company, all income classified in the uniform systems of accounts as income from merchandising, jobbing, and contract work, income from nonutility operations and revenues from transfer, sale, or lease of tangible, intangible, or real property not devoted to utility operation, and receipts from the sale of residuals and other by-products obtained in connection with the production of gas, electricity, or steam. No deductions shall be allowed from the gross earnings for any commission, rebate, or other payment, except a refund resulting from an error or overcharge, and those specifically mentioned in § 44-13-5 , and in the case of every corporation subject to tax under § 44-13-4(4) , fifty percent (50%) of all amounts paid during the period July 1, 1987 to June 30, 1988 and one hundred percent (100%) of all amounts paid during the period July 1, 1988 and thereafter by a corporation to another corporation for connecting fees, switching charges, and carrier access charges shall be included in the gross earnings of the company to which they are paid and shall be deducted from the gross earnings of the paying company.

History of Section. P.L. 1942, ch. 1212, art. 6, § 1; G.L. 1956, § 44-13-1 ; P.L. 1978, ch. 163, § 1; P.L. 1985, ch. 181, art. 62, § 1.

Comparative Legislation.

Tax on public service corporations:

Conn. Gen. Stat., § 12-268a et seq.

Mass. Ann. Laws ch. 63, § 52A.

NOTES TO DECISIONS

Gross Earnings.

Proceeds from the condemnation of commercial realty are not “gross earnings” within the meaning of this section and § 44-13-4(e) (now (5)). Newport Gas Light Co. v. Norberg, 114 R.I. 696 , 338 A.2d 536, 1975 R.I. LEXIS 1474 (1975).

44-13-2. Foreign corporations subject to tax.

Every corporation enumerated in § 44-13-4 , organized or incorporated outside of this state and carrying on or being authorized to carry on business within this state, shall annually pay a tax or excise to the state for the privilege of carrying on or being authorized to carry on business within this state during any part of the preceding calendar year. The tax shall be in addition to any tax upon its real estate and tangible personal property locally or otherwise assessed and shall be measured by its gross earnings, determined as provided in § 44-13-1(b) , for the preceding calendar year or for the portion of the year that the corporation has carried on or was authorized to carry on business within this state, and shall be computed at the rates prescribed in § 44-13-4 .

History of Section. P.L. 1942, ch. 1212, art. 6, § 1; G.L. 1956, § 44-13-2 ; P.L. 1978, ch. 163, § 1; P.L. 1985, ch. 181, art. 62, § 1.

44-13-2.1. Public service companies subject to tax.

  1. Every public service company defined, foreign or domestic, engaging in any of the same businesses within this state of any corporation enumerated in § 44-13-4 , shall annually pay a tax or excise to the state for the privilege of carrying on or being authorized to carry on business within this state during any part of the preceding calendar year. The tax shall be in addition to any tax upon its real estate and tangible personal property locally or otherwise assessed and shall be measured by its gross earnings determined in the same manner as provided for corporations under § 44-13-1(b) for the preceding calendar year or for the portion of the year that the public service company has carried on or was authorized to carry on business within this state, and shall be computed at the rates prescribed in § 44-13-4 . All other provisions of this chapter and title as they relate to public service corporations shall apply to public service companies.
  2. For purposes of this chapter, “public service company” means and includes every joint stock company, association, partnership (limited or general), joint venture, or other entity or individual formed for or engaged in any business which, when engaged in by a corporation, is subject to tax under this chapter.

History of Section. P.L. 1989, ch. 130, § 1.

44-13-2.2. Gross earnings of certain corporations and public service companies.

  1. A corporation or public service company whose principal business in this state is not an activity enumerated in § 44-13-4 but engages in that activity in this state, shall be subject to tax pursuant to this chapter as measured by the gross earnings derived from the activity in this state and computed at the rates set forth in § 44-13-4 . The corporation or public service company shall also be subject to the tax imposed pursuant to chapter 11 or 30 of this title; provided, that the gross earnings subject to tax pursuant to this section and direct and indirect costs associated with these shall be excluded from the calculation of net income subject to tax pursuant to chapter 11 or 30 of this title.
  2. These corporations or public service companies shall maintain records that substantiate proper calculation of net income subject to tax pursuant to chapter 11 or 30 of this title and shall also maintain records of gross earnings subject to tax pursuant to this section and records of associated costs.

History of Section. P.L. 1997, ch. 357, § 7.

44-13-3. Minimum tax.

The tax imposed upon any corporation under the provisions of §§ 44-13-1 and 44-13-2 shall not be less than one hundred dollars ($100).

History of Section. P.L. 1942, ch. 1212, art. 6, § 1; G.L. 1956, § 44-13-3 ; P.L. 1978, ch. 163, § 1; P.L. 1985, ch. 181, art. 62, § 1.

44-13-4. Rate of taxation.

The tax imposed will be at the following rates:

  1. In the case of every corporation whose principal business is a steamboat or ferryboat business as a common carrier, every common carrier steam or electric railroad corporation, every street railway corporation, every common carrier dining, sleeping, chair, or parlor car corporation, every corporation whose principal business is selling and distributing water to the public, and every toll bridge corporation, one and one-fourth percent (1.25%) of its gross earnings;
  2. In the case of every corporation whose principal business is manufacturing, selling, distributing and/or transmitting currents of electricity to be used for light, heat, or motive power, four percent (4%) of its gross earnings, but deductions shall be made of gross earnings from the transmission or sale of electricity to other public utility corporations, non-regulated power producers, or municipal utilities for resale, whether within or outside of this state; provided, that the tax measured by the portion of the utility’s gross earnings as is derived from the manufacture and sale of illuminating and heating gas and its by-products and the merchandising of gas appliances shall be computed at the rate of three percent (3%);
  3. In the case of every express corporation carrying on its business on steamboats, steam or electric railroads, or street railways and of every public service corporation whose principal business is that of a telegraph corporation, four percent (4%) of its gross earnings;
  4. In the case of every telecommunications corporation providing telecommunications service, ten percent (10%) of its gross earnings; provided, that the rate shall be nine percent (9%) effective July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%) effective July 1, 1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective July 1, 1997. For purposes of this chapter, “telecommunications service” means the transmission of any interactive two-way electromagnetic communications including voice, image, data, and other information, by means of wire, cable, including fiber optical cable, microwave, and radio wave, or any combinations of these media. This definition does not include value added non-voice services in which computer processing applications are used to act on the form, content, code, and protocol of the information to be transmitted;
  5. In the case of every public service cable corporation, eight percent (8%) of its gross earnings;
  6. In the case of every corporation whose principal business is manufacturing, selling and/or distributing to the public illuminating or heating gas, three percent (3%) of its gross earnings.

History of Section. P.L. 1942, ch. 1212, art. 6, § 2; P.L. 1947, ch. 1887, art. 6, § 1; G.L. 1956, § 44-13-4 ; P.L. 1969, ch. 197, art. 3, § 1; P.L. 1969, ch. 198, art. 4, § 1; P.L. 1971, ch. 265, § 12; P.L. 1972, ch. 205, § 9; P.L. 1983, ch. 264, § 1; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1989, ch. 126, art. 18, § 1; P.L. 1990, ch. 65, art. 74, § 1; P.L. 1991, ch. 44, art. 35, § 1; P.L. 1992, ch. 133, art. 41, § 1; P.L. 1997, ch. 357, § 8; P.L. 2006, ch. 236, § 14; P.L. 2006, ch. 237, § 14; P.L. 2007, ch. 73, art. 7, § 8; P.L. 2008, ch. 100, art. 18, § 2.

Cross References.

Exemption from franchise tax, § 44-12-11 .

NOTES TO DECISIONS

Gross Earnings.

Proceeds from the condemnation of commercial realty are not “gross earnings” within the meaning of this section and § 44-13-1 . Newport Gas Light Co. v. Norberg, 114 R.I. 696 , 338 A.2d 536, 1975 R.I. LEXIS 1474 (1975).

Street Railway Corporations.

A corporation authorized by its charter to operate a street railway, although it no longer operated a street railway but only trackless trolleys and motor buses, was a street railway corporation within the meaning of this section and taxable as such. United Transit Co. v. Hawksley, 86 R.I. 53 , 133 A.2d 132, 1957 R.I. LEXIS 58 (1957).

44-13-5. Deductions for merchandise sales and alternative fuel.

  1. In the case of every corporation whose principal business is manufacturing, selling, and distributing to the public illuminating or heating gas, and upon which a tax is imposed under § 44-13-4(5) , and in the case of every corporation upon which a tax is imposed under § 44-13-4(2) , there shall be allowed as a deduction from the gross earnings from merchandise sales reported by that corporation in its gross earnings tax returns, the net invoice price plus the transportation cost of the merchandise.
  2. In the case of every corporation upon which a tax is imposed under § 44-13-4 there shall be allowed as a deduction from the gross earnings from sales reported by the corporation in its gross earnings tax returns, the total of gross earnings from the sale of alternative fuel as defined pursuant to the Energy Policy Act of 1992 (P.L. 102-486, Section 301 (42 U.S.C. § 13211)) when used as a separately metered motor fuel that powers a motor vehicle, from January 1, 1998, until December 31, 2007.

History of Section. P.L. 1942, ch. 1212, art. 6, § 2; P.L. 1947, ch. 1887, art. 6, § 1; G.L. 1956, § 44-13-5 ; P.L. 1978, ch. 163, § 1; P.L. 1997, ch. 168, § 3; P.L. 2003, ch. 124, § 2; P.L. 2003, ch. 135, § 2; P.L. 2003, ch. 137, § 2.

44-13-6. Due date of annual return.

Every corporation shall file a return with the tax administrator on or before March 1 of each year. For tax years beginning after December 31, 2015, a return, in the form and containing the information as the tax administrator may prescribe, shall be filed with the tax administrator by every corporation and shall be filed on or before the date its federal tax return is due to be filed, without regard to extension.

History of Section. P.L. 1942, ch. 1212, art. 6, § 3; G.L. 1956, § 44-13-6 ; P.L. 1960, ch. 3, § 1; P.L. 1985, ch. 181, art. 62, § 1; P.L. 2016, ch. 142, art. 13, § 11.

Applicability.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect upon passage [June 24, 2016] and shall apply to tax years beginning on or after January 1, 2016.

44-13-7. Extension of time for filing of returns.

The tax administrator may grant a reasonable extension of time for filing returns, under rules and regulations as he or she shall prescribe, with the approval of the director of revenue. Whenever an extension of time is granted, a corporation shall be required to pay as part of any tax due interest at the annual rate prescribed by § 44-1-7 from the day when the return should have been filed as if no extension had been granted.

History of Section. P.L. 1942, ch. 1212, art. 6, § 3; G.L. 1956, § 44-13-7 ; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1992, ch. 388, § 3; P.L. 2008, ch. 98, § 39; P.L. 2008, ch. 145, § 39.

44-13-8. Statements, returns, and rules and regulations.

  1. Every corporation shall render statements, make returns, and comply with rules and regulations as the tax administrator, with the approval of the director of revenue, may from time to time prescribe.
  2. The tax administrator may, whenever in his or her judgment it is necessary, require any corporation, by notice served upon it, to make a return or render statements as the tax administrator deems necessary in determining the liability of any corporation to a tax under this chapter.

History of Section. P.L. 1942, ch. 1212, art. 6, § 4; G.L. 1956, § 44-13-8 ; P.L. 1985, ch. 181, art. 62, § 1; P.L. 2008, ch. 98, § 39; P.L. 2008, ch. 145, § 39.

44-13-9. Entire gross earnings of business wholly within state.

In the case of every corporation carrying on business wholly within this state, its entire gross earnings from its operation for the preceding calendar year, or for the portion of the year that the corporation has carried on business, shall be apportioned to this state.

History of Section. P.L. 1942, ch. 1212, art. 6, § 5; G.L. 1956, § 44-13-9 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-10. Apportionment of earnings from business partially within state.

In the case of every corporation carrying on business both within and outside of this state, its entire gross earnings from its operation for the preceding calendar year, or for the portion of the year that the corporation has carried on business within this state, shall be apportioned to this state as follows:

  1. In the case of an express corporation carrying on its business on steamboats, steam or electric railroads, or street railways, and in the case of a corporation whose principal business is a steamboat or ferryboat business as a common carrier, the total amount of gross earnings from all sources within this state for the calendar year or portion thereof next preceding;
  2. In the case of a common carrier steam or electric railroad or street railway corporation a proportion as the total mileage of tracks operated by the corporation for steam or electric railroad or street railway purposes within this state, exclusive of sidings and turnouts, on December 31 next preceding, bears to the total mileage of tracks then operated by the corporation for these purposes, both within and outside of this state;
  3. In the case of any corporation operating as a common carrier dining, sleeping, chair, or parlor car corporation, but not in the case of a public steam or electric railroad or street railway corporation operating cars as a part of or incidental to its railroad or railway business within this state, a proportion as the number of miles the cars were operated in this state during the year ending December 31 next preceding bears to the total number of miles the cars were then operated for these purposes both within and outside of this state;
  4. In the case of a public service telegraph, cable, or telecommunications corporation, or corporation which is manufacturing, selling, distributing and/or transmitting to the public currents of electricity to be used for light, heat, or motive power, the total amount of gross earnings within this state for the calendar year; provided, however, that gross earnings from providing mobile telecommunications services shall be apportioned to this state where the customer’s primary place of use, as determined in accordance with the mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116 — 126), is within this state.
  5. In the case of a corporation whose principal business is manufacturing, selling and/or distributing to the public illuminating or heating gas or water, a proportion as the total miles of mains operated by the corporation within this state on December 31 next preceding bears to the total mileage of mains or wires operated by the corporation both within and outside of this state;
  6. In any case to which these proportions are not equitably applicable, in the proportion that is equitable.

History of Section. P.L. 1942, ch. 1212, art. 6, § 5; G.L. 1956, § 44-13-10 ; P.L. 1983, ch. 264, § 1; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1997, ch. 357, § 8; P.L. 2002, ch. 65, art. 16, § 8.

44-13-11. Liability of fiduciaries.

Any receiver, liquidator, trustee, assignee, conservator, or other fiduciary conducting or liquidating the business or selling the assets of any corporation shall be subject to the provisions of and the tax imposed by this chapter in the same manner and to the same extent as if the business were being conducted or liquidated or the assets sold by the agents or officers of the corporation.

History of Section. P.L. 1942, ch. 1212, art. 6, § 15; G.L. 1956, § 44-13-11 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-12. Intangibles exempt from taxation — Corporation whose property is operated by another.

Except as provided in any act of incorporation, the intangible property of any corporation liable to a tax under this chapter and the intangible property and gross earnings of any corporation the property of which is operated in this state by the first corporation shall be exempt from taxation.

History of Section. P.L. 1942, ch. 1212, art. 6, § 6; G.L. 1956, § 44-13-12 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-13. Taxation of certain tangible personal property.

The lines, cables, conduits, ducts, pipes, machines and machinery, equipment, and other tangible personal property within this state of telegraph, cable, and telecommunications corporations and express corporations, used exclusively in the carrying on of the business of the corporation shall be exempt from local taxation; provided, that nothing in this section shall be construed to exempt any “community antenna television system company” (CATV) from local taxation; and provided, that the tangible personal property of companies exempted from local taxation by the provisions of this section shall be subject to taxation in the following manner:

  1. Definitions.  Whenever used in this section and in §§ 44-13-13.1 and 44-13-13.2 , unless the context otherwise requires:
    1. “Average assessment ratio” means the total assessed valuation as certified on tax rolls for the reference year divided by the full market value of the valuation as computed by the Rhode Island department of revenue in accordance with § 16-7-21 ;
    2. “Average property tax rate” means the statewide total property levy divided by the statewide total assessed valuation as certified on tax rolls for the most recent tax year;
    3. “Company” means any telegraph, cable, telecommunications, or express company doing business within the state of Rhode Island;
    4. “Department” means the department of revenue;
    5. “Population” shall mean the population as determined by the most recent census;
    6. “Reference year” means the calendar year two (2) years prior to the calendar year preceding that in which the tax payment provided for by this section is levied;
    7. “Value of tangible personal property” of companies means the net book value of tangible personal property of each company doing business in this state as computed by the department of revenue. “Net book value” means the original cost less accumulated depreciation; provided, that no tangible personal property shall be depreciated more than seventy-five percent (75%) of its original cost.
  2. On or before March 1 of each year, each company shall declare to the department, on forms provided by the department, the value of its tangible personal property in the state of Rhode Island on the preceding December 31.
  3. On or before April 1, 1982 and each April 1 thereafter of each year, the division of property valuation shall certify to the tax administrator the average property tax rate, the average assessment ratio, and the value of tangible personal property of each company.
  4. The tax administrator shall apply the average assessment ratio and the average tax rate to the value of tangible personal property of each company and, by April 15 of each year, shall notify the companies of the amount of tax due. For each filing relating to tangible personal property as of December 31, 2008 and thereafter the tax rate applied by the tax administrator shall be not less than the rate applied in the prior year.
  5. The tax shall be due and payable within sixty (60) days of the mailing of the notice by the tax administrator. If the entire tax is not paid to the tax administrator when due, there shall be added to the unpaid portion of the tax, and made a part of the tax, interest at the rate provided for in § 44-1-7 from the date the tax was due until the date of the payment. The amount of any tax, including interest, imposed by this section shall be a debt due from the company to the state, shall be recoverable at law in the same manner as other debts, and shall, until collected, constitute a lien upon all the company’s property located in this state.
  6. The proceeds from the tax shall be allocated in the following manner:
    1. Payment of reasonable administrative expenses incurred by the department of revenue, not to exceed three quarters of one percent (.75%), the payment to be identified as general revenue and appropriated directly to the department;
    2. The remainder of the proceeds shall be deposited in a restricted revenue account and shall be apportioned to the cities and towns within this state on the basis of the ratio of the city or town population to the population of the state as a whole. Estimated revenues shall be distributed to cities and towns by July 30 and may be recorded as a receivable by each city and town for the prior fiscal year.

History of Section. P.L. 1942, ch. 1212, art. 6, § 6; G.L. 1956, § 44-13-13 ; P.L. 1981, ch. 200, § 1; P.L. 1982, ch. 19, § 1; P.L. 1982, ch. 344, art. 8, § 1; P.L. 1983, ch. 95, § 1; P.L. 1985, ch. 181, art. 61, § 19; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1990, ch. 65, art. 78, § 1; P.L. 1995, ch. 370, art. 40, § 147; P.L. 2006, ch. 246, art. 38, § 13; P.L. 2008, ch. 98, § 39; P.L. 2008, ch. 145, § 39; P.L. 2009, ch. 5, art. 6, § 1.

44-13-13.1. Personal property tax — Application of aggrieved party for hearing.

Any company aggrieved by any action in determining the amount of any tax or assessment imposed by the provisions of § 44-13-13 may apply in writing to the tax administrator within thirty (30) days of the mailing of the notice of tax or assessment for a hearing in accordance with chapter 35 of title 42; provided, that the request shall not be valid unless the tax or assessment as set forth in the notice has been paid.

History of Section. P.L. 1981, ch. 200, § 2; P.L. 1982, ch. 19, § 2; P.L. 1993, ch. 459, § 3.

44-13-13.2. Personal property tax — Application to recover.

Companies, which become subject to personal property taxes by reason of the tax imposed by § 44-13-13 may file with the public utilities commission to recover the additional tax expense. The commission shall make a decision upon any application filed during the year 1982 within one hundred and eighty (180) days of the filing; provided, that payment of all taxes and interest due under § 44-13-13 shall be a condition precedent to the filing with the public utilities commission.

History of Section. P.L. 1981, ch. 200, § 2; P.L. 1982, ch. 19, § 3.

44-13-14. Exemption of securities from taxation.

The owners of shares of stock, bonds, debentures, and other evidences of indebtedness of any corporation liable to a tax under this chapter and of any corporation the property of which is operated in this state by any corporation shall be exempt from taxation in this state thereon.

History of Section. P.L. 1942, ch. 1212, art. 6, § 6; G.L. 1956, § 44-13-14 ; P.L. 1985, ch. 181, art. 62, § 1.

Cross References.

Dividends, exemption from bank tax, § 44-14-15 .

Dividends, exemption from business corporation tax, § 44-11-12 .

44-13-15. Determination and payment of tax.

Any tax imposed under the terms of this chapter shall be due and payable upon the last day upon which a return must be filed under the provisions of §§ 44-13-6 and 44-13-7 . Upon the filing of the return, the full amount of any tax, as computed by the corporation, shall be paid to the tax administrator. As soon as practicable after the return is filed, the tax administrator shall examine it and determine the correct amount of the tax, and, if an additional tax is due, the tax administrator shall notify the corporation, and the tax shall be paid within thirty (30) days after the mailing of the notice. The failure of the corporation to receive any notice required by this section shall not relieve it of the obligation to pay any tax imposed under the terms of this chapter or any interest or penalties.

History of Section. P.L. 1942, ch. 1212, art. 6, § 7; G.L. 1956, § 44-13-15 ; P.L. 1985, ch. 181, art. 62, § 1.

Cross References.

Assessment and collection by tax administrator, § 44-1-2 .

44-13-16. Claim for refund — Hearing upon denial.

  1. Any corporation may file a claim for refund with the tax administrator at any time within two (2) years after the tax has been paid. If the tax administrator determines that the corporation has paid a tax in excess of the amount lawfully due, he or she shall allow a refund or permit a credit. If the tax administrator shall determine that the excess payment was made in good faith, the tax administrator may make the refund with interest at the annual rate provided by § 44-1-7.1 from the date of the excess payment.
  2. Any corporation whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the applicant.

History of Section. P.L. 1942, ch. 1212, art. 6, § 7; G.L. 1956, § 44-13-16 ; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1987, ch. 57, art. 3, § 1; P.L. 1992, ch. 388, § 3.

Collateral References.

What constitutes payment for purposes of commencing limitations period under Internal Revenue Code (26 U.S.C.S. § 6511(a)) for refund of tax overpayments. 160 A.L.R. Fed. 137.

44-13-17. Interest on delinquent payments.

If any tax imposed by this chapter is not paid when due, the corporation shall be required to pay as part of the tax interest on the tax at the annual rate provided by § 44-1-7 from that time.

History of Section. P.L. 1942, ch. 1212, art. 6, § 7; G.L. 1956, § 44-13-17 ; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1992, ch. 388, § 3.

44-13-18. Lien on real estate.

The amount of any tax, penalty, and interest charge imposed upon any corporation under the provisions of this chapter shall, until collected, constitute a lien upon the corporation’s real estate located in this state, and the lien shall take precedence over any other lien or encumbrance on the real estate.

History of Section. P.L. 1942, ch. 1212, art. 6, § 7; G.L. 1956, § 44-13-18 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-19. Supplemental returns.

Any corporation which shall fail to include in its return any items of gross earnings or any other information required by this chapter or by prescribed regulations, shall make a supplemental return disclosing these facts. Upon the filing of a supplemental return, the tax administrator shall examine the return and shall determine any additional tax that may be due and shall notify the corporation of the additional tax.

History of Section. P.L. 1942, ch. 1212, art. 6, § 8; G.L. 1956, § 44-13-19 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-20. Power to summon witnesses.

The tax administrator may summon any corporation, or officer, agent, or employee of the corporation, or any other person to appear before the tax administrator and produce records and documents at a time and place named in the summons and to give testimony and to answer interrogatories, under oath, respecting any matter which the tax administrator deems pertinent or material to the administration of this chapter.

History of Section. P.L. 1942, ch. 1212, art. 6, § 9; G.L. 1956, § 44-13-20 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-21. Service of summons.

The summons may be sent by registered or certified mail to the corporation or any officer, agent, or employee of the corporation, or to any other person, or may be left by any authorized agent of the tax administrator with the corporation, or with any officer, agent, or employee of the corporation, or any other person, or left at his or her last and usual place of abode. When the summons requires the production of records or documents, it shall be sufficient if the records and documents are described with reasonable certainty.

History of Section. P.L. 1942, ch. 1212, art. 6, § 9; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-13-21 ; P.L. 1985, ch. 181, art. 62, § 1.

Collateral References.

Authority of Internal Revenue Service to compel production of tax records and books for purposes of audit under Taxpayer Compliance Measurement Program. 69 A.L.R. Fed. 786.

Sufficiency of description of business records under Fourth Amendment requirement of particularity in federal warrant authorizing search and seizure. 53 A.L.R. Fed. 679.

44-13-22. Enforcement of summons.

Whenever any person or corporation summoned under the provisions of §§ 44-13-20 and 44-13-21 neglects or refuses to obey the summons or to give testimony or to answer interrogatories as required, the tax administrator may apply to the sixth (6th) division of the district court for a citation against the person or corporation as for a contempt. Any judge of the court may hear the application and, if satisfactory proof is made, shall issue a citation for the arrest of the person, or of any officer of the corporation. Upon the person or officer being brought before the judge, he or she shall proceed to a hearing of the case. Upon the hearing, the judge shall have power to make an order as he or she shall deem proper. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the rules of appellate procedure of the supreme court.

History of Section. P.L. 1942, ch. 1212, art. 6, § 9; G.L. 1956, § 44-13-22 ; P.L. 1976, ch. 140, § 23; P.L. 1985, ch. 181, art. 62, § 1.

44-13-23. Determination of tax without return.

If any corporation fails to file a return at the time prescribed by law, the tax administrator shall proceed to determine the tax from any information he or she can obtain.

History of Section. P.L. 1942, ch. 1212, art. 6, § 10; G.L. 1956, § 44-13-23 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-24. Pecuniary penalty for failure to file return.

In case of any failure to file a return within the time prescribed by law, there shall be added to the tax five percent (5%) if the failure is for not more than thirty (30) days with an additional five percent (5%) for each additional thirty (30) days or fraction of the days during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when a return is filed after the time prescribed by law and it is shown that the failure to file the return at the prescribed time was due to reasonable cause and not due to willfull neglect, no addition to the tax shall be made.

History of Section. P.L. 1942, ch. 1212, art. 6, § 10; G.L. 1956, § 44-13-24 .

44-13-25. Pecuniary penalty for false return.

In case a false or fraudulent return is made with intent to evade any tax imposed by this chapter the tax administrator shall add to the tax fifty percent (50%) of its amount.

History of Section. P.L. 1942, ch. 1212, art. 6, § 10; G.L. 1956, § 44-13-25 .

44-13-26. Collection of pecuniary penalties.

The amount added to any tax under §§ 44-13-24 and 44-13-25 shall be collected as a part of and at the same time and in the same manner as the tax unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount added shall be collected in the same manner as the tax.

History of Section. P.L. 1942, ch. 1212, art. 6, § 10; G.L. 1956, § 44-13-26 .

44-13-27. Examination of records and witnesses.

The tax administrator, for the purpose of ascertaining the correctness of any return or for the purpose of determining the amount of any tax imposed by this chapter, may, by any of his or her officers or employees designated by him or her for that purpose, examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person executing the return or of any officer or employee of any corporation or the attendance of any other person, and may examine him or her, under oath, respecting any matter which the tax administrator deems pertinent or material in determining the liability of any corporation to a tax imposed by this chapter.

History of Section. P.L. 1942, ch. 1212, art. 6, § 11; G.L. 1956, § 44-13-27 ; P.L. 1985, ch. 181, art. 62, § 1.

44-13-28. Penalty for violations by corporation.

Whenever any corporation delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being duly summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the corporation shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. P.L. 1942, ch. 1212, art. 6, § 12; G.L. 1956, § 44-13-28 ; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1986, ch. 103, § 3.

44-13-29. Penalty for violations by individuals.

Whenever any person delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the person shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year or both.

History of Section. P.L. 1942, ch. 1212, art. 6, § 12; G.L. 1956, § 44-13-29 ; P.L. 1986, ch. 103, § 3.

44-13-30. Penalty for failure to file return or statement.

If any return or statement, including a supplemental return, required to be made under the provisions of this chapter is not made within the time fixed or extended, the corporation or any officer or agent of the corporation neglecting or refusing to make the return or statement shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. P.L. 1942, ch. 1212, art. 6, § 12; G.L. 1956, § 44-13-30 ; P.L. 1986, ch. 103, § 3.

44-13-31. Hearing on application by corporation.

Any corporation aggrieved by the action of the tax administrator in determining the amount of any tax or penalty imposed under the provisions of this chapter may apply to the tax administrator, in writing, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to the tax or penalty. The tax administrator shall fix a time and place for the hearing and shall notify the applicant. Upon the hearing the tax administrator shall correct manifest errors, if any, disclosed at the hearing and assess and collect the tax lawfully due together with any penalty or interest.

History of Section. P.L. 1942, ch. 1212, art. 6, § 13; G.L. 1956, § 44-13-31 ; P.L. 1962, ch. 100, § 1; P.L. 1985, ch. 181, art. 62, § 1; P.L. 1993, ch. 459, § 3.

Cross References.

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

44-13-32. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section shall be expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the taxpayer is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. P.L. 1942, ch. 1212, art. 6, § 14; G.L. 1956, § 44-13-32 ; P.L. 1976, ch. 140, § 23; P.L. 1982, ch. 338, §§ 3, 9; P.L. 1984, ch. 183, § 4.

Cross References.

Appeals under Administrative Procedures Act, § 42-35-15 et seq.

44-13-33. Collection by writ of execution.

If any tax or penalty imposed by this chapter shall not be paid within thirty (30) days after the tax or penalty shall become due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth (6th) division of the district court for a writ of execution, setting forth the nonpayment of the tax or penalty. The court shall appoint a time for a hearing and shall cause a reasonable notice of the hearing to be given to the adverse party, and at the time and place of the return of the notice shall proceed summarily to hear the parties. If upon the hearing it shall appear that the tax or penalty is unpaid, the court shall issue an execution for the collection of the tax or penalty, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the corporation as may be taken on execution. The officer charged with the service of the execution shall serve the execution as commanded, and shall sell the property seized as property is sold when taken on execution in actions at law, or the court shall take other action as it may deem proper to enforce the payment of the tax by the appointment of a receiver of the property of the corporation, or otherwise. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. P.L. 1942, ch. 1212, art. 6, § 16; G.L. 1956, § 44-13-33 ; P.L. 1976, ch. 140, § 23; P.L. 1985, ch. 181, art. 62, § 1.

44-13-34. Severability.

The provisions of this chapter are declared to be severable. In case any part, section, or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, sections, and provisions of the chapter shall not be impaired or affected.

History of Section. P.L. 1989, ch. 130, § 1.

44-13-35. Gross earnings exempt from the public service corporation tax.

Notwithstanding the provisions of §§ 44-13-1 and 44-13-4 , the gross earnings from the sale and from the storage, use or other consumption in this state of electricity and natural gas when purchased for the purpose of being manufactured into a finished product for resale, as further defined by § 44-18-30(7) , are subject to the following public service corporation tax rates:

  1. In the case of every corporation whose principal business is manufacturing, selling, distributing and/or transmitting currents of electricity to be used for light, heat, or motive power, three percent (3%) of those gross earnings effective July 1, 1994; provided, that the rate shall be two percent (2%) effective July 1, 1995, one percent (1%) July 1, 1996, and zero percent (0%) effective July 1, 1997.
  2. In the case of every corporation whose principal business is manufacturing, selling and/or distributing to the public illuminating or heating gas, two percent (2%) of those gross earnings effective July 1, 1994; provided, that the rate shall be one percent (1%) effective July 1, 1995, and zero percent (0%) effective July 1, 1996.

History of Section. P.L. 1994, ch. 70, art. 14, § 1; P.L. 1997, ch. 357, § 8.

44-13-36. Public service corporation tax included in utility rates.

Every corporation whose principal business is manufacturing, selling, distributing and/or transmitting electricity or heating gas shall directly reflect in its rates charged for the electricity or gas used in the manufacturing process, as defined in § 44-18-30(7) , the actual public service corporation tax rates in effect for those sales of electricity and gas.

History of Section. P.L. 1994, ch. 70, art. 14, § 1; P.L. 1997, ch. 357, § 8.

Chapter 13.1 Taxation of Railroad Corporations

44-13.1-1. Repealed.

History of Section. P.L. 1985, ch. 470, § 1; P.L. 1987, ch. 261, § 1; Repealed by § 44-13.1-7 , effective July 1, 1989.

Compiler’s Notes.

Former § 44-13.1-1 concerned exemption from state and local taxation.

44-13.1-2. Assessment of amounts of tax and payments to cities and towns and fire districts.

  1. Cities and towns and fire districts shall assess the property described in § 44-13.1-1(b) [repealed] and shall apply a tax rate to the assessed value in a manner consistent with property subject to taxation under the provisions of §§ 44-5-1 44-5-22 .
  2. The amount of the tax on the property computed shall be submitted on or before October 1, 1985, and each year thereafter to the state budget offices.
  3. The state budget offices shall include the amount of the tax in the state budget for the next fiscal year, and the General Assembly shall annually appropriate to the several cities and towns and fire districts any sum that may be necessary to carry out the purposes of this section.
  4. Distribution of the appropriations and receipts as referenced in § 44-13.1-3 shall be made by the state on or before July 31 of 1986 and each year thereafter and the payments may be counted as a receivable by any city or town or fire district for a fiscal year ending the preceding June 30.
  5. The state of Rhode Island acting through the department of revenue shall have the right in accordance with § 44-5-26 to seek relief from any assessment.

History of Section. P.L. 1985, ch. 470, § 1; P.L. 1986, ch. 287, art. 18, § 1; P.L. 1987, ch. 205, § 1; P.L. 1987, ch. 261, § 1; P.L. 2008, ch. 98, § 40; P.L. 2008, ch. 145, § 40.

Compiler’s Notes.

Section 44-13.1-1 was repealed effective July 1, 1989 pursuant to the provisions of § 44-13.1-7 .

44-13.1-3. Payment in lieu of taxes.

  1. Within thirty (30) days after the end of the state’s fiscal year ending June 30, 1986 and within thirty (30) days after the end of each fiscal year thereafter, each corporation operating a railroad and carrying on business for profit in this state shall make a payment to the state in lieu of the taxes from which the corporation is exempted under § 44-13.1-1 [repealed]. The payment shall be in an amount equal to the sum of:
    1. The property taxes which would otherwise have been payable, without penalty or interest, by the corporation to municipalities and fire districts within the state during the fiscal year; and
    2. All taxes otherwise payable to the state and based on the corporations’ income during the fiscal year, provided, that the payments provided for in this section shall be reduced by the following percentages:
      1. Payment due within thirty (30) days after the end of the fiscal year ending June 30, 1986: twenty-five percent (25%).
      2. Payment due within thirty (30) days after the end of the fiscal year ending June 30, 1987: fifty percent (50%).
      3. Payment due within thirty (30) days after the end of the fiscal year ending June 30, 1988: seventy-five percent (75%).
      4. Payment due within thirty (30) days after the end of the fiscal year ending June 30, 1989: one hundred percent (100%).
  2. From the payments received from the corporations pursuant to the provisions of subsection (a) (i), an account in the general fund is created, the proceeds of which are restricted to the distribution of funds to the several cities and towns and fire districts as outlined in § 44-13.1-2 .

History of Section. P.L. 1985, ch. 470, § 1; P.L. 1986, ch. 287, art. 18, § 1; P.L. 1987, ch. 205, § 1; P.L. 1987, ch. 261, § 1.

Compiler’s Notes.

Section 44-13.1-1 was repealed effective July 1, 1989 pursuant to the provisions of § 44-13.1-7 .

44-13.1-4. Restriction on abandonments.

No railroad corporation shall be eligible to the tax exemption provided for in § 44-13.1-1 [repealed] if it shall abandon rail freight service during the period July 1, 1985 to June 30, 1989, and eligibility for the exemption shall only be granted upon the receipt by the tax administrator of a certificate from a railroad corporation that no abandonment shall occur during the period specified in this section.

History of Section. P.L. 1985, ch. 470, § 1.

Compiler’s Notes.

Section 44-13.1-1 was repealed effective July 1, 1989 pursuant to the provisions of § 44-13.1-7 .

44-13.1-5. Repeal of inconsistent acts.

All acts or parts of acts inconsistent with this chapter are repealed.

History of Section. P.L. 1985, ch. 470, § 1.

44-13.1-6. Repealed.

History of Section. P.L. 1985, ch. 470, § 1; P.L. 1986, ch. 123, § 1; P.L. 1987, ch. 208, § 1; Repealed by § 44-13.1-7 , effective July 1, 1989.

Compiler’s Notes.

Former § 44-13.1-6 concerned a special study commission.

44-13.1-7. Repeal of exemption and study commission provisions.

Sections 44-13.1-1 and 44-13.1-6 are repealed effective July 1, 1989; provided, that payments due cities and towns and fire districts for the period ending June 30, 1989 shall be made prior to July 31, 1989 as provided in § 44-13.1-2 .

History of Section. P.L. 1985, ch. 470, § 1; P.L. 1987, ch. 261, § 1.

Chapter 14 Taxation of Banks

44-14-1. Short title.

This chapter may be designated as the “Bank Tax Act”.

History of Section. P.L. 1942, ch. 1212, art. 7, § 1; G.L. 1956, § 44-14-1 .

Comparative Legislation.

Taxation of banks:

Conn. Gen. Stat., § 12-213 et seq.

Mass. Ann. Laws ch. 63, § 1 et seq.

44-14-2. Definitions.

For the purposes of this chapter:

  1. “Administrator” means the tax administrator in the department of revenue appointed under the provisions of § 44-1-1 ;
  2. “Banking institution” means every state bank, federal savings bank, trust company, national banking association, mutual savings bank, building and loan association, and loan and investment company, but shall not include a credit union, or a corporation specified in § 44-11-1(4)(i) ;
  3. “Director” means the head of the department of revenue appointed under the provisions of § 42-142-1 ;
  4. “Income period” means the calendar year or the fiscal year, or portion, next preceding the taxable year;
  5. “Securities” includes, but shall not be limited to:
    1. Shares of stock or certificates of beneficial interest, or rights to buy the shares or certificates, of a corporation, joint-stock company, association, or business trust;
    2. Bonds, debentures, notes, certificates, or other evidences of indebtedness of any individual, partnership, corporation, joint-stock company, association, or business trust, including those issued by the United States government or any state, or political subdivision of either, or issued by any foreign country or nation or political subdivision thereof;
  6. “Taxable year” means the calendar year in which the tax is payable or fiscal year ending during that calendar year, upon the basis of which the tax is computed under this chapter. “Taxable year” means, in the case of a return made for a fractional part of the year under provisions of this chapter or under regulations prescribed by the tax administrator, the period for which the return is made. The term “fiscal year” means an accounting period of twelve (12) months ending on the last day of any month other than December. The taxable year of a banking institution shall be the same for purposes of this chapter as it is for federal income tax purposes;
  7. “Taxpayer” means any banking institution subject to any tax imposed by this chapter.

History of Section. P.L. 1942, ch. 1212, art. 7, § 2; P.L. 1943, ch. 1341, § 1; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-14-2 ; P.L. 1987, ch. 174, § 2; P.L. 1989, ch. 378, § 1; P.L. 1994, ch. 93, § 2; P.L. 1995, ch. 370, art. 34, § 1; P.L. 2008, ch. 98, § 41; P.L. 2008, ch. 145, § 41.

Compiler’s Notes.

The reference in subdivision (2) to § 44-11-1(1)(vii) was changed to § 44-11-1(4)(i) to reflect the amendment to that section.

44-14-3. Tax on state banks.

  1. Each banking institution organized or incorporated under the laws of this state or having its principal place of business or a branch located within the limits of this state shall annually pay a tax or excise to the state for the privilege of existing as a banking institution during any part of the taxable year. The tax is measured by:
    1. Net income, as defined in § 44-14-10 , for the income period and is computed at the rate of nine percent (9%) of the net income; or
    2. Authorized capital stock as of the last day of the income period and is computed at the rate of two dollars fifty cents ($2.50) for each ten thousand dollars ($10,000), or fractional part, of an authorized capital stock; whichever measure yields the greater amount of tax.
  2. In the case of a banking institution not organized or incorporated under the laws of this state, but having its principal place of business or branch located within the limits of this state, its net income is apportioned to this state under rules and regulations promulgated by the tax administrator.
    1. A banking institution having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., (including a banking institution that is a qualified subchapter S subsidiary, as defined by 26 U.S.C. § 1361, of a corporation or banking institution having an election in effect under 26 U.S.C. § 1361 et seq.) is not subject to the Rhode Island tax or excise on banking institutions, except that the banking institution shall be subject to the provisions of subdivision (a)(1) of this section to the extent the income is subjected to federal tax under subchapter S.
    2. The shareholders of the banking institution who are residents of Rhode Island shall include in their income their proportionate share of the banking institution’s federal taxable income.
    3. If any shareholder of the banking institution is a nonresident during any part of the banking institution’s taxable year, he or she shall file a Rhode Island personal income tax return in accordance with the rules and regulations as promulgated by the tax administrator.

History of Section. P.L. 1942, ch. 1212, art. 7, § 3; P.L. 1943, ch. 1341, § 2; G.L. 1956, § 44-14-3 ; P.L. 1958, ch. 17, art. 2, § 1; P.L. 1959, ch. 169, art. 1, § 1; P.L. 1960, ch. 66, art. 1, § 1; P.L. 1968, ch. 263, art. 6, § 1; P.L. 1970, ch. 139, art. 1, § 2; P.L. 1989, ch. 253, § 1; P.L. 1995, ch. 370, art. 34, § 2; P.L. 1999, ch. 354, § 30; P.L. 2000, ch. 459, § 1.

NOTES TO DECISIONS

Constitutionality.

The tax levied under this section does not discriminate against interstate commerce, is fairly related to the services provided by the domiciliary state, does not submit the corporation to multiple taxation, and thus does not offend either the commerce clause contained in the federal constitution or the due process clause of the Fourteenth Amendment. Commercial Credit Consumer Servs. v. Norberg, 518 A.2d 1336, 1986 R.I. LEXIS 560 (R.I. 1986).

44-14-4. Tax on national banks.

Each national banking association located within the limits of this state shall annually pay to the state a tax according to or measured by its net income, as defined in § 44-14-10 , which tax is computed at the rate of nine percent (9%).

History of Section. P.L. 1942, ch. 1212, art. 7, § 3; P.L. 1943, ch. 1341, § 2; G.L. 1956, § 44-14-4 ; P.L. 1958, ch. 17, art. 2, § 1; P.L. 1959, ch. 169, art. 1, § 1; P.L. 1960, ch. 66, art. 1, § 1; P.L. 1968, ch. 263, art. 6, § 1; P.L. 1970, ch. 139, art. 1, § 3; P.L. 1995, ch. 370, art. 34, § 2; P.L. 1999, ch. 354, § 30.

Collateral References.

Discrimination in state taxation of national banks or national bank shares. 59 A.L.R. 10; 81 A.L.R. 502; 87 A.L.R. 846.

44-14-5. Minimum tax.

The tax imposed upon any banking institution or national banking association under §§ 44-14-3 and 44-14-4 shall not be less than one hundred dollars ($100).

History of Section. P.L. 1942, ch. 1212, art. 7, § 3; P.L. 1943, ch. 1341, § 2; G.L. 1956, § 44-14-5 ; P.L. 1958, ch. 17, art. 2, § 1; P.L. 1959, ch. 169, art. 1, § 1; P.L. 1960, ch. 66, art. 1, § 1; P.L. 1968, ch. 263, art. 6, § 1; P.L. 1970, ch. 139, art. 1, § 3; P.L. 1977, ch. 136, § 1.

44-14-6. Filing of annual return.

  1. Every taxpayer shall file a return with the tax administrator:
    1. In case the taxable year of the taxpayer is the calendar year, on or before March 15 in the year following the close of the taxable year; and
    2. In case the taxable year of the taxpayer is a fiscal year, on or before the fifteenth (15th) day of the third (3rd) month following the close of the fiscal year.
  2. For tax years beginning after December 31, 2015, a return, in the form and containing the information that the tax administrator may prescribe, shall be filed with the tax administrator by the taxpayer on or before the date a federal return is due to be filed, without regard to extension.

History of Section. P.L. 1942, ch. 1212, art. 7, § 4; G.L. 1956, § 44-14-6 ; P.L. 1970, ch. 139, art. 1, § 4; P.L. 1989, ch. 378, § 1; P.L. 2016, ch. 142, art. 13, § 12.

Applicability.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect upon passage [June 24, 2016] and shall apply to tax years beginning on or after January 1, 2016.

44-14-7. Extension of time for return.

The tax administrator may grant a reasonable extension of time for filing returns, under rules and regulations as the tax administrator shall prescribe, with the approval of the director of the department of revenue. Whenever an extension of time is granted, a taxpayer shall be required to pay as part of any tax due, interest at the annual rate prescribed by § 44-1-7 from the day when the return should have been filed as if no extension had been granted.

History of Section. P.L. 1942, ch. 1212, art. 7, § 4; G.L. 1956, § 44-14-7 ; P.L. 1992, ch. 388, § 4; P.L. 2008, ch. 98, § 41; P.L. 2008, ch. 145, § 41.

44-14-8. Statements, returns, and rules and regulations.

Every taxpayer shall render statements, make returns, and comply with rules and regulations as the tax administrator, with the approval of the director of the department of revenue, may from time to time prescribe.

History of Section. P.L. 1942, ch. 1212, art. 7, § 5; G.L. 1956, § 44-14-8 ; P.L. 2008, ch. 98, § 41; P.L. 2008, ch. 145, § 41.

44-14-9. Reports filed with banking and insurance division.

For the purpose of administering this chapter, the banking and insurance division of the department of business regulation shall make available for inspection to the tax administrator any report filed by any banking institution subject to the tax imposed by this chapter.

History of Section. P.L. 1942, ch. 1212, art. 7, § 5; G.L. 1956, § 44-14-9 .

44-14-10. “Net income” defined.

“Net income” means gross income as defined in §§ 44-14-11 and 44-14-12 minus the deductions allowed in §§ 44-14-13 , 44-14-14 , 44-14-14 .1, 44-14-14.2 , 44-14-14.3 , 44-14-14.4 , and 44-14-14.5 .

History of Section. P.L. 1942, ch. 1212, art. 7, § 6; G.L. 1956, § 44-14-10 ; P.L. 1995, ch. 370, art. 34, § 4.

44-14-11. “Gross income” defined.

“Gross income” includes all gains, profits, and income of the taxpayer from whatever sources derived during the income period; provided, that gains from the sale or other disposition of any property other than securities shall not be included in gross income, and losses from the sale or other disposition of any property other than securities shall not be deducted from gross income. For any taxable year beginning on or after January 1, 2020, gross income includes the amount of any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount of the loan forgiven exceeds $250,000.

History of Section. P.L. 1942, ch. 1212, art. 7, § 6; P.L. 1943, ch. 1341, § 3; G.L. 1956, § 44-14-11 ; P.L. 2021, ch. 162, art. 6, § 12, effective July 6, 2021.

44-14-12. Gain or loss from disposition of securities.

Gains or losses from the sale or other disposition of securities shall be determined as follows:

  1. In the case of securities acquired on or after January 1, 1941, the basis shall be the cost of the securities, and the tax administrator may require that the basis be adjusted for amortization of premiums, if any, on “securities” as defined in § 44-14-2(5)(ii) , reasonably allowed or allowable to the date of sale or other disposition of the securities.
  2. In the case of securities acquired prior to January 1, 1941, except as otherwise provided in subdivision (3) of this subsection, the basis shall be the market value on January 1, 1941, of the securities, provided, that:
    1. No gain shall be recognized if the proceeds of the sale or other disposition of the securities, though greater than the market value on January 1, 1941, are less than or equal to the cost of the securities;
    2. No loss shall be recognized if the proceeds of the sale or other disposition of the securities, though less than the market value on January 1, 1941, are greater than or equal to the cost of the securities;
    3. If the cost of the securities, though greater than the market value on January 1, 1941, is less than the proceeds of the sale or other disposition of the securities, then the basis shall equal the cost of the securities;
    4. If the cost of the securities, though less than the market value on January 1, 1941, is greater than the proceeds of the sale or other disposition of the securities, then the basis shall equal the cost of the securities.
  3. In the case of “securities”, as defined in § 44-14-2(5)(ii) , acquired at a premium prior to January 1, 1941, the basis shall be the market value on January 1, 1941, of the securities but not higher than the true amortized value as of January 1, 1941, of the securities, and the tax administrator may require that the basis be adjusted for amortization of the premiums, based upon the true amortized value, reasonably allowed or allowable to the date of sale or other disposition of the securities; provided, that gain shall be recognized only to the extent that the proceeds of the sale or other disposition of the securities exceed the adjusted true amortized value as of the date of sale or other disposition of the securities.

History of Section. P.L. 1942, ch. 1212, art. 7, § 6; P.L. 1943, ch. 1341, § 3; G.L. 1956, § 44-14-12 .

44-14-13. Business expenses deductible.

In computing net income there shall be allowed as deductions all the ordinary and necessary expenses paid or incurred by the taxpayer during the income period in carrying on its trade or business, except United States income and excess profits taxes and the tax imposed by this chapter. Without limiting the generality of the foregoing there shall be allowed as deductions: a reasonable allowance for salaries and other compensation for personal services actually rendered; rent; repairs; bad debts; interest; taxes, except United States income and excess profits taxes and the tax imposed by this chapter; losses sustained and not compensated for by insurance or otherwise; depreciation; depletion of mines, oil and gas wells, and timber; amortization of assets; amortization of premiums on “securities” as defined in § 44-14-2(5)(ii) ; and contributions to any corporation, association, or fund organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual.

History of Section. P.L. 1942, ch. 1212, art. 7, § 6; P.L. 1943, ch. 1341, § 3; P.L. 1947, ch. 1957, § 1; G.L. 1956, § 44-14-13 .

Collateral References.

Loss on sale of securities by corporate taxpayer as fully deductible trade or business expense under 26 USCS § 162(a) of uncompensated loss under 26 USCS § 165(a), or as partially deductible loss incurred on sale of capital asset under 26 USCS § 165(f). 34 A.L.R. Fed. 699.

What constitutes trade or business under Internal Revenue Code (U.S.C.S. Title 26). 161 A.L.R. Fed. 245.

What educational expenses are deductible as expenses incurred in carrying on a trade or business within federal income tax statute (26 USCS (1954 IRC) § 162). 3 A.L.R.3d 829.

44-14-14. Write-downs or reserves for security losses.

Whenever any taxpayer by requirement of regulatory authorities having supervision over it, shall write down any of its securities or establish reserves for the decrease in values of any of its securities, the taxpayer may elect to treat the amount of the write-downs or reserves as deductions in the year in which they are recorded on its books and records as allocated to any security or group of securities, in which event the basis of the securities shall be adjusted to reflect the write-downs or reserves specifically allocated to any security, and the adjusted basis shall be used in determining gains or losses upon the sale or other disposition of the securities.

History of Section. P.L. 1942, ch. 1212, art. 7, § 6; P.L. 1943, ch. 1341, § 3; P.L. 1947, ch. 1957, § 1; G.L. 1956, § 44-14-14 .

44-14-14.1. Apportionment and allocation of income for purposes of taxation.

  1. Except as specifically provided in this chapter a banking institution whose business activity is taxable both within and outside of this state shall allocate and apportion its net income as provided in §§ 44-14-14.1 44-14-14.5 . A financial institution organized under the laws of a foreign country, the Commonwealth of Puerto Rico or a territory or possession of the United States whose effectively connected income (as defined under the federal Internal Revenue Code) is taxable both within this state and within another state, other than the state in which it is organized shall allocate and apportion its net income as provided in §§ 44-14-14.1 44-14-14.5 .
  2. All income shall be apportioned to this state by multiplying this income by the apportionment percentage. The apportionment percentage is determined by adding the taxpayer’s receipts factor (as described in § 44-14-14.3 ), property factor (as described in § 44-14-14.4 ), and payroll factor (as described in § 44-14-14.5 ) together and dividing the sum by three. If one of the factors is missing, the two remaining factors are added and the sum is divided by two. If two of the factors are missing, the remaining factor is the apportionment percentage. A factor is missing if both its numerator and denominator are zero, but it is not missing merely because its numerator is zero.
  3. Each factor shall be computed according to the method of accounting (cash or accrual basis) used by the taxpayer for the taxable year.
  4. If the allocation and apportionment provisions of §§ 44-14-14.1 44-14-14.5 do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer’s business activity, if reasonable:
    1. The exclusion of any one or more of the factors;
    2. The inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this State; or
    3. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.

History of Section. P.L. 1995, ch. 370, art. 34, § 5.

44-14-14.2. Definitions applicable to §§ 44-14-14.1 — 44-14-14.5.

As used in §§ 44-14-14.1 44-14-14.5 , unless the context otherwise requires:

  1. “Billing address” means the location indicated in the books and records of the taxpayer on the first day of the taxable year (or on such later date in the taxable year when the customer relationship began) as the address where any notice, statement and/or bill relating to a customer’s account is mailed.
  2. “Borrower or credit card holder located in this state” means:
    1. A borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this state; or
    2. A borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this state.
  3. “Commercial domicile” means:
    1. The headquarters of the trade or business, that is, the place from which the trade or business is principally managed and directed; or
    2. If a taxpayer is organized under the laws of a foreign country, or of the Commonwealth of Puerto Rico, or any territory or possession of the United States, the taxpayer’s commercial domicile shall be deemed for the purposes of this section to be the state of the United States or the District of Columbia from which the taxpayer’s trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer’s trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of the employees are performed, as of the last day of the taxable year.
  4. “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services that are included in the employee’s gross income under the federal Internal Revenue Code. In the case of employees not subject to the federal Internal Revenue Code e.g., those employed in foreign countries the determination of whether the payments would constitute gross income to the employees under the federal Internal Revenue Code shall be made as though the employees where subject to the federal Internal Revenue Code.
  5. “Credit card” means credit, travel or entertainment card;
  6. “Credit card issuer’s reimbursement fee” means the fee a taxpayer receives from a merchant’s bank because one of the persons to whom the taxpayer has issued a credit card has charged merchandise or services to the credit card.
  7. “Employee” means, with respect to a particular taxpayer, any individual who, under the usual common-law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer.
  8. “Financial institution” means entities as defined in § 44-14-2(2) .
      1. “Gross rents” means the actual sum of money or other consideration payable for the use or possession of property. “Gross rents” shall include, but shall not be limited to:
  9. Any amount payable for the use or possession of real property or tangible property whether designated as a fixed sum of money or as a percentage of receipts, profits or otherwise;
    1. Reasonable amounts payable as separate charges for water and electric service furnished by the lessor;
    2. Reasonable amounts payable as service charges for janitorial services furnished by the lessor;
    3. Reasonable amounts payable for storage, provided the amounts are payable for space not designated and not under the control of the taxpayer; and
    4. That portion of any rental payment which is applicable to the space subleased from the taxpayer and not used by it.
  10. “Loan” means any extension of credit resulting from direct negotiating between the taxpayer and its customer, and/or the purchase, in whole or in part, of the extension of credit from another. Loans include participations, syndications, and leases treated as loans for federal income tax purposes. Loans shall not include: properties treated as loans under Section 595 of the federal Internal Revenue Code, 26 U.S.C. § 595 [repealed in 1996]; futures or forward contracts; options; national principal contracts such as swaps; credit card receivables, including purchased credit card relationships; non-interest bearing balances due from depository institutions; cash items in the process of collection; federal funds sold; securities purchased under agreements to resell; assets held in a trading account; securities; interests in a REMIC, or other mortgage-backed or asset-backed security; and other similar items.
  11. “Loan secured by real property” means that fifty percent (50%) or more of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property.
  12. “Merchant discount” means the fee (or negotiated discount) charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit card is accepted in payment for merchandise or services sold to the cardholder.
  13. “Participation” means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower.
  14. “Person” means individual, estate, trust, partnership, corporation and any other business entity.
  15. “Principal base of operations” with respect to transportation property, means the place of more or less permanent nature from which the property is regularly directed or controlled. With respect to an employee, the “principal base of operations” means the place of more or less permanent nature from which the employee regularly:
    1. States his or her work and to which he or she customarily returns in order to receive instruction from his or her employer; or
    2. Communicates with his or her customers or other persons; or
    3. Performs any other functions necessary to the exercise of his or her trade or profession at some other point or points.
  16. “Real property owned” and “tangible personal property owned” mean real and tangible personal property, respectively;
    1. On which the taxpayer may claim depreciation for federal income tax purposes; or
    2. Property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes (or could claim depreciation if subject to federal income tax). Real and tangible personal property do not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.
  17. “Regular place of business” means an office at which the taxpayer carries on its business in a regular and systematic manner and which is continuously maintained, occupied and used by employees of the taxpayer.
  18. “State” means a state of the United State, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States or any foreign country.
  19. “Syndication” means an extension of credit in which two or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount.
  20. “Taxable” means either:
    1. A taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax (including a bank shares tax), a single business tax, or an earned surplus tax, or any tax which is imposed upon or measured by net income; or
    2. Another state has jurisdiction to subject the taxpayer to any of the taxes regardless of whether, in fact, the state does or does not.
  21. “Transportation property” means vehicles and vessels capable of moving under their own power, such as aircraft, trains, water vessels and motor vehicles, as well as any equipment or containers attached to the property, such as rolling stock, barges, trailers or the like.

(ii) Any amount payable as additional rent or in lieu of rent, such as interest, taxes, insurance, repairs or any other amount required to be paid by the terms of a lease or other arrangement; and

(iii) A proportionate part of the cost of any improvement to real property made by or on behalf of the taxpayer which reverts to the owner or lessor upon termination of a lease or other arrangement. The amount to be included in gross rents is the amount of amortization or depreciation allowed in computing the taxable income base for the taxable year. Where a building is erected on leased land by or on behalf of the taxpayer, the value of the land is determined by multiplying the gross rent by eight (8) and the value of the building is determined in the same manner as if owned by the taxpayer.

(2) The following are not included in the term “gross rents”;

History of Section. P.L. 1995, ch. 370, art. 34, § 5.

Collateral References.

What constitutes trade or business under Internal Revenue Code (U.S.C.S. Title 26). 161 A.L.R. Fed. 245.

44-14-14.3. Receipts factor.

  1. General.  The receipts factor is a fraction, the numerator of which is the receipts of the taxpayer in this state during the taxable year and the denominator of which is the receipts of the taxpayer within and outside of this state during the taxable year. The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator.
  2. Receipts from the lease of real property.  The numerator of the receipts factor includes receipts from the lease or rental or real property owned by the taxpayer if the property is located within this state.
  3. Receipts from the lease of tangible personal property.
    1. Except as described in subdivision (2) of this subsection, the numerator of the receipts factor includes receipts from the lease or rental of tangible personal property owned by the taxpayer if the property is located within the state when it is first placed in service by the lessee.
    2. Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state. The extent an aircraft will be deemed to be used in this state and the amount of receipts that is to be included in the numerator of this state’s receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft. If the extent of the use of any transportation property within this state cannot by determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.
  4. Interest from loans secured by real property.
    1. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state. If the property is located both within this state and one or more other states, the receipts described in this section are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this state. If more than fifty percent (50%) of the fair market value of the real property is not located within any one state, then the receipts described in this section shall be included in the numerator or the receipts factor if the borrower is located in this state.
    2. The determination of whether the real property securing a loan is located within this state shall be made as of the time the original agreement was made and any and all subsequent substitutions of collateral shall be disregarded.
  5. Interest from loans not secured by real property.  The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans not secured by real property if the borrower is located in this state.
  6. Net gains for the sale of loans.
    1. The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans includes income recorded under the coupon stripping rules of § 1286 of the Internal Revenue Code, 26 U.S.C. § 1286.
    2. The amount of net gains (but not less than zero) from the sale of loans secured by real property included in the numerator is determined by multiplying the net gains by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.
    3. The amount of net gains (but not less than zero) from the sale of loans not secured by real property included in the numerator is determined by multiplying the net gains by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.
  7. Receipts from credit card receivables.  The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to cardholders, such as annual fees, if the billing address of the cardholder is in this state.
  8. Net gains from the sale of credit card receivables.  The numerator of the receipts factor includes net gains (but not less than zero) from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) of this section and the denominator of which is the taxpayer’s total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to cardholders.
  9. Credit card issuer’s reimbursement fees.  The numerator of the receipts factor includes all credit card issuer’s reimbursement fees multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) of this section and the denominator of which is the taxpayer’s total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to cardholders.
  10. Receipts from merchant discount.  The numerator of the receipts factor includes receipts from merchant discount if the commercial domicile of the merchant is in this state. The receipts shall be computed net of any cardholder charge backs, but shall not be reduced by any interchange transaction fees or by any issuer’s reimbursement fees paid to another for charges made by its cardholders.
  11. Loan servicing fees.
      1. The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.
      2. The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.
  12. Receipts from services.  The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section if the service is performed in this state. If the service is performed both within and outside of this state, the numerator of the receipts factor includes receipts from services not otherwise apportioned under §§ 44-14-14.1 44-14-14.5 if a greater proportion of the income-producing activity is performed in this state based on cost of performance.
  13. Receipts from investment assets and activities and trading assets and activities.
      1. Interest, dividends, net gains (but not less than zero) and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. Investment assets and activities and trading assets and activities include but are not limited to: investment securities; trading account assets; federal funds; securities purchased and sold under agreements to resell or repurchase; options; future contracts; forward contracts; national principal contracts such as swaps; equities; and foreign currency transactions. With respect to the investment and trading assets and activities described in paragraphs (ii) and (iii) of this subdivision, the receipts factor shall include the amounts described in those parts.
      2. The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements.
      3. The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities including, but not limited to, assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from those assets and activities.
      4. The amount of interest, dividends, gains and other income from trading assets and activities including, but not limited to, assets and activities in the matched book, in the arbitrage book and foreign currency transactions, but excluding amounts described in paragraphs (ii) and (iii) of this subdivision attributable to this state and included in the numerator is determined by multiplying the amount described in paragraph (1)(iii) of this subsection by a fraction, the numerator of which is the average value of the trading assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all the assets.
      5. For purposes of this subdivision, average value shall be determined using the rules for determining the average value of tangible personal property set forth in § 44-14-14.4(c) and (d).
  14. All other receipts.  The numerator of the receipts factor includes all other receipts pursuant to the provisions of § 44-14-14 .
  15. Attribution of certain receipts to commercial domicile.  All receipts which would be assigned under this section to a state in which the taxpayer is not taxable shall be included in the numerator of the receipts factor, if the taxpayer’s commercial domicile is in this state.

(2) In circumstances in which the taxpayer receives loan servicing fees for servicing either the secured or the unsecured loans of another, the numerator of the receipts factor shall include the fees if the borrower is located in this state.

(2) (i) The numerator of the receipts factor includes interest, dividends, net gains (but not less than zero) and other income from investment assets and activities and from trading assets and activities described in subdivision (1) of this subsection that are attributable to this state.

(ii) The amount of interest, dividends, net gains (but not less than zero) and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all the income from those assets and activities by a fraction, the numerator of which is the average value of the assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all the assets.

(iii) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in paragraph (1)(ii) of this subsection from those funds and the securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all the funds and the securities.

(3) (i) In lieu of using the method set forth in subdivision (2) of this subsection, the taxpayer may elect, or the tax administrator may require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this subdivision.

(ii) The amount of interest, dividends, net gains (but not less than zero) and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all the income from the assets and activities by a fraction, the numerator of which is the gross income from the assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all the assets and activities.

(iii) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subdivision (1) of this subsection from the funds and the securities by a fraction, the numerator of which is the gross income from the funds and the securities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all the funds and the securities.

(iv) The amount of interest, dividends, gains and other income from trading assets and activities including, but not limited to, assets and activities in the matched book, in the arbitrage book and foreign currency transactions but excluding amounts described in paragraphs (ii) and (iii) of this subdivision, attributable to this state and included in the numerator is determined by multiplying the amount described in paragraph (1)(iii) of this subsection by a fraction, the numerator of which is the gross income from the trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all the assets and activities.

(4) If the taxpayer elects or is required by the tax administrator to use the method set forth in subdivision (3) of this subsection, it shall use this method on all subsequent returns unless the taxpayer receives prior permission from the tax administrator to use, or the tax administrator requires a different method.

(5) The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of this state by demonstrating that the day-to-day decisions regarding the asset or activity occurred at a regular place of business outside of this state. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one regular place of business and one regular place of business is in this state and one regular place of business is outside of this state, the asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, the policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer.

History of Section. P.L. 1995, ch. 370, art. 34, § 5.

44-14-14.4. Property factor.

  1. General.  The property factor is a fraction, the numerator of which is the average value of real property and tangible personal property rented to the taxpayer that is located or used within this state during the taxable year, the average value of the taxpayer’s real and tangible personal property owned that is located or used within this state during the taxable year, and the average value of the taxpayer’s loans and credit card receivables that are located within this state during the taxable year, and the denominator of which is the average value of all the property located or used within and outside of this state during the taxable year.
  2. Property included.  The property factor shall include only property the income or expenses of which are included (or would have been included if not fully depreciated or expensed, or depreciated or expensed to a nominal amount) in the computation of the apportionable income base for the taxable year.
  3. Value of property owned by the taxpayer.
    1. The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of the property for federal income tax purposes without regard to depletion, depreciation or amortization.
    2. Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a loan is charged-off in whole or in part for federal income tax purposes, the portion of the loan charged-off is not outstanding. A specifically allocated reserve established pursuant to regulatory or financial guideline which is treated as charged-off for federal income tax purposes shall be treated as charged-off for purposes of §§ 44-14-14.1 44-14-14.5 .
    3. Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a credit card receivable is charged-off in whole or in part for federal income tax purposes. The portion of the receivable charged-off is not outstanding.
  4. Average value of property owned by the taxpayer.  The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two. If averaging on this basis does not properly reflect average value, the tax administrator may require averaging on a more frequent basis. When averaging on a more frequent basis is required by the tax administrator or is elected by the taxpayer, the same method of valuation must be used consistently by the taxpayer with respect to property within and outside of this state and on all subsequent returns unless the taxpayer receives prior permission from the tax administrator or the tax administrator requires a different method of determining average value.
  5. Average value of real property and tangible personal property rented to taxpayer.
    1. The average value of real property and tangible personal property that the taxpayer has rented from another and which is not treated as property owned by the taxpayer for federal income tax purposes, shall be determined annually by multiplying the gross rents payable during the taxable year by eight.
    2. Where the use of the general method described in this subsection results in inaccurate valuations of rented property, any other method, which properly reflects the value may be adopted by the tax administrator or by the taxpayer when approved, in writing, by the administrator. Once approved, this other method of valuation must be used on all subsequent returns unless the taxpayer receives prior approval from the tax administrator or the tax administrator requires a different method of valuation.
  6. Location of real property and tangible personal property owned by or rented to the taxpayer.
    1. Except as described in subdivision (2) of this subsection, real property and tangible personal property owned by or rented to the taxpayer is considered to be located within this state if it is physically located, situated or used within this state.
    2. Transportation property is included in the numerator of the property factor to the extent that the property is used in this state. The extent an aircraft will be deemed to be used in this state and the amount of value that is to be included in the numerator of this state’s property factor is determined by multiplying the average value of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft everywhere. If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.
  7. Location of loans.
      1. A loan is considered to be located within this state if it is properly assigned to a regular place of business of the taxpayer within this state.
      2. A loan is properly assigned to the regular place of business with which it has a preponderance of substantive contacts. A loan assigned by the taxpayer to a regular place of business outside of the state shall be presumed to have been properly assigned if:
        1. The taxpayer has assigned, in the regular course of its business, this loan on its records to a regular place of business consistent with federal or state regulatory requirements;
        2. The assignment on its records is based upon substantive contacts of the loan to the regular place of business; and
        3. The taxpayer uses the records reflecting assignment of loans for the filing of all state and local tax returns for which an assignment of loans to a regular place of business is required.
      3. The presumption of proper assignment of a loan provided in subparagraph (ii)(B) of this subdivision may be rebutted upon a showing by the tax administrator, supported by a preponderance of the evidence, that the preponderance of substantive contacts regarding the loan did not occur at the regular place of business to which it was assigned on the taxpayer’s records. When the presumption has been rebutted, the loan shall then be located within this state if:
        1. The taxpayer had a regular place of business within this state at the time the loan was made; and
        2. The taxpayer fails to show, by a preponderance of the evidence, that the preponderance of substantive contacts regarding the loan did not occur within this state.
      4. Approval.  Approval is the procedure where employees or the board of directors of the taxpayer make the final determination whether to enter into the agreement. The activity is located at the regular place of business with which the taxpayer’s employees are regularly connected or working out of, regardless of where the services of the employees were actually performed. If the board of directors makes the final determination, the activity is located at the commercial domicile of the taxpayer.
      5. Administration.  Administration is the process of managing the account. This process includes bookkeeping, collecting the payments, corresponding with the customer, reporting to management regarding the status of the agreement and proceeding against the borrower or the security interest if the borrower is in default. The activity is located at the regular place of business that oversees this activity.
    1. In the case of a loan which is assigned by the taxpayer to a place outside of this state which is not a regular place of business, it shall be presumed, subject to rebuttal by the taxpayer on a showing supported by the preponderance of evidence, that the preponderance of substantive contacts regarding the loan occurred within this state if, at the time the loan was made, the taxpayer’s commercial domicile, as defined by § 44-14-14.2(c) was within this state.
    2. To determine the state in which the preponderance of substantive contacts relating to a loan have occurred, the facts and circumstances regarding the loan at issue shall be reviewed on a case-by-case basis and consideration shall be given to the activities as the solicitation, investigation, negotiation, approval and administration of the loan. The terms “solicitation”, “investigation”, “negotiation”, “approval”, and “administration” are defined as follows:
  8. Location of credit card receivables.  For purposes of determining the location of credit card receivables, credit card receivables shall be treated as loans and shall be subject to the provisions of subsection (g) of this section.
  9. Period for which property assigned loan remains assigned.  A loan that has been properly assigned to a state shall, absent any change of material fact, remain assigned to the state for the length of the original term of the loan. Thereafter, the loan may be properly assigned to another state if the loan has a preponderance of substantive contact to a regular place of business there.

(i) Solicitation. Solicitation is either active or passive. Active solicitation occurs when an employee of the taxpayer initiates the contact with the customer. The activity is located at the regular place of business with which the taxpayer’s employee is regularly connected or working out of, regardless of where the services of the employee were actually performed. Passive solicitation occurs when the customer initiates the contact with the taxpayer. If the customer’s initial contact was not at a regular place of business of the taxpayer, the regular place of business, if any, where the passive solicitation occurred is determined by the facts in each case.

(ii) Investigation. Investigation is the procedure where employees of the taxpayer determine the credit-worthiness of the customer as well as the degree of risk involved in making a particular agreement. The activity is located at the regular place of business with which the taxpayer’s employees are regularly connected or working out of, regardless of where the services of the employees were actually performed.

(iii) Negotiation. Negotiation is the procedure where employees of the taxpayer and its customer determine the terms of the agreement (e.g., the amount, duration, interest rate, frequency of repayment, currency denomination and security required). The activity is located at the regular place of business with which the taxpayer’s employees are regularly connected or working out of, regardless of where the services of the employees were actually performed.

History of Section. P.L. 1995, ch. 370, art. 34, § 5.

44-14-14.5. Payroll factor.

  1. General.  The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation and the denominator of which is the total compensation paid both within and outside of this state during the taxable year. The payroll factor shall include only that compensation which is included in the computation of the apportionable income tax base for the taxable year.
  2. When compensation paid in this state.  Compensation is paid in this state if any one of the following tests, applied consecutively, is met:
    1. The employee’s services are performed entirely within this state.
    2. The employee’s services are performed both within and outside of the state, but the service performed outside of the state is incidental to the employee’s service within the state. The term “incidental” means any service which is temporary or transitory in nature, or which is rendered in connection with an isolated transaction.
    3. If the employee’s services are performed both within and outside of this state, the employee’s compensation will be attributed to this state:
      1. If the employee’s principal base of operations is within this state;
      2. If there is no principal base of operations in any state in which some part of the services is performed, but the place from which the services are directed or controlled is in this state; or
      3. If the principal base of operations and the place from which the services are directed or controlled are not in any state in which some part of the service is performed, but the employee’s residence is in this state.

History of Section. P.L. 1995, ch. 370, art. 34, § 5.

44-14-15. Dividends excluded from income.

There shall not be included in a taxpayer’s net income dividends received from the shares of stock of:

  1. Any corporation if over fifty percent (50%) of the corporation’s value was apportioned to this state in determining the tax last imposed on it by chapter 11 of this title;
  2. Any utility if over fifty percent (50%) of the utility’s gross earnings was apportioned to this state in determining the tax last imposed on it by chapter 13 of this title;
  3. Any banking institution liable to a tax under this chapter; and
  4. Any corporation specified in § 44-11-1(4)(i) .

History of Section. P.L. 1942, ch. 1212, art. 7, § 6; G.L. 1956, § 44-14-15 ; P.L. 1994, ch. 93, § 3.

Compiler’s Notes.

The reference in subdivision (4) to § 44-11-1(1)(vii) was changed to § 44-11-1(4)(i) to reflect the amendment to that section.

44-14-16. Liability of fiduciaries.

Any receiver, liquidator, agent, trustee, assignee, conservator, or other fiduciary conducting or liquidating the business or selling the assets of any banking institution shall be subject to the provisions of and the tax imposed by this chapter in the same manner and to the same extent as if the business were being conducted or liquidated or the assets sold by the agents or officers of the banking institution.

History of Section. P.L. 1942, ch. 1212, art. 7, § 17; G.L. 1956, § 44-14-16 .

44-14-17. Exemption of intangible property and stock from taxation.

The intangible property and the shares of stock of any banking institution liable to a tax under this chapter shall be exempt from taxation in this state.

History of Section. P.L. 1942, ch. 1212, art. 7, § 7; G.L. 1956, § 44-14-17 .

Cross References.

Dividends, exemption from business corporation tax, § 44-11-12 .

44-14-18. Payment of tax.

Any tax imposed under the terms of this chapter shall be due and payable upon the last day upon which a return must be filed under §§ 44-14-6 and 44-14-7 . Upon the filing of the return, the full amount of any tax, as computed by the taxpayer, shall be paid to the administrator.

History of Section. P.L. 1942, ch. 1212, art. 7, § 8; G.L. 1956, § 44-14-18 .

Cross References.

Assessment and collection by tax administrator, § 44-1-2 .

Collateral References.

Insolvent bank or trust company, tax on bank stock as payable out of assets of. 87 A.L.R. 1018.

44-14-19. Examination and correction of returns — Refund or credit.

As soon as practicable after the return is filed, the tax administrator shall examine it and determine the correct amount of the tax and, in case any error shall be disclosed by the examination, he or she shall notify the taxpayer. The tax administrator shall give the taxpayer not less than thirty (30) days’ notice by mail of the time and place of the hearing upon the question of the correct amount of the tax. After the hearing, the taxpayer shall be given notice, by mail, by the tax administrator of the tax administrator’s determination of the correct amount of the tax. If the tax administrator determines that the taxpayer has paid a tax in excess of the amount lawfully due, the tax administrator shall allow a refund or permit a credit as provided by law. If the tax administrator shall determine that the excess payment was made in good faith, the tax administrator may make the refund with interest at the annual rate prescribed by § 44-1-7.1 from the date of the excess payment.

History of Section. P.L. 1942, ch. 1212, art. 7, § 8; G.L. 1956, § 44-14-19 ; P.L. 1992, ch. 388, § 4.

44-14-19.1. Claims for refund — Hearing upon denial.

  1. Any taxpayer may file a claim for refund with the tax administrator at any time within two (2) years after the tax has been paid, or in the case of a change or correction of its taxable income by any official of the state of Rhode Island or the United States government, within two (2) years after receiving notice of the change or correction. If the tax administrator shall determine that the tax has been overpaid, he or she shall make a refund with interest at the annual rate provided by § 44-1-7.1 from the date of payment.
  2. Any taxpayer whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall so notify the applicant.

History of Section. P.L. 1977, ch. 136, § 2; P.L. 1987, ch. 57, art. 4, § 1; P.L. 1992, ch. 388, § 4; P.L. 1997, ch. 106, § 1.

Collateral References.

What constitutes payment for purposes of commencing limitations period under Internal Revenue Code (26 U.S.C.S. § 6511(a)) for refund of tax overpayments. 160 A.L.R. Fed. 137.

44-14-19.2. Limitations on assessment.

  1. General.  Except as provided in this section the amount of the excise tax shall be assessed within three (3) years after the return was filed (whether or not the return was filed on or after the prescribed date). For this purpose, a tax return filed before the due date shall be considered as filed on the due date.
  2. Exceptions.
    1. The tax may be assessed at any time if:
      1. No return is filed.
      2. A false or fraudulent return is filed with intent to avoid tax.
    2. Where, before the expiration of the prescribed time in this section for the assessment of tax, or before the time as extended under this section, both the tax administrator and the taxpayer have consented, in writing, to its assessment after that time. The tax may be assessed at any time prior to the expiration of the agreed upon period.
    3. An erroneous refund shall be considered to create an underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous refund may be made at any time within three (3) years thereafter, or at any time if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.
  3. Notwithstanding the foregoing provisions of this section, the tax may be assessed at any time within six (6) years after the return was filed if a taxpayer omits from its income an amount properly includable in the return which is in excess of twenty-five percent (25%) of the amount of income stated in the return. For this purpose there shall not be taken into account any amount which is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the item.
  4. The running of the period of limitations on assessment or collection of the tax or other amount (or of a transferee’s liability) shall, after the mailing of a notice of deficiency, be suspended for any period during which the tax administrator is prohibited from making the assessment or from collecting by levy, and for sixty (60) days after this.
  5. No period of limitations specified in any other law shall apply to the assessment or collection of taxes due under this chapter.

History of Section. P.L. 1997, ch. 106, § 2.

Collateral References.

Suspension of running of period of limitation, under 26 U.S.C.S. § 6503, for federal tax assessment or collection. 160 A.L.R. Fed. 1.

44-14-20. Interest on delinquent payments.

If any tax imposed by this chapter is not paid when due, the taxpayer shall be required to pay as part of the tax interest thereon at the annual rate provided by § 44-1-7 from that time.

History of Section. P.L. 1942, ch. 1212, art. 7, § 8; G.L. 1956, § 44-14-20 ; P.L. 1992, ch. 388, § 4.

44-14-21. Lien on real estate.

The amount of any tax, penalty, and interest charge imposed upon any banking institution under the provisions of this chapter shall, until collected, constitute a lien upon the banking institution’s real estate located in this state, and the lien shall take precedence over any other lien or encumbrance on the real estate.

History of Section. P.L. 1942, ch. 1212, art. 7, § 8; G.L. 1956, § 44-14-21 .

44-14-22. Supplemental returns.

Any banking institution, which fails to include in its return any items of income or any other information required by this chapter or by prescribed regulations shall make a supplemental return disclosing these facts. Any banking institution whose return to the collector of internal revenue, or whose net income returned, shall be changed or corrected by any official of the United States government in any respect affecting a tax imposed by this chapter shall, within thirty (30) days after receipt of a notification of the final adjustment and determination of the change or correction, make the supplemental return required by this section. Upon the filing of a supplemental return, the tax administrator shall examine the return and shall determine any additional tax that may be due and shall notify the taxpayer of the additional tax.

History of Section. P.L. 1942, ch. 1212, art. 7, § 9; G.L. 1956, § 44-14-22 .

44-14-23. Information confidential — Types of disclosure authorized.

It shall be unlawful for any state official or employee to divulge or to make known to any person in any manner not provided by law the amount or source of income, profits, losses, expenditures, or any particular set forth or disclosed in any return, or to permit any return or copy or any book containing any abstract or particulars to be seen or examined by any person except as provided by law, and it shall be unlawful for any person to print or publish, in any manner not provided by law, any return or any part or source of income, profits, losses, or expenditures appearing in any return. Any offense against the foregoing provision shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment not exceeding one year, or both, at the discretion of the court. If the offender is an officer or employee of the state of Rhode Island, he or she may be dismissed from office or discharged from employment; provided, that the tax administrator may authorize the examination of the return by tax officials regularly in the employ of another state or of the federal government if a reciprocal arrangement exists. It shall be lawful for the tax administrator to publish the names of those banking institutions the shares of stock of which shall be exempt from taxation under § 44-14-17 .

History of Section. P.L. 1942, ch. 1212, art. 7, § 10; G.L. 1956, § 44-14-23 .

Collateral References.

Recovery of damages under § 7431(c)(1)(B) of Internal Revenue Code (26 USCA § 7431(c)(1)(B)) based on improper release of confidential tax return information. 154 A.L.R. Fed. 537.

Validity, construction, and effect of state laws requiring public officials to protect confidentiality of income tax returns or information. 1 A.L.R.4th 959.

What are matters “related solely to the internal personnel rules and practices of an agency” exempted from disclosure under Freedom of Information Act (5 USCS § 552(b)(2)). 28 A.L.R. Fed. 645.

44-14-24. Power to summon witnesses.

The tax administrator may summon any banking institution, or officer, agent, or employee of the institution, or any other person to appear before him or her and produce records and documents at a time and place named in the summons and to give testimony and to answer interrogatories, under oath, respecting any matter which the tax administrator deems pertinent or material to the administration of this chapter.

History of Section. P.L. 1942, ch. 1212, art. 7, § 11; G.L. 1956, § 44-14-24 .

Collateral References.

Sufficiency of description of business records under Fourth Amendment requirement of particularity in federal warrant authorizing search and seizure. 53 A.L.R. Fed. 679.

44-14-25. Service of summons.

The summons may be sent by registered or certified mail to the banking institution, to any officer, agent, or employee of the institution, or to any other person, or may be left by any authorized agent of the tax administrator with the banking institution, or with any officer, agent, or employee of the institution, or any other person, or left at his or her last and usual place of abode. When the summons requires the production of records or documents, it shall be sufficient if the records and documents are described with reasonable certainty.

History of Section. P.L. 1942, ch. 1212, art. 7, § 11; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-14-25 .

44-14-26. Enforcement of summons.

Whenever any person or banking institution summoned under the provisions of §§ 44-14-24 and 44-14-25 neglects or refuses to obey the summons or to give testimony or to answer interrogatories as required, the tax administrator may apply to the sixth (6th) division of the district court for a citation against the person or banking institution as for contempt. Any judge of the court may hear the application and, if satisfactory proof is made, shall issue a citation for the arrest of the person, or of any officer of the banking institution, and upon the person or officer being brought before the judge, he or she shall proceed to a hearing of the case. Upon the hearing, the judge shall have power to make an order as he or she shall deem proper. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the rules of appellate procedure of the supreme court.

History of Section. P.L. 1942, ch. 1212, art. 7, § 11; G.L. 1956, § 44-14-26 ; P.L. 1976, ch. 140, § 24.

44-14-27. Determination of tax without return.

If any banking institution fails to file a return at the time prescribed by law, the tax administrator shall proceed to determine the tax from any information the tax administrator can obtain.

History of Section. P.L. 1942, ch. 1212, art. 7, § 12; G.L. 1956, § 44-14-27 .

44-14-28. Pecuniary penalty for failure to file return.

In case of any failure to file a return within the time prescribed by law, there shall be added to the tax five percent (5%) if the failure is for not more than thirty (30) days with an additional five percent (5%) for each additional thirty (30) days or fraction of a day during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when a return is filed after the time prescribed by law, and it is shown that the failure to file the return at the prescribed time was due to reasonable cause and not due to willfull neglect, no addition to the tax shall be made.

History of Section. P.L. 1942, ch. 1212, art. 7, § 12; G.L. 1956, § 44-14-28 .

44-14-29. Pecuniary penalty for false return.

In case a false or fraudulent return is made with intent to evade any tax imposed by this chapter, the tax administrator shall add to the tax fifty percent (50%) of its amount.

History of Section. P.L. 1942, ch. 1212, art. 7, § 12; G.L. 1956, § 44-14-29 .

44-14-30. Collection of pecuniary penalties.

The amount added to any tax under §§ 44-14-28 and 44-14-29 shall be collected as a part of and at the same time and in the same manner as the tax unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount added shall be collected in the same manner as the tax.

History of Section. P.L. 1942, ch. 1212, art. 7, § 12; G.L. 1956, § 44-14-30 .

44-14-31. Examination of books and witnesses.

The tax administrator, for the purpose of ascertaining the correctness of any return or for the purpose of determining the amount of any tax imposed by this chapter, may, by any of the tax administrator’s officers or employees designated by him or her for that purpose, examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person executing the return, or of any officer or employee of any banking institution, or the attendance of any other person, and may examine him or her, under oath, respecting any matter which the tax administrator deems pertinent or material in determining the liability of any corporation to a tax imposed by this chapter.

History of Section. P.L. 1942, ch. 1212, art. 7, § 13; G.L. 1956, § 44-14-31 .

Collateral References.

Authority of Internal Revenue Service to compel production of tax records and books for purposes of audit under Taxpayer Compliance Measurement Program. 69 A.L.R. Fed. 786.

44-14-32. Penalty for violations by banks.

Whenever any banking institution delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the banking institution shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. P.L. 1942, ch. 1212, art. 7, § 14; G.L. 1956, § 44-14-32 ; P.L. 1986, ch. 103, § 4.

44-14-33. Penalty for violations by individuals.

Whenever any person delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the person shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. P.L. 1942, ch. 1212, art. 7, § 14; G.L. 1956, § 44-14-33 ; P.L. 1986, ch. 103, § 4.

44-14-34. Penalty for failure to file return.

If any return or statement, including a supplemental return, required to be made under the provisions of this chapter is not made within the time fixed or extended, the corporation or any officer or agent of the corporation neglecting or refusing to make the return or statement shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. P.L. 1942, ch. 1212, art. 7, § 14; G.L. 1956, § 44-14-34 ; P.L. 1986, ch. 103, § 4.

44-14-35. Hearing on application by bank.

Any banking institution aggrieved by the action of the tax administrator in determining the amount of any tax or penalty imposed under the provisions of this chapter may apply to the tax administrator, in writing, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to the action of the tax administrator. The tax administrator shall fix a time and place for the hearing and shall notify the applicant. Upon the hearing the tax administrator shall correct manifest errors, if any, disclosed at the hearing and assess and collect the lawfully due tax together with any penalty or interest.

History of Section. P.L. 1942, ch. 1212, art. 7, § 15; G.L. 1956, § 44-14-35 ; P.L. 1962, ch. 103, § 1; P.L. 1993, ch. 459, § 4.

Cross References.

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

44-14-36. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section shall be expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the taxpayer is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. P.L. 1942, ch. 1212, art. 7, § 16; G.L. 1956, § 44-14-36 ; P.L. 1976, ch. 140, § 24; P.L. 1982, ch. 388, §§ 3, 10; P.L. 1984, ch. 183, § 5.

Cross References.

Appeals under Administrative Procedures Act, § 42-35-15 et seq.

44-14-37. Collection by writ of execution.

If any tax or penalty imposed by this chapter shall not be paid within thirty (30) days after the tax or penalty shall become due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth (6th) division of the district court for a writ of execution, setting forth the nonpayment of the tax or penalty. The court shall appoint a time for a hearing and shall cause a reasonable notice of the hearing to be given to the adverse party, and at the time and place of the return of the notice shall proceed summarily to hear the parties. If, upon the hearing it shall appear that the tax or penalty is unpaid, the court shall immediately issue an execution for the collection of the tax or penalty, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the banking institutions as may be taken on execution. The officer properly charged with the service of the execution shall serve the execution as commanded, and shall sell the seized property as property is sold when taken on execution in actions at law, or the court shall take any other action as it may deem proper to enforce the payment of the tax by the appointment of a receiver of the property of the banking institution. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. P.L. 1942, ch. 1212, art. 7, § 18; G.L. 1956, § 44-14-37 ; P.L. 1976, ch. 140, § 24.

44-14-38. Severability.

If any provision of this chapter or the application of the chapter to any banking institution or circumstance is held invalid, the remainder of this chapter and the application of the provisions to the other banking institutions or circumstances shall not be affected.

History of Section. P.L. 1942, ch. 1212, art. 7, § 20; G.L. 1956, § 44-14-38 .

Chapter 15 Tax on Bank Deposits Generally

44-15-1. Definitions.

Whenever used in this chapter:

  1. “Banking institution” means and includes a national banking association with its principal office or a branch located within the limits of this state, a state bank, trust company, savings bank (state or federal), building and loan association, and savings and loan association (state or federal), and loan and investment company organized under the laws of this state or having its principal place of business or a branch in this state:
    1. “Deposits” means and includes:
      1. In the case of a national banking association, state bank, trust company, or savings bank (state or federal), savings deposits, participation deposits, or time deposits of any kind which bear interest or which are entitled to dividends;
      2. In the case of a building and loan association or a savings and loan association, outstanding shares of stock of every class and however designated plus divided earnings applicable to the stock, or time deposits of any kind, but shall not include shares of stock and the divided earnings applicable, or time deposits of any kind pledged as collateral to secure mortgage loans on real estate;
      3. In the case of a loan and investment company, deposits, or time deposits of any kind, which bear interest; also fully paid or partly paid certificates of investment, but not including payments made on investment certificates hypothecated as collateral against loans.
    2. “Deposits” and “time deposits” as used in subparagraphs (i)(A) — (i)(C) of this subdivision also mean and include deposits or savings made under any type of deposit or savings plan represented by certificates of deposit, savings bonds, or income certificates issued by any banking institution, or however these or similar time deposits or savings plan may be designated. “Deposits” or “time deposits” as used above shall not include any deposits of a branch or office of any banking institution located outside of this state, whether it is established de novo or acquired pursuant to an interstate merger, consolidation, or acquisition; provided, that the deposits are made at a branch or office outside of this state, or an international banking facility of any banking institution, as defined in 12 C.F.R. § 204.8, or which are payable only at an office located outside of the United States.

History of Section. G.L. 1938, ch. 40, § 1; P.L. 1942, ch. 1212, art. 8, § 1; P.L. 1943, ch. 1342, § 1; G.L. 1956, § 44-15-1 ; P.L. 1958, ch. 166, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1969, ch. 207, art. 2, § 1; P.L. 1971, ch. 53, art. 2, § 1; P.L. 1972, ch. 155, art. 4, § 1; P.L. 1973, ch. 263, art. 2, § 1; P.L. 1986, ch. 410, § 1; P.L. 1987, ch. 174, § 3; P.L. 1988, ch. 269, § 1.

NOTES TO DECISIONS

Deposits.

Eurodollar deposit accounts qualified for tax-exempt status where the deposits were located in a branch of a banking institution located outside Rhode Island, and where the deposits were made at a branch outside the state and were payable only at an office located outside the United States. Fleet Nat'l Bank v. Clark, 714 A.2d 1172, 1998 R.I. LEXIS 219 (R.I. 1998).

44-15-1.1. “Credit Unions” and “deposits” defined.

Whenever used in this chapter:

  1. “Credit union” means and includes a credit union with its principal place of business or a branch of the credit union in this state.
  2. “Deposits” means and includes:
    1. Shares of stock, either fully or partly paid, plus deposits or time deposits of any kind which bear interest or which are entitled to dividends. There shall be an amount excluded from taxation under the provisions of this chapter equal to the percentage of those deposits as shall equal that percentage of the daily average of the total assets of the credit union during the calendar year invested in book value of obligations of the United States, its territories and possessions and of any authority, commission, or instrumentality of the United States exempt from state taxation under the laws of the United States.
    2. “Deposits” and “time deposits” as used in paragraph (i) of this subdivision also means and includes deposits or savings made under any type of deposits or savings plan represented by certificates of deposits, savings bonds, or income certificates issued by any institution, or however these or similar time deposits or savings plan may be designated. “Deposits” or “time deposits” as used above shall not include any deposits of a branch or office of any credit union located outside of this state, whether it is established de novo or acquired pursuant to an interstate merger, consolidation, or acquisition; provided, that the deposits are made at a branch or office outside of this state, or any international credit union facility of any credit union, as defined in regulations of the national credit union administration or which are payable only at an office located outside of the United States.

History of Section. P.L. 1986, ch. 410, § 2; P.L. 1987, ch. 170, § 1; P.L. 1988, ch. 269, § 1; P.L 1992, ch. 133, art. 29, § 1; P.L. 1995, ch. 370, art. 34, § 3.

44-15-1.2. Credit unions — Tax imposed.

An annual tax is imposed on every credit union with total deposits in excess of one hundred fifty million dollars ($150,000,000) at a rate of six and ninety-five one hundredths cents ($.0695) on each one hundred dollars ($100) of the daily average of the deposits with the credit union during the calendar year; for those credit unions with total deposits of one hundred fifty million dollars ($150,000,000) or less the rate shall be six and one-quarter cents ($.0625) on each one hundred dollars ($100) of the daily average of deposits with the credit union during the calendar year.

History of Section. P.L. 1986, ch. 410, § 2; P.L. 1987, ch. 170, § 1; P.L. 1992, ch. 133, art. 29, § 1.

44-15-2. Banking institutions — Tax imposed.

  1. An annual tax is imposed on every banking institution at the rate of six and ninety-five one hundredths cents ($.0695) for those banking institutions with total deposits in excess of one hundred fifty million dollars ($150,000,000) and at the rate of six and one-quarter cents ($.0625) for those banking institutions with total deposits of one hundred fifty million dollars ($150,000,000) or less on each one hundred dollars ($100) of the daily average of the deposits with the banking institution during the calendar year; provided, that there shall be excluded from taxation under the provisions of this chapter the percentage of the deposits as shall equal that percentage of the daily average of the total assets of the banking institution during the calendar year as are invested in the book value of obligations of the United States, its territories and possessions and of any authority, commission, or instrumentality of the United States exempt from state taxation under the laws of the United States.
  2. For the period January 1, 1997, through December 31, 1997, the six and ninety-five one hundredths cents rate ($.0695) shall be reduced to three and forty-eight one hundredths cents ($.0348) and the six and one-quarter cents rate ($.0625) shall be reduced to three and thirteen one hundredths cents ($.0313). For the period beginning January 1, 1998, and thereafter the tax rate shall be zero for all deposits.

History of Section. G.L. 1896, ch. 29, §§ 3, 4; P.L. 1908, ch. 1590, §§ 79, 80; G.L. 1909, ch. 39, §§ 3, 4; P.L. 1919, ch. 1775, § 1; P.L. 1920, ch. 1905, §§ 1, 2; G.L. 1923, ch. 37, §§ 3, 4; G.L. 1938, ch. 40, §§ 1, 2; P.L. 1942, ch. 1212, art. 8, § 1; P.L. 1943, ch. 1342, § 1; G.L. 1956, §§ 44-15-2 to 44-15-4 ; P.L. 1958, ch. 166, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1971, ch. 8, art. 4, § 1; P.L. 1984, ch. 393, § 1; P.L. 1986, ch. 410, § 1; P.L. 1987, ch. 170, § 1; P.L. 1992, ch. 133, art. 29, § 1; P.L. 1995, ch. 370, art. 34, § 3.

NOTES TO DECISIONS

Constitutionality.

The fact that this section contained no exception for federal obligations did not show an intent to tax federal obligations and therefore act is not unconstitutional on that ground. First Fed. Sav. & Loan Ass'n v. Langton, 105 R.I. 236 , 251 A.2d 170, 1969 R.I. LEXIS 745 (1969).

Void Assessments.

Assessment by tax administrator of federal obligations is void. First Fed. Sav. & Loan Ass'n v. Langton, 105 R.I. 236 , 251 A.2d 170, 1969 R.I. LEXIS 745 (1969).

Collateral References.

Situs as between different states or countries of bank deposits for purposes of property taxation. 59 A.L.R. 1046.

44-15-3. Repealed.

History of Section. G.L. 1938, ch. 40, § 2; P.L. 1943, ch. 1342, § 1; P.L. 1944, ch. 1467, § 1; P.L. 1946, ch. 1801, § 1; P.L. 1947, ch. 1940, § 1; G.L. 1956, § 44-15-5 ; G.L. 1956, § 44-15-3 ; P.L. 1958, ch. 166, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1969, ch. 207, art. 2, § 2; Repealed by P.L. 1986, ch. 410, § 3. Section 4 of P.L. 1986, ch. 410 provides that the repeal of this section by that Act shall take effect upon passage (June 25, 1986), but shall be effective for taxes paid or due under this chapter on or before June 15, 1986.

Compiler’s Notes.

Former § 44-15-3 concerned the maximum and minimum tax rates on deposits.

44-15-4. Credit for franchise tax.

There shall be credited against any tax payable by any building and loan association or savings and loan association under the provisions of this chapter, the amount of any corporation franchise tax paid by it in the same year.

History of Section. P.L. 1942, ch. 1212, art. 8, § 4; P.L. 1943, ch. 1342, § 3; G.L. 1956, § 44-15-6 ; G.L. 1956, § 44-15-4 ; P.L. 1958, ch. 166, § 1; P.L. 1968, ch. 263, art. 13, § 1.

44-15-5. Filing of return and reports — Determination and collection of tax — Interest on delinquencies.

  1. Each banking institution or credit union, on or before June 15 in each year, shall file a return with the tax administrator in the form and containing the information as he or she shall prescribe, and shall at the same time pay the tax imposed under this chapter.
  2. Upon the filing of the return, the tax administrator shall examine it and determine whether the correct amount of tax has been paid and shall assess and collect any additional tax found to be due.
  3. Any tax not paid when due shall bear interest at the annual rate provided by § 44-1-7 until paid.
  4. Each banking institution, or credit union, on or before January 15 following the close of the taxable year, shall file a report with the tax administrator in the form and containing the information as the tax administrator shall prescribe.

History of Section. G.L. 1896, ch. 29, §§ 3, 4; P.L. 1908, ch. 1590, §§ 79, 80; G.L. 1909, ch. 39, §§ 3, 4; P.L. 1919, ch. 1775, § 1; P.L. 1920, ch. 1905, §§ 1, 2; G.L. 1923, ch. 37, §§ 3, 4; G.L. 1938, ch. 40, §§ 1-3; P.L. 1942, ch. 1212, art. 8, § 1; G.L. 1956, §§ 44-15-5 , 44-15-7 ; P.L. 1958, ch. 166, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1971, ch. 8, art. 4, § 2; P.L. 1986, ch. 410, § 1; P.L. 1992, ch. 133, art. 29, § 1; P.L. 1992, ch. 388, § 5.

Cross References.

Assessment and collection by tax administrator, § 44-1-2 .

Collateral References.

Complaint as satisfying requirement of notice of claim upon states, municipalities, and other political subdivisions. 45 A.L.R.5th 109.

Persons or entities upon whom notice of injury or claim against state or state agencies may or must be served. 45 A.L.R.5th 173.

44-15-5.1. Claims for refund — Hearing upon denial.

  1. Any taxpayer may file a claim for refund with the tax administrator at any time within two (2) years after the tax has been paid. If the tax administrator shall determine that the tax has been overpaid, he or she shall make a refund with interest at the annual rate provided by § 44-1-7 from the date of payment.
  2. Any taxpayer whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the applicant.

History of Section. P.L. 1977, ch. 136, § 3; P.L. 1987, ch. 57, art. 5, § 1; P.L. 1992, ch. 388, § 5.

44-15-6. Determination of tax without return.

If any banking institution or credit union fails to file a return at the time prescribed by law, the tax administrator shall proceed to determine the tax from any information he or she can obtain.

History of Section. G.L. 1956, §§ 44-15-5 -A, 44-15-6 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 410, § 1.

44-15-7. Pecuniary penalty for failure to file report.

In case of any failure to file a return within the time prescribed by law, there shall be added to the tax five percent (5%) if the failure is for not more than thirty (30) days with an additional five percent (5%) for each additional thirty (30) days or fraction of the day during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate, except that when a return is filed after the time prescribed by law and it is shown that the failure to file the return at the prescribed time was due to reasonable cause and not due to willfull neglect, no addition to the tax shall be made.

History of Section. G.L. 1956, §§ 44-15-5 -B, 44-15-7 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1.

44-15-8. Pecuniary penalty for false return.

In case a false or fraudulent return is made with intent to evade any tax imposed by this chapter, the tax administrator shall add to the tax fifty percent (50%) of its amount.

History of Section. G.L. 1956, §§ 44-15-5 -C, 44-15-8 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1.

44-15-9. Collection of pecuniary penalties.

The amount added to any tax under §§ 44-15-7 and 44-15-8 shall be collected as a part of and at the same time and in the same manner as the tax unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the added amount shall be collected in the same manner as the tax.

History of Section. G.L. 1956, §§ 44-15-5 -D, 44-15-9 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1.

44-15-10. Examination of books and witnesses.

The tax administrator, for the purpose of ascertaining the correctness of any return or for the purpose of determining the amount of any tax imposed by this chapter, may, by any of the administrator’s officers or employees designated by him or her for that purpose, examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person executing the return, or of any officer or employee of any banking institution or credit union, or the attendance of any other person, and may examine him or her, under oath, concerning any matter which the tax administrator deems pertinent or material in determining the liability of any corporation or association to a tax imposed by this chapter.

History of Section. G.L. 1956, §§ 44-15-5 -E, 44-15-10 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 410, § 1.

Collateral References.

Authority of Internal Revenue Service to compel production of tax records and books for purposes of audit under Taxpayer Compliance Measurement Program. 69 A.L.R. Fed. 786.

44-15-11. Penalty for violations by banks.

Whenever any banking institution or credit union delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the banking institution shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. G.L. 1956, §§ 44-15-5 -F, 44-15-11 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 103, § 5; P.L. 1986, ch. 410, § 1.

44-15-12. Penalty for violations by individuals.

Whenever any person delivers or discloses or causes to be delivered or disclosed to the tax administrator any false or fraudulent return, account, or statement, with intent to defeat or evade any tax imposed under this chapter, or being summoned to appear to testify or to appear and produce books as required under this chapter, neglects to appear or to produce books, the person shall be fined not exceeding ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. G.L. 1956, §§ 44-15-5 -G, 44-15-12 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 103, § 5.

44-15-13. Penalty for failure to file return.

If any return or statement required to be made under the provisions of this chapter is not made within the time fixed or extended, the corporation or association or any officer or agent of the corporation neglecting or refusing to make the return or statement shall be fined not exceeding ten thousand dollars ($10,000).

History of Section. G.L. 1956, §§ 44-15-5 -H, 44-15-13 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 103, § 5.

44-15-14. Hearing on application by bank.

Any banking institution or credit union aggrieved by the action of the tax administrator in determining the amount of any tax when no return has been filed, or any additional tax or penalty imposed under the provisions of this chapter, may apply to the tax administrator, in writing, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to this action. The tax administrator shall fix a time and place for the hearing and shall notify the applicant. Upon the hearing, the tax administrator shall correct any errors and shall make an order as shall be proper.

History of Section. G.L. 1956, §§ 44-15-5 -I, 44-15-14 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 410, § 1; P.L. 1993, ch. 459, § 5.

Cross References.

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

NOTES TO DECISIONS

Constitutionality.

The powers conferred on the tax administrator under this section are not an unlawful delegation of legislative power. First Fed. Sav. & Loan Ass'n v. Langton, 105 R.I. 236 , 251 A.2d 170, 1969 R.I. LEXIS 745 (1969).

44-15-15. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section shall be expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the taxpayer is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. G.L. 1956, §§ 44-15-5 -J, 44-15-15 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1976, ch. 140, § 25; P.L. 1982, ch. 388, §§ 3, 11; P.L. 1984, ch. 183, § 6; P.L. 1985, ch. 150, § 45.

Cross References.

Appeals under Administrative Procedures Act, § 42-35-15 et seq.

44-15-16. Collection by writ of execution.

  1. If any tax or penalty imposed by this chapter shall not be paid within thirty (30) days after the tax or penalty is due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth (6th) division of the district court for a writ of execution, setting forth the nonpayment of the tax or penalty.
  2. The court shall appoint a time for a hearing and shall cause a reasonable notice to be given to the adverse party, and at the time and place of the return of the notice shall proceed summarily to hear the parties.
  3. If upon the hearing it shall appear that the tax or penalty is unpaid, the court shall immediately issue an execution for the collection of the tax or penalty, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the banking institutions or credit unions as may be taken on execution. The officer properly charged with the service of the execution shall serve the execution as commanded, and shall sell the seized property as property is sold when taken on execution in actions at law, or the court shall take such other action as it may deem proper to enforce the payment of the tax by the appointment of a receiver of the property of the banking institution or credit union, or otherwise.
  4. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. G.L. 1956, §§ 44-15-5 -K, 44-15-16 ; P.L. 1960, ch. 59, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 1976, ch. 140, § 25; P.L. 1986, ch. 410, § 1.

44-15-17. Rules and regulations.

The tax administrator, with the approval of the director of revenue, may prescribe rules and regulations that he or she deems necessary for the administration and the enforcement of this chapter.

History of Section. P.L. 1942, ch. 1212, art. 8, § 3; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, §§ 44-15-7 , 44-15-9 , 44-15-17 ; P.L. 1958, ch. 166, § 1; P.L. 1968, ch. 263, art. 13, § 1; P.L. 2008, ch. 98, § 42; P.L. 2008, ch. 145, § 42.

44-15-18. Severability.

If any provision of this chapter or the application of this chapter to any banking institution or credit union or circumstance is held invalid, the remainder of this chapter and the application of the provisions to the other banking institutions or credit unions or circumstances shall not be affected.

History of Section. P.L. 1968, ch. 263, art. 13, § 1; P.L. 1986, ch. 410, § 1.

44-15-19. Repealed.

History of Section. P.L. 1977, ch. 152, § 1; Repealed by P.L. 1995, ch. 323, § 31, effective July 5, 1995.

Compiler’s Notes.

Former § 44-15-19 concerned relief to depositors and other creditors of American bank and trust companies.

Chapter 16 Tax on Deposits in National Banks [Repealed.]

44-16-1 — 44-16-17. Repealed.

History of Section. G.L. 1956, §§ 44-16-1 44-16-1 7; P.L. 1972, ch. 155, art. 3, § 1); Repealed by P.L. 1973, ch. 263, art. 1, § 1.

Chapter 17 Taxation of Insurance Companies

44-17-1. Companies required to file — Payment of tax — Retaliatory rates.

  1. Every domestic, foreign, or alien insurance company, mutual association, organization, or other insurer, including any health maintenance organization as defined in § 27-41-2 , any medical malpractice insurance joint underwriters association as defined in § 42-14.1-1 , any nonprofit dental service corporation as defined in § 27-20.1-2 and any nonprofit hospital or medical service corporation as defined in chapters 19 and 20 of title 27, except companies mentioned in § 44-17-6 and organizations defined in § 27-25-1 , transacting business in this state, shall, on or before April 15 in each year, file with the tax administrator, in the form that he or she may prescribe, a return under oath or affirmation signed by a duly authorized officer or agent of the company, containing information that may be deemed necessary for the determination of the tax imposed by this chapter, and shall at the same time pay an annual tax to the tax administrator of two percent (2%) of the gross premiums on contracts of insurance, except for ocean marine insurance as referred to in § 44-17-6 , covering property and risks within the state, written during the calendar year ending December 31st next preceding.
  2. Qualifying insurers for purposes of this section means every domestic, foreign, or alien insurance company, mutual association, organization, or other insurer and excludes:
    1. Health maintenance organizations, as defined in § 27-41-2 ;
    2. Nonprofit dental service corporations, as defined in § 27-20.1-2 ; and
    3. Nonprofit hospital or medical service corporations, as defined in §§ 27-19-1 and 27-20-1 .
  3. For tax years 2018 and thereafter, the rate of taxation may be reduced as set forth below and, if so reduced, shall be fully applicable to qualifying insurers instead of the two percent (2%) rate listed in subsection (a). In the case of foreign or alien companies, except as provided in § 27-2-17(d) , the tax shall not be less in amount than is imposed by the laws of the state or country under which the companies are organized upon like companies incorporated in this state or upon its agents, if doing business to the same extent in the state or country. The tax rate shall not be reduced for gross premiums written on contracts of health insurance as defined in § 42-14-5(c) but shall remain at two percent (2%) or the appropriate retaliatory tax rate, whichever is higher.
  4. For qualifying insurers, the premium tax rate may be decreased based upon Rhode Island jobs added by the industry as detailed below:
    1. A committee shall be established for the purpose of implementing tax rates using the framework established herein. The committee shall be comprised of the following persons or their designees: the secretary of commerce, the director of the department of business regulation, the director of the department of revenue, and the director of the office of management and budget. No rule may be issued pursuant to this section without the prior, unanimous approval of the committee;
    2. On the timetable listed below, the committee shall determine whether qualifying insurers have added new qualifying jobs in this state in the preceding calendar year. A qualifying job for purposes of this section is any employee with total annual wages equal to or greater than forty percent (40%) of the average annual wages of the Rhode Island insurance industry, as published by the annual employment and wages report of the Rhode Island department of labor and training, in NAICS code 5241;
    3. If the committee determines that there has been a sufficient net increase in qualifying jobs in the preceding calendar year(s) to offset a material reduction in the premium tax, it shall calculate a reduced premium tax rate. Such rate shall be determined via a method selected by the committee and designed such that the estimated personal income tax generated by the increase in qualifying jobs is at least one hundred and twenty-five percent (125%) of the anticipated reduction in premium tax receipts resulting from the new rate. For purposes of this calculation, the committee may consider personal income tax withholdings or receipts, but in no event may the committee include for the purposes of determining revenue neutrality income taxes that are subject to segregation pursuant to § 44-48.3-8(f) or that are otherwise available to the general fund;
    4. Any reduced rate established pursuant to this section must be established in a rulemaking proceeding pursuant to chapter 35 of title 42, subject to the following conditions:
      1. Any net increase in qualifying jobs and the resultant premium tax reduction and revenue impact shall be determined in any rulemaking proceeding conducted under this section and shall be set forth in a report included in the rulemaking record, which report shall also include a description of the data sources and calculation methods used. The first such report shall also include a calculation of the baseline level of employment of qualifying insurers for the calendar year 2015; and
      2. Notwithstanding any provision of the law to the contrary, no rule changing the tax rate shall take effect until one hundred and twenty (120) days after notice of the rate change is provided to the speaker of the house, the president of the senate, the house and senate fiscal advisors, and the auditor general, which notice shall include the report required under the preceding provision.
      3. The third rulemaking proceeding shall take place in calendar year 2019. This proceeding shall establish a rule that sets forth: (A) A new premium tax rate, if allowed under the requirements of this section, which rate shall take effect in 2020, and (B) The changes, if any, to the method for calculating the number of jobs at qualifying insurers.
    5. For each of the first three (3) rulemaking proceedings required under this section, the tax rate may remain unchanged or be decreased consistent with the requirements of this section, but may not be increased. These first three (3) rulemaking proceedings shall be conducted by the division of taxation and occur in the following manner:
    6. The tax rate established in the regulation following regulatory proceedings that take place in 2019 shall remain in effect through and including 2023. In calendar year 2023, the department of business regulation will conduct a rulemaking proceeding and issue a rule that sets forth: (A) A new premium tax rate, if allowed under the requirements of this section, which rate shall take effect in 2024, and (B) The changes, if any, to the method for calculating the number of jobs at qualifying insurers. A rule issued by the department of business regulation may decrease the tax rate if the requirements for a rate reduction contained in this section are met, or it may increase the tax rate to the extent necessary to achieve the overall revenue level sought when the then-existing tax rate was established. Any rate established shall be no lower than one percent (1%) and no higher than two percent (2%). This proceeding shall be repeated every three (3) calendar years thereafter, however, the base for determination of job increases or decreases shall remain the number of jobs existing during calendar year 2022;
    7. No reduction in the premium tax rate pursuant to this section shall be allowed absent a determination that qualifying insurers have added in this state at least three hundred fifty (350) new, full-time, qualifying jobs above the baseline level of employment of qualifying insurers for the calendar year 2015;
    8. Notwithstanding any provision of this section to the contrary, the premium tax rate shall never be set lower than one percent (1%);
    9. The division of taxation may adopt implementation guidelines, directives, criteria, rules and regulations pursuant to chapter 35 of title 42 as are necessary to implement this section; and
    10. The calculation of revenue impacts under this section is at the sole discretion of the committee established under subsection (d)(1). Notwithstanding any provision of law to the contrary, any administrative action or rule setting a tax rate pursuant to this section or failing or declining to alter a tax rate pursuant to this section shall not be subject to judicial review under chapter 35 of title 42.

(i) The first rulemaking proceeding shall take place in calendar year 2017. This proceeding shall establish a rule that sets forth: (A) A new premium tax rate, if allowed under the requirements of this section, which rate shall take effect in 2018, and (B) A method for calculating the number of jobs at qualifying insurers;

(ii) The second rulemaking proceeding shall take place in calendar year 2018. This proceeding shall establish a rule that sets forth: (A) A new premium tax rate, if allowed under the requirements of this section, which rate shall take effect in 2019, and (B) The changes, if any, to the method for calculating the number of jobs at qualifying insurers; and

History of Section. G.L. 1896, ch. 29, §§ 5-7; P.L. 1899, ch. 665, § 1; P.L. 1900, ch. 791, § 1; P.L. 1908, ch. 1589, § 1; G.L. 1909, ch. 39, §§ 5-7; P.L. 1910, ch. 574, § 1; P.L. 1912, ch. 769, § 36; P.L. 1921, ch. 2039, §§ 1, 2; G.L. 1923, ch. 37, §§ 5-7; P.L. 1926, ch. 809, § 2; P.L. 1936, ch. 2283, § 1; G.L. 1938, ch. 41, §§ 1-3; P.L. 1940, ch. 874, § 1; G.L. 1956, § 44-17-1 ; P.L. 1960, ch. 2, § 1; P.L. 1994, ch. 432, § 1; P.L. 2007, ch. 73, art. 28, § 4; P.L. 2008, ch. 100, art. 32, § 2; P.L. 2009, ch. 5, art. 9, § 9; P.L. 2010, ch. 23, art. 9, § 14; P.L. 2010, ch. 239, § 8; P.L. 2016, ch. 142, art. 13, § 13; P.L. 2016, ch. 538, § 1; P.L. 2017, ch. 389, § 3; P.L. 2017, ch. 434, § 3.

Compiler’s Notes.

This section was amended by two acts (P.L. 2016, ch. 142, art. 13, § 13; P.L. 2016, ch. 538, § 1) passed by the 2016 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by both acts.

P.L. 2017, ch. 389, § 3, and P.L. 2017, ch. 434, § 3 enacted identical amendments to this section.

Effective Dates.

P.L. 2010, ch. 23, art. 9, § 16, provides that the amendment to this section by that act takes effect on January 1, 2011

Applicability.

P.L. 2009, ch. 5, art. 9, § 15, provides that the amendment to this section by that act takes effect upon passage [April 10, 2009] and shall apply to tax years beginning on or after January 1, 2009.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect upon passage [June 24, 2016] and shall apply to tax years beginning on or after January 1, 2016.

Cross References.

Workers’ compensation administrative account, payments into, § 28-37-13 .

Comparative Legislation.

Insurance companies:

Conn. Gen. Stat., § 12-201 et seq.

Mass. Ann. Laws ch. 63, § 20 et seq.

NOTES TO DECISIONS

Foreign Insurers.

Since the foreign insurer managed to collect millions of dollars in premiums for excess liability of four natural-gas utilities that were domiciled within this state, it created a purposeful economic presence in the state, and service of process could be made validly upon the insurer within this state for any dispute arising out of the state’s taxation of these premiums under this section. Associated Elec. & Gas Ins. Servs. v. Clark, 676 A.2d 1357, 1996 R.I. LEXIS 165 (R.I. 1996).

Collateral References.

Construction, application, and operation of state “retaliatory” statutes imposing special taxes or fees on foreign insurers doing business within the state. 30 A.L.R.4th 873.

Permissible classification of insurance companies which will justify discrimination against them by taxing statute. 83 A.L.R. 464.

What is an “insurance company” under § 831(a)(1) of Internal Revenue Code of 1954 (26 USCS § 831(a)(1)), or its predecessors, providing for tax on insurance companies other than life or mutual. 49 A.L.R. Fed. 452.

What organizations are within provisions of tax statutes relating to insurance companies. 146 A.L.R. 454.

44-17-1.1. Records required.

Every insurance company subject to tax under this chapter shall keep books, including records, receipts, and other pertinent papers, in a form that the tax administrator may require. Those records are open at all times to the inspection of the tax administrator and his or her agents and, upon summons issued by the tax administrator, shall be produced at a time and place that the tax administrator may designate for inspection by him or her or by his or her agents.

History of Section. P.L. 1989, ch. 45, § 1; P.L. 1989, ch. 143, § 1.

44-17-2. Amounts included as gross premiums.

Except where such a charge would be inconsistent with federal law, gross premiums include all premiums and premium deposits and assessments on all policies, certificates, and renewals, written during the year, covering property and risks within the state, policies subsequently cancelled, and reinsurance assumed, whether the premiums and premium deposits and assessments are in the form of money, notes, credits, or other substitute for money, after deducting from the gross premiums the amount of return premiums on the contracts covering property and risks within this state and the amount of premiums for reinsurance assumed, of the property and risks. Mutual companies and companies which transact business on the mutual plan are also allowed to deduct from their premiums and premium deposits and assessments, the so-called dividends or unused or unabsorbed portion of the premiums and premium deposits and assessments applied in part payment of the premiums and premium deposits and assessments or returned to policyholders in cash or credited to policy holders during the year for which the tax is computed. Every domestic company, mutual association, organization, or other insurer, shall include for taxation in like manner and with like deductions premiums and premium deposits and assessments written, procured, or received in this state on business covering property or risks in any other state on which the company has not paid and is not liable to pay a tax to the other state.

History of Section. G.L. 1896, ch. 29, §§ 5, 6, 11; P.L. 1899, ch. 665, § 1; P.L. 1900, ch. 791, § 1; P.L. 1908, ch. 1589, § 1; G.L. 1909, ch. 39, §§ 5, 6, 11; P.L. 1910, ch. 574, § 1; P.L. 1912, ch. 769, § 36; P.L. 1921, ch. 2039, §§ 1, 2; G.L. 1923, ch. 37, §§ 5, 6, 11; P.L. 1936, ch. 2283, § 1; G.L. 1938, ch. 41, §§ 1, 2, 5; P.L. 1939, ch. 659, § 2; P.L. 1940, ch. 874, § 1; G.L. 1956, § 44-17-2 ; P.L. 2007, ch. 73, art. 28, § 5.

Collateral References.

Annuity obligation, consideration paid for, as “premium” within contemplation of tax statutes. 109 A.L.R. 1060; 135 A.L.R. 1248.

“Dividends” on policies as affecting computation of tax on insurance premiums. 141 A.L.R. 1411.

44-17-3. Extension of time for filing return.

The tax administrator may for reasonable cause extend the time for filing any return required under the provisions of this chapter, but any extension is not deemed an extension of the time for payment of the tax.

History of Section. G.L. 1938, ch. 41, § 1; P.L. 1940, ch. 874, § 1; G.L. 1956, § 44-17-3 .

44-17-4. Assessment of tax on available information — Interest on delinquencies — Collection powers.

If any company fails to file a return within the time and as required by this chapter, or files an insufficient or incorrect return, or does not pay when due the tax imposed by this chapter, the tax administrator shall assess the tax upon the available information. The tax or the part of the tax that has not been paid is payable upon demand and shall bear interest at the annual rate provided by § 44-1-7 from the date when the tax should have been paid, and the tax administrator shall collect the assessed tax with interest in the same manner and with the same powers as are prescribed for and given to collectors of taxes by chapters 7 — 9 of this title.

History of Section. G.L. 1938, ch. 41, § 1; P.L. 1940, ch. 874, § 1; G.L. 1956, § 44-17-4 ; P.L. 1992, ch. 388, § 6.

Cross References.

Assessment and collection by tax administrator, § 44-1-2 .

44-17-4.1. Claims for refund — Hearing upon denial.

  1. Any company subject to the provisions of this chapter may file a claim for refund with the tax administrator at any time within two (2) years after the tax has been paid. If the tax administrator determines that the tax has been overpaid, he or she shall make a refund with interest at the annual rate provided by § 44-1-7.1 from the date of overpayment.
  2. Any company whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing, and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall so notify the applicant.

History of Section. P.L. 1981, ch. 239, § 1; P.L. 1987, ch. 57, art. 6, § 1; P.L. 1992, ch. 388, § 6.

44-17-4.2. Hearing by administrator on application.

Any company aggrieved by the action of the administrator in determining the amount of any tax or penalty imposed under the provisions of this chapter may apply to the administrator, in writing, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to the action. The administrator shall fix a time and place for the hearing and shall notify the applicant. Upon the hearing, the administrator shall correct manifest errors, if any, disclosed at the hearing and thereupon assess and collect the tax lawfully due together with any penalty or interest.

History of Section. P.L. 1987, ch. 57, art. 6, § 1; P.L. 1993, ch. 459, § 6.

44-17-5. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter are to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this chapter is expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the taxpayer is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. G.L. 1938, ch. 41, § 1; P.L. 1940, ch. 874, § 1; G.L. 1956, § 44-17-5 ; P.L. 1976, ch. 140, § 26; P.L. 1982, ch. 388, §§ 3, 12; P.L. 1984, ch. 183, § 7; P.L. 1985, ch. 150, § 46.

44-17-6. “Ocean marine insurance” defined.

For purposes of this chapter, “ocean marine insurance” means contracts of insurance written by every domestic, foreign, or alien insurance company transacting the business of marine insurance within this state, with respect to all insurance written within this state, upon hulls, freights, or disbursements, or upon goods, wares, merchandise, and all other personal property and interests therein, in course of exportation from, importation into any country, or transportation coastwise, including transportation by land or water from point of origin to final destination in respect to, appertaining to, or in connection with, any and all risks or perils of navigation, transit, or transportation, and while being prepared for, and while awaiting shipment, and during any delays, storage, transshipment, or reshipment incident thereto, but only in connection with exportation from, importation into any country, or transportation coastwise, and including war risks and marine builders risks.

History of Section. G.L. 1923, ch. 37, § 22; P.L. 1929, ch. 1428, § 1; G.L. 1938, ch. 41, §§ 2, 6; P.L. 1940, ch. 874, § 1; G.L. 1956, § 44-17-6 ; P.L. 1988, ch. 267, § 1.

44-17-7 — 44-17-10. Repealed.

History of Section. G.L. 1923, ch. 37, §§ 22, 24; P.L. 1929, ch. 1428, § 1; G.L. 1938, ch. 41, §§ 2, 3, 6, 8; P.L. 1940, ch. 874, § 1; G.L. 1956, §§ 44-17-7 — 44-17-10; Repealed by P.L. 1988, ch. 267, § 1, effective June 7, 1988.

Compiler’s Notes.

Former §§ 44-17-7 — 44-17-10 concerned computation of underwriting profit and marine tax provisions.

44-17-11. Penalties for violations — Interest on delinquencies.

If the return required to be made by § 44-17-1 is not made within the time fixed or extended, the officer or agent neglecting or refusing to make the return shall be fined not exceeding five hundred dollars ($500), and the tax administrator shall assess the tax upon any information he or she may obtain. Any tax imposed by § 44-17-1 remaining unpaid on March 1st in any year shall bear interest at the annual rate provided by § 44-1-7 from the date when the tax became due and payable to the date when the tax is paid. Any officer or agent who willfully makes a false statement in any return required by this chapter shall upon conviction be deemed guilty of perjury.

History of Section. G.L. 1896, ch. 29, § 8; G.L. 1909, ch. 39, § 8; G.L. 1923, ch. 37, § 8; P.L. 1926, ch. 809, § 3; P.L. 1929, ch. 1428, § 2; G.L. 1938, ch. 41, §§ 4, 5; P.L. 1940, ch. 874, § 1; P.L. 1942, ch. 1155, § 1; G.L. 1956, § 44-17-11 ; P.L. 1960, ch. 2, § 2; P.L. 1988, ch. 267, § 1; P.L. 1992, ch. 388, § 6.

Chapter 18 Sales and Use Taxes — Liability and Computation

44-18-1. Short title.

Chapters 18 and 19 of this title may be known and cited as the “Sales and Use Tax Act”.

History of Section. P.L. 1947, ch. 1887, art. 2, § 1; G.L. 1956, § 44-18-1 .

Comparative Legislation.

Sales and use tax:

Conn. Gen. Stat., § 12-406 et seq.

Mass. Ann. Laws chs. 64H, 64I.

Collateral References.

Nature of sales tax. 89 A.L.R. 1432; 110 A.L.R. 1485; 117 A.L.R. 846; 128 A.L.R. 893.

Sales and use taxes on sale or lease of mailing or customer list. 80 A.L.R.4th 1126.

Use tax, or other compensating tax designed to complement state sales tax. 129 A.L.R. 222; 153 A.L.R. 609.

44-18-2. Declaration of necessity.

The recognition of the state of its obligation to grant pay increases for teachers in the manner provided in chapter 7 of title 16, to assure the maintenance of proper educational standards in the public schools, coupled with the compelling necessity for additional state aid to the several cities and towns now confronted with financial crisis, have created an increased burden on the finances of the state. To the end that adequate funds are available to the state government to enable it to meet these newly adopted obligations, without impairing the ability of the state to fulfill its existing obligations, a revision of the tax structure is unavoidable. The enactment of the provisions of chapters 18 and 19 of this title is declared to be necessary to enable the state to carry out the provisions of chapter 7 of title 16.

History of Section. P.L. 1947, ch. 1887, art. 9, part 3, § 1; G.L. 1956, § 44-18-2 ; P.L. 1988, ch. 84, § 96.

44-18-3. Applicability of definitions.

Except where the context requires, the definitions given in this chapter govern the construction of chapters 18 and 19 of this title.

History of Section. P.L. 1947, ch. 1887, art. 2, § 2; G.L. 1956, § 44-18-3 .

44-18-4. “Sales tax” defined.

“Sales tax” means the tax imposed by § 44-18-18 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 3; G.L. 1956, § 44-18-4 .

44-18-5. “Use tax” defined.

“Use tax” means the tax imposed by § 44-18-20 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 4; G.L. 1956, § 44-18-5 .

44-18-6. Person defined.

“Person” includes any individual, partnership, association, corporation, estate, trust, fiduciary, limited liability company, limited liability partnership, or any other legal entity.

History of Section. P.L. 1947, ch. 1887, art. 2, § 5; G.L. 1956, § 44-18-6 ; P.L. 2006, ch. 246, art. 30, § 9.

44-18-7. Sales defined.

“Sales” means and includes:

  1. Any transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means of tangible personal property for a consideration. “Transfer of possession,” “lease,” or “rental” includes transactions found by the tax administrator to be in lieu of a transfer of title, exchange, or barter.
  2. The producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish, either directly or indirectly, the materials used in the producing, fabricating, processing, printing, or imprinting.
  3. The furnishing and distributing of tangible personal property for a consideration by social, athletic, and similar clubs and fraternal organizations to their members or others.
  4. The furnishing, preparing, or serving for consideration of food, meals, or drinks, including any cover, minimum, entertainment, or other charge in connection therewith.
  5. A transaction whereby the possession of tangible personal property is transferred, but the seller retains the title as security for the payment of the price.
  6. Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate commerce, of tangible personal property from the place where it is located for delivery to a point in this state for the purpose of the transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of the property for a consideration.
  7. A transfer for a consideration of the title or possession of tangible personal property, which has been produced, fabricated, or printed to the special order of the customer, or any publication.
  8. The furnishing and distributing of electricity, natural gas, artificial gas, steam, refrigeration, and water.
    1. The furnishing for consideration of intrastate, interstate, and international telecommunications service sourced in this state in accordance with §§ 44-18.1-15 and 44-18.1-16 and all ancillary services, and any maintenance services of telecommunication equipment other than as provided for in § 44-18-12(b)(ii) . For the purposes of chapters 18 and 19 of this title only, telecommunication service does not include service rendered using a prepaid telephone calling arrangement.
    2. Notwithstanding the provisions of subsection (9)(i), in accordance with the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116 — 126), subject to the specific exemptions described in 4 U.S.C. § 116(c), and the exemptions provided in §§ 44-18-8 and 44-18-12 , mobile telecommunications services that are deemed to be provided by the customer’s home service provider are subject to tax under this chapter if the customer’s place of primary use is in this state regardless of where the mobile telecommunications services originate, terminate, or pass through. Mobile telecommunications services provided to a customer, the charges for which are billed by or for the customer’s home service provider, shall be deemed to be provided by the customer’s home service provider.
  9. The furnishing of service for transmission of messages by telegraph, cable, or radio and the furnishing of community antenna television, subscription television, and cable television services.
  10. The rental of living quarters in any hotel, rooming house, or tourist camp.
  11. The transfer for consideration of prepaid telephone calling arrangements and the recharge of prepaid telephone calling arrangements sourced to this state in accordance with §§ 44-18.1-11 and 44-18.1-15 . “Prepaid telephone calling arrangement” means and includes prepaid calling service and prepaid wireless calling service.
  12. The sale, storage, use, or other consumption of over-the-counter drugs as defined in § 44-18-7.1(h)(ii) .
  13. The sale, storage, use, or other consumption of prewritten computer software delivered electronically or by load and leave as defined in § 44-18-7.1(g)(v) .
  14. The sale, storage, use, or other consumption of vendor-hosted prewritten computer software as defined in § 44-18-7.1(g)(vii) .
  15. The sale to, or storage, use, or other consumption by, an end-user of specified digital products as defined in § 44-18-7.1(x) , including the right to use the specified digital products on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right.
  16. For the purposes of subsections (14) through (16) above, “sale” includes, but is not limited to, any license, lease, or rental of the products enumerated in those subsections.
  17. The sale, storage, use, or other consumption of medical marijuana as defined in § 21-28.6-3 .
  18. The furnishing of services in this state as defined in § 44-18-7.3 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 6; G.L. 1956, § 44-18-7 ; P.L. 1967, ch. 179, art. 2, § 1; P.L. 1973, ch. 263, art. 7, § 1; P.L. 1981, ch. 151, § 1; P.L. 1989, ch. 126, art. 44, § 1; P.L. 1999, ch. 441, § 1; P.L. 2002, ch. 65, art. 16, § 7; P.L. 2005, ch. 365, § 3; P.L. 2006, ch. 246, art. 30, § 9; P.L. 2007, ch. 6, § 4; P.L. 2011, ch. 151, art. 19, § 23; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9; P.L. 2020, ch. 12, § 1; P.L. 2020, ch. 17, § 1.

Compiler’s Notes.

P.L. 2020, ch. 12, § 1, and P.L. 2020, ch. 17, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

NOTES TO DECISIONS

Charter Transactions.

Where taxpayer was merely chartering its boat for periodic sportfishing trips to a variety of customers, it was not reasonable to treat the chartering as a transaction in lieu of a transfer of title. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Minimum Restaurant Charge by Club.

Where a golf club imposed on all members a monthly minimum charge which was reduced by the amount paid by the member for restaurant use during the month, the unused charge was in the nature of a special assessment or additional membership dues and was not a cover or minimum charge under subsection D. Potowomut Golf Club v. Norberg, 114 R.I. 589 , 337 A.2d 226, 1975 R.I. LEXIS 1459 (1975).

Musicians’ Fees.

Where restaurant provided musicians at parties, such musicians’ fees which were charged to the customer were taxable as entertainment under subsection (1)(D) (now (d)(1)). Coachman, Inc. v. Norberg, 121 R.I. 316 , 397 A.2d 1320, 1979 R.I. LEXIS 1778 (1979).

Sales.

Sections 6A-2-507(1) , 6A-2-319(1)(b) , 6A-2-705 , and 6A-2-601 of the Uniform Commercial Code are not applicable to a determination of what constitutes a sale under subsection (1)(A) (now (d)(1)) of this section. Mossberg-Hubbard Div. v. Norberg, 432 A.2d 1176, 1981 R.I. LEXIS 1232 (R.I. 1981).

The interpretation of “sale” under subsection (1)(A) (now (d)(1)) of this section makes it clear that it is the “transfer of title or possession” to the purchaser within the state that constitutes the taxable event, regardless of the time and place of the passing of actual title. Mossberg-Hubbard Div. v. Norberg, 432 A.2d 1176, 1981 R.I. LEXIS 1232 (R.I. 1981).

The transfer of goods by a Rhode Island manufacturer in Rhode Island to an out-of-state customer f.o.b. the customer’s plant and the transportation of those goods by vehicles owned by the customer did constitute transfers of title or possession such as to constitute taxable sales under subsection (1)(A) (now (d)(1)) of this section. Mossberg-Hubbard Div. v. Norberg, 432 A.2d 1176, 1981 R.I. LEXIS 1232 (R.I. 1981).

While a lease is deemed a sale under R.I. Gen. Laws § 44-18-7 and a state agency is exempt under R.I. Gen. Laws § 44-18-30(8) from paying sales and use tax as a lessee, a use tax was properly assessed against a taxpayer under R.I. Gen. Laws § 44-18-20(a) for materials used to construct video lottery terminals it provided to the Rhode Island Lottery Commission, as the substance of its contract with the Commission was a license, not a lease. WMS Gaming, Inc. v. Sullivan, 6 A.3d 1104, 2010 R.I. LEXIS 103 (R.I. 2010).

Transfer in Lieu of Title.

Subsection (d)(1) of this section excludes from treatment as sales transfers of possession, leases, and rentals which do not have the economic effect of a transfer of title. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

In determining what constitutes a transaction in lieu of a transfer of title, the tax administrator is afforded broad discretion; his determination need only be reasonable. Mossberg-Hubbard Div. v. Norberg, 432 A.2d 1176, 1981 R.I. LEXIS 1232 (R.I. 1981).

Collateral References.

Application of sales tax to one operating dining room, cafeteria, or beverage room incidental to other business. 13 A.L.R.2d 1362.

Cable television equipment or services as subject to sales or use tax. 5 A.L.R.4th 754.

Construction and application of constitutional or statutory provisions respecting taxation or regulation of sale or purchase of food or drink for consumption off the premises. 167 A.L.R. 206.

Instalment sales, tax on. 58 A.L.R. 1047.

Judicial or bankruptcy sales, applicability of sales tax to. 27 A.L.R.2d 1219.

Parts, repairs, or constituents used in repair of article, sales tax on. 11 A.L.R.2d 926.

Political subdivision as subject to sales tax. 159 A.L.R. 365.

State or local sales, use, or privilege tax on sales of, or revenues from sales of, advertising space or services. 40 A.L.R.4th 1114.

Transfer of right to possession of personalty, what transactions fall within operation of sales tax law provision applicable to. 172 A.L.R. 1317.

44-18-7.1. Additional definitions.

  1. “Agreement” means the streamlined sales and use tax agreement.
  2. “Alcoholic beverages” means beverages that are suitable for human consumption and contain one-half of one percent (.5%) or more of alcohol by volume.
  3. “Bundled transaction” is the retail sale of two or more products, except real property and services to real property, where (1) The products are otherwise distinct and identifiable, and (2) The products are sold for one non-itemized price. A “bundled transaction” does not include the sale of any products in which the “sales price” varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
    1. “Distinct and identifiable products” does not include:
      1. Packaging — such as containers, boxes, sacks, bags, and bottles — or other materials — such as wrapping, labels, tags, and instruction guides — that accompany the “retail sale” of the products and are incidental or immaterial to the “retail sale” thereof. Examples of packaging that are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and express delivery envelopes and boxes.
      2. A product provided free of charge with the required purchase of another product. A product is “provided free of charge” if the “sales price” of the product purchased does not vary depending on the inclusion of the products “provided free of charge.”
      3. Items included in the member state’s definition of “sales price,” pursuant to appendix C of the agreement.
    2. The term “one non-itemized price” does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list.
    3. A transaction that otherwise meets the definition of a “bundled transaction” as defined above, is not a “bundled transaction” if it is:
      1. The “retail sale” of tangible personal property and a service where the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service; or
      2. The “retail sale” of services where one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service; or
      3. A transaction that includes taxable products and nontaxable products and the “purchase price” or “sales price” of the taxable products is de minimis.
      4. The “retail sale” of exempt tangible personal property and taxable tangible personal property where:
    1. De minimis means the seller’s “purchase price” or “sales price” of the taxable products is ten percent (10%) or less of the total “purchase price” or “sales price” of the bundled products.
    2. Sellers shall use either the “purchase price” or the “sales price” of the products to determine if the taxable products are de minimis.  Sellers may not use a combination of the “purchase price” and “sales price” of the products to determine if the taxable products are de minimis.
    3. Sellers shall use the full term of a service contract to determine if the taxable products are de minimis; or
    4. An amino acid;
    5. A dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
    6. A concentrate, metabolite, constituent, extract, or combination of any ingredient described above; and
  4. “Certified automated system (CAS)” means software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction.
  5. “Certified service provider (CSP)” means an agent certified under the agreement to perform all the seller’s sales and use tax functions, other than the seller’s obligation to remit tax on its own purchases.
  6. Clothing and related items.
    1. “Clothing” means all human wearing apparel suitable for general use.
    2. “Clothing accessories or equipment” means incidental items worn on the person or in conjunction with “clothing.” “Clothing accessories or equipment” does not include “clothing,” “sport or recreational equipment,” or “protective equipment.”
    3. “Protective equipment” means items for human wear and designed as protection of the wearer against injury or disease or as protections against damage or injury of other persons or property but not suitable for general use. “Protective equipment” does not include “clothing,” “clothing accessories or equipment,” and “sport or recreational equipment.”
    4. “Sport or recreational equipment” means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use. “Sport or recreational equipment” does not include “clothing,” “clothing accessories or equipment,” and “protective equipment.”
  7. Computer and related items.
    1. “Computer” means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions.
    2. “Computer software” means a set of coded instructions designed to cause a “computer” or automatic data processing equipment to perform a task.
    3. “Delivered electronically” means delivered to the purchaser by means other than tangible storage media.
    4. “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
    5. “Load and leave” means delivery to the purchaser by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser.
    6. “Prewritten computer software” means “computer software,” including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser.  The combining of two (2) or more “prewritten computer software” programs or prewritten portions thereof does not cause the combination to be other than “prewritten computer software.”  “Prewritten computer software” includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the specific purchaser. Where a person modifies or enhances “computer software” of which the person is not the author or creator, the person shall be deemed to be the author or creator only of such person’s modifications or enhancements. “Prewritten computer software” or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains “prewritten computer software”; provided, however, that where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for such modification or enhancement, such modification or enhancement shall not constitute “prewritten computer software.”
    7. “Vendor-hosted prewritten computer software” means prewritten computer software that is accessed through the internet and/or a vendor-hosted server regardless of whether the access is permanent or temporary and regardless of whether any downloading occurs.
  8. Drugs and related items.
    1. “Drug” means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than “food and food ingredients,” “dietary supplements” or “alcoholic beverages”:
      1. Recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; or
      2. Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
      3. Intended to affect the structure or any function of the body.
    2. “Over-the-counter drug” means a drug that contains a label that identifies the product as a drug as required by 21 C.F.R. § 201.66.  The “over-the-counter drug” label includes:
      1. A “Drug Facts” panel; or
      2. A statement of the “active ingredient(s)” with a list of those ingredients contained in the compound, substance, or preparation.
    3. “Grooming and hygiene products” are soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the items meet the definition of “over-the-counter drugs.”
    4. “Prescription” means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of the member state.
  9. “Delivery charges” means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to: transportation, shipping, postage, handling, crating, and packing.
  10. “Direct mail” means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items are not billed directly to the recipients. “Direct mail” includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material.  “Direct mail” does not include multiple items of printed material delivered to a single address.
  11. “Durable medical equipment” means equipment including repair and replacement parts for same which:
    1. Can withstand repeated use; and
    2. Is primarily and customarily used to serve a medical purpose; and
    3. Generally is not useful to a person in the absence of illness or injury; and
    4. Is not worn in or on the body.
  12. Food and related items.
    1. “Food and food ingredients” means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. “Food and food ingredients” does not include “alcoholic beverages,” “tobacco,” “candy,” “dietary supplements,” and “soft drinks.”
    2. “Prepared food” means:
      1. Food sold in a heated state or heated by the seller;
      2. Two (2) or more food ingredients mixed or combined by the seller for sale as a single item; or
      3. Food sold with eating utensils provided by the seller, including: plates, knives, forks, spoons, glasses, cups, napkins, or straws.  A plate does not include a container or packaging used to transport the food.
    3. “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.  “Candy” shall not include any preparation containing flour and shall require no refrigeration.
    4. “Soft drinks” means non-alcoholic beverages that contain natural or artificial sweeteners.  “Soft drinks” do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume.
    5. “Dietary supplement” means any product, other than “tobacco,” intended to supplement the diet that:
      1. Contains one or more of the following dietary ingredients:
      2. Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for ingestion in such a form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and
      3. Is required to be labeled as a dietary supplement, identifiable by the “supplemental facts” box found on the label and as required pursuant to 21 C.F.R. § 101.36.
  13. “Food sold through vending machines” means food dispensed from a machine or other mechanical device that accepts payment.
  14. “Hotel” means every building or other structure kept, used, maintained, advertised as, or held out to the public to be a place where living quarters are supplied for pay to transient or permanent guests and tenants and includes a motel.
    1. “Living quarters” means sleeping rooms, sleeping or housekeeping accommodations, or any other room or accommodation in any part of the hotel, rooming house, or tourist camp that is available for or rented out for hire in the lodging of guests.
    2. “Rooming house” means every house, boat, vehicle, motor court, or other structure kept, used, maintained, advertised, or held out to the public to be a place where living quarters are supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings.
    3. “Tourist camp” means a place where tents or tent houses, or camp cottages, or cabins or other structures are located and offered to the public or any segment thereof for human habitation.
  15. “Lease or rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.  Lease or rental does not include:
    1. A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
    2. A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or
    3. Providing tangible personal property along with an operator for a fixed or indeterminate period of time.  A condition of this exclusion is that the operator is necessary for the equipment to perform as designed.  For the purpose of this subsection, an operator must do more than maintain, inspect, or set-up the tangible personal property.
    4. Lease or rental does include agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).
    5. This definition shall be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the Internal Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law.
    6. This definition will be applied only prospectively from the date of adoption and will have no retroactive impact on existing leases or rentals.  This definition shall neither impact any existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from adopting a sale-leaseback exemption or exclusion after the effective date of the agreement.
  16. “Mobility enhancing equipment” means equipment, including repair and replacement parts to same, that:
    1. Is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle; and
    2. Is not generally used by persons with normal mobility; and
    3. Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
  17. “Model 1 Seller” means a seller that has selected a CSP as its agent to perform all the seller’s sales and use tax functions, other than the seller’s obligation to remit tax on its own purchases.
  18. “Model 2 Seller” means a seller that has selected a CAS to perform part of its sales and use tax functions, but retains responsibility for remitting the tax.
  19. “Model 3 Seller” means a seller that has sales in at least five member states, has total annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary system that calculates the amount of tax due each jurisdiction, and has entered into a performance agreement with the member states that establishes a tax performance standard for the seller.  As used in this definition, a seller includes an affiliated group of sellers using the same proprietary system.
  20. “Prosthetic device” means a replacement, corrective, or supportive device including repair and replacement parts for same worn on or in the body to:
    1. Artificially replace a missing portion of the body;
    2. Prevent or correct physical deformity or malfunction; or
    3. Support a weak or deformed portion of the body.
  21. “Purchaser” means a person to whom a sale of personal property is made or to whom a service is furnished.
  22. “Purchase price” applies to the measure subject to use tax and has the same meaning as sales price.
  23. “Seller” means a person making sales, leases, or rentals of personal property or services.
  24. Specified digital products.
    1. “Specified digital products” means electronically transferred:
      1. “Digital audio-visual works” which means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any;
      2. “Digital audio works” which means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones; and/or
      3. “Digital books” which means works that are generally recognized in the ordinary and usual sense as “books.”
    2. For purposes of the definition of “digital audio works,” “ringtones” means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication.
    3. For purposes of the definition of “specified digital products,” “transferred electronically” means obtained by the purchaser by means other than tangible storage media.
    4. For the purposes of “specified digital products,” “end user” includes any person other than a person who receives by contract a product “transferred electronically” for further broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the product, in whole or in part, to another person or persons. A person who purchases products “transferred electronically” or the code for “specified digital products” for the purpose of giving away such products or code shall not be considered to have engaged in the distribution or redistribution of such products or code and shall be treated as an end user.
    5. For the purposes of “specified digital products,” “permanent” means perpetual or for an indefinite or unspecified length of time.
  25. “State” means any state of the United States and the District of Columbia.
  26. “Telecommunications” tax base/exemption terms.
    1. Telecommunication terms shall be defined as follows:
      1. “Ancillary services” means services that are associated with or incidental to the provision of “telecommunications services,” including, but not limited to, “detailed telecommunications billing,” “directory assistance,” “vertical service,” and “voice mail services.”
      2. “Conference bridging service” means an “ancillary service” that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. “Conference bridging service” does not include the “telecommunications services” used to reach the conference bridge.
      3. “Detailed telecommunications billing service” means an “ancillary service” of separately stating information pertaining to individual calls on a customer’s billing statement.
      4. “Directory assistance” means an “ancillary service” of providing telephone number information, and/or address information.
      5. “Vertical service” means an “ancillary service” that is offered in connection with one or more “telecommunications services,” which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including “conference bridging services.”
      6. “Voice mail service” means an “ancillary service” that enables the customer to store, send, or receive recorded messages.  “Voice mail service” does not include any “vertical services” that the customer may be required to have in order to utilize the “voice mail service.”
      7. “Telecommunications service” means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points.  The term “telecommunications service” includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over internet protocol services or is classified by the Federal Communications Commission as enhanced or value added.  “Telecommunications service” does not include:
        1. Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where such purchaser’s primary purpose for the underlying transaction is the processed data or information;
        2. Installation or maintenance of wiring or equipment on a customer’s premises;
        3. Tangible personal property;
        4. Advertising, including, but not limited to, directory advertising;
        5. Billing and collection services provided to third parties;
        6. Internet access service;
        7. Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider.  Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video programming services delivered by commercial mobile radio service providers as defined in 47 C.F.R. § 20.3;
        8. “Ancillary services”; or
        9. Digital products “delivered electronically,” including, but not limited to: software, music, video, reading materials, or ring tones.
        1. “900 service” means an inbound toll “telecommunications service” purchased by a subscriber that allows the subscriber’s customers to call in to the subscriber’s prerecorded announcement or live service.  “900 service” does not include the charge for:  collection services provided by the seller of the “telecommunications services” to the subscriber, or service or product sold by the subscriber to the subscriber’s customer.  The service is typically marketed under the name “900 service,” and any subsequent numbers designated by the Federal Communications Commission.
          1. “Coin-operated telephone service” means a “telecommunications service” paid for by inserting money into a telephone accepting direct deposits of money to operate.
          2. “International” means a “telecommunications service” that originates or terminates in the United States and terminates or originates outside the United States, respectively.  United States includes the District of Columbia or a U.S. territory or possession.
          3. “Interstate” means a “telecommunications service” that originates in one United States state, or a United States territory or possession, and terminates in a different United States state or a United States territory or possession.
          4. “Intrastate” means a “telecommunications service” that originates in one United States state or a United States territory or possession, and terminates in the same United States state or a United States territory or possession.
          5. “Pay telephone service” means a “telecommunications service” provided through any pay telephone.
          6. “Residential telecommunications service” means a “telecommunications service” or “ancillary services” provided to an individual for personal use at a residential address, including an individual dwelling unit such as an apartment.  In the case of institutions where individuals reside, such as schools or nursing homes, “telecommunications service” is considered residential if it is provided to and paid for by an individual resident rather than the institution.
  27. “Tobacco” means cigarettes, cigars, chewing, or pipe tobacco, or any other item that contains tobacco.

1. The transaction includes “food and food ingredients,” “drugs,” “durable medical equipment,” “mobility enhancing equipment,” “over-the-counter drugs,” “prosthetic devices” (all as defined in this section) or medical supplies; and

2. Where the seller’s “purchase price” or “sales price” of the taxable tangible personal property is fifty percent (50%) or less of the total “purchase price” or “sales price” of the bundled tangible personal property. Sellers may not use a combination of the “purchase price” and “sales price” of the tangible personal property when making the fifty percent (50%) determination for a transaction.

“Drug” shall also include insulin and medical oxygen whether or not sold on prescription.

“Over-the-counter drug” shall not include “grooming and hygiene products.”

“Delivery charges” shall not include the charges for delivery of “direct mail” if the charges are separately stated on an invoice or similar billing document given to the purchaser.

Durable medical equipment does not include mobility enhancing equipment.

“Prepared food” in subsection ( l )(ii)(B) does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part 401.11 of its Food Code so as to prevent food borne illnesses.

1. A vitamin;

2. A mineral;

3. An herb or other botanical;

Mobility enhancing equipment does not include durable medical equipment.

(H) “800 service” means a “telecommunications service” that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name “800,” “855,” “866,” “877,” and “888” toll-free calling, and any subsequent numbers designated by the Federal Communications Commission.

(J) “Fixed wireless service” means a “telecommunications service” that provides radio communication between fixed points.

(K) “Mobile wireless service” means a “telecommunications service” that is transmitted, conveyed, or routed regardless of the technology used, whereby the origination and/or termination points of the transmission, conveyance, or routing are not fixed, including, by way of example only, “telecommunications services” that are provided by a commercial mobile radio service provider.

(L) “Paging service” means a “telecommunications service” that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.

(M) “Prepaid calling service” means the right to access exclusively “telecommunications services,” which must be paid for in advance and that enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount.

(N) “Prepaid wireless calling service” means a “telecommunications service” that provides the right to utilize “mobile wireless service,” as well as other non-telecommunications services, including the download of digital products “delivered electronically,” content and “ancillary services” which must be paid for in advance that is sold in predetermined units of dollars of which the number declines with use in a known amount.

(O) “Private communications service” means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels.

(P) “Value-added non-voice data service” means a service that otherwise meets the definition of “telecommunications services” in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for a purpose other than transmission, conveyance, or routing.

(ii) “Modifiers of Sales Tax Base/Exemption Terms” — the following terms can be used to further delineate the type of “telecommunications service” to be taxed or exempted. The terms would be used with the broader terms and subcategories delineated above.

The terms “ancillary services” and “telecommunications service” are defined as a broad range of services. The terms “ancillary services” and “telecommunications service” are broader than the sum of the subcategories. Definitions of subcategories of “ancillary services” and “telecommunications service” can be used by a member state alone or in combination with other subcategories to define a narrower tax base than the definitions of “ancillary services” and “telecommunications service” would imply. The subcategories can also be used by a member state to provide exemptions for certain subcategories of the more broadly defined terms.

A member state that specifically imposes tax on, or exempts from tax, local telephone or local telecommunications service may define “local service” in any manner in accordance with § 44-18.1-28 , except as limited by other sections of this Agreement.

History of Section. P.L. 2006, ch. 246, art. 30, § 10; P.L. 2007, ch. 6, § 4; P.L. 2017, ch. 302, art. 8, § 10; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9; P.L. 2020, ch. 12, § 1; P.L. 2020, ch. 17, § 1.

Compiler’s Notes.

P.L. 2020, ch. 12, § 1, and P.L. 2020, ch. 17, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act, as it pertains to vendor-hosted prewritten software, shall take effect on October 1, 2018; the remainder of the amendment shall take effect on July 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

44-18-7.2. Sales tax holiday definitions.

The definitions in this part are only applicable for the purpose of administration of a sales tax holiday, as defined in § 44-18.1-23 .

  1. “Eligible property” means an item of a type, such as clothing, that qualifies for a sales tax holiday exemption in a member state.
  2. “Layaway sale” means a transaction in which property is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the property. An order is accepted for layaway by the seller, when the seller removes the property from normal inventory or clearly identifies the property as sold to the purchaser.
  3. “Rain check” means the seller allows a customer to purchase an item at a certain price at a later time because the particular item was out of stock.
  4. “School supply” is an item commonly used by a student in a course of study. The term is mutually exclusive of the terms “school art supply,” “school instructional material,” and “school computer supply,” and may be taxed differently. The following is an all-inclusive list:
    1. binders;
    2. book bags;
    3. calculators;
    4. cellophane tape;
    5. blackboard chalk;
    6. compasses;
    7. composition books;
    8. crayons;
    9. erasers;
    10. folders; expandable, pocket, plastic and manila;
    11. glue, paste and paste sticks;
    12. highlighters;
    13. index cards;
    14. index card boxes;
    15. legal pads;
    16. lunch boxes;
    17. markers;
    18. notebooks;
    19. paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board and construction paper;
    20. pencil boxes and other school supply boxes;
    21. pencil sharpeners;
    22. pencils;
    23. pens;
    24. protractors;
    25. rulers;
    26. scissors; and
    27. writing tablets.
  5. “School art supply” is an item commonly used by a student in a course of study for artwork. The term is mutually exclusive of the terms “school supply,” “school instructional material,” and “school computer supply,” and may be taxed differently. The following is an all-inclusive list:
    1. clay and glazes;
    2. paints; acrylic, tempora and oil;
    3. paintbrushes for artwork;
    4. sketch and drawing pads; and
    5. watercolors
  6. “School instructional material” is written material commonly used by a student in a course of study as a reference and to learn the subject being taught. The term is mutually exclusive of the terms “school supply,” “school art supply,” and “school computer supply,” and may be taxed differently. The following is an all-inclusive list:
    1. reference books;
    2. reference maps and globes;
    3. textbooks; and
    4. workbooks.
  7. “School computer supply” is an item commonly used by a student in a course of study in which a computer is used. The term is mutually exclusive of the terms “school supply,” “school art supply,” and “school instructional material,” and may be taxed differently. The following is an all-inclusive list:
    1. computer storage media; diskettes, compact disks;
    2. handheld electronic schedulers, except devices that are cellular phones;
    3. personal digital assistants, except devices that are cellular phones;
    4. computer printers; and
    5. printer supplies for computers; printer paper, printer ink.

History of Section. P.L. 2006, ch. 246, art. 30, § 10.

44-18-7.3. Services defined.

  1. “Services” means all activities engaged in for other persons for a fee, retainer, commission, or other monetary charge, which activities involve the performance of a service in this state as distinguished from selling property.
  2. The following businesses and services performed in this state, along with the applicable 2017 North American Industrial Classification System (NAICS) codes, are included in the definition of services:
    1. Taxicab and limousine services including but not limited to:
      1. Taxicab services including taxi dispatchers (485310); and
      2. Limousine services (485320).
      3. All other transit and ground passenger transportation (485999).
    2. Other road transportation service including but not limited to:
    3. Pet care services (812910) except veterinary and testing laboratories services.
      1. “Room reseller” or “reseller” means any person, except a tour operator as defined in § 42-63.1-2 , having any right, permission, license, or other authority from or through a hotel as defined in § 42-63.1-2 , to reserve, or arrange the transfer of occupancy of, accommodations the reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include, but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the provisions of any other law, where said reservation or transfer of occupancy is done using a room reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20 , and the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes, with said taxes being calculated upon the amount of rental and other fees paid by the occupant to the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant. No assessment shall be made by the tax administrator against a hotel because of an incorrect remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be made by the tax administrator against a room reseller or reseller because of an incorrect remittance of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter, the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes. If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or reseller from the occupant under this chapter shall be stated and charged separately from the rental and other fees, and shall be shown separately on all records thereof, whether made at the time the transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller shall represent to the occupant that the separately stated taxes charged by the room reseller or reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit pursuant to § 44-19-1 .
      2. “Travel package” means a room, or rooms, bundled with one or more other, separate components of travel such as air transportation, car rental, or similar items, which travel package is charged to the customer or occupant for a single, retail price. When the room occupancy is bundled for a single consideration, with other property, services, amusement charges, or any other items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire single consideration shall be treated as the rental or other fees for room occupancy subject to tax under this chapter; provided, however, that where the amount of the rental, or other fees for room occupancy is stated separately from the price of such other property, services, amusement charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such rental and other fees are determined by the tax administrator to be reasonable in relation to the value of such other property, services, amusement charges, or other items, only such separately stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any room, or rooms, bundled as part of a travel package may be determined by the tax administrator from the room reseller’s and/or reseller’s and/or hotel’s books and records that are kept in the regular course of business.
    4. Investigation, Guard, and Armored Car Services (561611, 561612 & 561613).
  3. All services as defined herein are required to file a business application and registration form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax.
  4. The tax administrator is authorized to promulgate rules and regulations in accordance with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of this chapter.

(i) Charter bus service (485510);

(ii) “Transportation network companies” (TNC) defined as an entity that uses a digital network to connect transportation network company riders to transportation network operators who provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15 and is required to file a business application and registration form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and

History of Section. P.L. 2012, ch. 241, art. 21, § 4; P.L. 2015, ch. 141, art. 11, § 4; P.L. 2016, ch. 142, art. 13, § 14; P.L. 2017, ch. 451, § 20; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2012, ch. 241, art. 21, § 16, provides that this section takes effect October 1, 2012.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

44-18-8. Retail sale or sale at retail defined.

A “retail sale” or “sale at retail” means any sale, lease, or rentals of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, or services as defined in § 44-18-7.3 for any purpose other than resale, sublease, or subrent in the regular course of business. The sale of tangible personal property to be used for purposes of rental in the regular course of business is considered to be a sale for resale. In regard to telecommunications service as defined in § 44-18-7(9) , retail sale does not include the purchase of telecommunications service by a telecommunications provider from another telecommunication provider for resale to the ultimate consumer; provided, that the purchaser submits to the seller a certificate attesting to the applicability of this exclusion, upon receipt of which the seller is relieved of any tax liability for the sale.

History of Section. P.L. 1947, ch. 1887, art. 2, § 7; G.L. 1956, § 44-18-8 ; P.L. 1967, ch. 179, art. 2, § 2; P.L. 1977, ch. 135, § 1; P.L. 1989, ch. 126, art. 44, § 1; P.L. 2006, ch. 246, art. 30, § 9; P.L. 2007, ch. 6, § 4; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

NOTES TO DECISIONS

In General.

There is no taxable event until the retailer sells the property to one who will not hold it for resale in the regular course of business. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Collateral References.

Article intended for consumption or use by customers or patrons of the buyer on the latter’s premises, sales of as retail sale subject to tax. 157 A.L.R. 557.

Sale of building materials, supplies or fixtures to contractor, or his use thereof in construction or repairs, as sale at retail within tax statute or ordinance. 163 A.L.R. 276; 171 A.L.R. 697.

Sales or use tax on motor vehicle purchased out of state. 45 A.L.R.3d 1270.

What amounts to a sale at retail within tax statutes or ordinances. 163 A.L.R. 276; 171 A.L.R. 697.

44-18-9. “Storage” defined.

“Storage” includes any keeping or retention in this state, except for sale in the regular course of business or for subsequent use solely outside of this state, of tangible personal property purchased from a retailer.

History of Section. P.L. 1947, ch. 1887, art. 2, § 8; G.L. 1956, § 44-18-9 .

NOTES TO DECISIONS

In General.

The issue under these statutes is whether petitioner purchased the tangible personal property “for sale in the regular course of business” or acquired and stored it “for subsequent use solely outside this state,” not simply whether it held the property for sale or lease. G.H. Waterman & Co. v. Norberg, 122 R.I. 825 , 412 A.2d 1132, 1980 R.I. LEXIS 1474 (1980).

Taxable Event.

There is no taxable event until the retailer sells the property to one who will not hold it for resale in the regular course of business. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

44-18-10. “Use” defined.

“Use” includes the exercise of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of that property in the regular course of business.

History of Section. P.L. 1947, ch. 1887, art. 2, § 9; G.L. 1956, § 44-18-10 .

NOTES TO DECISIONS

In General.

The issue under these statutes is whether petitioner purchased the tangible personal property “for sale in the regular course of business” or acquired and stored it “for subsequent use solely outside this state,” not simply whether it held the property for sale or lease. G.H. Waterman & Co. v. Norberg, 122 R.I. 825 , 412 A.2d 1132, 1980 R.I. LEXIS 1474 (1980).

Control.

Little control over rented property is required to establish a taxable use thereof. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

The degree of control required to establish “possession” for purposes of tort liability is not controlling as to the degree of control required to justify the imposition of a use tax. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

Use.

Although the rental of property used to haul a specific load or a one-time rental for a specific job does not constitute a “use” under this section, a rental for a specific time period or where the charter extends over a considerable period of time with the details of performance changing daily does constitute a taxable “use.” Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

Although petitioner leased tugboats along with a master and crew from lessor to use for towing scows owned and operated by petitioner, the right exercised by petitioner to direct where and when the tugs should pick up and deposit the scows was sufficient control over the tugs to constitute a “use.” Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

44-18-11. Storage or use for export.

“Storage” and “use” do not include the keeping, retaining, or exercising of any right or power over tangible personal property shipped or brought into this state for the purpose of subsequently transporting the property outside of the state for use solely outside of the state, or for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside of the state and used solely outside of the state.

History of Section. P.L. 1947, ch. 1887, art. 2, § 10; G.L. 1956, § 44-18-11 .

NOTES TO DECISIONS

Constitutionality.

This section is consistent with the mandate of the commerce clause of the U.S. Const., Art. I, § 8. G.H. Waterman & Co. v. Norberg, 122 R.I. 825 , 412 A.2d 1132, 1980 R.I. LEXIS 1474 (1980).

Evidence.

Where taxpayer shipped die-casting machines to a customer in Canada and the machines were taxed under the statute which excludes from the tax, personal property held for shipment outside the state, the tax was upheld as there was an admission by the taxpayer that the items complained of were treated as depreciable assets on the federal income tax return and thus evidence that the items were not considered as inventory but rather as personal property which is subject to the use tax. Miniature Casting Corp. v. Norberg, 116 R.I. 636 , 360 A.2d 105, 1976 R.I. LEXIS 1316 (1976).

The party seeking an exemption from taxation, has the burden of establishing that its purchases fall within the scope of this section. G.H. Waterman & Co. v. Norberg, 122 R.I. 825 , 412 A.2d 1132, 1980 R.I. LEXIS 1474 (1980).

Processing Into Other Property.

Cartons and packing materials used in the business of moving household goods from locations in the state to locations outside the state are not processed, fabricated, or manufactured into other tangible property within the meaning of this section. Safeway Sys. v. Norberg, 115 R.I. 127 , 341 A.2d 47, 1975 R.I. LEXIS 1130 (1975).

Taxable Events.

This section exempts from taxation any property in the flow of interstate commerce which enters Rhode Island from out of state and, with only minor interruption, continues on its interstate journey. Randall v. Norberg, 121 R.I. 714 , 403 A.2d 240, 1979 R.I. LEXIS 1976 (1979).

A taxable event under this section occurs when a stoppage in transit is essential neither to the interstate journey nor for the purposes of safety and convenience in the course of that journey, and under such facts the property in question thereby loses its interstate character and a state may tax the privilege of exercising ownership rights without running afoul of the constitutional prohibition against state taxation of interstate commerce. Randall v. Norberg, 121 R.I. 714 , 403 A.2d 240, 1979 R.I. LEXIS 1976 (1979).

Use Inside State.

While bringing a yacht into Rhode Island for repairs and maintenance alone was not sufficient activity to constitute a taxable moment, those acts combined with the yacht’s repeated presence for social visits did result in sufficient exercise of ownership rights to be considered a “use” within the meaning of this section, and such repeated visits to Rhode Island stood in complete contradiction to this section’s requirement that the property in question be destined for exclusive use outside the state. Randall v. Norberg, 121 R.I. 714 , 403 A.2d 240, 1979 R.I. LEXIS 1976 (1979).

Use Outside State.

Cartons and packing materials brought into this state for use in the business of moving household goods from locations in this state to locations outside the state are not for use solely outside this state and, therefore, are not exempt from the use tax under the first part of this section. Safeway Sys. v. Norberg, 115 R.I. 127 , 341 A.2d 47, 1975 R.I. LEXIS 1130 (1975).

Repair parts for trucks used in the business of moving household goods from locations in the state to locations outside the state are not exempt from the use tax under this section. Safeway Sys. v. Norberg, 115 R.I. 127 , 341 A.2d 47, 1975 R.I. LEXIS 1130 (1975).

The exemptions of this statute only apply to tangible personal property which is shipped or brought into this state, stored here temporarily and then withdrawn from storage to be used solely outside the state. Paul Arpin Van Lines Co. v. Norberg, 115 R.I. 379 , 346 A.2d 655, 1975 R.I. LEXIS 1160 (1975).

The temporary storage within the state of disassembled shipping cartons and packing materials which are purchased outside the state is not a taxable event as long as the property is to be used exclusively outside the state. Paul Arpin Van Lines Co. v. Norberg, 115 R.I. 379 , 346 A.2d 655, 1975 R.I. LEXIS 1160 (1975).

Collateral References.

Items or materials exempt from use tax as becoming component part or ingredient of manufactured or processed article. 89 A.L.R.5th 493.

44-18-12. “Sale price” defined.

  1. “Sales price” applies to the measure subject to sales tax and means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:
    1. The seller’s cost of the property sold;
    2. The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;
    3. Charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;
    4. Delivery charges, as defined in § 44-18-7.1(i) ;
    5. Credit for any trade-in, as determined by state law; or
    6. The amount charged for services, as defined in § 44-18-7.3 .
  2. “Sales price” shall not include:
    1. Discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale;
    2. The amount charged for labor or services rendered in installing or applying the property sold when the charge is separately stated by the retailer to the purchaser; provided that in transactions subject to the provisions of this chapter the retailer shall separately state such charge when requested by the purchaser and, further, the failure to separately state such charge when requested may be restrained in the same manner as other unlawful acts or practices prescribed in chapter 13.1 of title 6.
    3. Interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale or similar document given to the purchaser; and
    4. Any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale or similar document given to the purchaser.
    5. Manufacturer rebates allowed on the sale of motor vehicles.
  3. “Sales price” shall include consideration received by the seller from third parties if:
    1. The seller actually receives consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;
    2. The seller has an obligation to pass the price reduction or discount through to the purchaser;
    3. The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and
    4. One of the following criteria is met:
      1. The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount where the coupon, certificate or documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented;
      2. The purchaser identifies himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount (a “preferred customer” card that is available to any patron does not constitute membership in such a group), or
      3. The price reduction or discount is identified as a third party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser.

History of Section. P.L. 1947, ch. 1887, art. 2, § 11; G.L. 1956, § 44-18-12 ; P.L. 1965, ch. 147, § 1; P.L. 1967, ch. 179, art. 2, § 3; P.L. 1973, ch. 263, art. 7, § 2; P.L. 1981, ch. 151, § 1; P.L. 1985, ch. 296, § 1; P.L. 1989, ch. 126, art. 44, § 1; P.L. 1989, ch. 231, § 1; P.L. 2006, ch. 246, art. 30, § 9; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

NOTES TO DECISIONS

Construction.

Subsection (2)(E) (now (b)(5)) is an exemption provision and as such is to be strictly construed against the taxpayer unless the legislative intent to grant such an exemption is clear on the face of the statute. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

The word “purchase” as used in subsection (2)(E) (now (b)(5)) of this section is construed to be synonymous with the meaning of “sales” as the latter term is defined in § 44-18-7 . Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

The word “purchase” is not defined in the Sales and Use Tax Act and is used with reference to the sales tax only once, in subsection (2)(E) (now (b)(5)) of this section. In all other instances, the legislature has employed the term “sale” to identify the determinative event regarding sales tax liability or lack thereof. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Although “purchase” is also used as a verb in either the present or past tense several times in the Sales and Use Tax Act, ch. 18 of title 44, because the use tax is imposed upon the use or consumption of goods in the state, the issue of when a “purchase” occurs is not a significant factor in most cases and the context in which “purchase” is used in the Sales and Use Tax Act is, therefore, of no assistance in interpreting subsection (2)(E) (now (b)(5)) of this section. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Applicability.

The delivery-charge exemption must be applied on an ad hoc basis. Eligibility for the exemption can only be determined after a consideration of such factors as (1) the parties’ sales contract; (2) the route taken by the machinery before it reaches the customer or the destination specified by the customer; (3) the identity of the carrier; and (4) the contract of carriage. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

A regulation of the tax administrator extending the provision for return of article within 120 days to sales “on trial, on satisfaction, on sale or return” did not alter or amend the scope of the statute. Herald Press, Inc. v. Norberg, 122 R.I. 264 , 405 A.2d 1171, 1979 R.I. LEXIS 2155 (1979).

In a suit involving consumers (yet-to-be class certified) asserting that a computer business improperly collected a tax from them on service contracts they purchased along with a new computer, the Rhode Island Superior Court had subject matter jurisdiction over the action as their claims were being asserted under the Rhode Island Deceptive Trade Practices Act, R.I. Gen. Laws § 6-13.1-5.2(a) , and common-law negligence, and did not present a tax aggrievement case. As a result, the motion to dismiss filed by the intervening tax administrator for the Rhode Island Division of Taxation was denied. Long v. Dell, Inc., 984 A.2d 1074, 2009 R.I. LEXIS 141 (R.I. 2009).

Cable Television.

Under the dictates of R.I. Gen. Laws § 44-18-12 and R.I. Gen. Laws § 44-18-7(10) , the providing of cable-television services by the taxpayers to their subscribers clearly constitutes taxable sales. The property sold by the taxpayers whether viewed as the service itself or additionally as the lease or rental of the cables and converters, is generally taxable. However, the separately stated charge for the installation of the cables and converters is a one-time cost incident to the “property sold” and thus fits squarely within the exemption of R.I. Gen. Laws § 44-18-12(b)(ii) . Rhode Island CATV Corp. v. Clark, 541 A.2d 462, 1988 R.I. LEXIS 64 (R.I. 1988).

Installation Exemption.

The installation exemption of subdivision (C) applies to the one-time charge for installing the cables and converters necessary to receive cable-television service. Rhode Island CATV Corp. v. Clark, 541 A.2d 462, 1988 R.I. LEXIS 64 (R.I. 1988).

Insurance.

Gasoline and optional personal accident insurance charges included in automobile leasing bill were subject to sales tax. See Keystone Auto Leasing v. Norberg, 486 A.2d 613, 1985 R.I. LEXIS 423 (R.I. 1985).

Services.

Where restaurant furnished musicians for party and billed customer at the same amount that it cost the restaurant, such amount was part of the taxable sale price notwithstanding the restaurant made no profit on that service. Coachman, Inc. v. Norberg, 121 R.I. 316 , 397 A.2d 1320, 1979 R.I. LEXIS 1778 (1979).

Since the “real object” of the taxpayer’s transaction with a design firm was to obtain as an end product (i.e., the mechanical artwork from which its packaging could be fabricated in a finished form for ultimate sale), the transaction was not a nontaxable “service” transaction. Hasbro Indus. v. Norberg, 487 A.2d 124, 1985 R.I. LEXIS 427 (R.I. 1985).

The engineering services rendered in conjunction with the phone company’s acquisition of central office equipment were not subject to taxation under this section as “services that are part of the sale” of tangible personalty under subdivision (1)(A) (now (a)(1)) given that both the equipment and the service element of the transaction constituted a distinct and separable transaction. New Eng. Tel. & Tel. Co. v. Clark, 624 A.2d 298, 1993 R.I. LEXIS 123 (R.I. 1993).

Transportation Charges.

Only transportation charges arising from a retailer’s attempt to complete his delivery obligation to the purchaser after the “sale” are exempt from the sales tax. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Transportation charges involving machinery shipped from the manufacturer to a sales representative of the manufacturer for additional work are taxable. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Transportation charges involving machinery shipped from a sales representative of the manufacturer to the customer by the sales representative are taxable. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

— Exemption.

Transportation charges involving machinery shipped free on board from the manufacturer by common carrier directly to the customer are tax exempt. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Transportation charges involving machinery shipped free on board from the manufacturer by common carrier directly to the customer but intercepted by a sales representative of the manufacturer as a matter of convenience for the customer are tax exempt. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Transportation charges involving machinery shipped from a sales representative of the manufacturer to the customer by common carrier are tax exempt when the sales contract does not reserve title in the sales representative after the delivery. Rice Mach. v. Norberg, 120 R.I. 542 , 391 A.2d 66, 1978 R.I. LEXIS 726 (1978).

Collateral References.

Computation of sales tax where property is turned in by purchaser. 4 A.L.R.2d 1059.

Employee’s acquisition of employer’s commodities at discount or without cost as within sales tax statute. 1 A.L.R.2d 1020.

Federal retail luxury or other excise tax as includible in amount on which state sales tax is computed. 43 A.L.R.2d 862.

Transportation, freight, mailing, or handling charges billed separately to purchaser of goods as subject to sales or use taxes. 2 A.L.R.4th 1124.

44-18-12.1. “Additional measure subject to tax”.

Also included in the measure subject to tax under this chapter is the total amount charged for the furnishing or distributing of electricity, natural gas, artificial gas, steam, refrigeration, water, telecommunications, telegraph, cable, and radio message service, community antenna television, subscription television, and cable television service; provided, that the measure of tax in regard to telecommunications service is the total consideration received for the service as defined in § 44-18-7(9) ; provided, that in order to prevent multistate taxation of all telecommunications service, any taxpayer is allowed a credit or refund of sales tax upon presenting proof that a tax has been paid to another state to which the tax is properly due for the identical service taxed under this chapter. Furthermore, included in the measure of tax is the total amount charged for the rental of living quarters in any hotel, rooming house, or tourist camp.

History of Section. P.L. 2006, ch. 246, art. 30, § 10.

44-18-13. Gross receipts defined.

“Gross receipts” means the total amount of the sale price, as defined in § 44-18-12 or the measure subject to tax as defined in § 44-18-12.1 , of the retail sales of retailers.

History of Section. P.L. 1947, ch. 1887, art. 2, § 12; G.L. 1956, § 44-18-13 ; P.L. 1977, ch. 135, § 1; P.L. 2006, ch. 246, art. 30, § 9.

NOTES TO DECISIONS

Minimum Restaurant Charge by Club.

Where a golf club imposed on all members a monthly minimum charge reduced by the amount paid by the member for restaurant use during the month, the charge was a special assessment or additional membership dues, and was not subject to the sales tax. Potowomut Golf Club v. Norberg, 114 R.I. 589 , 337 A.2d 226, 1975 R.I. LEXIS 1459 (1975).

44-18-14. “Business” defined.

“Business” includes any activity engaged in by any person or caused to be engaged in by that person with the object of profit, gain, benefit, or advantage, either direct or indirect; and also includes the furnishing and distributing of electricity, natural gas, artificial gas, steam, refrigeration, and water by this state, any city, town, district, or other political subdivision of this state.

History of Section. P.L. 1947, ch. 1887, art. 2, § 13; G.L. 1956, § 44-18-14 .

44-18-15. “Retailer” defined.

  1. “Retailer” includes:
    1. Every person engaged in the business of making sales at retail, including prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, sales of services as defined in § 44-18-7.3 , and sales at auction of tangible personal property owned by the person or others.
    2. Every person making sales of tangible personal property, including prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software or specified digital products, or sales of services as defined in § 44-18-7.3 , through an independent contractor or other representative, if the retailer enters into an agreement with a resident of this state, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer is in excess of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending on the last day of March, June, September, and December. Such retailer shall be presumed to be soliciting business through the independent contractor or other representative, which presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during such four (4) quarterly periods.
    3. Every person engaged in the business of making sales for storage, use, or other consumption of: (i) Tangible personal property, (ii) Sales at auction of tangible personal property owned by the person or others, (iii) Prewritten computer software delivered electronically or by load and leave, (iv) Vendor-hosted prewritten computer software, (v) Specified digital products, and (vi) Services as defined in § 44-18-7.3.
    4. A person conducting a horse race meeting with respect to horses, which are claimed during the meeting.
    5. Every person engaged in the business of renting any living quarters in any hotel as defined in § 42-63.1-2 , rooming house, or tourist camp.
    6. Every person maintaining a business within or outside of this state who engages in the regular or systematic solicitation of sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, and/or specified digital products in this state by means of:
      1. Advertising in newspapers, magazines, and other periodicals published in this state, sold over the counter in this state or sold by subscription to residents of this state, billboards located in this state, airborne advertising messages produced or transported in the airspace above this state, display cards and posters on common carriers or any other means of public conveyance incorporated or operated primarily in this state, brochures, catalogs, circulars, coupons, pamphlets, samples, and similar advertising material mailed to, or distributed within this state to residents of this state;
      2. Telephone;
      3. Computer-assisted shopping networks; and
      4. Television, radio, or any other electronic media, that is intended to be broadcast to consumers located in this state.
  2. When the tax administrator determines that it is necessary for the proper administration of chapters 18 and 19 of this title to regard any salespersons, representatives, truckers, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, employers, or persons under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of the dealers, distributors, supervisors, or employers, the tax administrator may so regard them and may regard the dealers, distributors, supervisors, or employers as retailers for purposes of chapters 18 and 19 of this title.

History of Section. P.L. 1947, ch. 1887, art. 2, § 14; G.L. 1956, § 44-18-15 ; P.L. 1967, ch. 179, art. 2, § 4; P.L. 1990, ch. 514, § 1; P.L. 2009, ch. 68, art. 16, § 8; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9; P.L. 2019, ch. 308, art. 2, § 13.

Compiler’s Notes.

This section was amended by two acts (P.L. 2019, ch. 88, art. 5, § 9; P.L. 2019, ch. 308, art. 2, § 13) as passed by the 2019 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by both acts.

Effective Dates.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

NOTES TO DECISIONS

Non-Retailer.

Property held by a taxpayer who is not a retailer is not exempt from the use tax under this section, because it is not subject to the sales tax when it is sold. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Retailer.

A manufacturer who sold prefabricated garages to a contractor who erected them for his customers was a retailer within the meaning of this section. Capitol Bldg. Co. v. Langton, 101 R.I. 131 , 221 A.2d 99, 1966 R.I. LEXIS 364 (1966).

44-18-15.1. “Promoter” and “show” defined — Duty of promoter to collect tax.

  1. “Promoter” means any person who for consideration rents or leases space to any person for the display and sale of tangible personal property, services, or food and drink subject to tax, at a show, or who operates a show.
  2. “Show” means a flea market, craft show, antique show, coin show, stamp show, comic book show, fair, and any other show of a temporary nature, regardless of whether conducted at the same location for an extended period of time, excluding, however, trade shows sponsored or promoted by an industry, trade, or professional association or society which are open only to industry, trade, professional association, or society related persons and not to the general public.
  3. The promoter of a show is charged with the duty of collecting the sales tax from each out of state person who rents or leases space from the promoter for the display and sale of tangible personal property, services, or food and drink subject to tax at a show.

History of Section. P.L. 1978, ch. 166, § 2; P.L. 1981, ch. 234, § 1.

44-18-15.2. “Remote seller” defined — Collection of sales and use tax by remote seller.

  1. As used in this section:
    1. “Remote seller” means any seller, other than a marketplace facilitator or referrer, who does not have a physical presence in this state and makes retail sales to purchasers.
    2. [Deleted by P.L. 2019, ch. 11, § 7 and P.L. 2019, ch. 12, § 7].
  2. [Deleted by P.L. 2019, ch. 88, art. 5, § 9].

History of Section. P.L. 2013, ch. 144, art. 9, § 3; P.L. 2014, ch. 528, § 63; P.L. 2019, ch. 11, § 7; P.L. 2019, ch. 12, § 7; P.L. 2019, ch. 88, art. 5, § 9.

Compiler’s Notes.

This section was amended by three acts (P.L. 2019, ch. 11, § 7; P.L. 2019, ch. 12, § 7; P.L. 2019, ch. 88, art. 5, § 9) as passed by the 2019 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by all three acts.

P.L. 2019, ch. 11, § 7, and P.L. 2019, ch. 12, § 7 enacted identical amendments to this section.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

44-18-16. Tangible property defined.

“Tangible personal property” means personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses. “Tangible personal property” includes electricity, water, gas, steam, and prewritten computer software.

History of Section. P.L. 1947, ch. 1887, art. 2, § 15; G.L. 1956, § 44-18-16 ; P.L. 2006, ch. 246, art. 30, § 9.

NOTES TO DECISIONS

Computer Programs.

Computer software program constituted tangible personal property. See Hasbro Indus. v. Norberg, 487 A.2d 124, 1985 R.I. LEXIS 427 (R.I. 1985).

Collateral References.

Computer software or printout transactions as subject to state sales or use tax. 36 A.L.R.5th 133.

Sales and use taxes on leased tangible personal property. 2 A.L.R.4th 859.

44-18-17. “State” defined.

“In this state” or “in the state” means within the exterior limits of the state of Rhode Island and includes all territory within these limits owned by or ceded to the United States of America.

History of Section. P.L. 1947, ch. 1887, art. 2, § 16; G.L. 1956, § 44-18-17 ; P.L. 2006, ch. 246, art. 30, § 9.

44-18-18. Sales tax imposed.

A tax is imposed upon sales at retail in this state, including charges for rentals of living quarters in hotels as defined in § 42-63.1-2 , rooming houses, or tourist camps, at the rate of six percent (6%) of the gross receipts of the retailer from the sales or rental charges; provided, that the tax imposed on charges for the rentals applies only to the first period of not exceeding thirty (30) consecutive calendar days of each rental; provided, further, that for the period commencing July 1, 1990, the tax rate is seven percent (7%). The tax is paid to the tax administrator by the retailer at the time and in the manner provided. Excluded from this tax are those living quarters in hotels, rooming houses, or tourist camps for which the occupant has a written lease for the living quarters which lease covers a rental period of twelve (12) months or more.

History of Section. P.L. 1947, ch. 1887, art. 2, § 17; P.L. 1951, ch. 2733, art. 2, § 1; P.L. 1952, ch. 3026, art. 2, § 1; P.L. 1953, ch. 3150, art. 2, § 1; P.L. 1954, ch. 3254, art. 2, § 1; P.L. 1955, ch. 3521, § 1; P.L. 1956, ch. 3739, art. 2, § 1; G.L. 1956, § 44-18-18 ; R.P.L. 1957, ch. 44, art. 2, § 1; P.L. 1958, ch. 17, art. 7, § 1; P.L. 1959, ch. 169, art. 3, § 1; P.L. 1960, ch. 64, § 1; P.L. 1964, ch. 234, § 1; P.L. 1965, ch. 232, art. 4, § 1; P.L. 1967, ch. 179, art. 2, § 5; P.L. 1976, ch. 198, art. 4, § 1; P.L. 1977, ch. 200, art. 4, § 1; P.L. 1986, ch. 385, § 1; P.L. 1990, ch. 65, art. 14, § 1; P.L. 1991, ch. 6, art. 4, § 1; P.L. 2011, ch. 151, art. 19, § 26; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2013, ch. 144, art. 9, § 3; P.L. 2014, ch. 528, § 63; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

NOTES TO DECISIONS

Automobile Leases to U.S. Government Employees.

The Rhode Island sales and use tax applies to automobile leases to employees of the United States government; the state sales tax was constitutionally applied and the refueling and insurance charges were part of the sales price and properly included in the measure of tax where, since the employees paid the lease charges themselves, the legal incidence of the tax was upon them, not on the United States government. Keystone Auto Leasing v. Norberg, 486 A.2d 613, 1985 R.I. LEXIS 423 (R.I. 1985).

Construction With Other Laws.

Under R.I. Gen .Laws § 44-18-12 , the amount charged for labor or services rendered in installing or applying property sold when such charge is separately stated is not included within the definition of “sale price” and therefore not subject to the sales tax imposed by R.I. Gen. Laws § 44-18-18 . Correia v. Norberg, 120 R.I. 793 , 391 A.2d 94, 1978 R.I. LEXIS 730 (1978).

Under the dictates of R.I. Gen. Laws § 44-18-12 and R.I. Gen. Laws § 44-18-7(10) , the providing of cable-television services by the taxpayers to their subscribers clearly constitutes taxable sales. The property sold by the taxpayers whether viewed as the service itself or additionally as the lease or rental of the cables and converters, is generally taxable. However, the separately stated charge for the installation of the cables and converters is a one-time cost incident to the “property sold” and thus fits squarely within the exemption of R.I. Gen. Laws § 44-18-12(b)(ii) . Rhode Island CATV Corp. v. Clark, 541 A.2d 462, 1988 R.I. LEXIS 64 (R.I. 1988).

Transactions subject to the use tax are typically also susceptible to the sales tax. Double taxation is avoided through various credit and exemption provisions, such R.I. Gen. Laws § 44-18-30A (credit for foreign sales tax or use tax paid) or R.I. Gen. Laws § 44-18-34 (exemption from use tax of property subject to sales tax). Dart Indus. v. Clark, 696 A.2d 306, 1997 R.I. LEXIS 180 (R.I. 1997).

The use tax, imposed by R.I. Gen. Laws § 44-18-20 , is a complement to the sales tax, imposed by R.I. Gen. Laws § 44-18-18 . The sales tax applies to sales at retail in this state. The use tax, in contradistinction, is imposed on the storage, use, or other consumption in this state of tangible personal property. Although not mutually exclusive, the sales tax generally applies to purchases within the state, and the use tax to purchases which occur out of state but which are in effect “substitutes” for purchases in the state in the sense that in both cases the property is used in the state. Dart Indus. v. Clark, 696 A.2d 306, 1997 R.I. LEXIS 180 (R.I. 1997).

Transactions subject to the use tax are typically also susceptible to the sales tax. Double taxation is avoided through various credit and exemption provisions, such R.I. Gen. Laws § 44-18-30A (credit for foreign sales tax or use tax paid) or R.I. Gen. Laws § 44-18-34 (exemption from use tax of property subject to sales tax). Dart Indus. v. Clark, 696 A.2d 306, 1997 R.I. LEXIS 180 (R.I. 1997).

Entertainment.
No Duty to Consumers.

Where a restaurant provided musicians for parties, the musicians’ fees were covered by the term “entertainment” as used in R.I. Gen. Laws § 44-18-7(D) (now (4)). Accordingly, when the restaurant received payment from its patrons of both the food and beverage bill and the charge for entertainment, the sum collected became part of the gross receipts and was includable in the measure of tax. The sales-tax law clearly states that the measure of tax is the amount of the gross receipts; there is no indication that the retailer is taxed only on the profits of a sale. Coachman, Inc. v. Norberg, 121 R.I. 316 , 397 A.2d 1320, 1979 R.I. LEXIS 1778 (1979).

Minimum Restaurant Charge by Club.

Where a golf club imposed on all members a monthly minimum charge reduced by the amount of bills paid by the members for restaurant use during the month, the charge was a special assessment of additional membership dues and the unused portion thereof was not subject to the sales tax. Potowomut Golf Club v. Norberg, 114 R.I. 589 , 337 A.2d 226, 1975 R.I. LEXIS 1459 (1975).

No Duty to Consumers.

Retailer does not owe a duty to consumers to properly collect sales tax; retailers already owe a duty to the State and are subject to penalties for under-collection, and it would be untenable to make retailers subject to State penalties for under-collection and civil suit for over-collection. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

Where a restaurant provided musicians for parties, the musicians’ fees were covered by the term “entertainment” as used in R.I. Gen. Laws § 44-18-7(D) (now (4)). Accordingly, when the restaurant received payment from its patrons of both the food and beverage bill and the charge for entertainment, the sum collected became part of the gross receipts and was includable in the measure of tax. The sales-tax law clearly states that the measure of tax is the amount of the gross receipts; there is no indication that the retailer is taxed only on the profits of a sale. Coachman, Inc. v. Norberg, 121 R.I. 316 , 397 A.2d 1320, 1979 R.I. LEXIS 1778 (1979).

Superior court properly granted a seller’s motion for summary judgment in a purchasers’ action alleging that it breached its duty to calculate and collect sales tax because the seller did not owe a legal duty to the purchasers regarding the collection of taxes; therefore, the purchasers could not establish the tort of negligence. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

Out-Of-State Customer.

The transfer of goods by a Rhode Island manufacturer in Rhode Island to an out-of-state customer f.o.b. the customer’s plant and the transportation of those goods by vehicles owned by the customer did constitute transfers of title or possession such as to constitute taxable sales. Mossberg-Hubbard Div. v. Norberg, 432 A.2d 1176, 1981 R.I. LEXIS 1232 (R.I. 1981).

Sale for Resale.

There is no taxable event until the retailer sells the property to one who will not hold it for resale in the regular course of business. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Collateral References.

Architectural drawings or illustrations as exempt from sales or use tax. 27 A.L.R.5th 794.

Computation of sales tax. 107 A.L.R. 267; 135 A.L.R. 1485; 150 A.L.R. 1311; 4 A.L.R.2d 1059.

Federal retail luxury or other excise tax as includible in amount on which state sales tax is computed. 43 A.L.R.2d 862.

44-18-18.1. Local meals and beverage tax.

  1. There is hereby levied and imposed, upon every purchaser of a meal and/or beverage, in addition to all other taxes and fees now imposed by law, a local meals and beverage tax upon each and every meal and/or beverage sold within the state of Rhode Island in or from an eating and/or drinking establishment, whether prepared in the eating and/or drinking establishment or not and whether consumed at the premises or not, at a rate of one percent of the gross receipts. The tax shall be paid to the tax administrator by the retailer at the time and in the manner provided.
  2. All sums received by the division of taxation under this section as taxes, penalties, or forfeitures, interest, costs of suit, and fines shall be distributed at least quarterly and credited and paid by the state treasurer to the city or town where the meals and beverages are delivered.
  3. When used in this section, the following words have the following meanings:
    1. “Beverage” means all nonalcoholic beverages, as well as alcoholic beverages, beer, lager beer, ale, porter, wine, similar fermented malt, or vinous liquor.
    2. “Eating and/or drinking establishment” means and includes restaurants, bars, taverns, lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish-and-chip places, fried chicken places, pizzerias, food-and-drink concessions, or similar facilities in amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race tracks, shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles, and other like places of business that furnish or provide facilities for immediate consumption of food at tables, chairs, or, counters or from trays, plates, cups, or other tableware, or in parking facilities provided primarily for the use of patrons in consuming products purchased at the location. Ordinarily, eating establishment does not mean and include food stores and supermarkets. Eating establishments does not mean “vending machines,” a self-contained automatic device that dispenses for sale foods, beverages, or confection products. Retailers selling prepared foods in bulk, either in customer-furnished containers or in the seller’s containers, for example “Soup and Sauce” establishments, are deemed to be selling prepared foods ordinarily for immediate consumption and, as such, are considered eating establishments.
    3. “Meal” means any prepared food or beverage offered or held out for sale by an eating and/or drinking establishment for the purpose of being consumed by any person to satisfy the appetite and that is ready for immediate consumption. All such food and beverage, unless otherwise specifically exempted or excluded herein shall be included, whether intended to be consumed on the seller’s premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper, or by some other name, and without regard to the manner, time, or place of service.
  4. This local meals and beverage tax shall be administered and collected by the division of taxation, and unless provided to the contrary in this chapter, all of the administration, collection, and other provisions of chapters 18 and 19 of this title apply.

History of Section. P.L. 2003, ch. 376, art. 7, § 9; P.L. 2004, ch. 498, § 1; P.L. 2006, ch. 246, art. 30, § 9; P.L. 2011, ch. 151, art. 19, § 26; P.L. 2013, ch. 144, art. 9, § 3; P.L. 2014, ch. 528, § 63; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

44-18-19. Collection of sales tax by retailer.

The retailer shall add the tax imposed by this chapter to the sale price or charge, and when added the tax constitutes a part of the price or charge, is a debt from the consumer or user to the retailer, and is recoverable at law in the same manner as other debts; provided, that the amount of tax that the retailer collects from the consumer or user is as follows:

Amount of Sale Amount of Tax $0.01 to $ .08 inclusive No Tax .09 to .24 inclusive .01 .25 to .41 inclusive .02 .42 to .58 inclusive .03 .59 to .74 inclusive .04 .75 to .91 inclusive .05 .92 to 1.08 inclusive .06

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and where the amount of the sale is more than one dollar and eight cents ($1.08) the amount of the tax is computed at the rate of six percent (6%); provided, that the amount of tax that the retailer collects from the consumer or user for the period commencing July 1, 1990 is as follows:

Amount of Sale Amount of Tax $ 0.01 to $ .07 inclusive No Tax .08 to .21 inclusive .01 .22 to .35 inclusive .02 .36 to .49 inclusive .03 .50 to .64 inclusive .04 .65 to .78 inclusive .05 .79 to .92 inclusive .06 .93 to 1.07 inclusive .07

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and where the amount of the sale is more than one dollar and seven cents ($1.07) the amount of the tax is computed at the rate of seven percent (7%).

History of Section. P.L. 1947, ch. 1887, art. 2, § 17; P.L. 1951, ch. 2733, art. 2, § 1; P.L. 1952, ch. 3026, art. 2, § 1; P.L. 1953, ch. 3150, art. 2, § 1; P.L. 1954, ch. 3254, art. 2, § 1; P.L. 1955, ch. 3521, art. 2, § 1; P.L. 1956, ch. 3739, art. 2, § 1; G.L. 1956, § 44-18-19 ; R.P.L. 1957, ch. 44, art. 2, § 1; P.L. 1958, ch. 17, art. 7, § 1; P.L. 1964, ch. 234, § 2; P.L. 1967, ch. 179, art. 2, § 6; P.L. 1976, ch. 198, art. IV, § 1; P.L. 1977, ch. 200, art. 4, § 1; P.L. 1990, ch. 65, art. 14, § 1; P.L. 1991, ch. 6, art. 4, § 1.

NOTES TO DECISIONS

Standing to Challenge Tax Exemption.

Retailers and purchasers of bibles and other canonized scriptures had standing to challenge the validity of a statutory sales tax exemption, since they faced potential liability for uncollected sales tax and, in the case of retailers, possible pecuniary penalties for failing to collect such taxes. Ahlburn v. Clark, 728 A.2d 449, 1999 R.I. LEXIS 89 (R.I. 1999).

Collateral References.

Seller’s right to collect from buyer amount of sales tax in addition to price fixed by contract. 127 A.L.R. 1183.

Sufficient nexus for state to require foreign entity to collect state’s compensating, sales, or use tax — post-complete auto transit cases. 71 A.L.R.5th 671.

Validity of sales tax as affected by method of collecting. 89 A.L.R. 1432; 110 A.L.R. 1485; 117 A.L.R. 846; 128 A.L.R. 893.

44-18-19.1. Direct Pay Permit.

  1. A business that regularly purchases goods and services for use both within and outside this state may, at its option, apply to the tax administrator for a direct pay permit. The holder of a direct pay permit shall be authorized to make payment of sales and use tax on purchases of goods and services directly to the division of taxation in lieu of payment to the seller. Said permit shall be valid for a twenty-four (24) month period subject to renewal.
  2. The issuance of a direct pay permit is subject to the discretion of the tax administrator. Prior to issuance of said permit the tax administrator must be satisfied that such an action shall not jeopardize the collection of tax.
  3. The tax administrator shall publish regulations regarding the conditions upon which a direct pay permit shall issue.

History of Section. P.L. 2006, ch. 246, art. 30, § 10.

44-18-20. Use tax imposed.

  1. An excise tax is imposed on the storage, use, or other consumption in this state of tangible personal property; prewritten computer software delivered electronically or by load and leave; vendor-hosted prewritten computer software; specified digital products; or services as defined in § 44-18-7.3 , including a motor vehicle, a boat, an airplane, or a trailer, purchased from any retailer at the rate of six percent (6%) of the sale price of the property.
  2. An excise tax is imposed on the storage, use, or other consumption in this state of a motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.
  3. The word “trailer,” as used in this section and in § 44-18-21 , means and includes those defined in § 31-1-5(a) — (f) and also includes boat trailers, camping trailers, house trailers, and mobile homes.
  4. Notwithstanding the provisions contained in this section and in § 44-18-21 relating to the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in any casual sale:
    1. When the transferee or purchaser is the spouse, mother, father, brother, sister, or child of the transferor or seller;
    2. When the transfer or sale is made in connection with the organization, reorganization, dissolution, or partial liquidation of a business entity, provided:
      1. The last taxable sale, transfer, or use of the article being transferred or sold was subjected to a tax imposed by this chapter;
      2. The transferee is the business entity referred to or is a stockholder, owner, member, or partner; and
      3. Any gain or loss to the transferor is not recognized for income tax purposes under the provisions of the federal income tax law and treasury regulations and rulings issued thereunder;
    3. When the sale or transfer is of a trailer, other than a camping trailer, of the type ordinarily used for residential purposes and commonly known as a house trailer or as a mobile home; or
    4. When the transferee or purchaser is exempt under the provisions of § 44-18-30 or other general law of this state or special act of the general assembly of this state.
  5. The term “casual” means a sale made by a person other than a retailer, provided, that in the case of a sale of a motor vehicle, the term means a sale made by a person other than a licensed motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed under the provisions of subsections (a) and (b) of this section on the storage, use, or other consumption in this state of a used motor vehicle less than the product obtained by multiplying the amount of the retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate; provided, that where the amount of the sale price exceeds the amount of the retail dollar value, the tax is based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as shown in the current issue of any nationally recognized, used-vehicle guide for appraisal purposes in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax administrator determines that the retail dollar value as stated in this subsection is inequitable or unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, re-determine the tax.
  6. Every person making more than five (5) retail sales of tangible personal property or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 during any twelve-month (12) period, including sales made in the capacity of assignee for the benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the provisions of this chapter.
    1. “Casual sale” includes a sale of tangible personal property not held or used by a seller in the course of activities for which the seller is required to hold a seller’s permit or permits or would be required to hold a seller’s permit or permits if the activities were conducted in this state, provided that the sale is not one of a series of sales sufficient in number, scope, and character (more than five (5) in any twelve-month (12) period) to constitute an activity for which the seller is required to hold a seller’s permit or would be required to hold a seller’s permit if the activity were conducted in this state.
    2. Casual sales also include sales made at bazaars, fairs, picnics, or similar events by nonprofit organizations, that are organized for charitable, educational, civic, religious, social, recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6) days duration each calendar year. Each event requires the issuance of a permit by the division of taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a nonprofit organization, the sales are in the regular course of business and are not exempt as casual sales.
  7. The use tax imposed under this section for the period commencing July 1, 1990, is at the rate of seven percent (7%).

History of Section. P.L. 1947, ch. 1887, art. 2, § 23; P.L. 1951, ch. 2733, art. 2, § 2; P.L. 1952, ch. 3026, art. 2, § 2; P.L. 1953, ch. 3150, art. 2, § 2; P.L. 1954, ch. 3254, art. 2, § 2; P.L. 1955, ch. 3521, art. 2, § 2; P.L. 1956, ch. 3739, art. 2, § 2; P.L. 1956, ch. 3800, § 1; G.L. 1956, § 44-18-20 ; R.P.L. 1957, ch. 44, art. 2, § 2; P.L. 1958, ch. 17, art. 7, § 1; P.L. 1958, ch. 175, § 1; P.L. 1959, ch. 169, art. 3, § 2; P.L. 1960, ch. 64, § 2; P.L. 1964, ch. 234, § 3; P.L. 1965, ch. 169, § 1; P.L. 1965, ch. 232, art. 4, § 3; P.L. 1966, ch. 174, § 1; P.L. 1967, ch. 179, art. 2, § 7; P.L. 1974, ch. 151, art. 2, § 1; P.L. 1976, ch. 198, art. 4, § 1; P.L. 1977, ch. 135, § 1; P.L. 1977, ch. 200, art. 4, § 1; P.L. 1990, ch. 65, art. 14, § 1; P.L. 1991, ch. 6, art. 4, § 1; P.L. 1993, ch. 359, § 1; P.L. 1995, ch. 90, § 1; P.L. 1995, ch. 169, § 1; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2013, ch. 144, art. 9, § 3; P.L. 2014, ch. 528, § 63; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

Cross References.

Exemption of property subject to sales tax, § 44-18-34 .

NOTES TO DECISIONS

In General.

The use tax is complementary to the sales tax and is intended to have application to transactions which, while susceptible to the imposition of a sales tax, would in fact otherwise not be subjected to such a tax because of exception and exemption provisions protecting against double taxation. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

In cases of mixed transactions of services and tangible property, the general rule is that where the real object of the transaction is the product of the service, it is a taxable transfer, but where the real object of the transaction is the service rendered and the transfer of personal property is merely incidental to the service the transaction is not taxable. Statewide Multiple Listing Serv. v. Norberg, 120 R.I. 937 , 392 A.2d 371, 1978 R.I. LEXIS 741 (1978).

Advertising Circulars Mailed Outside State.

Where the plaintiff, as a taxpayer in this state, ordered advertising circulars printed in Massachusetts and addressed and deposited in the United States mail in New Hampshire, to be sent to residents of this state, was taxed by the division of taxation for a use tax imposed on “storage, use, or consumption of tangible personal property” within the state, such tax was not proper as it was recipients, and not the taxpayer, who were the consumers of such advertisements and even if it were assumed that the bringing about of consumption were a taxable event, it would have to take place in this state and taxpayer never physically possessed the advertisements in this state. Mart Realty v. Norberg, 111 R.I. 402 , 303 A.2d 361, 1973 R.I. LEXIS 1220 (1973).

Computer Software.

Purchase of a computer-software package was subject to use tax. Hasbro Indus. v. Norberg, 487 A.2d 124, 1985 R.I. LEXIS 427 (R.I. 1985) (decided prior to 1986 amendments to § 44-18-30 ).

Data Processing.

Where no independent thought was applied to data processed nor any raw data generated by a printer, the true object was the translation of data into a form which was readily accessible to members of an association, the service aspect of the transaction was clearly incidental to production of a booklet, and the transaction between the printer and the association thus constituted a transfer of tangible personal property properly the subject of taxation. Statewide Multiple Listing Serv. v. Norberg, 120 R.I. 937 , 392 A.2d 371, 1978 R.I. LEXIS 741 (1978).

Distribution Outside State.

Order forms, catalogs, and brochures purchased from Rhode Island vendors for distribution outside the state were exempt from the use tax. Hasbro Indus. v. Norberg, 487 A.2d 124, 1985 R.I. LEXIS 427 (R.I. 1985).

License Versus Lease.

Use tax was properly assessed against a taxpayer under R.I. Gen. Laws § 44-18-20(a) for materials it used to construct video lottery terminals (VLTs) it provided to the Rhode Island Lottery Commission Lottery Commission. The substance of its contract with the Commission was a license, not a tax-exempt lease, because (1) the agreement used the term “license”; (2) R.I. Gen. Laws § 42-61.2-3(1) authorized the Commission to license technology providers but not to enter into leases; and (3) the payments the taxpayer received were a license fee in the form of a percentage of the VLTs’ net profits, rather than fixed lease payments from the Commission. WMS Gaming, Inc. v. Sullivan, 6 A.3d 1104, 2010 R.I. LEXIS 103 (R.I. 2010).

Prefabricated Homes.

Prefabricated modular homes which were delivered in two parts by manufacturer to taxpayers, who then combined them with other components to complete the construction of the houses, were personal property which taxpayers used in construction and were therefore subject to the use tax. Prospecting Unlimited v. Norberg, 119 R.I. 116 , 376 A.2d 702, 1977 R.I. LEXIS 1903 (1977).

Product Packaging Materials.

Purchase of mechanicals and color overlays used to create product packaging were clearly “consumed” in the manufacturing process and therefore exempt from taxation. Hasbro Indus. v. Norberg, 487 A.2d 124, 1985 R.I. LEXIS 427 (R.I. 1985).

Sale for Resale.

There is no taxable event until the retailer sells the property to one who will not hold it for resale in the regular course of business. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Use Within State.

Use tax was properly assessed against a taxpayer under R.I. Gen. Laws § 44-18-20(a) for materials it used to construct video lottery terminals (VLTs) it provided to the Rhode Island Lottery Commission pursuant to R.I. Gen. Laws § 42-61.2-2(a) , because it made taxable use of the VLTs in Rhode Island by retaining title to them and by exercising powers incident to its ownership by keeping them up-to-date with new games. WMS Gaming, Inc. v. Sullivan, 6 A.3d 1104, 2010 R.I. LEXIS 103 (R.I. 2010).

Collateral References.

Architectural drawings or illustrations as exempt from sales or use tax. 27 A.L.R.5th 794.

Federal retail luxury or other excise tax as includible in amount on which state use tax is computed. 43 A.L.R.2d 862.

44-18-21. Liability for use tax.

  1. Every person storing, using, or consuming in this state tangible personal property, including a motor vehicle, boat, airplane, or trailer, purchased from a retailer, and a motor vehicle, boat, airplane, or trailer, purchased from other than a licensed motor vehicle dealer or other than a retailer of boats, airplanes, or trailers respectively; or storing, using or consuming specified prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 is liable for the use tax. The person’s liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer engaging in business in this state or from a retailer who is authorized by the tax administrator to collect the tax under rules and regulations that he or she may prescribe, given to the purchaser pursuant to the provisions of § 44-18-22 , is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.
  2. Each person before obtaining an original or transferral registration for any article or commodity in this state, which article or commodity is required to be licensed or registered in the state, shall furnish satisfactory evidence to the tax administrator that any tax due under this chapter with reference to the article or commodity has been paid, and for the purpose of effecting compliance, the tax administrator, in addition to any other powers granted to him or her, may invoke the provisions of § 31-3-4 in the case of a motor vehicle. The tax administrator, when he or she deems it to be for the convenience of the general public, may authorize any agency of the state concerned with the licensing or registering of these articles or commodities to collect the use tax on any articles or commodities which the purchaser is required by this chapter to pay before receiving an original or transferral registration. The general assembly shall annually appropriate a sum that it deems necessary to carry out the purposes of this section. Notwithstanding the provisions of §§ 44-18-19 , 44-18-22 , and 44-18-24 , the sales or use tax on any motor vehicle and/or recreational vehicle requiring registration by the administrator of the division of motor vehicles shall not be added by the retailer to the sale price or charge but shall be paid directly by the purchaser to the tax administrator, or his or her authorized deputy or agent as provided in this section.
  3. In cases involving total loss or destruction of a motor vehicle occurring within one hundred twenty (120) days from the date of purchase and upon which the purchaser has paid the use tax, the amount of the tax constitutes an overpayment. The amount of the overpayment may be credited against the amount of use tax on any subsequent vehicle which the owner acquires to replace the lost or destroyed vehicle or may be refunded, in whole or in part.

History of Section. P.L. 1947, ch. 1887, art. 2, § 23; P.L. 1951, ch. 2733, art. 2, § 2; P.L. 1952, ch. 3026, art. 2, § 2; P.L. 1953, ch. 3150, art. 2, § 2; P.L. 1954, ch. 3254, art. 2, § 2; P.L. 1955, ch. 3521, art. 2, § 2; P.L. 1956, ch. 3739, art. 2, § 2; P.L. 1956, ch. 3800, § 1; G.L. 1956, § 44-18-21 ; R.P.L. 1957, ch. 44, art. 2, § 2; P.L. 1958, ch. 17, art. 7, § 1; P.L. 1958, ch. 175, § 2; P.L. 1959, ch. 97, § 1; P.L. 1965, ch. 169, § 2; P.L. 1966, ch. 174, § 2; P.L. 1975, ch. 147, § 1; P.L. 1977, ch. 135, § 1; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

NOTES TO DECISIONS

Constitutionality.

That portion of P.L. 1959, ch. 97, which exempts retailers of motor vehicles from the duty of collecting sales and use taxes does not involve such discrimination as to render it unconstitutional for assuming that the clause in question discriminates in some respects against retailers who are required to collect such taxes and in favor of motor vehicle retail dealers who are exempt from doing so, even though discriminatory, such legislation would not violate constitutional provisions unless such discrimination had no basis in reason. Opinion to Governor, 89 R.I. 329 , 153 A.2d 168, 1959 R.I. LEXIS 100 (1959).

Construction.

The temporary certificate of registration provided for in § 31-4-3 is not an original or transferral registration within the meaning of P.L. 1959, ch. 97. The two statutes are not dependent upon each other. The whole purpose of the temporary certificate of registration statute would be lost if the temporary certificate of registration provided for in § 31-4-3 were to be construed as constituting an original or transferral registration within the meaning of the provisions of ch. 97. Opinion to Governor, 89 R.I. 329 , 153 A.2d 168, 1959 R.I. LEXIS 100 (1959).

Intent of Legislature.

There is no language in P.L. 1959, ch. 97 which either expressly or impliedly repeals or otherwise modifies the provisions of § 31-4-3 . In enacting said ch. 97 the legislature clearly intended to exempt motor vehicle dealers from the requirement of the Sales and Use Tax Act which obligated them to collect sales and use taxes and to transmit the same to the tax administrator or his duly authorized deputy or agent. It was intended to no longer permit such retailers to act as authorized collectors of sales and use taxes on behalf of the state but that they could continue to issue temporary certificates of registration notwithstanding such enactment. Opinion to Governor, 89 R.I. 329 , 153 A.2d 168, 1959 R.I. LEXIS 100 (1959).

Out-Of-State Advertisements.

Where the plaintiff, as a taxpayer in this state, ordered advertising circulars printed in Massachusetts and addressed and deposited in the United States mail in New Hampshire, to be sent to residents of this state, was taxed by the division of taxation for a use tax imposed on “storage, use, or consumption of tangible personal property” within the state, such tax was not proper as it was recipients, and not the taxpayer, who were the consumers of such advertisements and, even if it were assumed that the bringing about of consumption were a taxable event, it would have to take place in this state and taxpayer never physically possessed the advertisements in this state. Mart Realty v. Norberg, 111 R.I. 402 , 303 A.2d 361, 1973 R.I. LEXIS 1220 (1973).

44-18-22. Collection of use tax by retailer.

Every retailer engaging in business in this state and making sales of tangible personal property or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 , for storage, use, or other consumption in this state, not exempted under this chapter shall, at the time of making the sales, or if the storage, use, or other consumption of the tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 , is not then taxable under this chapter, at the time the storage, use, or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt in the manner and form prescribed by the tax administrator.

History of Section. P.L. 1947, ch. 1887, art. 2, § 23; P.L. 1951, ch. 2733, art. 2, § 2; P.L. 1952, ch. 3026, art. 2, § 2; P.L. 1953, ch. 3150, art. 2, § 2; P.L. 1954, ch. 3254, art. 2, § 2; P.L. 1955, ch. 3521, art. 2, § 2; P.L. 1956, ch. 3739, art. 2, § 2; P.L. 1956, ch. 3800, § 1; G.L. 1956, § 44-18-22 ; R.P.L. 1957, ch. 44, art. 2, § 2; P.L. 1958, ch. 17, art. 7, § 1; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

NOTES TO DECISIONS

Legislative Intent.

This provision is clearly significant of a legislative intent to avoid imposing a double tax liability upon the purchaser by imposing liability for the use tax only when he is unable to establish that the sales tax involved was paid by him. Capitol Bldg. Co. v. Langton, 101 R.I. 131 , 221 A.2d 99, 1966 R.I. LEXIS 364 (1966).

Collateral References.

Sufficient nexus for state to require foreign entity to collect state’s compensating, sales, or use tax — post-complete auto transit cases. 71 A.L.R.5th 671.

44-18-23. “Engaging in business” defined.

As used in §§ 44-18-21 and 44-18-22 the term “engaging in business in this state” means the selling or delivering in this state, or any activity in this state related to the selling or delivering in this state of tangible personal property or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, for storage, use, or other consumption in this state; or services as defined in § 44-18-7.3 in this state. This term includes, but is not limited to, the following acts or methods of transacting business:

  1. Maintaining, occupying, or using in this state permanently or temporarily, directly or indirectly or through a subsidiary, representative, or agent by whatever name called and whether or not qualified to do business in this state, any office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business;
  2. Having any subsidiary, representative, agent, salesperson, canvasser, or solicitor permanently or temporarily, and whether or not the subsidiary, representative, or agent is qualified to do business in this state, operate in this state for the purpose of selling, delivering, or the taking of orders for any tangible personal property, or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 ;
  3. The regular or systematic solicitation of sales of tangible personal property, or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 , in this state by means of:
    1. Advertising in newspapers, magazines, and other periodicals published in this state, sold over the counter in this state or sold by subscription to residents of this state, billboards located in this state, airborne advertising messages produced or transported in the air space above this state, display cards and posters on common carriers or any other means of public conveyance incorporated or operating primarily in this state, brochures, catalogs, circulars, coupons, pamphlets, samples, and similar advertising material mailed to, or distributed within this state to residents of this state;
    2. Telephone;
    3. Computer-assisted shopping networks; and
    4. Television, radio or any other electronic media, which is intended to be broadcast to consumers located in this state.

History of Section. P.L. 1947, ch. 1887, art. 2, § 23; P.L. 1956, ch. 3800, § 1; G.L. 1956, § 44-18-23 ; R.P.L. 1957, ch. 44, art. 2, § 2; P.L. 1958, ch. 17, art. 7, § 1; P.L. 1966, ch. 131, § 1; P.L. 1990, ch. 514, § 1; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

Law Reviews.

For note, “An Encroaching Exercise in State Taxation: Orvis Company v. Tax Appeals Tribunal,” see 2 R.W.U.L. Rev. 123 (1996).

NOTES TO DECISIONS

In General.

A manufacturer who sold prefabricated garages to a contractor who erected them for his customers in this state was a retailer engaging in business in this state within the meaning of this section. Capitol Bldg. Co. v. Langton, 101 R.I. 131 , 221 A.2d 99, 1966 R.I. LEXIS 364 (1966).

44-18-24. Collection by retailer of use tax on interstate sales.

Every retailer required or permitted to collect the tax shall collect the tax imposed by § 44-18-20 , notwithstanding the following:

  1. That the purchaser’s order or the contract of sale is delivered, mailed, or otherwise transmitted by the purchaser to the retailer at a point outside of this state as a result of solicitation by the retailer through the medium of advertising in this state; or
  2. That the purchaser’s contract of sale or order is made or closed by acceptance or approval outside of this state or before the tangible personal property enters this state; or
  3. That the purchaser’s order or contract of sale provides that the property shall be or it is in fact procured or manufactured at a point outside of this state and shipped directly to the purchaser from the point of origin; and
  4. That the cost of delivery of the property by the retailer to the purchaser is paid by the retailer.

History of Section. P.L. 1947, ch. 1887, art. 2, § 23; P.L. 1956, ch. 3800, § 1; G.L. 1956, § 44-18-24 ; R.P.L. 1957, ch. 44, art. 2, § 2; P.L. 1958, ch. 17, art. 7, § 1.

Law Reviews.

For note, “An Encroaching Exercise in State Taxation: Orvis Company v. Tax Appeals Tribunal,” see 2 R.W.U.L. Rev. 123 (1996).

Collateral References.

Sales or use tax on motor vehicle purchased out of state. 45 A.L.R.3d 1270.

Use tax on property purchased by nonresident in another state. 41 A.L.R.2d 535.

44-18-25. Presumption that sale is for storage, use, or consumption — Resale certificate.

It is presumed that all gross receipts are subject to the sales tax, and that the use of all tangible personal property, or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 , are subject to the use tax, and that all tangible personal property, or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 , sold or in processing or intended for delivery or delivered in this state is sold or delivered for storage, use, or other consumption in this state, until the contrary is established to the satisfaction of the tax administrator. The burden of proving the contrary is upon the person who makes the sale and the purchaser, unless the person who makes the sale takes from the purchaser a certificate to the effect that the purchase was for resale. The certificate shall contain any information and be in the form that the tax administrator may require.

History of Section. P.L. 1947, ch. 1887, art. 2, § 27; G.L. 1956, § 44-18-25 ; P.L. 2006, ch. 246, art. 30, § 9; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

NOTES TO DECISIONS

In General.

This section places the burden on the taxpayer claiming an exemption to show that the allegedly exempt sales are not subject to sales tax. Correia v. Norberg, 120 R.I. 793 , 391 A.2d 94, 1978 R.I. LEXIS 730 (1978).

Documentary Proof.

There is no specific requirement, either in the statutes or in the regulations of the division of taxation, that documentary proof is essential in meeting the burden placed on the taxpayer under this section. Correia v. Norberg, 120 R.I. 793 , 391 A.2d 94, 1978 R.I. LEXIS 730 (1978).

Testimony.

In a hearing on a deficiency determination assessing a taxpayer for sales tax due, where an examination of the record failed to reveal any finding by the tax administrator that there was falsity in the taxpayer’s testimony that in each case of interstate sale, delivery was made out of state, and there was no adverse evidence to contradict the taxpayer’s testimony, the testimony was binding on the tax administrator. Correia v. Norberg, 120 R.I. 793 , 391 A.2d 94, 1978 R.I. LEXIS 730 (1978).

44-18-26. Tax on retailer’s use of merchandise.

If a person who gives a certificate consumes or makes any storage or use of purchased property other than retention, demonstration, or display while holding it for sale in the regular course of business, the storage, use, or consumption is subject to the sales or use tax, as the case may be, as of the time the property is first stored, used, or consumed, and the cost of the property to the purchaser is the measure of the tax.

History of Section. P.L. 1947, ch. 1887, art. 2, § 28; G.L. 1956, § 44-18-26 .

NOTES TO DECISIONS

Use Other Than for Resale.

If a retailer makes any use of property other than holding it for resale, this section subjects him to tax liability, subject to the exception provided by § 44-18-27 . Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

44-18-26.1. “Demonstration boat” defined.

“Demonstration boat” includes:

  1. The act of demonstrating a boat’s designed use to potential retail buyers, dealers, distributors, or builders;
  2. Boat promotion including shows, exhibits, regattas, races, seminars, demonstration to the press, use for photographic session, use to generate editorial copy for advertisements, brochures, or owner manuals;
  3. Boat improvement including testing by designers, engineers, hardware suppliers, equipment suppliers, engine manufacturers, and other professionals or technicians with the purpose of improving product quality, performance, or salability;
  4. All equipment needed for normal operation or to demonstrate intended uses while engaged in boat promotion or improvement including required safety gear and electronics.

History of Section. P.L. 1985, ch. 475, § 1.

44-18-27. Tax on rental income to retailer.

If the sole use of the property, other than retention, demonstration, or display in the regular course of business, is the rental of the property while holding it for sale or rental, the purchaser or lessor may elect to pay the tax as measured by the cost of the property to him or her. The election is exercised by payment of the sales tax to the seller or by filing the required use tax return on or before the due date. Upon a subsequent sale of the property, the person making the sale shall include the full amount of the selling price in his or her gross receipts and shall pay the tax on the property.

History of Section. P.L. 1947, ch. 1887, art. 2, § 28; G.L. 1956, § 44-18-27 ; P.L. 1977, ch. 135, § 1.

NOTES TO DECISIONS

Construction.

The assumption that the revenue derived from a sales tax on the rental of property presently held for sale plus a sales tax on the gross receipts from the property’s ultimate sale will be no less than would have been received if the property had been simply held and later sold is implied in this section. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Property Chartered.

Property held for the purpose of charter is not subject to this section. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Property Rented.

This section allows a retailer, who incidentally rents out property while holding it for sale, to elect to pay a sales tax measured by the amount of rental charged. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Where a Massachusetts parent corporation pays a use tax upon trucks which it then leases to a Rhode Island corporation, the first rental by the parent corporation to the subsidiary is tax free, but any subsequent sale or rental of the trucks is subject to a sales tax based upon the gross amount of the rentals received from the subsidiary’s various Rhode Island customers. Lily Truck Leasing Corp. v. Clark, 556 A.2d 565, 1989 R.I. LEXIS 56 (R.I. 1989).

44-18-28. Resale of fungible goods from commingled mass.

If a purchaser gives a certificate with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales from the mass of commingled goods are deemed to be sales of the purchased goods until a quantity of commingled goods equal to the quantity of commingled purchased goods has been sold.

History of Section. P.L. 1947, ch. 1887, art. 2, § 29; G.L. 1956, § 44-18-28 .

44-18-29. Repealed.

History of Section. P.L. 1947, ch. 1887, art. 2, § 30; G.L. 1956, § 44-18-29 ; Repealed by P.L. 1988, ch. 84, § 96, effective May 27, 1988.

Compiler’s Notes.

Former § 44-18-29 concerned presumption of purchase after the effective date of the chapter.

44-18-30. Gross receipts exempt from sales and use taxes.

There are exempted from the taxes imposed by this chapter the following gross receipts:

  1. Sales and uses beyond constitutional power of state.  From the sale and from the storage, use, or other consumption in this state of tangible personal property the gross receipts from the sale of which, or the storage, use, or other consumption of which, this state is prohibited from taxing under the Constitution of the United States or under the constitution of this state.
  2. Newspapers.
    1. From the sale and from the storage, use, or other consumption in this state of any newspaper.
    2. “Newspaper” means an unbound publication printed on newsprint that contains news, editorial comment, opinions, features, advertising matter, and other matters of public interest.
    3. “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or similar item unless the item is printed for, and distributed as, a part of a newspaper.
  3. School meals.  From the sale and from the storage, use, or other consumption in this state of meals served by public, private, or parochial schools, school districts, colleges, universities, student organizations, and parent-teacher associations to the students or teachers of a school, college, or university whether the meals are served by the educational institutions or by a food service or management entity under contract to the educational institutions.
  4. Containers.
    1. From the sale and from the storage, use, or other consumption in this state of:
      1. Non-returnable containers, including boxes, paper bags, and wrapping materials that are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, when sold without the contents to persons who place the contents in the container and sell the contents with the container.
      2. Containers when sold with the contents if the sale price of the contents is not required to be included in the measure of the taxes imposed by this chapter.
      3. Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling.
      4. Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage producers who place the alcoholic beverages in the containers.
    2. As used in this subdivision, the term “returnable containers” means containers of a kind customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable containers.”
    1. Charitable, educational, and religious organizations.  From the sale to, as in defined in this section, and from the storage, use, and other consumption in this state, or any other state of the United States of America, of tangible personal property by hospitals not operated for a profit; “educational institutions” as defined in subdivision (18) not operated for a profit; churches, orphanages, and other institutions or organizations operated exclusively for religious or charitable purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting leagues and associations and bands for boys and girls under the age of nineteen (19) years; the following vocational student organizations that are state chapters of national vocational student organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation.
    2. In the case of contracts entered into with the federal government, its agencies, or instrumentalities, this state, or any other state of the United States of America, its agencies, any city, town, district, or other political subdivision of the states; hospitals not operated for profit; educational institutions not operated for profit; churches, orphanages, and other institutions or organizations operated exclusively for religious or charitable purposes, the contractor may purchase such materials and supplies (materials and/or supplies are defined as those that are essential to the project) that are to be utilized in the construction of the projects being performed under the contracts without payment of the tax.
    3. The contractor shall not charge any sales or use tax to any exempt agency, institution, or organization but shall in that instance provide his or her suppliers with certificates in the form as determined by the division of taxation showing the reason for exemption and the contractor’s records must substantiate the claim for exemption by showing the disposition of all property so purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax on the property used.
  5. Gasoline.  From the sale and from the storage, use, or other consumption in this state of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the propulsion of airplanes.
  6. Purchase for manufacturing purposes.
    1. From the sale and from the storage, use, or other consumption in this state of computer software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and water, when the property or service is purchased for the purpose of being manufactured into a finished product for resale and becomes an ingredient, component, or integral part of the manufactured, compounded, processed, assembled, or prepared product, or if the property or service is consumed in the process of manufacturing for resale computer software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, or water.
    2. “Consumed” means destroyed, used up, or worn out to the degree or extent that the property cannot be repaired, reconditioned, or rendered fit for further manufacturing use.
    3. “Consumed” includes mere obsolescence.
    4. “Manufacturing” means and includes: manufacturing, compounding, processing, assembling, preparing, or producing.
    5. “Process of manufacturing” means and includes all production operations performed in the producing or processing room, shop, or plant, insofar as the operations are a part of and connected with the manufacturing for resale of tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, or water and all production operations performed insofar as the operations are a part of and connected with the manufacturing for resale of computer software.
    6. “Process of manufacturing” does not mean or include administration operations such as general office operations, accounting, collection, or sales promotion, nor does it mean or include distribution operations that occur subsequent to production operations, such as handling, storing, selling, and transporting the manufactured products, even though the administration and distribution operations are performed by, or in connection with, a manufacturing business.
  7. State and political subdivisions.  From the sale to, and from the storage, use, or other consumption by, this state, any city, town, district, or other political subdivision of this state. Every redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of the municipality where it is located.
  8. Food and food ingredients.  From the sale and storage, use, or other consumption in this state of food and food ingredients as defined in § 44-18-7.1(l) .
    1. Sold by a seller whose primary NAICS classification is manufacturing in sector 311, except sub-sector 3118 (bakeries);
    2. Sold in an unheated state by weight or volume as a single item;
    3. Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and
  9. Medicines, drugs, and durable medical equipment.  From the sale and from the storage, use, or other consumption in this state, of:
    1. “Drugs” as defined in § 44-18-7.1(h)(i) , sold on prescriptions, medical oxygen, and insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii) .
    2. Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug delivery pumps that are sold on prescription to individuals to be used by them to dispense or administer prescription drugs, and related ancillary dressings and supplies used to dispense or administer prescription drugs, shall also be exempt from tax.
  10. Prosthetic devices and mobility enhancing equipment.  From the sale and from the storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t) , sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; and mobility enhancing equipment as defined in § 44-18-7.1(p) , including wheelchairs, crutches, and canes.
  11. Coffins, caskets, urns, shrouds and burial garments.  From the sale and from the storage, use, or other consumption in this state of coffins, caskets, urns, shrouds, and other burial garments that are ordinarily sold by a funeral director as part of the business of funeral directing.
  12. Motor vehicles sold to nonresidents.
    1. From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident of this state who does not register the motor vehicle in this state, whether the sale or delivery of the motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to its nonresidents is not exempt from the tax imposed under § 44-18-20 . In that event, the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-20 . Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and collect the tax required under this subdivision and remit the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide nonresident as provided in this section, the dealer in computing the tax takes into consideration the law of the state of the nonresident as it relates to the trade-in of motor vehicles.
    2. The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28 , may require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption provided in this subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle registration or a valid out-of-state driver’s license.
    3. Any nonresident who registers a motor vehicle in this state within ninety (90) days of the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or other consumption in this state, and is subject to, and liable for, the use tax imposed under the provisions of § 44-18-20.
  13. Sales in public buildings by blind people.  From the sale and from the storage, use, or other consumption in all public buildings in this state of all products or wares by any person licensed under § 40-9-11.1 .
  14. Air and water pollution control facilities.  From the sale, storage, use, or other consumption in this state of tangible personal property or supplies acquired for incorporation into or used and consumed in the operation of a facility, the primary purpose of which is to aid in the control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that purpose by the director of environmental management. The director of environmental management may certify to a portion of the tangible personal property or supplies acquired for incorporation into those facilities or used and consumed in the operation of those facilities to the extent that that portion has as its primary purpose the control of the pollution or contamination of the waters or air of this state. As used in this subdivision, “facility” means any land, facility, device, building, machinery, or equipment.
  15. Camps.  From the rental charged for living quarters, or sleeping, or housekeeping accommodations at camps or retreat houses operated by religious, charitable, educational, or other organizations and associations mentioned in subsection (5), or by privately owned and operated summer camps for children.
  16. Certain institutions.  From the rental charged for living or sleeping quarters in an institution licensed by the state for the hospitalization, custodial, or nursing care of human beings.
  17. Educational institutions.  From the rental charged by any educational institution for living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations to any student or teacher necessitated by attendance at an educational institution. “Educational institution” as used in this section means an institution of learning not operated for profit that is empowered to confer diplomas, educational, literary, or academic degrees; that has a regular faculty, curriculum, and organized body of pupils or students in attendance throughout the usual school year; that keeps and furnishes to students and others records required and accepted for entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of which inures to the benefit of any individual.
  18. Motor vehicle and adaptive equipment for persons with disabilities.
    1. From the sale of: (A) Special adaptations; (B) The component parts of the special adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax administrator an affidavit of a licensed physician to the effect that the specially adapted motor vehicle is necessary to transport a family member with a disability or where the vehicle has been specially adapted to meet the specific needs of the person with a disability. This exemption applies to not more than one motor vehicle owned and registered for personal, noncommercial use.
    2. For the purpose of this subsection the term “special adaptations” includes, but is not limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand controls, steering devices, extensions, relocations, and crossovers of operator controls, power-assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices to auditory signals.
    3. From the sale of: (a) Special adaptations, (b) The component parts of the special adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1 , and/or a “wheelchair accessible public motor vehicle” as defined in § 39-14.1-1 .
    4. For the purpose of this subdivision the exemption for a “specially adapted motor vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special adaptations, including installation.
  19. Heating fuels.  From the sale and from the storage, use, or other consumption in this state of every type of heating fuel.
  20. Electricity and gas.  From the sale and from the storage, use, or other consumption in this state of electricity and gas.
  21. Manufacturing machinery and equipment.
    1. From the sale and from the storage, use, or other consumption in this state of tools, dies, molds, machinery, equipment (including replacement parts), and related items to the extent used in an industrial plant in connection with the actual manufacture, conversion, or processing of tangible personal property, or to the extent used in connection with the actual manufacture, conversion, or processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification manual prepared by the Technical Committee on Industrial Classification, Office of Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment used in the furnishing of power to an industrial manufacturing plant. For the purposes of this subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the manufacture, conversion, or processing of tangible personal property to be sold in the regular course of business;
    2. Machinery and equipment and related items are not deemed to be used in connection with the actual manufacture, conversion, or processing of tangible personal property, or in connection with the actual manufacture, conversion, or processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification manual prepared by the Technical Committee on Industrial Classification, Office of Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as revised from time to time, to be sold to the extent the property is used in administration or distribution operations;
    3. Machinery and equipment and related items used in connection with the actual manufacture, conversion, or processing of any computer software or any tangible personal property that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased from a vendor or machinery and equipment and related items used during any manufacturing, converting, or processing function is exempt under this subdivision even if that operation, function, or purpose is not an integral or essential part of a continuous production flow or manufacturing process;
    4. Where a portion of a group of portable or mobile machinery is used in connection with the actual manufacture, conversion, or processing of computer software or tangible personal property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under this subdivision even though the machinery in that group is used interchangeably and not otherwise identifiable as to use.
  22. Trade-in value of motor vehicles.  From the sale and from the storage, use, or other consumption in this state of so much of the purchase price paid for a new or used automobile as is allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of the proceeds applicable only to the automobile as are received from the manufacturer of automobiles for the repurchase of the automobile whether the repurchase was voluntary or not towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, the word “automobile” means a private passenger automobile not used for hire and does not refer to any other type of motor vehicle.
  23. Precious metal bullion.
    1. From the sale and from the storage, use, or other consumption in this state of precious metal bullion, substantially equivalent to a transaction in securities or commodities.
    2. For purposes of this subdivision, “precious metal bullion” means any elementary precious metal that has been put through a process of smelting or refining, including, but not limited to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value depends upon its content and not upon its form.
    3. The term does not include fabricated precious metal that has been processed or manufactured for some one or more specific and customary industrial, professional, or artistic uses.
  24. Commercial vessels.  From sales made to a commercial ship, barge, or other vessel of fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use of the vessels including provisions, supplies, and material for the maintenance and/or repair of the vessels.
  25. Commercial fishing vessels.  From the sale and from the storage, use, or other consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property purchased for the use of those vessels and other watercraft including provisions, supplies, and material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, cables, tackle, and other fishing equipment appurtenant to or used in connection with the commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include vessels and other watercraft with a Rhode Island party and charter boat license issued by the department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: (i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat registration to prove Rhode Island home port status; and (iv) The vessel must be used as a commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall implement the provisions of this subdivision by promulgating rules and regulations relating thereto.
  26. Clothing and footwear.  From the sales of articles of clothing, including footwear, intended to be worn or carried on or about the human body for sales prior to October 1, 2012. Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including footwear, intended to be worn or carried on or about the human body up to two hundred and fifty dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” does not include clothing accessories or equipment or special clothing or footwear primarily designed for athletic activity or protective use as these terms are defined in section 44-18-7.1(f) . In recognition of the work being performed by the streamlined sales and use tax governing board, upon passage of any federal law that authorizes states to require remote sellers to collect and remit sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The unlimited exemption on sales of clothing and footwear shall take effect on the date that the state requires remote sellers to collect and remit sales and use taxes.
  27. Water for residential use.  From the sale and from the storage, use, or other consumption in this state of water furnished for domestic use by occupants of residential premises.
  28. Bibles.  [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes to Decisions.] From the sale and from the storage, use, or other consumption in the state of any canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited to, the Old Testament and the New Testament versions.
  29. Boats.
    1. From the sale of a boat or vessel to a bona fide nonresident of this state who does not register the boat or vessel in this state or document the boat or vessel with the United States government at a home port within the state, whether the sale or delivery of the boat or vessel is made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) days after delivery by the seller outside the state for use thereafter solely outside the state.
    2. The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28 , may require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption provided in this subdivision, including the affidavit of the seller that the buyer represented himself or herself to be a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state.
  30. Youth activities equipment.  From the sale, storage, use, or other consumption in this state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island eleemosynary organizations, for the purposes of youth activities that the organization is formed to sponsor and support; and by accredited elementary and secondary schools for the purposes of the schools or of organized activities of the enrolled students.
  31. Farm equipment.  From the sale and from the storage or use of machinery and equipment used directly for commercial farming and agricultural production; including, but not limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and other farming equipment, including replacement parts appurtenant to or used in connection with commercial farming and tools and supplies used in the repair and maintenance of farming equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the production within this state of agricultural products, including, but not limited to, field or orchard crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I shall be based on proof of annual, gross sales from commercial farming of at least twenty-five hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or greater. Level II shall be based on proof of annual gross sales from commercial farming of at least ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption provided in this subdivision including motor vehicles with an excise tax value of five thousand dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount of annual gross sales from commercial farming shall be required for the prior year; for any renewal of an exemption granted in accordance with this subdivision at either level I or level II, proof of gross annual sales from commercial farming at the requisite amount shall be required for each of the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly indicate the level of the exemption and be valid for four (4) years after the date of issue. This exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for registration displaying farm plates as provided for in § 31-3-31 .
  32. Compressed air.  From the sale and from the storage, use, or other consumption in the state of compressed air.
  33. Flags.  From the sale and from the storage, consumption, or other use in this state of United States, Rhode Island or POW-MIA flags.
  34. Motor vehicle and adaptive equipment to certain veterans.  From the sale of a motor vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service connected or not. The motor vehicle must be purchased by and especially equipped for use by the qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or regulations that the tax administrator may prescribe.
  35. Textbooks.  From the sale and from the storage, use, or other consumption in this state of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor.
  36. Tangible personal property and supplies used in on-site hazardous waste recycling, reuse, or treatment.  From the sale, storage, use, or other consumption in this state of tangible personal property or supplies used or consumed in the operation of equipment, the exclusive function of which is the recycling, reuse, or recovery of materials (other than precious metals, as defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined in § 23-19.1-4 , where the “hazardous wastes” are generated in Rhode Island solely by the same taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department of environmental management certifying that the equipment and/or supplies as used or consumed, qualify for the exemption under this subdivision. If any information relating to secret processes or methods of manufacture, production, or treatment is disclosed to the department of environmental management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b) , it is not open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of title 28 or chapter 24.4 of title 23.
  37. Promotional and product literature of boat manufacturers.  From the sale and from the storage, use, or other consumption of promotional and product literature of boat manufacturers shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to customers at no charge.
  38. Food items paid for by food stamps.  From the sale and from the storage, use, or other consumption in this state of eligible food items payment for which is properly made to the retailer in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 7 U.S.C. § 2011 et seq.
  39. Transportation charges.  From the sale or hiring of motor carriers as defined in § 39-12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed with the Rhode Island public utilities commission on the number of miles driven or by the number of hours spent on the job.
  40. Trade-in value of boats.  From the sale and from the storage, use, or other consumption in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards the purchase of a new or used boat by the buyer.
  41. Equipment used for research and development.  From the sale and from the storage, use, or other consumption of equipment to the extent used for research and development purposes by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for which the use of research and development equipment is an integral part of its operation and “equipment” means scientific equipment, computers, software, and related items.
  42. Coins.  From the sale and from the other consumption in this state of coins having numismatic or investment value.
  43. Farm structure construction materials.  Lumber, hardware, and other materials used in the new construction of farm structures, including production facilities such as, but not limited to: farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, feed storage sheds, and any other structures used in connection with commercial farming.
  44. Telecommunications carrier access service.  Carrier access service or telecommunications service when purchased by a telecommunications company from another telecommunications company to facilitate the provision of telecommunications service.
  45. Boats or vessels brought into the state exclusively for winter storage, maintenance, repair, or sale.  Notwithstanding the provisions of §§ 44-18-10 , 44-18-11 and 44-18-20 , the tax imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in any year up to and including the 30th day of April next succeeding with respect to the use of any boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in this state for storage, including dry storage and storage in water by means of apparatus preventing ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel.
  46. Jewelry display product.  From the sale and from the storage, use, or other consumption in this state of tangible personal property used to display any jewelry product; provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller and that the jewelry display product is shipped out of state for use solely outside the state and is not returned to the jewelry manufacturer or seller.
  47. Boats or vessels generally.  Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, use, or other consumption in this state of any new or used boat. The exemption provided for in this subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten percent (10%) surcharge on luxury boats is repealed.
  48. Banks and regulated investment companies interstate toll-free calls.  Notwithstanding the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of interstate and international, toll-free terminating telecommunication service that is used directly and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided that an eligible company employs on average during the calendar year no less than five hundred (500) “full-time equivalent employees” as that term is defined in § 42-64.5-2 . For purposes of this section, an “eligible company” means a “regulated investment company” as that term is defined in the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is provided, directly or indirectly, to or on behalf of a regulated investment company, an employee benefit plan, a retirement plan or a pension plan, or a state-chartered bank.
  49. Mobile and manufactured homes generally.  From the sale and from the storage, use, or other consumption in this state of mobile and/or manufactured homes as defined and subject to taxation pursuant to the provisions of chapter 44 of title 31.
  50. Manufacturing business reconstruction materials.
    1. From the sale and from the storage, use, or other consumption in this state of lumber, hardware, and other building materials used in the reconstruction of a manufacturing business facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of an operating manufacturing business facility within this state. “Disaster” does not include any damage resulting from the willful act of the owner of the manufacturing business facility.
    2. Manufacturing business facility includes, but is not limited to, the structures housing the production and administrative facilities.
    3. In the event a manufacturer has more than one manufacturing site in this state, the sixty percent (60%) provision applies to the damages suffered at that one site.
    4. To the extent that the costs of the reconstruction materials are reimbursed by insurance, this exemption does not apply.
  51. Tangible personal property and supplies used in the processing or preparation of floral products and floral arrangements.  From the sale, storage, use, or other consumption in this state of tangible personal property or supplies purchased by florists, garden centers, or other like producers or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, plants, floral products, or natural and artificial floral arrangements, including descriptive labels, stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers.
  52. Horse food products.  From the sale and from the storage, use, or other consumption in this state of horse food products purchased by a person engaged in the business of the boarding of horses.
  53. Non-motorized recreational vehicles sold to nonresidents.
    1. From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to a bona fide nonresident of this state who does not register the non-motorized recreational vehicle in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this state or at the place of residence of the nonresident; provided that a non-motorized recreational vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to its nonresidents is not exempt from the tax imposed under § 44-18-20 ; provided, further, that in that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-20 . Notwithstanding any other provisions of law, a licensed, non-motorized recreational vehicle dealer shall add and collect the tax required under this subdivision and remit the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide nonresident as provided in this section, the dealer in computing the tax takes into consideration the law of the state of the nonresident as it relates to the trade-in of motor vehicles.
    2. The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28 , may require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption provided in this subdivision, including the affidavit of a licensed, non-motorized recreational vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or a valid out-of-state driver’s license.
    3. Any nonresident who registers a non-motorized recreational vehicle in this state within ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable for, the use tax imposed under the provisions of § 44-18-20.
    4. “Non-motorized recreational vehicle” means any portable dwelling designed and constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or “pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of title 31.
  54. Sprinkler and fire alarm systems in existing buildings.  From the sale in this state of sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials necessary and attendant to the installation of those systems that are required in buildings and occupancies existing therein in July 2003 in order to comply with any additional requirements for such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 and that are not required by any other provision of law or ordinance or regulation adopted pursuant to that act. The exemption provided in this subdivision shall expire on December 31, 2008.
  55. Aircraft.  Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other consumption in this state of any new or used aircraft or aircraft parts.
  56. Renewable energy products.  Notwithstanding any other provisions of Rhode Island general laws, the following products shall also be exempt from sales tax: solar photovoltaic modules or panels, or any module or panel that generates electricity from light; solar thermal collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not to include materials that could be fabricated into such racks; monitoring and control equipment, if specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind energy systems or if required by law or regulation for such systems but not to include pumps, fans or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral part of, another item specified on this list; and solar storage tanks that are part of a solar domestic hot water system or a solar space heating system. If the tank comes with an external heat exchanger it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax.
  57. Returned property.  The amount charged for property returned by customers upon rescission of the contract of sale when the entire amount exclusive of handling charges paid for the property is refunded in either cash or credit, and where the property is returned within one hundred twenty (120) days from the date of delivery.
  58. Dietary supplements.  From the sale and from the storage, use, or other consumption of dietary supplements as defined in § 44-18-7.1(l)(v) , sold on prescriptions.
  59. Blood.  From the sale and from the storage, use, or other consumption of human blood.
  60. Agricultural products for human consumption.  From the sale and from the storage, use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute food for human consumption and of livestock of the kind the products of which ordinarily constitute fibers for human use.
  61. Diesel emission control technology.  From the sale and use of diesel retrofit technology that is required by § 31-47.3-4 .
  62. Feed for certain animals used in commercial farming.  From the sale of feed for animals as described in subsection (61) of this section.
  63. Alcoholic beverages.  From the sale and storage, use, or other consumption in this state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1 , excluding beer and malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to the contrary, alcoholic beverages, as defined in § 44-18-7.1 , shall not be subject to minimum markup.
  64. Seeds and plants used to grow food and food ingredients.  From the sale, storage, use, or other consumption in this state of seeds and plants used to grow food and food ingredients as defined in § 44-18-7.1(l)(i) . “Seeds and plants used to grow food and food ingredients” shall not include marijuana seeds or plants.
  65. Feminine hygiene products.  From the sale and from the storage, use, or other consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products the principal use of which is feminine hygiene in connection with the menstrual cycle.

For the purposes of this exemption “food and food ingredients” shall not include candy, soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending machines, or prepared food, as those terms are defined in § 44-18-7.1 , unless the prepared food is:

is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, glasses, cups, napkins, or straws.

History of Section. P.L. 1947, ch. 1887, art. 2, § 31; P.L. 1948, ch. 2004, § 1; P.L. 1952, ch. 2902, § 1; G.L. 1956, § 44-18-30 ; P.L. 1956, ch. 3792, § 1; P.L. 1958, ch. 175, § 3; P.L. 1959, ch. 49, § 1; P.L. 1959, ch. 77, § 1; P.L. 1961, ch. 130, § 1; P.L. 1964, ch. 117, § 1; P.L. 1965, ch. 91, § 1; P.L. 1966, ch. 262, § 4; P.L. 1967, ch. 79, § 1; P.L. 1967, ch. 179, art. 2, § 8; P.L. 1968, ch. 263, art. 8, § 15; P.L. 1969, ch. 124, § 1; P.L. 1970, ch. 60, §§ 4, 5; P.L. 1972, ch. 132, art. 4, § 1; P.L. 1974, ch. 200, art. 3, § 1; P.L. 1974, ch. 286, § 2; P.L. 1975, ch. 8, § 1; P.L. 1975, ch. 75, § 2; P.L. 1975, ch. 218, § 1; P.L. 1976, ch. 133, § 1; P.L. 1976, ch. 268, § 1; P.L. 1977, ch. 182, § 16; P.L. 1977, ch. 200, art. 4, § 1; P.L. 1978, ch. 225, § 1; P.L. 1979, ch. 385, § 1; P.L. 1980, ch. 171, § 1; P.L. 1982, ch. 200, § 1; P.L. 1982, ch. 265, § 1; P.L. 1982, ch. 320, § 1; P.L. 1982, ch. 348, § 1; P.L. 1983, ch. 106, § 1; P.L. 1984, ch. 166, § 1; P.L. 1984, ch. 190, § 1; P.L. 1984, ch. 195, § 1; P.L. 1984, ch. 198, § 1; P.L. 1984, ch. 206, art. III, § 2; P.L. 1984, ch. 433, § 1; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 150, § 47; P.L. 1985, ch. 251, § 1; P.L. 1985, ch. 272, § 1; P.L. 1985, ch. 363, § 1; P.L. 1985, ch. 404, § 1; P.L. 1985, ch. 477, § 1; P.L. 1986, ch. 116, § 1; P.L. 1986, ch. 353, § 1; P.L. 1986, ch. 400, § 1; P.L. 1986, ch. 441, § 1; P.L. 1986, ch. 450, § 1; P.L. 1986, ch. 476, § 1; P.L. 1986, ch. 480, § 1; P.L. 1987, ch. 118, art. 26, § 1; P.L. 1987, ch. 183, § 1; P.L. 1987, ch. 210, § 1; P.L. 1987, ch. 253, § 1; P.L. 1987, ch. 324, § 1; P.L. 1987, ch. 337, § 1; P.L. 1987, ch. 384, § 1; P.L. 1988, ch. 84, § 96; P.L. 1988, ch. 424, § 2; P.L. 1988, ch. 495, § 1; P.L. 1988, ch. 557, § 1; P.L. 1988, ch. 626, § 1; P.L. 1989, ch. 41, § 1; P.L. 1989, ch. 126, art. 44, § 1; P.L. 1989, ch. 434, § 1; P.L. 1990, ch. 65, art. 14, § 1; P.L. 1990, ch. 65, art. 15, § 1; P.L. 1990, ch. 213, § 1; P.L. 1991, c. 367, § 1; P.L. 1992, ch. 133, art. 51, § 1; P.L. 1993, ch. 69, § 1; P.L. 1993, ch. 138, art. 90, § 1; P.L. 1993, ch. 186, § 1; P.L. 1993, ch. 444, § 1; P.L. 1995, ch. 397, § 1; P.L. 1996, ch. 147 § 1; P.L. 1996, ch. 205 § 1; P.L. 1996, ch. 253, §§ 1, 2; P.L. 1996, ch. 254, § 1; P.L. 1996, ch. 259, § 1; P.L. 1996, ch. 319, § 2; P.L. 1997, ch. 168, § 4; P.L. 1998, ch. 54, § 2; P.L. 1998, ch. 109, § 1; P.L. 1998, ch. 111, § 2; P.L. 1998, ch. 407, § 1; P.L. 1999, ch. 163, § 1; P.L. 1999, ch. 489, § 1; P.L. 2000, ch. 109, § 48; P.L. 2000, ch. 316, § 1; P.L. 2000, ch. 488, § 1; P.L. 2002, ch. 337, § 1; P.L. 2002, ch. 404, § 4; P.L. 2002, ch. 406, § 1; P.L. 2003, ch. 389, § 1; P.L. 2003, ch. 397, § 1; P.L. 2003, ch. 421, § 1; P.L. 2004, ch. 165, § 1; P.L. 2004, ch. 239, § 1; P.L. 2004, ch. 339, § 1; P.L. 2004, ch. 394, § 1; P.L. 2005, ch. 281, § 2; P.L. 2005, ch. 305, § 2; P.L. 2006, ch. 246, art. 30, § 9; P.L. 2007, ch. 6, § 4; P.L. 2007, ch. 163, § 3; P.L. 2007, ch. 266, § 3; P.L. 2007, ch. 321, § 2; P.L. 2007, ch. 408, § 2; P.L. 2010, ch. 171, § 3; P.L. 2010, ch. 184, § 3; P.L. 2011, ch. 151, art. 19, § 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2012, ch. 407, § 1; P.L. 2012, ch. 418, § 1; P.L. 2013, ch. 144, art. 9, § 3; P.L. 2014, ch. 145, art. 12, § 9; P.L. 2014, ch. 528, § 63; P.L. 2015, ch. 141, art. 11, § 7; P.L. 2015, ch. 255, § 1; P.L. 2015, ch. 276, § 1; P.L. 2017, ch. 302, art. 8, § 10; P.L. 2018, ch. 47, art. 4, § 10; P.L. 2019, ch. 88, art. 5, § 9.

Compiler’s Notes.

P.L. 2010, ch. 171, § 3, and P.L. 2010, ch. 184, § 3, enacted identical amendments to this section.

This section was amended by three acts (P.L. 2012, ch. 241, art. 21, § 3; P.L. 2012, ch. 407, § 1; P.L. 2012, ch. 418, § 1) as passed by the 2012 General Assembly. Since the three acts are not in conflict, the section is set out as amended by all three acts.

P.L. 2012, ch. 407, § 1, and P.L. 2012, ch. 418, § 1 enacted identical amendments to this section.

This section was amended by two acts (P.L. 2014, ch. 145, art. 12, § 9; P.L. 2014, ch. 528, § 63) passed by the 2014 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by both acts.

This section was amended by three acts (P.L. 2015, ch. 141, art. 11, § 7; P.L. 2015, ch. 255, § 1; P.L. 2015, ch. 276, § 1) as passed by the 2015 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all three acts.

P.L. 2015, ch. 255, § 1, and P.L. 2015, ch. 276, § 1 enacted identical amendments to this section.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

Law Reviews.

For note, “An Encroaching Exercise in State Taxation: Orvis Company v. Tax Appeals Tribunal,” see 2 R.W.U.L. Rev. 123 (1996).

NOTES TO DECISIONS

Constitutionality.

A tax exemption for personal property consumed directly in the process of manufacturing when such consumption occurs within one year is not a denial of equal protection since the time limitation is reasonable whether the manufacturer be large or small. Miniature Casting Corp. v. Norberg, 116 R.I. 636 , 360 A.2d 105, 1976 R.I. LEXIS 1316 (1976).

The provision in subdivision (H) (now (7)) exempting property that is directly consumed in the manufacturing process within one year is not a denial of due process because the taxpayer cannot accurately predict prior to the acquisition of the property whether the property will be worn out within one year. Brier Mfg. Co. v. Norberg, 119 R.I. 317 , 377 A.2d 345, 1977 R.I. LEXIS 1912 (1977).

A statute which exempted bibles and other canonized scriptures from sales tax unlawfully defined and rewarded its beneficial recipients based upon the content and type of publication, effectively requiring retailers to ask government officials for a determination of potential exemption on newly published material, and providing an example of the type of excessive, content-based entanglement between government and the subject matter of publications that the free press clause of the first amendment was designed to prohibit. Ahlburn v. Clark, 728 A.2d 449, 1999 R.I. LEXIS 89 (R.I. 1999).

The legislature’s placement of a sales-tax exemption for canonized religious literature in a section of the general laws that also exempts newspapers, textbooks, and promotional boat literature, amidst a potpourri of additional, unrelated items, was not carefully drawn to achieve the stated goal of advancing the well-being of the individuals of the state on many levels, but rather fostered the communication of certain privileged publications in a manner that was anything but content neutral, unconstitutionally abridging the freedom of the press. Ahlburn v. Clark, 728 A.2d 449, 1999 R.I. LEXIS 89 (R.I. 1999).

Church and Religious Organizations.

When a taxpayer seeks tax-exempt status pursuant to subdivision (E) (now (5)) as a church or other religious organization, it must prove that it is operated exclusively for religious purposes. Church of Pan v. Norberg, 507 A.2d 1359, 1986 R.I. LEXIS 458 (R.I. 1986).

Church whose organizational purpose was primarily the preservation of the environment, any religious connotation or purpose being merely incidental to that secular purpose, was not operated exclusively for religious purposes and, therefore, was not entitled to tax-exempt status pursuant to subdivision (E). Church of Pan v. Norberg, 507 A.2d 1359, 1986 R.I. LEXIS 458 (R.I. 1986).

Equipment for Research and Development.

A research and development exemption was granted despite the company’s accounting for the equipment in a different manner than required by regulation; the regulation’s requirement that equipment be expensed rather than capitalized and depreciated is plainly inconsistent with the operative language of this section. Dart Indus. v. Clark, 696 A.2d 306, 1997 R.I. LEXIS 180 (R.I. 1997).

Insurance.

Gasoline and optional personal accident insurance charges included in automobile leasing bill were not subject to sales tax. Keystone Auto Leasing v. Norberg, 486 A.2d 613, 1985 R.I. LEXIS 423 (R.I. 1985).

License Agreement With State Agency.

While a lease is deemed a sale under R.I. Gen. Laws § 44-18-7 and a state agency is exempt under R.I. Gen. Laws § 44-18-30(8) from paying sales and use tax as a lessee, a use tax was properly assessed against a taxpayer under R.I. Gen. Laws § 44-18-20(a) for materials used to construct video lottery terminals it provided to the Rhode Island Lottery Commission, as the substance of its contract with the Commission was a license, not a lease. WMS Gaming, Inc. v. Sullivan, 6 A.3d 1104, 2010 R.I. LEXIS 103 (R.I. 2010).

Manufacturing Equipment.

This section exempts manufacturing equipment without specifying where the manufacturing occurs; thus, there is no requirement that the equipment be used in manufacturing activity within this state. Dart Indus. v. Clark, 696 A.2d 306, 1997 R.I. LEXIS 180 (R.I. 1997).

Proof.

In a hearing on a deficiency determination assessing a taxpayer for sales tax due, the taxpayer’s uncontradicted testimony that in each case of interstate sale delivery was made out of state was binding on the tax administrator. Correia v. Norberg, 120 R.I. 793 , 391 A.2d 94, 1978 R.I. LEXIS 730 (1978).

Publications.

The term “publication” employed in subdivision (B) (now (2)) of this section is clear and unambiguous and implies a communication to the general public. Statewide Multiple Listing Serv. v. Norberg, 120 R.I. 937 , 392 A.2d 371, 1978 R.I. LEXIS 741 (1978).

Where a booklet was available only to members of an association who were bound by their agreement to keep the booklet confidential, and thus was not available to the general public, the booklet was not a periodical which qualified for exemption from use tax. Statewide Multiple Listing Serv. v. Norberg, 120 R.I. 937 , 392 A.2d 371, 1978 R.I. LEXIS 741 (1978).

Purchase for Manufacturing.

The definition of the term “consumed directly” contained in subdivision (H) (now (7)) limits the exemption found in that subdivision to tangible personal property physically, as opposed to economically, unfit for use in the manufacturing process. Brier Mfg. Co. v. Norberg, 119 R.I. 317 , 377 A.2d 345, 1977 R.I. LEXIS 1912 (1977).

“Obsolescence,” referred to in subdivision (H), means the process whereby property, because of causes other than physical deterioration, including loss of trade, loses its economic usefulness to the taxpayer. Brier Mfg. Co. v. Norberg, 119 R.I. 317 , 377 A.2d 345, 1977 R.I. LEXIS 1912 (1977).

Color separations and acetate sheets used in the process of fabricating copper rollers and silk screens are “consumed” in the manufacturing process; and, therefore, pursuant to subsection H, exempt from taxation. American Textile Artists Assocs. v. Clark, 534 A.2d 875, 1987 R.I. LEXIS 579 (R.I. 1987).

— Clothing for Employees.

Jackets and other clothing for employees of restaurant, such clothing having a useful life of less than one year, were not exempt from use tax under the provisions of subdivision (H) (now (7)) of this section. Coachman, Inc. v. Norberg, 121 R.I. 316 , 397 A.2d 1320, 1979 R.I. LEXIS 1778 (1979).

— Pollution-Control Supplies.

The legislature did not intend to exempt pollution-control supplies under subdivision (H) (now (7)) of this section. American Hoechst Corp. v. Norberg, 462 A.2d 369, 1983 R.I. LEXIS 1016 (R.I. 1983).

— Printing Equipment.

A computer camera and plate-making machinery, though part of the printing process employed by taxpayer, are not tax exempt because they are used to create further items in the process that are not themselves to be sold. Rhode Island Lithograph Corp. v. Clark, 519 A.2d 589, 1987 R.I. LEXIS 392 (R.I. 1987).

Plates discarded by taxpayer after each printing were not proven to have been consumed in the manufacturing process (as opposed to being merely discarded for obsolescence) and were thus not entitled to the exemption under subdivision (H) (now (7)). Rhode Island Lithograph Corp. v. Clark, 519 A.2d 589, 1987 R.I. LEXIS 392 (R.I. 1987).

— Product Packaging.

Purchase of mechanicals and color overlays used to create product packaging were clearly “consumed” in the manufacturing process and therefore exempt from taxation. Hasbro Indus. v. Norberg, 487 A.2d 124, 1985 R.I. LEXIS 427 (R.I. 1985).

Regulations.

Where regulations drawn up by a tax administrator, purported to interpret the term “publication” as used in this section and actually would have altered and amended the scope of the statute, those regulations were void and the plain meaning of the statute controls. Statewide Multiple Listing Serv. v. Norberg, 120 R.I. 937 , 392 A.2d 371, 1978 R.I. LEXIS 741 (1978).

— Exempt Entities.

Under regulations of the tax administrator, sales to exempt entities are taxable unless the retailer notes on his records the exemption certificate number assigned to such organization by the tax division. Coachman, Inc. v. Norberg, 121 R.I. 316 , 397 A.2d 1320, 1979 R.I. LEXIS 1778 (1979).

Returnable Containers.

Where a bottler and distributor of carbonated beverages acquired a quantity of bottles to be used for the sale and distribution of its beverages, where the ultimate consumer had the option of retaining or disposing of the emptied bottle or returning it to the retailer for five cents, and where the retailer had the option of retaining the bottle or returning it to the distributor for five cents, the bottles were only potentially returnable containers and did not become “returnable containers” under subdivision (D)(3) (now (4)(i)(C)) of this section until actually put into the channels of trade as such. Red Fox Gingerale Co. v. Langton, 100 R.I. 531 , 217 A.2d 466, 1966 R.I. LEXIS 473 (1966).

Veterinary Supplies.

Prosthetic devices, pet food, and hospital and maintenance supplies, except medicated shampoos and flea sprays, used by a veterinarian in the operation of an animal hospital are not exempt. Couture v. Norberg, 114 R.I. 704 , 338 A.2d 538, 1975 R.I. LEXIS 1476 (1975).

Collateral References.

Construction and application of exemption provisions of sales tax act. 157 A.L.R. 804.

Containers or packaging materials: sales or use tax upon container or packaging materials purchased by manufacturer or processor for use with goods he distributes. 4 A.L.R.4th 581.

Exemption of charitable or educational organization from sales or use tax. 69 A.L.R.5th 477.

Exemptions from sales tax as affecting its uniformity and equality. 89 A.L.R. 1434; 110 A.L.R. 1485; 117 A.L.R. 846; 128 A.L.R. 893.

Items or materials exempt from use tax as used in manufacturing, processing or the like. 30 A.L.R.2d 1439.

Mining exemption to sales or use tax. 47 A.L.R.4th 1229.

Newspapers, periodicals, or magazines: what constitutes newspapers, magazines, periodicals or the like, under sales or use tax law exemption. 25 A.L.R.4th 750.

Parts and supplies used in repair as subject to sales and use taxes. 113 A.L.R.5th 313.

Religious organization’s exemption from sales or use tax. 54 A.L.R.3d 1204.

Reusable soft drink bottles as subject to sales or use taxes. 97 A.L.R.3d 1205.

Sales and use tax exemption for medical supplies. 30 A.L.R.5th 494.

Sales or use tax as within tax exemption provisions of statutes other than those imposing such taxes. 1 A.L.R.2d 465.

Use tax or other compensating tax designed to complement state sales tax, exemptions from. 129 A.L.R. 238; 153 A.L.R. 609.

What constitutes direct use within meaning of statute exempting from sales and use taxes equipment directly used in production of tangible personal property. 3 A.L.R.4th 1129.

44-18-30A. Exemption or credit where sales or use taxes were paid in other jurisdictions.

  1. The use tax provisions of this chapter do not apply in respect to the use, storage, or consumption in this state of tangible personal property purchased at retail sale outside the state where the purchaser has paid a sales or use tax equal to or greater than the amount imposed by this chapter in another taxing jurisdiction, the proof of payment of the tax to be according to rules and regulations made by the tax administrator. If the amount of tax paid in another taxing jurisdiction is not equal to or greater than the amount of tax imposed by this chapter, then the purchaser pays to the tax administrator an amount sufficient to make the tax paid in the other taxing jurisdiction and in this state equal to the amount imposed by this chapter.
  2. The use tax provisions of this chapter do not apply in respect to the use, storage, or consumption in this state of a motor vehicle purchased in this state where the purchaser is a member of the armed forces of the United States on active duty who is stationed outside Rhode Island in compliance with military or naval orders and where the purchaser has paid a sales or use tax equal to or greater than the amount imposed by this chapter in another taxing jurisdiction, the proof of payment of the tax to be according to rules and regulations made by the tax administrator. If the amount of tax paid in another taxing jurisdiction is not equal to or greater than the amount of tax imposed by this chapter, then the purchaser pays to the tax administrator an amount sufficient to make the tax paid in the other taxing jurisdiction and in this state equal to the amount imposed by this chapter.

History of Section. G.L. 1956, § 44-18-30 -A; P.L. 1965, ch. 170, § 1; P.L. 1986, ch. 283, § 1.

Collateral References.

Validity and construction of provisions allowing use tax credit for tax paid in other state. 31 A.L.R.4th 1206.

44-18-30B. Exemption from sales tax for sales by writers, composers, artists — Findings.

  1. The general assembly makes the following findings of facts:
    1. The arts and culture are a significant asset for Rhode Island, one that generates revenue through increased tourism and economic activity; creates jobs and economic opportunities; revitalizes communities adding to quality of life and property values; and fosters creativity, innovation, and entrepreneurship.
    2. Since 1998, the establishment of arts districts, where “one-of-a-kind, limited-production” works of art may be sold exempt from state sales tax, has resulted in an increased presence for the arts in designated cities and towns, with benefits to those communities and to the state.
    3. Since the establishment of arts districts, many communities have sought legislation to expand the program to their city or town.
    4. There is value in expanding the arts district program statewide, providing incentives for the sale and purchase of art. This is a unique opportunity for Rhode Island to shape history, and gain an advantage over other states, by becoming the first-and-only state in the country to declare a statewide sales tax exemption on art. This will strengthen Rhode Island’s identity as an arts-friendly destination and “State of the Arts.”
    1. This section only applies to sales by writers, composers, and artists residing in and conducting a business within the state of Rhode Island. For the purposes of this section, a “work” means an original and creative work, whether written, composed, or executed for “one-of-a-kind, limited production” that falls into one of the following categories:
      1. A book or other writing;
      2. A play or the performance of said play;
      3. A musical composition or the performance of said composition;
      4. A painting, print, photograph, or other like picture;
      5. A sculpture;
      6. Traditional and fine crafts;
      7. The creation of a film or the acting within the film; or
      8. The creation of a dance or the performance of the dance.
    2. For the purposes of this section, a “work” includes any product generated as a result of any of the above categories.
    3. For the purposes of this section, a “work” does not apply to any piece or performance created or executed for industry-oriented, commercial, or related production.
    1. This section applies to sales by any individual:
      1. Who is a resident of, and has a principal place of business situated in, the state of Rhode Island.
      2. Who is determined by the tax administrator in consultation with the Rhode Island council on the arts, after consideration of any evidence he or she deems necessary or that is submitted to him or her by the individual, to have written, composed, or executed, either solely or jointly, a work or works that would fall into one of the categories listed in subsection (b)(1).
    2. This section also applies to sales by any other gallery located in the state of Rhode Island.
    3. The tax administrator shall not make a determination unless:
  2. Any individual to whom this section applies, and who makes an application to the tax administrator, is entitled to a sales tax exemption for the sale of a work or works sold from the individual’s business located in the State of Rhode Island that would, apart from this section, be subject to the tax rate imposed by the state of Rhode Island.
  3. When an individual makes a request for the exemption, the tax administrator is entitled to all books, documents, or other evidence relating to the publication, production, or creation of the works that may be deemed necessary by the tax administrator for the purposes of the exemption. The time period in which to provide this information is in the sole discretion of the tax administrator and specified in the notice.
  4. In addition to the information required in subsection (e), the tax administrator may require the individual(s) to submit an annual, certified accounting of the numbers of works sold; the type of work sold; and the date of the sale. Failure to file this report may, in the sole discretion of the tax administrator, terminate the individual’s eligibility for the exemption.
  5. Any person storing, using, or otherwise consuming in this state any work or works deemed to be exempt from the sales tax pursuant to this section is not liable for the use tax on the work or works.
  6. Notwithstanding the provisions of this section, any individual to whom this section may apply shall comply with all the administration, collection, and other provisions of chapters 18 and 19 of this title.

(i) The individual(s) concerned duly make(s) an application to the tax administrator for the sales tax exemption that applies to the works defined in this section; and

(ii) The individual has complied and continues to comply with any and all requests made by the tax administrator.

(4) The Rhode Island council on the arts will oversee the transition to a statewide arts district program and work with the state tourism agencies; local chambers of commerce; and advertising/marketing agencies to promote this program, and will coordinate its efforts with the city and town governments. The Rhode Island council on the arts may request, and shall receive, from any department, division, board, bureau, commission, or agency of the state any data, assistance, and resources, including additional personnel, that will enable it to properly carry out this program.

(5) The tax administrator, in cooperation with the Rhode Island council on the arts, will gather data to assess the overall impact of the statewide arts district program, and issue an annual report, including, but not be limited to, the impact of the tax exemption on employment, tourism, sales, and spending within the arts sector and adjacent businesses, and any other factors that describe the impact of the program.

History of Section. P.L. 1996, ch. 432, § 1; P.L. 1997, ch. 329, § 1; P.L. 1998, ch. 266, § 1; P.L. 1998, ch. 382, § 1; P.L. 1998, ch. 406, § 1; P.L. 1998, ch. 410, § 1; P.L. 2003, ch. 372, § 1; P.L. 2004, ch. 542, § 1; P.L. 2004, ch. 546, § 1; P.L. 2005, ch. 257, § 1; P.L. 2005, ch. 270, § 1; P.L. 2005, ch. 425, § 1; P.L. 2013, ch. 144, art. 9, § 15; P.L. 2014, ch. 528, § 64.

Effective Dates.

P.L. 2013, ch. 144, art. 9, § 16, provides that the amendment to this section by that act takes effect on December 1, 2013.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-18-30C. Exemption from or stabilization of sales and use taxes for municipal economic development zones — West Warwick.

  1. Findings.  The general assembly makes the following findings of fact:
    1. Various sections of several towns in the state, including, but not limited to, the town of West Warwick, are deteriorated, blighted areas which have created very difficult challenges to economic development;
    2. Several areas of the state are in a distressed financial condition as defined by § 45-13-12(b) and cannot finance economic development projects on its own without the participation of private enterprise;
    3. The general assembly has found that it is nearly impossible for private enterprise alone to meet these challenges;
    4. In certain sections of financially distressed communities, the serious challenges of economic development and/or redevelopment have not been met by private enterprise alone and the impact is being felt throughout the community;
    5. Legislation enacted to encourage redevelopment of the deteriorated, blighted areas through the formation of local redevelopment agencies has had very limited success;
    6. Various states, such as New Jersey, Pennsylvania and Michigan have had a great deal of success in generating economic development by exercising the authority to exempt and/or stabilize taxes;
    7. The state of Rhode Island has generated economic growth by redirecting and/or exempting certain commercial and retail activity from the imposition of sales, use and income taxes with recent examples being the Providence Place Mall, the Arts Districts in the cities of Providence, Pawtucket and Westerly, and financial services and acquaculture industries;
    8. Most recently, municipalities in our state have had great success in attracting large commercial development, including financial services, manufacturing, and major energy facilities, due in large part to the authority to exempt and/or stabilize property, tangible and/or inventory taxes;
    9. Attracting large non-residential developments or encouraging expansion of existing commercial entities can be extremely important to municipalities, where the quality of public education is largely dependent on the local tax base, thereby expanding the commercial tax base and reducing reliance upon the residential tax base;
    10. The ability to attract this development and increase the non-residential tax base, in turn, improves municipalities’ ability to finance school systems, municipal services and infrastructure, thereby improving the quality of life;
    11. In addition to increasing the local non-residential tax base, this development creates construction jobs, permanent jobs, and spurs additional investment by private enterprises; and
    12. Providing authority to offer tax exemptions from, or to stabilize, the imposition of sales and use taxes will attract and assist in expanding, revitalizing and redeveloping the tax base in our municipalities, thereby providing long-term economic benefits and development.
  2. Exemption or stabilization of sales and use taxes imposed on sales from businesses located in a municipal economic development zone.
    1. In order to attract new construction and development in a municipal economic development zone (MED) as provided in this section, upon the designation of such a zone as set forth in subsection (c) of this section, all businesses engaging in qualifying sales and located in new construction in a MED zone (a MED zone business) shall be exempt from the requirement to charge and collect fifty percent (50%) of the current sales and use tax pursuant to §§ 44-18-18 and 44-18-20 for a period of ten (10) years. Sales and use taxes collected in a MED zone shall be returned to the same MED zone in accordance with the provisions of this section. The ten (10) year exemption period for all MED zone businesses shall begin to run from the latest to occur of: (i) the date that is three (3) years from the effective date of the January session 2003 amendments [July 17, 2003]; or (ii) the date that is two (2) years from the date upon which the city or town council designates the MED zone for its municipality; or (iii) the date the first MED zone business obtains a certification of exemption as set forth in subdivision (c)(6) of this section.
    2. For purposes of this section, “qualifying sales” for a MED zone business shall not include gambling activities, or the retail sales of motor vehicles, furniture, home furnishings including mattresses and oriental rugs, tobacco products, or packaged alcoholic beverages.
    3. “Qualifying sales” shall be sales at which the point of sale is located within the same MED zone and point of delivery is located within the same MED zone.
  3. Creation of the municipal economic development zone.
    1. The city or town council of a financially distressed community may designate in accordance with the provisions of this section one MED zone in the municipality, provided that the municipality is:
      1. A financially distressed community as defined by § 45-13-12(b) , using the criteria set forth in § 45-13-12(b)(1) through (4);
      2. Has a population less than fifty thousand (50,000) persons; and
      3. The MED zone shall be a parcel of or contiguous parcels of land consisting in total of not less than ten (10) acres, but not more than thirty (30) acres in the area served by adequate utilities and transportation facilities.
    2. The city or town council of any financially distressed city or town, as set forth in subdivision (1) of this subsection, in creating a MED zone, shall have the power and authority of a redevelopment agency, as provided in chapter 32 of title 45, to undertake the redevelopment of a MED zone.
    3. The city or town council, in designating a MED zone, shall after public notice, hearing and vote as provided by § 45-32-4 , comply with the plan requirements of § 45-32-8 and shall be responsible for carrying on the plan. The city or town council in implementing the MED zone plan shall have the power of eminent domain as set forth in § 45-32-24 , and the provisions of §§ 45-32-25 45-32-41 shall apply to all such condemnations.
    4. All sales and use taxes collected within a MED zone shall be reimbursed to the municipality in which the MED zone is located, and may be expended by the municipality to implement the capital improvement component of the MED zone plan for MED zone property or for property located within one mile of the MED zone or for such other capital improvements as the municipality may determine are required to mitigate MED zone impacts.
    5. West Warwick.  The following area or portions of them of the town of West Warwick may be designated as the town’s municipal economic development zone by the town council of the town of West Warwick after public notice, hearing and vote as provided in § 45-32-4 :
    6. The tax administrator shall issue a certification of exemption to the MED zone business at the time the business applies for its permit to make sales at retail and provides the tax administrator with a MED zone business certificate issued by the town clerk stating that the business is located in new construction in the MED zone. The duration of the certificate shall be determined in accordance with subdivision (b)(1) of this section.
    7. No business shall be permitted to become a MED zone business or to receive a certificate of exemption pursuant to subdivision (6) of this subsection by relocating from any area within the state of Rhode Island but outside the MED zone to new construction within the MED zone, unless the relocation results in the creation of new permanent employment positions that increase the total employment of the business by not less than fifty percent (50%) of its average total employment for the two (2) year period immediately preceding the year in which it applies for its certificate of exemption. Any business that expands its operations by adding a new location within the MED zone and then ceases to operate any of its locations within the state of Rhode Island that existed prior to the establishment of the MED zone location shall immediately have its certificate of exemption for the MED zone location revoked.

The area bounded generally by the East Coast Bike Path in the east, Archambault and Gardner Avenue in the north, Payan Street to Curson Street, Curson Street to McNiff, McNiff to Barnes Street, Barnes Street to Nowicki Street to East Street, East Street to Blanchard Street, Blanchard Street to West Street in the west, West Street to Washington Street, Washington Street to Nolan Street, Nolan Street to the East Coast Bike Path in the south, all as more particularly described on the West Warwick municipal economic development zone map on file with the town clerk.

History of Section. P.L. 2002, ch. 110, § 1; P.L. 2003, ch. 250, § 1; P.L. 2003, ch. 287, § 1; P.L. 2004, ch. 255, § 1; P.L. 2005, ch. 410, § 31.

44-18-30D. Repealed.

History of Section. P.L. 2006, ch. 236, § 15; P.L. 2006, ch. 237, § 15; P.L. 2007, ch. 73, art. 7, § 9; Repealed by P.L. 2008, ch. 100, art. 18, § 3, effective July 1, 2008.

Compiler’s Notes.

Former § 44-18-30D concerned credit for fees paid to the affordable energy fund.

44-18-30.1. Application for certificate of exemption — Fees.

A fee of twenty-five dollars ($25.00) shall be paid by all organizations applying for a certificate of exemption from the Rhode Island sales and use tax under § 44-18-30(5)(i) . The certificate of exemption shall be valid for four (4) years from the date of issue. All fees collected under this section shall be allocated to the tax administrator for enforcement and collection of all taxes. All certificates issued prior to the effective date of this section shall expire four (4) years from the effective date of this section.

History of Section. P.L. 1993, ch. 138, art. 36, § 1; P.L. 2017, ch. 302, art. 8, § 10.

44-18-31. Exemption of sales to federal government.

There is exempted from the computation of the amount of the sales tax the gross receipts from the sale of any tangible personal property to the United States, its agencies and instrumentalities.

History of Section. P.L. 1947, ch. 1887, art. 2, § 32; G.L. 1956, § 44-18-31 .

NOTES TO DECISIONS

Lease of Automobiles by Federal Employees.

In situations in which federal employees lease automobiles and pay with cash or personal credit cards, the legal incidence of tax is on the employees and not on the federal government. Therefore, the lessor in such situation is not immune under the governmental immunity doctrine. Keystone Auto Leasing v. Norberg, 486 A.2d 613, 1985 R.I. LEXIS 423 (R.I. 1985).

44-18-32. Sales to federal contractors.

The sales tax imposed by this chapter applies to the gross receipts from the sale of any tangible personal property to contractors purchasing property either as the agents of the United States or for their own account and subsequent resale to the United States for use in the performance of contracts with the United States for the construction of improvements on or to real property, except insofar as the imposition of a sales tax would violate the provisions of the Constitution of the United States.

History of Section. P.L. 1947, ch. 1887, art. 2, § 32; G.L. 1956, § 44-18-32 .

44-18-33. Sales to common carrier for use outside state.

There is exempted from the computation of the amount of the sales tax the gross receipts from sales of tangible personal property to a common carrier, shipped by the seller via the purchasing carrier under a bill of lading whether the freight is paid in advance, or the shipment is made freight charges collect, to a point outside of this state and the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a common carrier.

History of Section. P.L. 1947, ch. 1887, art. 2, § 33; G.L. 1956, § 44-18-33 .

44-18-34. Exemption from use tax of property subject to sales tax.

The storage, use, or other consumption in this state of property, the gross receipts from the sale of which are required to be included in the measure of the sales tax, is exempted from the use tax.

History of Section. P.L. 1947, ch. 1887, art. 2, § 34; G.L. 1956, § 44-18-34 .

NOTES TO DECISIONS

Gross Receipts.

The term “gross receipts” as used in this section does not refer to the sale by which the consumer acquired the property, but the statute avoids the imposition of double tax liability on those consumers of property who in their disposition of such property would be required to include the gross receipts therefrom in the measure of their sales tax and a contractor who purchased prefabricated garages and erected them for his customers was not exempt from the tax on such garages unless he could show that he was required to include his receipts from them in the measure of his sales tax. Capitol Bldg. Co. v. Langton, 101 R.I. 131 , 221 A.2d 99, 1966 R.I. LEXIS 364 (1966).

44-18-35. Property purchased from federal government.

The storage, use, or other consumption in this state of property purchased from the United States, its agencies and instrumentalities, is exempt only to the extent that the taxation in this state would violate the provisions of the Constitution of the United States.

History of Section. P.L. 1947, ch. 1887, art. 2, § 35; G.L. 1956, § 44-18-35 .

44-18-36. Property held prior to 1947 — Property of nonresidents — Extension of sales tax exemptions to use tax.

The storage, use, or other consumption in this state of the following is also exempted from the use tax:

  1. Property held by the purchaser in this state prior to July 1, 1947.
  2. Property purchased by the user while a nonresident of this state, used outside of this state while a nonresident, and thereafter brought into the state by him or her for his or her own use. For purposes of this section, “used outside of this state” does not include the mere removal of the property from the state of purchase to this state.
  3. Property purchased at retail, upon the sale of which the purchaser would be exempt by express specification from the sales tax imposed by this chapter, had the sale been otherwise subject to the tax.

History of Section. P.L. 1947, ch. 1887, art. 2, § 36; G.L. 1956, § 44-18-36 ; P.L. 1989, ch. 89, § 1.

NOTES TO DECISIONS

In General.

The purpose of the exemption in this section is to prevent taxation in cases where it would be unduly burdensome and where tax avoidance or an unfair competitive advantage would be unlikely. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

Construction.

The exemption provisions in this section are to be strictly construed against the taxpayer and in favor of the public unless in their terms they disclose clearly an intention to grant an exemption. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

Nonresident Property Owners.

The term “nonresident” as used in this section when used with reference to a foreign corporation must be taken to imply an absence of significant contacts and a lack of consistent operation in this state. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

The determination of corporate “residence” as it relates to service of process, venue or federal diversity jurisdiction is quite different from the determination of corporate “residence” as it relates to the imposition of a sales and use tax. Great Lakes Dredge & Dock Co. v. Norberg, 117 R.I. 600 , 369 A.2d 1101, 1977 R.I. LEXIS 1730 (1977).

Where petitioner’s repeated visits to Rhode Island, his retention of a home here and the filing of residential income tax return were all stipulated and undisputed, it was reasonable to conclude that petitioner had sufficient connection with Rhode Island to be considered a resident for purposes of imposing a use tax, and thus preclude him from the exemption provisions of subsection (B) of this section. Randall v. Norberg, 121 R.I. 714 , 403 A.2d 240, 1979 R.I. LEXIS 1976 (1979).

44-18-36.1. Hotel tax.

  1. There is imposed a hotel tax of five percent (5%) upon the total consideration charged for occupancy of any space furnished by any hotel, travel packages, or room reseller or reseller as defined in § 44-18-7.3(b) in this state. A house, condominium, or other resident dwelling shall be exempt from the five percent (5%) hotel tax under this subsection if the house, condominium, or other resident dwelling is rented in its entirety. The hotel tax is in addition to any sales tax imposed. This hotel tax is administered and collected by the division of taxation and unless provided to the contrary in this chapter, all the administration, collection, and other provisions of chapters 18 and 19 of this title apply. Nothing in this chapter shall be construed to limit the powers of the convention authority of the city of Providence established pursuant to the provisions of chapter 84 of the public laws of 1980, except that distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than chapter 84 of the public laws of 1980.
  2. There is hereby levied and imposed, upon the total consideration charged for occupancy of any space furnished by any hotel in this state, in addition to all other taxes and fees now imposed by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be administered and collected in accordance with subsection (a).
  3. All sums received by the division of taxation from the local hotel tax, penalties or forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid by the state treasurer to the city or town where the space for occupancy that is furnished by the hotel is located. Unless provided to the contrary in this chapter, all of the administration, collection, and other provisions of chapters 18 and 19 of this title shall apply.
  4. Notwithstanding the provisions of subsection (a) of this section, the city of Newport shall have the authority to collect from hotels located in the city of Newport the tax imposed by subsection (a) of this section.
    1. Within ten (10) days of collection of the tax, the city of Newport shall distribute the tax as provided in § 42-63.1-3 . No later than the first day of March and the first day of September in each year in which the tax is collected, the city of Newport shall submit to the division of taxation a report of the tax collected and distributed during the six (6) month period ending thirty (30) days prior to the reporting date.
    2. The city of Newport shall have the same authority as the division of taxation to recover delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty and interest imposed by the city of Newport until collected constitutes a lien on the real property of the taxpayer.

History of Section. P.L. 1986, ch. 506, § 1; P.L. 1989, ch. 126, art. 40, § 1; P.L. 1995, ch. 371, § 3; P.L. 2000, ch. 55, art. 29, § 2; P.L. 2001, ch. 20, § 2; P.L. 2001, ch. 22, § 2; P.L. 2004, ch. 595, art. 17, § 9; P.L. 2009, ch. 355, § 1; P.L. 2009, ch. 356, § 1; P.L. 2011, ch. 151, art. 19, § 26; P.L. 2015, ch. 141, art. 11, § 4; P.L. 2019, ch. 88, art. 5, § 9.

Effective Dates.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

44-18-37. Additional to other taxes.

Except as provided in this chapter, the taxes imposed under the provisions of this chapter are in addition to any other taxes imposed under the authority of this state.

History of Section. P.L. 1947, ch. 1887, art. 2, § 54; G.L. 1956, § 44-18-37 .

44-18-38. Severability.

The provisions of chapters 18 and 19 of this title are declared to be severable; and in case any part, section, or provision of the chapters is held void by any court of competent jurisdiction, the remaining parts, sections, and provisions of the chapters shall not be impaired or affected.

History of Section. P.L. 1947, ch. 1887, art. 2, § 55; G.L. 1956, § 44-18-38 .

44-18-39. Repealed.

History of Section. P.L. 1980, ch. 156, § 1; P.L. 1984, ch. 213, § 1; P.L. 1990, ch. 364, § 1; Repealed by P.L. 1995, ch. 323, § 32, effective June 30, 1995.

Compiler’s Notes.

Former § 44-18-39 concerned sales tax refunds on sales of qualifying renewable energy systems.

44-18-40. Exemption for buses, trucks and trailers in interstate commerce.

  1. Notwithstanding any provision of the general laws to the contrary, the purchase, rental or lease of a truck, or trailer by a trucking company is not subject to the provisions of the sales and use taxes imposed by this chapter on the condition that the truck and/or trailer is utilized exclusively in interstate commerce.
  2. Notwithstanding any provision of the law or regulation to the contrary, the operation of a bus by a bus company in interstate commerce shall not be subject to the provisions of the sales and use tax imposed by this chapter, on the condition that the bus is used eighty percent (80%) or more of the time in interstate commerce and provided that the bus company shall provide a properly executed affidavit attesting to the fact that the bus is used no less than eighty percent (80%) of the time in interstate commerce.

History of Section. P.L. 1992, ch. 133, art. 51, § 2; P.L. 2012, ch. 302, § 1; P.L. 2012, ch. 351, § 1.

Compiler’s Notes.

P.L. 2012, ch. 302, § 1, and P.L. 2012, ch. 351, § 1 enacted identical amendments to this section.

44-18-40.1. Exemption for certain energy products.

Notwithstanding any provision of the general laws to the contrary, the gross receipts from the sale, storage, use or other consumption of electricity, steam and thermal energy which is produced, transmitted and/or sold by the Rhode Island economic development corporation are exempt from the taxes imposed by this chapter.

History of Section. P.L. 1995, ch. 189, § 1.

Collateral References.

Constitutionality, construction, and application of state and local public utility gross receipts tax statutes — Modern cases. 58 A.L.R.5th 187.

Chapter 18.1 Adoption of the Streamlined Sales and Use Tax Agreement

44-18.1-1. Adoption of streamlined sales and use tax agreement — Regulations.

Rhode Island adopts the Streamlined Sales And Use Tax Agreement as created on November 12, 2002 and amended, by the member states of the Streamlined Sales Tax Project. The entire Agreement is adopted by reference with the exception of articles III, IV and VI which are adopted as set out in this chapter. The tax administrator shall promulgate rules and regulations necessary to be in compliance with the provisions of this Agreement.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-1.1. “Member State” defined.

For the purposes of § 44-18.1, the term “member state” shall include the State of Rhode Island.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-2. State level administration.

Each member state shall provide state level administration of sales and use taxes. The state level administration may be performed by a member state’s tax commission, department of revenue, or any other single entity designated by state law. Sellers are only required to register with, file returns with, and remit funds to the state level authority. Each member state shall provide for collection of any local taxes and distribution of them to the appropriate taxing jurisdictions. Each member state shall conduct, or authorize others to conduct on its behalf, all audits of the sellers registered under the Agreement for that state’s tax and the tax of its local jurisdictions, and local jurisdictions shall not conduct independent sales or use tax audits of sellers registered under the Agreement.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-3. State and local tax bases.

Through December 31, 2005, if a member state has local jurisdictions that levy a sales or use tax, all local jurisdictions in the state shall have a common tax base. After December 31, 2005, the tax base for local jurisdictions shall be identical to the state tax base unless otherwise prohibited by federal law. This section does not apply to sales or use taxes levied on the retail sale or transfer of motor vehicles, aircraft, watercraft, modular homes, manufactured homes, or mobile homes.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-4. Seller registration.

Each member state shall participate in an online sales and use tax registration system in cooperation with the other member states. Under this system:

  1. A seller registering under the Agreement is registered in each of the member states.
  2. The member states agree not to require the payment of any registration fees or other charge for a seller to register in a state in which the seller has no legal requirement to register.
  3. A written signature from the seller is not required.
  4. An agent may register a seller under uniform procedures adopted by the member states.
  5. A seller may cancel its registration under the system at any time under uniform procedures adopted by the governing board. Cancellation does not relieve the seller of its liability for remitting to the proper states any taxes collected.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-5. Notice for state tax changes.

  1. Each member state shall lessen the difficulties faced by sellers when there is a change in a state sales or use tax rate or base by making a reasonable effort to do all of the following:
    1. Provide sellers with as much advance notice as practicable of a rate change.
    2. Limit the effective date of a rate change to the first day of a calendar quarter.
    3. Notify sellers of legislative changes in the tax base and amendments to sales and use tax rules and regulations.

(B) Failure of a seller to receive notice or failure of a member state to provide notice or limit the effective date of a rate change shall not relieve the seller of its obligation to collect sales or use taxes for that member state.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-6. Local rate and boundary changes.

Each member state that has local jurisdictions that levy a sales or use tax shall:

  1. Provide that local rate changes will be effective only on the first day of a calendar quarter after a minimum of sixty days’ notice to sellers.
  2. Apply local sales tax rate changes to purchases from printed catalogs wherein the purchaser computed the tax based upon local tax rates published in the catalog only on the first day of a calendar quarter after a minimum of one hundred twenty days’ notice to sellers.
  3. For sales and use tax purposes only, apply local jurisdiction boundary changes only on the first day of a calendar quarter after a minimum of sixty days’ notice to sellers.
  4. Provide and maintain a database that describes boundary changes for all taxing jurisdictions. This database shall include a description of the changes and the effective date of the change for sales and use tax purposes.
  5. Provide and maintain a database of all sales and use tax rates for all of the jurisdictions levying taxes within the state. For the identification of states, counties, cities, and parishes, codes corresponding to the rates must be provided according to Federal Information Processing Standards (FIPS) as developed by the National Institute of Standards and Technology. For the identification of all other jurisdictions, codes corresponding to the rates must be in the format determined by the governing board.
  6. Provide and maintain a database that assigns each five digit and nine digit zip code within a member state to the proper tax rates and jurisdictions. The state must apply the lowest combined tax rate imposed in the zip code area if the area includes more than one tax rate in any level of taxing jurisdictions. If a nine digit zip code designation is not available for a street address or if a seller or CSP is unable to determine the nine digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the seller or CSP may apply the rate for the five digit zip code area. For the purposes of this section, there is a rebuttable presumption that a seller or CSP has exercised due diligence if the seller has attempted to determine the nine digit zip code designation by utilizing software approved by the governing board that makes this designation from the street address and the five digit zip code applicable to a purchase.
  7. Have the option of providing address-based boundary database records for assigning taxing jurisdictions and their associated rates which shall be in addition to the requirements of subsection (F) of this section. The database records must be in the same approved format as the database records pursuant to subsection (F) of this section and must meet the requirements developed pursuant to the federal Mobile Telecommunications Sourcing Act (4 U.S.C. § 119(a)). The governing board may allow a member state to require sellers that register under this Agreement to use an address-based database provided by that member state. If any member state develops address-based assignment database records pursuant to the Agreement, a seller or CSP may use those database records in place of the five and nine-digit zip code database records provided for in subsection (F) of this section. If a seller or CSP is unable to determine the applicable rate and jurisdiction using an address-based database record after exercising due diligence, the seller or CSP may apply the nine digit zip code designation applicable to a purchase. If a nine-digit zip code designation is not available for a street address or if a seller or CSP is unable to determine the nine digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the seller or CSP may apply the rate for the five digit zip code area. For the purposes of this section, there is a rebuttable presumption that a seller or CSP has exercised due diligence if the seller or CSP has attempted to determine the tax rate and jurisdiction by utilizing software approved by the governing board that makes this assignment from the address and zip code information applicable to the purchase.
  8. States that have met the requirements of subsection (F) may also elect to certify vendor provided address-based databases for assigning tax rates and jurisdictions. The databases must be in the same approved format as the database records pursuant to (G) of this section and must meet the requirements developed pursuant to the federal Mobil Telecommunications Sourcing Act (4 U.S.C. § 119(a)). If a state certifies a vendor address-based database, a seller or CSP may use that database in place of the database provided for in subsection (F) or (G) of this section. Vendors providing address-based databases may request certification of their databases from the governing board. Certification by the governing board does not replace the requirement that the databases be certified by the states individually.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-7. Relief from certain liability.

Each member state shall relieve sellers and CSPs using databases pursuant to subsections (F), (G) and (H) of § 44-18-1.6 from liability to the member state and local jurisdictions for having charged and collected the incorrect amount of sales or use tax resulting from the seller or CSP relying on erroneous data provided by a member state on tax rates, boundaries, or taxing jurisdiction assignments. After providing adequate notice as determined by the governing board, a member state that provides an address-based database for assigning taxing jurisdictions pursuant to § 44-18.1-6 , subsection (G) or (H) may cease providing liability relief for errors resulting from the reliance on the database provided by the member state under the provisions of § 44-18.1-6 , subsection (F). If a seller demonstrates that requiring the use of the address-based database would create an undue hardship, a member state and the governing board may extend the relief from liability to such seller for a designated period of time.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-8. Database requirements and exceptions.

  1. The electronic databases provided for in § 44-18.1-6 , subsections (D), (E), (F), and (G) shall be in a downloadable format approved by the governing board. The databases may be directly provided by the state or provided by a vendor as designated by the state. A database provided by a vendor as designated by a state shall be applicable to and subject to all provisions of §§ 44-18.1-6 and 44-18.1-7 and this section. These databases must be provided at no cost to the user of the database.
  2. The provisions of § 44-18.1-6 , subsections (F) and (G) do not apply when the purchased product is received by the purchaser at the business location of the seller.
  3. The databases provided by § 44-18.1-6 , subsections (D), (E), (F), and (G) are not a requirement of a state prior to entering into the Agreement. A seller that did not have a requirement to register in a state prior to registering pursuant to this Agreement or a CSP shall not be required to collect sales or use taxes for a state until the first day of the calendar quarter commencing more than sixty days after the state has provided the databases required by § 44-18.1-6 , subsections (D), (E) and (F).

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-9. State and local tax rates.

  1. No member state shall have multiple state sales and use tax rates on items of personal property or services after December 31, 2005, except that a member state may impose a single additional rate, which may be zero, on food and food ingredients and drugs as defined by state law pursuant to the Agreement.
  2. A member state that has local jurisdictions that levy a sales or use tax shall not have more than one local sales tax rate or more than one local use tax rate per local jurisdiction. If the local jurisdiction levies both a sales tax and use tax, the local rates must be identical.
  3. The provisions of this section do not apply to sales or use taxes levied on electricity, piped natural or artificial gas, or other heating fuels delivered by the seller, or the retail sale or transfer of motor vehicles, aircraft, watercraft, modular homes, manufactured homes, or mobile homes.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-10. Application of general sourcing rules and exclusions from the rules.

  1. Each member state shall agree to require sellers to source the retail sale of a product in accordance with § 44-18.1-11 . The provisions of § 44-18.1-11 apply regardless of the characterization of a product as tangible personal property, a digital good, or a service. The provisions of § 44-18.1-11 only apply to determine a seller’s obligation to pay or collect and remit a sales or use tax with respect to the seller’s retail sale of a product. These provisions do not affect the obligation of a purchaser or lessee to remit tax on the use of the product to the taxing jurisdictions of that use.
  2. Section 44-18.1-11 does not apply to sales or use taxes levied on the following:
    1. The retail sale or transfer of watercraft, modular homes, manufactured homes, or mobile homes. These items must be sourced according to the requirements of each member state.
    2. The retail sale, excluding lease or rental, of motor vehicles, trailers, semi-trailers, or aircraft that do not qualify as transportation equipment, as defined in § 44-18.1-11 , subsection (D). The retail sale of these items shall be sourced according to the requirements of each member state, and the lease or rental of these items must be sourced according to § 44-18.1-11, subsection (C).
    3. Telecommunications services, as set out in § 44-18.1-16 , shall be sourced in accordance with § 44-18.1-15 .
    4. Until December 31, 2007, florist sales as defined by each member state. Prior to this date, these items must be sourced according to the requirements of each member state.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-11. General sourcing rules.

  1. The retail sale, excluding lease or rental, of a product shall be sourced as follows:
    1. When the product is received by the purchaser at a business location of the seller, the sale is sourced to that business location.
    2. When the product is not received by the purchaser at a business location of the seller, the sale is sourced to the location where receipt by the purchaser (or the purchaser’s donee, designated as such by the purchaser) occurs, including the location indicated by instructions for delivery to the purchaser (or donee), known to the seller.
    3. When subsections (A)(1) and (A)(2) do not apply, the sale is sourced to the location indicated by an address for the purchaser that is available from the business records of the seller that are maintained in the ordinary course of the seller’s business when use of this address does not constitute bad faith.
    4. When subsections (A)(1), (A)(2) and (A)(3) do not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser’s payment instrument, if no other address is available, when use of this address does not constitute bad faith.
    5. When none of the previous rules of subsections (A)(1), (A)(2), (A)(3), or (A)(4) apply, including the circumstance in which the seller is without sufficient information to apply the previous rules, then the location will be determined by the address from which tangible personal property was shipped, from which the digital good or the computer software delivered electronically was first available for transmission by the seller, or from which the service was provided (disregarding for these purposes any location that merely provided the digital transfer of the product sold).
      1. For a lease or rental that requires recurring periodic payments, the first periodic payment is sourced the same as a retail sale in accordance with the provisions of subsection (A). Periodic payments made subsequent to the first payment are sourced to the primary property location for each period covered by the payment. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. The property location shall not be altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and service calls.
      2. For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of subsection (A).
      3. This subsection does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis, or on the acquisition of property for lease.
        1. Registered through the International Registration Plan; and
        2. Operated under authority of a carrier authorized and certificated by the U.S. Department of Transportation or another federal authority to engage in the carriage of persons or property in interstate commerce.

(B) The lease or rental of tangible personal property, other than property identified in subsection (C) or subsection (D), shall be sourced as follows:

(C) The lease or rental of motor vehicles, trailers, semi-trailers, or aircraft that do not qualify as transportation equipment, as defined in subsection (D), shall be sourced as follows:

(1) For a lease or rental that requires recurring periodic payments, each periodic payment is sourced to the primary property location. The property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. This location shall not be altered by intermittent use at different locations.

(2) For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of subsection (A).

(3) This subsection does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis, or on the acquisition of property for lease.

(D) The retail sale, including lease or rental, of transportation equipment shall be sourced the same as a retail sale in accordance with the provisions of subsection (A), notwithstanding the exclusion of lease or rental in subsection (A). “Transportation equipment” means any of the following:

(1) Locomotives and railcars that are utilized for the carriage of persons or property in interstate commerce.

(2) Trucks and truck-tractors with a Gross Vehicle Weight rating (GVWR) of 10,001 pounds or greater, trailers, semi-trailers, or passenger buses that are:

(3) Aircraft that are operated by air carriers authorized and certificated by the U.S. Department of Transportation or another federal or a foreign authority to engage in the carriage of persons or property in interstate or foreign commerce.

(4) Containers designed for use on and component parts attached or secured on the items set forth in subsection (D)(1) — (D)(3).

History of Section. P.L. 2006, ch. 246, art. 30, § 12; P.L. 2007, ch. 6, § 6.

44-18.1-12. General sourcing definitions.

For the purposes of § 44-18.1-11 , subsection (A), the terms “receive” and “receipt” mean:

  1. Taking possession of tangible personal property,
  2. Making first use of services, or
  3. Taking possession or making first use of digital goods, whichever comes first. The terms “receive” and “receipt” do not include possession by a shipping company on behalf of the purchaser.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-13. Repealed.

History of Section. P.L. 2006, ch. 246, art. 30, § 12; Repealed by P.L. 2007, ch. 6, § 5, effective March 14, 2007.

Compiler’s Notes.

Former § 44-18.1-13 concerned multiple points of use.

44-18.1-14. Direct mail sourcing.

  1. Notwithstanding § 44-18.1-11 , a purchaser of direct mail that is not a holder of a direct pay permit shall provide to the seller in conjunction with the purchase a Direct Mail Form or information to show the jurisdictions to which the direct mail is delivered to recipients.
    1. Upon receipt of the Direct Mail Form, the seller is relieved of all obligations to collect, pay, or remit the applicable tax and the purchaser is obligated to pay or remit the applicable tax on a direct pay basis. A Direct Mail Form shall remain in effect for all future sales of direct mail by the seller to the purchaser until it is revoked in writing.
    2. Upon receipt of information from the purchaser showing the jurisdictions to which the direct mail is delivered to recipients, the seller shall collect the tax according to the delivery information provided by the purchaser. In the absence of bad faith, the seller is relieved of any further obligation to collect tax on any transaction where the seller has collected tax pursuant to the delivery information provided by the purchaser.

(B) If the purchaser of direct mail does not have a direct pay permit and does not provide the seller with either a Direct Mail Form or delivery information, as required by subsection (A) of this section, the seller shall collect the tax according to § 44-18.1-11 , subsection (A)(5). Nothing in this paragraph shall limit a purchaser’s obligation for sales or use tax to any state to which the direct mail is delivered.

(C) If a purchaser of direct mail provides the seller with documentation of direct pay authority, the purchaser shall not be required to provide a Direct Mail Form or delivery information to the seller.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-15. Telecommunication sourcing rule.

  1. Except for the defined telecommunication services in subsection (C), the sale of telecommunication service sold on a call-by-call basis shall be sourced to (i) each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or (ii) each level of taxing jurisdiction where the call either originates or terminates and in which the service addressed is also located.
  2. Except for the defined telecommunication services in subsection (C), a sale of telecommunications services sold on a basis other than a call-by-call basis, is sourced to the customer’s place of primary use.
  3. The sale of the following telecommunication services shall be sourced to each level of taxing jurisdiction as follows:
    1. A sale of mobile telecommunications services other than air-to-ground radiotelephone service and prepaid calling service, is sourced to the customer’s place of primary use as required by the Mobile Telecommunications Sourcing Act.
    2. A sale of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either (i) the seller’s telecommunications system, or (ii) information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
    3. A sale of prepaid calling service or a sale of a prepaid wireless calling service is sourced in accordance with § 44-18.1-11 . Provided however, in the case of a sale of a prepaid wireless calling service, the rule provided in § 44-18.1-11 , subsection (A)(5) shall include as an option the location associated with the mobile telephone number.
    4. A sale of a private communication service is sourced as follows:
      1. Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located.
      2. Service where all customer termination points are located entirely within one jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located.
      3. Service for segments of a channel between two customer channel termination points located in different jurisdictions and which segment of channel are separately charged is sourced fifty percent in each level of jurisdiction in which the customer channel termination points are located.
      4. Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-16. Telecommunication sourcing definitions.

For the purpose of §§ 44-18.1-15 and 44-18-7 , the following definitions apply:

  1. “Air-to-Ground Radiotelephone service” means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.
  2. “Call-by-call Basis” means any method of charging for telecommunications services where the price is measured by individual calls.
  3. “Communications Channel” means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
  4. “Customer” means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunication service, but this sentence only applies for the purpose of sourcing sales of telecommunications services under § 44-18.1-15 . “Customer” does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider’s licensed service area.
  5. “Customer Channel Termination Point” means the location where the customer either inputs or receives the communications.
  6. “End user” means the person who utilizes the telecommunication service. In the case of an entity, “end user” means the individual who utilizes the service on behalf of the entity.
  7. “Home service provider” means the same as that term is defined in Section 124(5) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).
  8. “Mobile telecommunications service” means the same as that term is defined in Section 124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).
  9. “Place of primary use” means the street address representative of where the customer’s use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, “place of primary use” must be within the licensed service area of the home service provider.
  10. “Post-paid calling service” means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service, except a prepaid wireless calling service, that would be a prepaid calling service except it is not exclusively a telecommunication service.
  11. “Service address” means:
    1. The location of the telecommunications equipment to which a customer’s call is charged and from which the call originates or terminates, regardless of where the call is billed or paid.
    2. If the location in subsection (K)(1) is not known, service address means the origination point of the signal of the telecommunications services first identified by either the seller’s telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
    3. If the location in subsection (K)(1) and subsection (K)(2) are not known, the service address means the location of the customer’s place of primary use.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-17. Enactment of exemptions.

  1. For the purpose of this section and § 44-18.1-18 , the following definitions apply:
    1. Entity-Based Exemption. An exemption based on who purchases the product or who sells the product. An exemption that is available to all individuals shall not be considered an entity-based exemption.
    2. Product-Based Exemption. An exemption based on the description of the product and not based on who purchases the product or how the purchaser intends to use the product.
    3. Use-Based Exemption. An exemption based on a specified use of the product by the purchaser.
  2. A member state shall enact entity-based, use-based and product-based exemptions in accordance with the provisions of this section and shall utilize common definitions in accordance with the provisions of this section and shall utilize common definitions in accordance with the provisions of § 44-18.1-28 and Library of Definitions in Appendix C of the Streamlined Sales and Use Tax Agreement.
    1. A member state may enact a product-based exemption without restriction if Part II of the Library of Definitions does not have a definition for such product.
    2. A member state may enact a product-based exemption for a product if Part II of the Library of Definitions has a definition for such product and the member state utilizes in the exemption the product definition in a manner consistent with Part II of the Library of Definitions and § 44-18.1-28 .
    3. A member state may enact a product-based exemption exempting all items included within a definition in Part II of the Library of Definitions but shall not exempt specific items included within the product definition unless the product definition sets out an exclusion for such item.
    1. A member state may enact an entity-based or a use-based exemption for a product without restriction if Part II of the Library of Definitions does not have a definition for such product.
    2. A member state may enact an entity-based or a use-based exemption for a product if Part II of the Library of Definitions has a definition for such product and the member state utilizes in the exemption the product definition in a manner consistent with Part II of the Library of Definitions and § 44-18.1-28 of this Agreement.
    3. A member state may enact an entity-based exemption for an item if Part II of the Library of Definitions does not have a definition for such item but has a definition for a product that includes such item.
    4. A member state may not enact a use-based exemption for an item which effectively constitutes a product-based exemption if Part II of the Library of Definitions has a definition for a product that includes such item.
    5. A member state may enact a use-based exemption for an item if Part II of the Library of Definitions has a definition for a product that includes such item, if not prohibited in Subsection (C)(4) of this section and if consistent with the definition in Part II of the Library of Definitions.
  3. For purposes of complying with the requirements in this section, the inclusion of a product within the definition of tangible personal property is disregarded.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-18. Administration of exemptions.

  1. Each member state shall observe the following provisions when a purchaser claims an exemption:
    1. The seller shall obtain identifying information of the purchaser and the reason for claiming a tax exemption at the time of the purchase as determined by the governing board.
    2. A purchaser is not required to provide a signature to claim an exemption from tax unless a paper exemption certificate is used.
    3. The seller shall use the standard form for claiming an exemption electronically as adopted by the governing board.
    4. The seller shall obtain the same information for proof of a claimed exemption regardless of the medium in which the transaction occurred.
    5. A member state may utilize a system wherein the purchaser exempt from the payment of the tax is issued an identification number that shall be presented to the seller at the time of the sale.
    6. The seller shall maintain proper records of exempt transactions and provide them to a member state when requested.
    7. A member state shall administer use-based and entity-based exemptions when practicable through a direct pay permit, an exemption certificate, or other means that does not burden sellers.
    8. After December 31, 2007, in the case of drop shipment sales, member states must allow a third party vendor (e.g., drop shipper) to claim a resale exemption based on an exemption certificate provided by its customer/re-seller or any other acceptable information available to the third party vendor evidencing qualification for a resale exemption, regardless of whether the customer/re-seller is registered to collect and remit sales and use tax in the state where the sale is sourced.
      1. If the seller has not obtained an exemption certificate or all relevant data elements as provided in § 44-18.1-18 , subsection (C) the seller may, within 120 days subsequent to a request for substantiation by a member state, either prove that the transaction was not subject to tax by other means or obtain a fully completed exemption certificate from the purchaser, taken in good faith. For purposes of this section, member states may continue to apply their own standards of good faith until such time as a uniform standard for good faith is defined in the Agreement.
      2. Nothing in this section shall affect the ability of member states to require purchasers to update exemption certificate information or to reapply with the state to claim certain exemptions.
      3. Notwithstanding the aforementioned, each member state shall relieve a seller of the tax otherwise applicable if it obtains a blanket exemption certificate for a purchaser with which the seller has a recurring business relationship. States may not request from the seller renewal of blanket certificates or updates of exemption certificate information or data elements when there is a recurring business relationship between the buyer and seller. For purposes of this section a recurring business relationship exists when a period of no more than twelve months elapses between sales transactions.

(B) Each member state shall relieve sellers that follow the requirements of this section from the tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption and to hold the purchaser liable for the nonpayment of tax. This relief from liability does not apply to a seller who fraudulently fails to collect the tax; to a seller who solicits purchasers to participate in the unlawful claim of an exemption; to a seller who accepts an exemption certificate when the purchaser claims an entity-based exemption when (1) the subject of the transactions sought to be covered by the exemption certificate is actually received by the purchaser at a location operated by the seller and (2) the state in which that location resides provides an exemption certificate that clearly and affirmatively indicates (graying out exemption reason types on the uniform form and posting it on a state’s web site is an indicator) that the claimed exemption is not available in that state.

(C) Each state shall relieve a seller of the tax otherwise applicable if the seller obtains a fully completed exemption certificate or captures the relevant data elements required under the Agreement within 90 days subsequent to the date of sale.

History of Section. P.L. 2006, ch. 246, art. 30, § 12; P.L. 2007, ch. 6, § 6.

44-18.1-19. Uniform tax returns.

Each member state shall:

  1. Require that only one tax return for each taxing period for each seller be filed for the member state and all the taxing jurisdictions within the member state.
  2. Require that returns be due no sooner than the twentieth day of the month following the month in which the transaction occurred.
  3. Allow any Model 1, Model 2, or Model 3 seller to submit its sales and use tax returns in a simplified format that does not include more data fields than permitted by the governing board. A member state may require additional informational returns to be submitted not more frequently than every six months under a staggered system developed by the governing board.
  4. Allow any seller that is registered under the Agreement, which does not have a legal requirement to register in the member state, and is not a Model 1, 2, or 3 seller, to submit its sales and use tax returns as follows:
    1. Upon registration, a member state shall provide to the seller the returns required by that state.
    2. A member state may require a seller to file a return anytime within one year of the month of initial registration, and future returns may be required on an annual basis in succeeding years.
    3. In addition to the returns required in subsection (D)(2), a member state may require sellers to submit returns in the month following any month in which they have accumulated state and local tax funds for the state in the amount of one thousand dollars or more.

(E) Participate with other member states in developing a more uniform sales and use tax return that, when completed, would be available to all sellers.

(F) Require, at each member state’s discretion, all Model 1, 2, and 3 sellers to file returns electronically. It is the intent of the member states that all member states have the capability of receiving electronically filed returns.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-20. Uniform rules for remittances of funds.

Each member state shall:

  1. Require only one remittance for each return except as provided in this subsection. If any additional remittance is required, it may only be required from sellers that collect more than thirty thousand dollars in sales and use taxes in the member state during the preceding calendar year as provided herein. The state shall allow the amount of any additional remittance to be determined through a calculation method rather than actual collections. Any additional remittances shall not require the filing of an additional return.
  2. Require, at each member state’s discretion, all remittances from sellers under Models 1, 2, and 3 to be remitted electronically.
  3. Allow for electronic payments by both ACH Credit and ACH Debit.
  4. Provide an alternative method for making “same day” payments if an electronic funds transfer fails.
  5. Provide that if a due date falls on a legal banking holiday in a member state, the taxes are due to that state on the next succeeding business day.
  6. Require that any data that accompanies a remittance be formatted using uniform tax type and payment type codes approved by the governing board.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-21. Uniform rules for recovery of bad debts.

Each member state shall use the following to provide a deduction for bad debts to a seller. To the extent a member state provides a bad debt deduction to any other party, the same procedures will apply. Each member state shall:

  1. Allow a deduction from taxable sales for bad debts. Any deduction taken that is attributed to bad debts shall not include interest.
  2. Utilize the federal definition of “bad debt” in 26 U.S.C. § 166 as the basis for calculating bad debt recovery. However, the amount calculated pursuant to 26 U.S.C. § 166 shall be adjusted to exclude: financing charges or interest; sales or use taxes charged on the purchase price; uncollectable amounts on property that remain in the possession of the seller until the full purchase price is paid; expenses incurred in attempting to collect any debt, and repossessed property.
  3. Allow bad debts to be deducted on the return for the period during which the bad debt is written off as uncollectable in the claimant’s books and records and is eligible to be deducted for federal income tax purposes. For purposes of this subsection, a claimant who is not required to file federal income tax returns may deduct a bad debt on a return filed for the period in which the bad debt is written off as uncollectable in the claimant’s books and records and would be eligible for a bad debt deduction for federal income tax purposes if the claimant was required to file a federal income tax return.
  4. Require that, if a deduction is taken for a bad debt and the debt is subsequently collected in whole or in part, the tax on the amount so collected must be paid and reported on the return filed for the period in which the collection is made.
  5. Provide that, when the amount of bad debt exceeds the amount of taxable sales for the period during which the bad debt is written off, a refund claim may be filed within the member state’s otherwise applicable statute of limitations for refund claims; however, the statute of limitations shall be measured from the due date of the return on which the bad debt could first be claimed.
  6. Where filing responsibilities have been assumed by a CSP, allow the service provider to claim, on behalf of the seller, any bad debt allowance provided by this section. The CSP must credit or refund the full amount of any bad debt allowance or refund received to the seller.
  7. Provide that, for the purposes of reporting a payment received on a previously claimed bad debt, any payments made on a debt or account are applied first proportionally to the taxable price of the property or service and the sales tax thereon, and secondly to interest, service charges, and any other charges.
  8. In situations where the books and records of the party claiming the bad debt allowance support an allocation of the bad debts among the member states, permit the allocation.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

Collateral References.

Recovery of Sales Taxes Paid on Bad Debts. 38 A.L.R.6th 255.

44-18.1-22. Confidentiality and privacy protections under Model 1.

  1. The purpose of this section is to set forth the member states’ policy for the protection of the confidentiality rights of all participants in the system and of the privacy interests of consumers who deal with Model 1 sellers.
  2. As used in this section, the term “confidential taxpayer information” means all information that is protected under a member state’s laws, regulations, and privileges; the term “personally identifiable information” means information that identifies a person; and the term “anonymous data” means information that does not identify a person.
  3. The member states agree that a fundamental precept in Model 1 is to preserve the privacy of consumers by protecting their anonymity. With very limited exceptions, a CSP shall perform its tax calculation, remittance, and reporting functions without retaining the personally identifiable information of consumers.
  4. The governing board may certify a CSP only if that CSP certifies that:
    1. Its system has been designed and tested to ensure that the fundamental precept of anonymity is respected;
    2. That personally identifiable information is only used and retained to the extent necessary for the administration of Model 1 with respect to exempt purchasers;
    3. It provides consumers clear and conspicuous notice of its information practices, including what information it collects, how it collects the information, how it uses the information, how long, if at all, it retains the information and whether it discloses the information to member states. Such notice shall be satisfied by a written privacy policy statement accessible by the public on the official web site of the CSP;
    4. Its collection, use and retention of personally identifiable information will be limited to that required by the member states to ensure the validity of exemptions from taxation that are claimed by reason of a consumer’s status or the intended use of the goods or services purchased; and
    5. It provides adequate technical, physical, and administrative safeguards so as to protect personally identifiable information from unauthorized access and disclosure.
    1. This privacy policy is subject to enforcement by member states’ attorneys general or other appropriate state government authority.
      1. Conduct audits or other review as provided under the Agreement and state law.
      2. Provide records pursuant to a member state’s Freedom of Information Act, disclosure laws with governmental agencies, or other regulations.
      3. Prevent, consistent with state law, disclosures of confidential taxpayer information.
      4. Prevent, consistent with federal law, disclosures or misuse of federal return information obtained under a disclosure agreement with the Internal Revenue Service.
      5. Collect, disclose, disseminate, or otherwise use anonymous data for governmental purposes.

(E) Each member state shall provide public notification to consumers, including their exempt purchasers, of the state’s practices relating to the collection, use and retention of personally identifiable information.

(F) When any personally identifiable information that has been collected and retained is no longer required for the purposes set forth in subsection (D)(4), such information shall no longer be retained by the member states.

(G) When personally identifiable information regarding an individual is retained by or on behalf of a member state, such state shall provide reasonable access by such individual to his or her own information in the state’s possession and a right to correct any inaccurately recorded information.

(H) If anyone other than a member state, or a person authorized by that state’s law or the Agreement, seeks to discover personally identifiable information, the state from whom the information is sought should make a reasonable and timely effort to notify the individual of such request.

(J) Each member states’ laws and regulations regarding the collection, use, and maintenance of confidential taxpayer information remain fully applicable and binding. Without limitation, the Agreement does not enlarge or limit the member states’ authority to:

(K) This privacy policy does not preclude the governing board from certifying a CSP whose privacy policy is more protective of confidential taxpayer information or personally identifiable information than is required by the Agreement.

History of Section. P.L. 2006, ch. 246, art. 30, § 12; P.L. 2007, ch. 6, § 6.

44-18.1-23. Sales tax holidays.

  1. If a member state allows for temporary exemption periods, commonly referred to as sales tax holidays, the member state shall:
    1. Not apply an exemption after December 31, 2003, unless the items to be exempted are specifically defined in the Agreement and the exemptions are uniformly applied to state and local sales and use taxes.
    2. Provide notice of the exemption period at least sixty days’ prior to the first day of the calendar quarter in which the exemption period will begin.
      1. Layaway sales.  A sale of eligible property under a layaway sale qualifies for exemption if:
        1. final payment on a layaway order is made by, and the property is given to, the purchaser during the exemption period; or
        2. the purchaser selects the property and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period.
          1. If a customer purchases as item of eligible property during the exemption period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due even if the exchange is made after the exemption period.
          2. If a customer purchase an item of eligible property during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item.
          3. If a customer purchases an item of eligible property before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item if the new item is purchased during the exemption period.

(B) A member state may establish a sales tax holiday that utilizes price thresholds set by such state and the provisions of the Agreement on the use of thresholds shall not apply to exemptions provided by a state during a sales tax holiday. In order to provide uniformity, a price threshold established by a member state for exempt items shall include only items priced below the threshold. A member state shall not exempt only a portion of the price of an individual item during a sales tax holiday.

(C) The following procedures are to be used by member states in administering a sales tax holiday exemption:

(2) Bundled sales. Member states will follow the same procedure during the sales tax holiday as agreed upon for handling a bundled sale at other times.

(3) Coupons and discounts. A discount by the seller reduces the sales price of the property and the discounted sales price determines whether the sales price is within a sales tax holiday price threshold of a member state. A coupon that reduces the sales price is treated as a discount if the seller is not reimbursed for the coupon amount by a third-party. If a discount applies to the total amount paid by a purchaser rather than to the sales price of a particular item and the purchaser has purchased both eligible property and taxable property, the seller should allocate the discount based on the total sales price of the taxable property compared to the total sales prices of all property sold in that same transaction.

(4) Splitting of items normally sold together. Articles that are normally sold as a single unit must continue to be sold in that manner. Such articles cannot be priced separately and sold as individual items in order to obtain the exemption. For example, a pair of shoes cannot have each shoe sold separately so that the sales price of each shoe is within a sales tax holiday price threshold.

(5) Rain checks. A rain check allows a customer to purchase an item at a certain price at a later time because the particular item was out of stock. Eligible property that customers purchase during the exemption period with use of a rain check will qualify for the exemption regardless of when the rain check was issued. Issuance of a rain check during the exemption period will not qualify eligible property for the exemption if the property is actually purchased after the exemption period.

(6) Exchanges. The procedure for an exchange in regards to a sales tax holiday is as follows:

(7) Delivery charges. Delivery charges, including shipping, handling and service charges, are part of the sales price of eligible property unless a member state defines “sales price” to exclude such charges. For the purposes of determining a sales tax holiday price threshold, if all the property in a shipment qualifies as eligible property and the sales price for each item in the shipment is within the sales tax holiday price threshold, then the seller does not have to allocate the delivery, handling, or service charge to determine if the price threshold is exceeded. The shipment will be considered a sale of eligible products. If the shipment includes eligible property and taxable property (including an eligible item with a sales price in excess of the price threshold), the seller should allocate the delivery charge by using:

(a) a percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment; or

(b) a percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment.

The seller must tax the percentage of the delivery charge allocated to the taxable property but does not have to tax the percentage allocated to the eligible property.

(8) Order date and back orders. For the purpose of a sales tax holiday, eligible property qualifies for exemption if:

(a) the item is both delivered to and paid for by the customer during the exemption period; or

(b) the customer orders and pays for the item and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an “in date” stamp on a mail order or assignment of an “order number” to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment notwithstanding that the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.

(9) Returns. For a 60-day period immediately after the sales tax holiday exemption period, when a customer returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given unless the customer provides a receipt or invoice that shows tax was paid, or the seller has sufficient documentation to show that tax was paid on the specific item. This 60-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that sales tax was paid on returned merchandise. The 60-day period is not intended to change a seller’s policy on the time period during which the seller will accept returns.

(10) Different time zones. The time zone of the seller’s location determines the authorized time period for a sales tax holiday when the purchaser is located in one time zone and a seller is located in another.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-24. Caps and thresholds.

  1. Each member state shall:
    1. Not have caps or thresholds on the application of state sales or use tax rates or exemptions that are based on the value of the transaction or item after December 31, 2005. A member state may continue to have caps and thresholds until that date.
    2. Not have caps that are based on the application of the rates unless the member state assumes the administrative responsibility in a manner that places no additional burden on the retailer.

(B) Each member state that has local jurisdictions that levy a sales or use tax shall not place caps or thresholds on the application of local rates or use tax rates or exemptions that are based on the value of the transaction or item after December 31, 2005. A member state may continue to have caps and thresholds until that date.

(C) The provisions of this section do not apply to sales or use taxes levied on the retail sale or transfer of motor vehicles, aircraft, watercraft, modular homes, manufactured homes, or mobile homes or to instances where the burden of administration has been shifted from the retailer.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-25. Rounding rule.

  1. After December 31, 2005, each member state shall adopt a rounding algorithm that meets the following criteria:
    1. Tax computation must be carried to the third decimal place, and
    2. The tax must be rounded to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four.

(B) Each state shall allow sellers to elect to compute the tax due on a transaction on an item or an invoice basis, and shall allow the rounding rule to be applied to the aggregated state and local taxes. No member state shall require a seller to collect tax based on a bracket system.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-26. Customer refund procedures.

  1. These customer refund procedures are provided to apply when a state allows a purchaser to seek a return of over-collected sales or use taxes from the seller.
  2. Nothing in this section shall either require a state to provide, or prevent a state from providing, a procedure by which a purchaser may seek a refund directly from the state arising out of sales or use taxes collected in error by a seller from the purchaser. Nothing in this section shall operate to extend any person’s time to seek a refund of sales or use taxes collected or remitted in error.
  3. These customer refund procedures provide the first course of remedy available to purchasers seeking a return of over-collected sales or use taxes from the seller. A cause of action against the seller for the over-collected sales or use taxes does not accrue until a purchaser has provided written notice to a seller and the seller has had sixty days to respond. Such notice to the seller must contain the information necessary to determine the validity of the request.
  4. In connection with a purchaser’s request from a seller of over-collected sales or use taxes, a seller shall be presumed to have a reasonable business practice, if in the collection of such sales or use taxes, the seller: (i) uses either a provider or a system, including a proprietary system, that is certified by the state; and (ii) has remitted to the state all taxes collected less any deductions, credits, or collection allowances.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

NOTES TO DECISIONS

Applicability.

Statute did not apply to purchasers’ action alleging that a seller breached its duty to properly calculate and collect sales tax because the events took place in 2000, and the statute was not enacted until 2006 and became effective in 2007; even if the statute did apply, it merely provided a procedural mechanism to seek recovery and did not establish a new legal tort duty. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

44-18.1-27. Direct pay permits.

Each member state shall provide for a direct pay authority that allows the holder of a direct. pay permit to purchase otherwise taxable goods and services without payment of tax to the supplier at the time of purchase. The holder of the direct pay permit will make a determination of the taxability and then report and pay the applicable tax due directly to the tax jurisdiction. Each state can set its own limits and requirements for the direct pay permit. The governing board shall advise member states when setting state direct pay limits and requirements, and shall consider use of the Model Direct Payment Permit Regulation as developed by the Task Force on EDI Audit and Legal Issues for Tax Administration.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-28. Library of definitions.

Each member state shall utilize common definitions as provided in this section. The terms defined are set out in the Library of Definitions, in Appendix C of the Streamlined Sales and Use Tax Agreement. A member state shall adhere to the following principles:

  1. If a term defined in the Library of Definitions appears in a member state’s sales and use tax statutes or administrative rules or regulations, the member state shall enact of adopt the Library definition of the term in its statutes or administrative rules or regulations in substantially the same language as the Library definition.
  2. A member state shall not use a Library definition in its sales or use tax statutes or administrative rules or regulations that is contrary to the meaning of the Library definition.
  3. Except as specifically provided in § 44-18.1-16 and the Library of Definitions, a member state shall impose a sales or use tax on all products or services included within each definition or exempt from sales or use tax all products or services within each definition.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-29. Taxability matrix.

  1. To ensure uniform application of terms defined in the Library of Definitions each member state shall complete a taxability matrix adopted by the governing board. The member state’s entries in the matrix shall be provided and maintained in a database that is in a downloadable format approved by the governing board. A member state shall provide notice of changes in the taxability of the products or services listed in the taxability matrix as required by the governing board.
  2. A member state shall relieve sellers and CSPs from liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales or use tax resulting from the seller or CSP relying on erroneous data provided by the member state in the taxability matrix.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-30. Effective date for rate changes.

Each member state shall provide that the effective date of rate changes for services covering a period starting before and ending after the statutory effective date shall be as follows:

  1. For a rate increase, the new rate shall apply to the first billing period starting on or after the effective date.
  2. For a rate decrease, the new rate shall apply to bills rendered on or after the effective date.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-31. Bundled transactions.

  1. A member state shall adopt and utilize to determine tax treatment, the core definition for a “bundled transaction”. See § 44-18-7.1(c) .
  2. Member states are not restricted in their tax treatment of bundled transactions except as otherwise provided in the Agreement. Member states are not restricted in their ability to treat some bundled transactions differently from other bundled transactions.
  3. In the case of a bundled transaction that includes any of the following: telecommunication service, ancillary service, internet access, or audio or video programming service:
    1. If the price is attributable to products that are taxable and products that are nontaxable, the portion of the price attributable to the nontaxable products may be subject to tax unless the provider can identify by reasonable and verifiable standards such portion from its books and records that are kept in the regular course of business for other purposes, including, but not limited to, non-tax purposes.
    2. If the price is attributable to products that are subject to tax at different tax rates, the total price may be treated as attributable to the products subject to tax at the highest tax rate unless the provider can identify by reasonable and verifiable standards the portion of the price attributable to the products subject to tax at the lower rate from its books and records that are kept in the regular course of business for other purposes, including, but not limited to, non-tax purposes.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-32. Seller participation.

  1. The member states shall provide an online registration system that will allow sellers to register in all the member states.
  2. By registering, the seller agrees to collect and remit sales and use taxes for all taxable sales into the member states, including member states joining after the seller’s registration. Withdrawal or revocation of a member state shall not relieve a seller of its responsibility to remit taxes previously or subsequently collected on behalf of the state.
  3. In member states where the seller has a requirement to register prior to registering under the Agreement, the seller may be required to provide additional information to complete the registration process or the seller may choose to register directly with those states.
  4. A member state or a state that has withdrawn or been expelled shall not use registration with the central registration system and the collection of sales and use taxes in the member states as a factor in determining whether the seller has nexus with that state for any tax at any time.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-33. Amnesty for registration.

  1. Subject to the limitations in this section.
    1. A member state shall provide amnesty for uncollected or unpaid sales or use tax to a seller who registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in the state in accordance with the terms of the Agreement, provided that the seller was not so registered in that state in the twelve-month period preceding the effective date of the state’s participation in the Agreement.
    2. The amnesty will preclude assessment for uncollected or unpaid sales or use tax together with penalty or interest for sales made during the period the seller was not registered in the state, provided registration occurs within twelve months of the effective date of the state’s participation in the Agreement.
    3. Amnesty similarly shall be provided by any additional state that joins the Agreement after the seller has registered.

(B) The amnesty is not available to a seller with respect to any matter or matters for which the seller received notice of the commencement of an audit and which audit is not yet finally resolved including any related administrative and judicial processes.

(C) The amnesty is not available for sales or use taxes already paid or remitted to the state or to taxes collected by the seller.

(D) The amnesty is fully effective, absent the seller’s fraud or intentional misrepresentation of a material fact, as long as the seller continues registration and continues payment or collection and remittance of applicable sales or use taxes for a period of at least thirty-six months. Each member state shall toll its statute of limitations applicable to asserting a tax liability during this thirty-six month period.

(E) The amnesty is applicable only to sales or use taxes due from a seller in its capacity as a seller and not to sales or use taxes due from a seller in its capacity as a buyer.

(F) A member state may allow amnesty on terms and conditions more favorable to a seller than the terms required by this section.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-34. Method of remittance.

When registering, the seller may select one of the following methods of remittances or other method allowed by state law to remit the taxes collected:

  1. MODEL 1, where a seller selects a CSP as an agent to perform all the seller’s sales or use tax functions, other than the seller’s obligation to remit tax on its own purchases.
  2. MODEL 2, wherein a seller selects a CAS to use which calculates the amount of tax due on a transaction.
  3. MODEL 3, wherein a seller utilizes its own proprietary automated sales tax system that has been certified as a CAS.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-35. Registration by an agent.

A seller may be registered by an agent. Such appointment shall be in writing and submitted to a member state if requested by the member state.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-36. Monetary allowance under Model 1.

  1. Each member state shall provide a monetary allowance to a CSP in Model 1 in accordance with the terms of the contract between the governing board and the CSP. The details of the monetary allowance will be provided through the contract process. The governing board shall require that such allowance be funded entirely from money collected in Model 1.
  2. The contract between the governing board and a CSP may base the monetary allowance to a CSP on one or more of the following:
    1. A base rate that applies to taxable transactions processed by the CSP.
    2. For a period not to exceed twenty-four months following a voluntary seller’s registration through the Agreement’s central registration process, a percentage of tax revenue generated for a member state by the voluntary seller for each member state for which the seller does not have a requirement to register to collect the tax.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-37. Monetary allowance for Model 2 sellers.

The member states initially anticipate that they will provide a monetary allowance to sellers under Model 2 based on the following:

  1. All sellers shall receive a base rate for a period not to exceed twenty-four months following the commencement of participation by a seller. The base rate will be set after the base rate has been established for Model 1. This allowance will be in addition to any discount afforded by each member state at the time.
  2. The member states anticipate a monetary allowance to a Model 2 Seller based on the following:
    1. For a period not to exceed twenty-four months following a voluntary seller’s registration through the Agreement’s central registration process, a percentage of tax revenue generated for a member state by the voluntary seller for each member state for which the seller does not have a requirement to register to collect the tax.
    2. Following the conclusion of the twenty-four month period, a seller will only be entitled to a vendor discount afforded under each member state’s law at the time the base rate expires.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

44-18.1-38. Monetary allowance for Model 3 sellers and all other sellers.

The member states anticipate that they will provide a monetary allowance to sellers under Model 3 and to all other sellers that are not under Models 1 or 2 based on the following:

  1. For a period not to exceed twenty-four months following a voluntary seller’s registration through the Agreement’s central registration process, a percentage of tax revenue generated for a member state by the voluntary seller for each member state for which the seller does not have a requirement to register to collect the tax.
  2. Vendor discounts afforded under each member state’s law.

History of Section. P.L. 2006, ch. 246, art. 30, § 12.

Chapter 18.2 Sales and Use Taxes — Remote Sellers, Referrers, and Marketplace Facilitators Act

44-18.2-1. Legislative findings.

The general assembly finds and declares that:

  1. The commerce clause of the United States Constitution prohibits states from imposing an undue burden on interstate commerce.
  2. There has been an exponential expansion of online commerce and related technology, and due to the ready availability of sales and use tax collection software and Rhode Island’s status as a signatory to the Streamlined Sales and Use Tax Agreement under which there is an existing compliance infrastructure in place to facilitate the collection and remittance of sales tax by non-collecting retailers, it is no longer an undue burden for non-collecting retailers to accurately compute, collect, and remit and/or report with respect to their sales and use tax obligations to Rhode Island.
  3. The existence and/or presence of a non-collecting retailer’s, referrer’s, or retail sale facilitator’s in-state software on the devices of in-state customers constitutes physical presence of the non-collecting retailer, referrer, or retail sale facilitator in Rhode Island under Quill Corp. v. North Dakota, 504 U.S. 298 (U.S. 1992).
  4. While such a physical presence of the non-collecting retailer, referrer, or retail sale facilitator may not be “presence” in the traditional sense, a non-collecting retailer, referrer, or retail sale facilitator who uses in-state software and engages in a significant number of transactions with in-state customers in a calendar year or receives significant revenue from internet sales to in-state customers in a given calendar year evidences an intent to establish and maintain a market in this state for its sales.

History of Section. P.L. 2017, ch. 302, art. 8, § 18.

44-18.2-2. Definitions.

For the purposes of this chapter:

  1. “Division of taxation” means the Rhode Island department of revenue, division of taxation. The division may also be referred to in this chapter as the “division of taxation,” “tax division,” or “division.”
  2. “In-state customer” means a person or persons who makes a purchase of tangible personal property, prewritten computer software delivered electronically or by load and leave as defined in § 44-18-7.1(g)(v) , vendor-hosted prewritten computer software, specified digital products, and/or taxable services as defined under § 44-18-1 et seq. for use, storage, and/or other consumption in this state.
  3. “In-state software” means software used by in-state customers on their computers, smartphones, and other electronic and/or communication devices, including information or software such as cached files, cached software, or “cookies,” or other data tracking tools, that are stored on property in this state or distributed within this state, for the purpose of purchasing tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services.
  4. “Marketplace” means a physical or electronic place including, but not limited to, a store, booth, internet website, catalog, television or radio broadcast, or a dedicated sales software application where tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services is/are sold or offered for sale for delivery in this state regardless of whether the tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, or specified digital products have a physical presence in the state.
  5. “Marketplace facilitator” means any person or persons that contracts or otherwise agrees with a marketplace seller to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the marketplace seller’s products through a physical or electronic marketplace operated by the person or persons, and engages:
    1. Directly or indirectly, through one or more affiliated persons in any of the following:
      1. Transmitting or otherwise communicating the offer or acceptance between the buyer and seller;
      2. Owning or operating the infrastructure, electronic or physical, or technology that brings buyers and sellers together;
      3. Providing a virtual currency that buyers are allowed or required to use to purchase products from the seller; or
      4. Software development or research and development activities related to any of the activities described in subsection (5)(b), if such activities are directly related to a physical or electronic marketplace operated by the person or an affiliated person; and
    2. In any of the following activities with respect to the seller’s products:
      1. Payment processing services;
      2. Fulfillment or storage services;
      3. Listing products for sale;
      4. Setting prices;
      5. Branding sales as those of the marketplace facilitator;
      6. Order taking;
      7. Advertising or promotion; or
      8. Providing customer service or accepting or assisting with returns or exchanges.
  6. “Marketplace seller” means a person, not a related party to a marketplace facilitator, who has an agreement with a marketplace facilitator and makes retail sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services through a marketplace owned, operated, or controlled by a marketplace facilitator, whether or not such person is required to register to collect and remit sales tax.
  7. “Non-collecting retailer” means any person or persons who meets at least one of the following criteria:
    1. Uses in-state software to make sales at retail of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services; or
    2. Sells, leases, or delivers in this state, or participates in any activity in this state in connection with the selling, leasing, or delivering in this state, of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services for use, storage, distribution, or consumption within this state. This includes, but shall not be limited to, any of the following acts or methods of transacting business:
      1. Engaging in, either directly or indirectly through a referrer, retail sale facilitator, or other third party, direct response marketing targeted at in-state customers. For purposes of this subsection, direct response marketing includes, but is not limited to, sending, transmitting, or broadcasting via flyers, newsletters, telephone calls, targeted electronic mail, text messages, social media messages, targeted mailings; collecting, analyzing and utilizing individual data on in-state customers; using information or software, including cached files, cached software, or “cookies,” or other data tracking tools, that are stored on property in or distributed within this state; or taking any other action(s) that use persons, tangible property, intangible property, digital files or information, or software in this state in an effort to enhance the probability that the person’s contacts with a potential in-state customer will result in a sale to that in-state customer;
      2. Entering into one or more agreements under which a person or persons who has physical presence in this state refers, either directly or indirectly, potential in-state customers of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services to the non-collecting retailer for a fee, commission, or other consideration whether by an internet-based link or an internet website, or otherwise. An agreement under which a non-collecting retailer purchases advertisements from a person or persons in this state to be delivered in this state on television, radio, in print, on the internet or by any other medium in this state, shall not be considered an agreement under this subsection (ii), unless the advertisement revenue or a portion thereof paid to the person or persons in this state consists of a fee, commission, or other consideration that is based in whole or in part upon sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services; or
      3. Using a retail sale facilitator to sell, lease, or deliver in this state, or participate in any activity in this state in connection with the selling, leasing, or delivering in this state, of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services for use, storage, or consumption in this state;
      4. Delivers or has delivered (except for delivery by common carrier or United States mail for which the in-state customer is charged not more than the basic charge for shipping and handling), installs, or assembles tangible personal property in this state, or performs maintenance or repair services on tangible personal property in this state, which tangible personal property is sold to in-state customers by the non-collecting retailer;
      5. Facilitates the delivery of tangible personal property purchased from a non-collecting retailer but delivered in this state by allowing an in-state customer to pick up the tangible personal property at an office distribution facility, salesroom, warehouse, storage place, or other similar place of business maintained in this state; or
      6. Shares management, business systems, business practices, computer resources, communication systems, payroll, personnel, or other such business resources and activities with the non-collecting retailer, and/or engages in intercompany transactions with the non-collecting retailer, either or both of which relate to the activities that establish or maintain the non-collecting retailer’s market in this state.
  8. “Person” means person as defined in § 44-18-6 .
  9. “Referrer” means every person who:
    1. Contracts or otherwise agrees with a retailer to list and/or advertise for sale in this state tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, and/or taxable services in any forum, including, but not limited to, a catalog or internet website;
    2. Receives a fee, commission, and/or other consideration from a retailer for the listing and/or advertisement;
    3. Transfers, via in-state software, internet link, or otherwise, an in-state customer to the retailer or the retailer’s employee, affiliate, or website to complete a purchase; and
    4. Does not collect payments from the in-state customer for the transaction.
    5. A person or persons who engages in the activity set forth in all of the activities set forth in subsections (9)(A) — (9)(D) above shall be presumed to be a referrer.
  10. “Related” means:
    1. Having a relationship with the non-collecting retailer within the meaning of the internal revenue code of 1986 as amended; or
    2. Having one or more ownership relationships and a purpose of having the ownership relationship is to avoid the application of this chapter.
  11. A “retail sale” or “sale at retail” means any retail sale or sale at retail as defined in § 44-18-8 .
  12. “Retail sale facilitator” means any person or persons that facilitates a sale by a retailer by engaging in the following types of activities:
    1. Using in-state software to make sales at retail of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services; or
    2. Contracting or otherwise agreeing with a retailer to list and/or advertise for sale tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services in any forum, including, but not limited to, a catalog or internet website; and
    3. Either directly or indirectly through agreements or arrangements with third parties, collecting payments from the in-state customer and transmitting those payments to a retailer. A person or persons may be a retail sale facilitator regardless of whether they deduct any fees from the transaction. The division may define in regulation circumstances under which a retail sale facilitator shall be deemed to facilitate a retail sale.
    4. A person or persons who engages in the type of activity set forth in subsection (12)(A) above or both of the types of activities set forth in subsections (12)(B) and (12)(C) above shall be presumed to be a retail sale facilitator.
    5. The term “retail sale facilitator” will no longer apply to any entity that meets the definition of this subsection effective ninety (90) days after March 29, 2019, at which time such entity shall be classified as a “marketplace facilitator” as referenced above in subsection (5) of this section.
  13. A “retailer” means retailer as defined in § 44-18-15 .
  14. Specified digital products refers to the same term as defined in § 44-18-7.1(x) effective July 1, 2019.
  15. “State” means the State of Rhode Island.
  16. “Streamlined agreement” means the Streamlined Sales and Use Tax Agreement as referenced in § 44-18.1-1 et seq.
  17. “Vendor-hosted prewritten computer software” refers to the same term as defined in § 44-18-7.1(g)(vii) effective October 1, 2018.

(C) Uses a sales process that includes listing, branding, or selling tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services for sale, soliciting, processing orders, fulfilling orders, providing customer service and/or accepting or assisting with returns or exchanges occurring in this state, regardless of whether that part of the process has been subcontracted to an affiliate or third party. The sales process for which the in-state customer is charged not more than the basic charge for shipping and handling as used in this subsection shall not include shipping via a common carrier or the United States mail;

(D) Offers its tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services for sale through one or more retail sale facilitators that has physical presence in this state;

(E) Is related to a person that has physical presence in this state, and such related person with a physical presence in this state:

(i) Sells tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services that are the same or substantially similar to that sold by a non-collecting retailer under a business name that is the same or substantially similar to that of the non-collecting retailer;

(ii) Maintains an office, distribution facility, salesroom, warehouse, storage place, or other similar place of business in this state to facilitate the delivery of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services sold by the non-collecting retailer;

(iii) Uses, with consent or knowledge of the non-collecting retailer, trademarks, service marks, or trade names in this state that are the same or substantially similar to those used by the non-collecting retailer;

(F) Any person or persons who meets at least one of the criteria in subsections (7)(A) — (7)(E) above shall be presumed to be a non-collecting retailer.

(G) The term “non-collecting retailer” will no longer apply to any entity that meets the definition of this subsection effective ninety (90) days after March 29, 2019, at which time such entity shall be classified as a “remote seller” as referenced in § 44-18-15.2 .

History of Section. P.L. 2017, ch. 302, art. 8, § 18; P.L. 2019, ch. 11, § 2; P.L. 2019, ch. 12, § 2; P.L. 2019, ch. 88, art. 5, § 10.

Compiler’s Notes.

This section was amended by three acts ( P.L. 2019, ch. 11, § 2; P.L. 2019, ch. 12, § 2; P.L. 2019, ch. 88, art. 5, § 10) as passed by the 2019 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all three acts.

P.L. 2019, ch. 11, § 2, and P.L. 2019, ch. 12, § 2 enacted identical amendments to this section.

In 2021, “and Providence Plantations” was deleted following “State of Rhode Island” in this section at the direction of the Law Revision Director to reflect the 2020 amendments to the state constitution that changed the state’s name.

Effective Dates.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

44-18.2-3. Requirements for non-collecting retailers, referrers, and retail sale facilitators.

  1. Except as otherwise provided below in § 44-18.2-4 , beginning on the later of July 15, 2017, or two (2) weeks after the enactment of this chapter, and for each tax year thereafter prior to ninety (90) days after March 29, 2019, any non-collecting retailer, referrer, or retail sale facilitator, as defined in this chapter, that in the immediately preceding calendar year either:
  2. A non-collecting retailer, as defined in this chapter, shall comply with subsection (F) below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.
  3. A referrer, as defined in this chapter, shall comply with subsection (G) below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.
  4. A retail sale facilitator, as defined in this chapter, shall comply with subsection (H) below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.
  5. Any non-collecting retailer, retail sale facilitator and/or referrer that is collecting and remitting sales tax into this state prior to March 29, 2019, shall be deemed a remote seller and/or marketplace facilitator and/or referrer and shall continue to collect and remit sales tax.
  6. Non-collecting retailer.  A non-collecting retailer shall either register in this state for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the state or:
    1. Post a conspicuous notice on its website that informs in-state customers that sales or use tax is due on certain purchases made from the non-collecting retailer and that this state requires the in-state customer to file a sales or use tax return;
    2. At the time of purchase, notify in-state customers that sales or use tax is due on taxable purchases made from the non-collecting retailer and that the state of Rhode Island requires the in-state customer to file a sales or use tax return;
    3. Within forty-eight (48) hours of the time of purchase, notify in-state customers in writing that sales or use tax is due on taxable purchases made from the non-collecting retailer and that this state requires the in-state customer to file a sales or use tax return reflecting said purchase;
    4. On or before January 31 of each year, including January 31, 2018, for purchases made in calendar year 2017, send a written notice to all in-state customers who have cumulative annual taxable purchases from the non-collecting retailer totaling one hundred dollars ($100) or more for the prior calendar year. The notification shall show the name of the non-collecting retailer, the total amount paid by the in-state customer to the non-collecting retailer in the previous calendar year, and, if available, the dates of purchases, the dollar amount of each purchase, and the category or type of the purchase, including, whether the purchase is exempt or not exempt from taxation in Rhode Island. The notification shall include such other information as the division may require by rule and regulation. The notification shall state that the state of Rhode Island requires a sales or use tax return to be filed and sales or use tax to be paid on certain categories or types of purchases made by the in-state customer from the non-collecting retailer. The notification shall be sent separately to all in-state customers by first-class mail and shall not be included with any other shipments or mailings. The notification shall include the words “Important Tax Document Enclosed” on the exterior of the mailing; and
    5. Beginning on February 15, 2018, and not later than each February 15 thereafter, a non-collecting retailer that has not registered in this state for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the state for any portion of the prior calendar year, shall file with the division on such form and/or in such format as the division prescribes an attestation that the non-collecting retailer has complied with the requirements of subsections (F)(1) — (F)(4) herein.
      1. A list of names and addresses of the retailers for whom during the prior calendar year the retail sale facilitator collected Rhode Island sales and use tax; and
      2. A list of names and addresses of the retailers who during the prior calendar year used the retail sale facilitator to serve in-state customers but for whom the retail sale facilitator did not collect Rhode Island sales and use tax.
      3. A marketplace facilitator with respect to a sale of tangible personal property, prewritten computer software delivered electronically by load and leave, vendor-hosted prewritten software, and/or taxable services it facilitates:
      1. Shall have all the obligations and rights of a retailer under chapters 18 and 19 of title 44 and under any regulations adopted pursuant thereto, including, but not limited to, the duty to obtain a certificate of authority, to collect tax, file returns, remit tax, and the right to accept a certificate or other documentation from a customer substantiating an exemption or exclusion from tax, the right to receive a refund or credit allowed by law; and (b) Shall keep such records and information and cooperate with the tax administrator to ensure the proper collection and remittance of tax imposed, collected, or required to be collected under chapters 18 and 19 of title 44.
    1. Remote sellers, referrers, and marketplace facilitators.  A remote seller, referrer, and marketplace facilitator shall register in this state for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the state.

(i) Has gross revenue from the sale of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or has taxable services delivered into this state equal to or exceeding one hundred thousand dollars ($100,000); or

(ii) Has sold tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services for delivery into this state in two hundred (200) or more separate transactions shall comply with the requirements in subsections (F), (G), and (H) as applicable.

Beginning on ninety (90) days after March 29, 2019, any remote seller, marketplace seller, marketplace facilitator, and/or referrer, as defined in this chapter, who is not collecting and remitting sales tax shall comply with the requirements in subsection (I) if that remote seller, marketplace seller, marketplace facilitator, and/or referrer, as defined in this chapter: Has not been collecting or remitting sales tax in this state and, in the immediately preceding calendar year either:

(i) Has gross revenue from the sale of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or has taxable services delivered into this state equal to or exceeding one hundred thousand dollars ($100,000); or

(ii) Has sold tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services for delivery into this state in two hundred (200) or more separate transactions.

(G) Referrer. At such time during any calendar year, or any portion thereof, that a referrer receives more than ten thousand dollars ($10,000) from fees, commissions, and/or other compensation paid to it by retailers with whom it has a contract or agreement to list and/or advertise for sale tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services, said referrer shall within thirty (30) days provide written notice to all such retailers that the retailers’ sales may be subject to this state’s sales and use tax.

(H) Retail sale facilitator. Beginning January 15, 2018, and each year thereafter, a retail sale facilitator shall provide the division of taxation with:

(i) A marketplace facilitator shall collect sales and use tax on all sales made through the marketplace to purchasers in this state whether or not the marketplace seller (1) Has or is required to have a permit to make sales at retail or (2) Would have been required to collect and remit sales and use tax had the sale not been made through the marketplace facilitator.

(ii) A marketplace facilitator shall certify to its marketplace sellers that it will collect and remit sales and use tax on sales of taxable items made through the marketplace. A marketplace seller that accepts a marketplace facilitator’s collection certificate in good faith may exclude sales made through the marketplace from the marketplace seller’s returns under chapters 18 and 19 of title 44.

(iv) A marketplace facilitator shall be subject to audit by the tax administrator with respect to all retail sales for which it is required to collect and pay the tax imposed under chapters 18 and 19 of title 44. Where the tax administrator audits the marketplace facilitator, the tax administrator is prohibited from auditing the marketplace seller for the same retail sales unless the marketplace facilitator seeks relief under subsection (v).

(v) If the marketplace facilitator demonstrates to the tax administrator’s satisfaction that the marketplace facilitator has made a reasonable effort to obtain accurate information from the marketplace seller about a retail sale and that the failure to collect and pay the correct amount of tax imposed under chapters 18 and 19 of title 44 was due to incorrect information provided to the marketplace facilitator by the marketplace seller, then the marketplace facilitator shall be relieved of liability of the tax for that retail sale. This subsection (v) does not apply with regard to a retail sale for which the marketplace facilitator is the seller or if the marketplace facilitator and seller are affiliates. Where the marketplace facilitator is relieved under this subsection (v), the seller is liable for the tax imposed under chapters 18 and 19 of title 44.

(vi) A class action may not be brought against a marketplace facilitator on behalf of purchasers arising from or in any way related to an overpayment of sales or use tax collected by the marketplace facilitator, regardless of whether such action is characterized as a tax refund claim. Nothing in this subsection (vi) shall affect a purchaser’s right to seek a refund as otherwise allowed by law.

(J) Any person or entity that engages in any activity or activities of a non-collecting retailer, referrer, and/or retail sale facilitator as defined herein shall be presumed to be a non-collecting retailer, referrer, and/or retail sale facilitator as applicable even if referred to by another name or designation. Said person or entity shall be subject to the terms and conditions set forth in this chapter.

History of Section. P.L. 2017, ch. 302, art. 8, § 18; P.L. 2019, ch. 11, § 3; P.L. 2019, ch. 12, § 3; P.L. 2019, ch. 88, art. 5, § 10.

Compiler’s Notes.

As referred to in subsection (A) of this section, this chapter was enacted on August 3, 2017.

This section was amended by three acts (P.L. 2019, ch. 11, § 3; P.L. 2019, ch. 12, § 3; P.L. 2019, ch. 88, art. 5, § 10) as passed by the 2019 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by all three acts.

P.L. 2019, ch. 11, § 3, and P.L. 2019, ch. 12, § 3 enacted identical amendments to this section.

Effective Dates.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

44-18.2-4. Exceptions for referrers and retail sale facilitators.

    1. Notwithstanding the provisions of § 44-18.2-3 , no retail sale facilitator shall be required to comply with the provisions of § 44-18.2-3 (H), for any sale where the retail sale facilitator within ninety (90) days of the date of the sale has been provided either:
      1. A copy of the retailer’s Rhode Island sales tax permit to make sales at retail in this state or its resale certificate as applicable; or
      2. Evidence of a fully completed Rhode Island or Streamlined agreement sales and use tax exemption certificate.
    2. Notwithstanding the provisions of § 44-18.2-3, no referrer shall be required to comply with the provisions of § 44-18.2-3(G) for any referral where the referrer within ninety (90) days of the date of the sale has been provided either:
      1. A copy of the retailer’s Rhode Island sales tax permit to make sales at retail in this state or its resale certificate as applicable; or
      2. Evidence of a fully completed Rhode Island or Streamlined agreement sales and use tax exemption certificate.

(B) Nothing in this section shall be construed to interfere with the ability of a non-collecting retailer, referrer, or retail sale facilitator and a retailer to enter into agreements with each other; provided, however, the terms of said agreements shall not in any way be inconsistent with or contravene the requirements of this chapter.

(C) The provisions of subsections (A) and (B) herein will not be applicable as of ninety (90) days after March 29, 2019.

History of Section. P.L. 2017, ch. 302, art. 8, § 18; P.L. 2019, ch. 11, § 4; P.L. 2019, ch. 12, § 4.

Compiler’s Notes.

P.L. 2019, ch. 11, § 4, and P.L. 2019, ch. 12, § 4 enacted identical amendments to this section.

44-18.2-5. Penalties.

Prior to ninety (90) days after March 29, 2019, any non-collecting retailer, referrer, or retail sale facilitator that fails to comply with any of the requirements of this chapter shall be subject to a penalty of ten dollars ($10.00) for each such failure, but not less than a total penalty of ten thousand dollars ($10,000) per calendar year. As of ninety (90) days after March 29, 2019, any remote seller, referrer, or marketplace facilitator that fails to comply with any of the requirements of this chapter shall be subject to a penalty of ten dollars ($10.00) for each such failure, but not less than a total penalty of ten thousand dollars ($10,000) per calendar year. Each instance of failing to comply with the requirements of this chapter shall constitute a separate violation for purposes of calculating the penalty under this section. This penalty shall be in addition to any other applicable penalties under title 44.

History of Section. P.L. 2017, ch. 302, art. 8, § 18; P.L. 2018, ch. 346, § 29; P.L. 2019, ch. 11, § 5; P.L. 2019, ch. 12, § 5.

Compiler’s Notes.

P.L. 2019, ch. 11, § 5, and P.L. 2019, ch. 12, § 5 enacted identical amendments to this section.

44-18.2-6. Other obligations.

  1. Nothing in this section affects the obligation of any in-state customer to remit use tax as to any applicable transaction in which the seller, non-collecting retailer, retail sale facilitator, remote seller, marketplace seller, or marketplace facilitator has not collected and remitted the sales tax for said transaction.
  2. Nothing in this chapter shall be construed as relieving any other person or entity otherwise required to collect and remit sales and use tax under applicable Rhode Island law from continuing to do so.
  3. In the event that any section of this chapter is later determined to be unlawful, no person, persons, or entity shall have a cause of action against the person that collected and remitted the sales and use tax pursuant to this chapter.

History of Section. P.L. 2017, ch. 302, art. 8, § 18; P.L. 2019, ch. 11, § 6; P.L. 2019, ch. 12, § 6.

Compiler’s Notes.

P.L. 2019, ch. 11, § 6, and P.L. 2019, ch. 12, § 6 enacted identical amendments to this section.

44-18.2-7. Rules and regulations — Forms.

The tax administrator may promulgate rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter.

History of Section. P.L. 2017, ch. 302, art. 8, § 18.

44-18.2-8. Enforcement.

  1. General.  The tax administrator shall administer and enforce this chapter and may require any facts and information to be reported that he or she may deem necessary to enforce the provisions of this chapter.
  2. Examination of books and witnesses.  For the purpose of ascertaining the correctness of any filing or notice or for the purpose of compliance with the terms of this chapter, the tax administrator shall have the power to examine or to cause to have examined, by any agent or representative designated by the tax administrator for that purpose, any books, papers, records, or memoranda bearing upon said matters and may require the attendance of the person rendering the return or any officer or employee of the person, or the attendance of any other person having knowledge of the correctness of any filing or notice or compliance with the terms of this chapter, and may take testimony and require proof material for its information, with power to administer oaths to the person or persons.

History of Section. P.L. 2017, ch. 302, art. 8, § 18.

44-18.2-9. Appeal.

If the tax administrator issues a final determination hereunder, an appeal may be made pursuant to the provisions of chapter 19 of title 44.

History of Section. P.L. 2017, ch. 302, art. 8, § 18.

44-18.2-10. Severability.

If any provision of this chapter or the application thereof is held invalid, such invalidity shall not affect the provisions or applications of this chapter which can be given effect without the invalid provisions or applications.

History of Section. P.L. 2017, ch. 302, art. 8, § 18.

Chapter 19 Sales and Use Taxes — Enforcement and Collection

44-19-1. Annual permit required — Retail business subject to sales tax — Promotion of shows — Revocation of show permit.

    1. Every person desiring to engage in or conduct within this state a business of making sales at retail, or engage in a business of renting living quarters in any hotel, rooming house, or tourist camp, the gross receipts from which sales or rental charges are required to be included in the measure of the tax imposed under chapter 18 of this title, shall file with the tax administrator an application for a permit for each place of business. The application shall be in a form, include information, and bear any signatures that the tax administrator may require. There shall be no fee for this permit. Every permit issued under this chapter expires at the times prescribed by the tax administrator.
    2. Every permit holder shall annually, on forms prescribed and at the times prescribed by the tax administrator, renew its permit by filing an application. The renewal permit is valid for the period July 1 of that calendar year through June 30 of the subsequent calendar year unless otherwise canceled, suspended, or revoked. All fees received under this section are allocated to the tax administrator for enforcement and collection of all taxes.
    1. Every promoter of a show shall, at least ten (10) days prior to the opening of each show, file with the tax administrator a notice stating the location and dates of the show, in a form prescribed by the tax administrator.
    2. The tax administrator shall, within five (5) days after the receipt of that notice, issue to the promoter, without charge, a permit to operate the show, unless the provisions of subsection (b)(5) of this section have been applied to the promoter. No promoter may operate a show without obtaining the permit. The permit shall be prominently displayed at the main entrance of the show.
    3. Any promoter who is a retailer shall comply with all of the provisions of this chapter and chapter 18 relating to retailers, in addition to all of the provisions of this chapter relating to promoters.
    4. A promoter may not permit any person to display or sell tangible personal property, services, or food and drink at a show unless that person is registered under subsection (a) of this section and displays his or her permit in accordance with the provisions of subsection (a) of this section.
    5. Any promoter who permits any person to display or sell tangible personal property, services, or food and drink at a show who is not registered, or does not display a permit, or fails to keep a record or file a monthly report of the name, address, and permit number of every person whom the promoter permitted to sell or display tangible personal property, services, or food and drink at a show, is subject to revocation of all existing permits issued pursuant to this section to operate a show, and to the denial of a permit to operate any show for a period of not more than two (2) years, in addition to the provisions of § 44-19-31 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 18; G.L. 1956, § 44-19-1 ; P.L. 1960, ch. 74, § 22; P.L. 1967, ch. 179, art. 2, § 9; P.L. 1978, ch. 166, § 3; P.L. 1993, ch. 138, art. 39, § 1; P.L. 2021, ch. 162, art. 6, § 6, effective July 1, 2021; P.L. 2021, ch. 309, § 1, effective July 1, 2021; P.L. 2021, ch. 310, § 1, effective July 9, 2021.

Compiler's Notes.

P.L. 2021, ch. 309, § 1, and P.L. 2021, ch. 310, § 1 enacted nearly identical amendments to this section.

This section was amended by three acts ( P.L. 2021, ch. 162, art. 6, § 6; P.L. 2021, ch. 309, § 1; P.L. 2021, ch. 310, § 1) as passed by the 2021 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all three acts.

Cross References.

Declaration of necessity, § 44-18-2 .

Definition of terms, § 14-18-3 et seq.

Display of permit, § 44-19-2 .

Comparative Legislation.

Sales and use tax:

Conn. Gen. Stat., § 12-406 et seq.

Mass. Ann. Laws chs. 64H, 64I.

44-19-2. Issuance of permit — Assignment prohibited — Display.

Upon receipt of the required application and permit fee, the tax administrator shall issue to the applicant a separate permit for each place of business within the state. If the applicant, at the time of making the application, owes any tax, penalty, or interest imposed under this title, then before a permit is issued the applicant shall pay the amount owed. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated in the permit. The permit shall at all times be conspicuously displayed at the place for which issued.

History of Section. P.L. 1947, ch. 1887, art. 2, § 18; G.L. 1956, § 44-19-2 ; P.L. 1960, ch. 74, § 22; P.L. 1993, ch. 138, art. 39, § 1; P.L. 2021, ch. 162, art. 6, § 6, effective July 1, 2021; P.L. 2021, ch. 162, art. 6, § 6, effective July 1, 2021; P.L. 2021, ch. 309, § 1, effective July 1, 2021; P.L. 2021, ch. 310, § 1, effective July 9, 2021.

Compiler's Notes.

P.L. 2021, ch. 309, § 1, and P.L. 2021, ch. 310, § 1 enacted nearly identical amendments to this section.

This section was amended by three acts ( P.L. 2021, ch. 162, art. 6, § 6; P.L. 2021, ch. 309, § 1; P.L. 2021, ch. 310, § 1) as passed by the 2021 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by all three acts.

44-19-3. Temporary permits.

The tax administrator may grant a temporary permit to any person desiring to engage for a limited period in the conduct of a business as a retailer within the state, or to an itinerant merchant, seasonal retailer, peddler, or person selling tangible personal property at retail without a permanent or fixed place of business within the state, under any rules and regulations that the tax administrator may prescribe. A retailer who has no regular place of doing business may be required by the tax administrator to attach the permit to his or her cart, stand, truck, or other merchandising device.

History of Section. P.L. 1947, ch. 1887, art. 2, § 19; G.L. 1956, § 44-19-3 .

44-19-4. Return of permit on cessation of business — Cancellation.

  1. Whenever any person holding a permit as provided in this chapter ceases to conduct the business for which the permit was issued at the place named, the person shall immediately return that permit to the tax administrator for cancellation.
  2. Whenever any person files returns for twelve (12) successive monthly periods or four (4) successive quarterly periods, as the case may be, showing no sales, the tax administrator may, after giving the person notice, in writing, of his or her intent to cancel the permit or permits, cancel the permit or permits unless the person objects to the cancellation, in writing, within thirty (30) days of the mailing of the notice. If an objection is filed, the tax administrator shall, as soon as possible, fix a time and place for a hearing requiring the person to show cause why his or her permit or permits should not be canceled as a result of the cessation of business for which the permit was issued.

History of Section. P.L. 1947, ch. 1887, art. 2, § 20; G.L. 1956, § 44-19-4 ; P.L. 1989, ch. 87, § 1.

44-19-5. Suspension or revocation of permit — New permit.

Whenever any person fails to comply with any provision of this chapter or chapter 18 of this title, the tax administrator upon a hearing, after giving the person at least five (5) days’ notice, in writing, specifying the time and place of the hearing and requiring the person to show cause why his or her permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The notice may be served personally or by mail. The tax administrator shall not issue a new permit after the revocation of a permit unless the tax administrator is satisfied that the former holder of the permit will comply with the provisions of this chapter and chapter 18 of this title; and in this case the tax administrator may require the filing of a bond with surety or the deposit of a security as the tax administrator deems necessary to assure compliance with those chapters.

History of Section. P.L. 1947, ch. 1887, art. 2, § 21; G.L. 1956, § 44-19-5 .

44-19-5.1. Injunctive relief — Jurisdiction of court.

  1. The superior court of this state has jurisdiction to restrain and enjoin any person from engaging in business as a retailer in this state without a retail sales permit or permits or after a retail sales permit has been suspended or revoked.
  2. The tax administrator may institute proceedings to prevent and restrain violations of this chapter as provided in subsection (a) of this section.
  3. In any proceeding instituted under this section, proof that a person continues to operate a business from the location to which a revoked retail sales permit was assigned is prima facie evidence that the person is engaging in business as a retailer without a retail sales permit.

History of Section. P.L. 1981, ch. 159, § 1; P.L. 1990, ch. 314, § 1.

44-19-6. Penalty for business without permit.

A person who engages in business as a retailer in this state without a permit or permits or after a permit has been suspended or revoked, and each officer of any corporation which engages in business as a retailer in this state without a permit or permits or after a permit has been suspended or revoked, is guilty of a misdemeanor, and shall be fined not more than five thousand dollars ($5,000) for each offense, or be imprisoned not exceeding one year, or be punished by both fine and imprisonment. Each day in which the person engages in business constitutes a separate offense.

History of Section. P.L. 1947, ch. 1887, art. 2, § 22; G.L. 1956, § 44-19-6 .

Compiler’s Notes.

P.L. 2001, ch. 77, art. 24, § 1 provides that the compensation paid to commissioners and board members for attendance at board meetings authorized under this section is suspended. Reimbursement for travel costs to the meetings will continue.

44-19-7. Registration of retailers.

Every retailer selling tangible personal property or prewritten computer software delivered electronically or by load and leave or vendor-hosted prewritten computer software or specified digital products for storage, use, or other consumption in this state, as well as services as defined in § 44-18-7.3 , in this state, or renting living quarters in any hotel as defined in § 42-63.1-2 , rooming house, or tourist camp in this state must register with the tax administrator and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices, or of any hotel as defined in § 42-63.1-2 , rooming house, or tourist camp or other places of business in this state, and other information that the tax administrator may require.

History of Section. P.L. 1947, ch. 1887, art. 2, § 24; G.L. 1956, § 44-19-7 ; P.L. 1967, ch. 179, art. 2, § 10; P.L. 2011, ch. 151, art. 19, § 25; P.L. 2012, ch. 241, art. 21, § 5; P.L. 2018, ch. 47, art. 4, § 11; P.L. 2019, ch. 88, art. 5, § 11.

Effective Dates.

P.L. 2011, ch. 151, art. 19, § 27, provides that the amendment to this section by that act takes effect on October 1, 2011.

P.L. 2018, ch. 47, art. 4, § 17, provides that the amendment to this section by that act takes effect on October 1, 2018.

P.L. 2019, ch. 88, art. 5, § 16, provides: “The provisions of 44-18-30(12) in section 9 relating to urns, the provisions of 44-18-30(66) in section 9 relating to feminine hygiene products, and the provisions of sections 9, 10 and 11 relating to specified digital products shall take effect October 1, 2019.”

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

44-19-8. Separate listing of tax in price.

The tax administrator may by regulation provide that the amount collected by the retailer from the consumer in reimbursement of the sales or use tax is displayed separately from the list price, the price advertised, the marked price, or other price on the sales check or other proof of sale.

History of Section. P.L. 1947, ch. 1887, art. 2, § 25; G.L. 1956, § 44-19-8 .

44-19-9. Advertisement as to assumption of tax by retailer.

It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the sales or use tax or any part of the tax will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or upon the rental charged for living quarters in hotels, rooming houses, or tourist camps or that, if added, the tax or any part of the tax will be refunded.

History of Section. P.L. 1947, ch. 1887, art. 2, § 26; G.L. 1956, § 44-19-9 ; P.L. 1967, ch. 179, art. 2, § 11.

44-19-10. Monthly returns and payments — Monthly reports by show promoters.

  1. Except as provided in the Streamlined Sales and Use Tax Agreement contained in Chapter 44-18.1 the taxes imposed by chapter 18 of this title are due and payable to the tax administrator monthly on or before the twentieth (20th) day of the month next succeeding the month for which return is required to be made. On or before the twentieth (20th) day of each month, a return for the previous month shall be filed with the tax administrator in a form that the tax administrator may prescribe. For purposes of the sales tax, a return shall be filed by every person engaged in the business of making retail sales, the gross receipts from which are required to be included in the measure of the sales tax. The tax administrator may require the filing of a return by any person holding a permit as provided in § 44-19-2 or 44-19-3 . For purposes of the use tax, a return shall be filed by every retailer maintaining a place of business in the state and by every person purchasing tangible personal property, the storage, use, or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. The return shall be in a form, include information, and bear any signatures that the tax administrator may require. At the time of the filing of any return required under this chapter, the taxpayer shall pay to the tax administrator the tax due for the month covered by that return. For the purposes of the sales tax, gross receipts from rentals, or leases of tangible personal property are reported and the tax paid in the manner required by the tax administrator. The tax administrator for good cause may extend, for not to exceed one month, the time for making any return or paying any amount required to be paid under this chapter. Any person to whom an extension is granted shall pay, in addition to the tax, interest at the annual rate prescribed by § 44-1-7 or fraction of it, from the date on which the tax would have been due without the extension until the date of payment. Where a taxpayer’s sales and use tax liability for six (6) consecutive months has averaged less than two hundred dollars ($200) per month, a quarterly return and remittances in lieu of a monthly return may be made on or before the last day of July, October, January, and April of each year for the preceding three (3) months’ period when specially authorized, in writing, by the tax administrator under those rules and regulations as may be prescribed by the administrator. In the event that a taxpayer filing his or her return on a quarterly basis, as provided in this section, becomes delinquent in either the filing of his or her return or the payment of the taxes due, or in the event that the liability of a taxpayer, who has been authorized to file his or her return and to make payments on a quarterly basis, exceeds six hundred dollars ($600) in sales and use taxes for any subsequent quarter, or in the event that the tax administrator determines that any quarterly filing of return and payment of tax due thereon would unduly jeopardize the proper administration of the provisions of this chapter or of chapter 18 of this title, the tax administrator may, at any time, revoke the authorization, in which case the taxpayer will then be required to file his or her return and to pay the tax due in the manner provided for in this section.
  2. Every promoter shall file a report monthly, within twenty (20) days after the end of the prior month, for each show which the promoter operates, listing the date and place of each show and the name, address, and permit number, by show, of every person whom the promoter permitted to display or sell tangible personal property, services, or food and drink. Every person shall furnish the promoter of any show at which the person displays or sells tangible personal property, services, or food and drink, information for the promoter’s use in filing the report required by this subsection.

History of Section. P.L. 1947, ch. 1887, art. 2, § 37; G.L. 1956, § 44-19-10 ; P.L. 1966, ch. 86, § 1; P.L. 1974, ch. 81, § 1; P.L. 1977, ch. 135, § 2; P.L. 1978, ch. 166, § 3; P.L. 1979, ch. 388, § 1; P.L. 1982, ch. 9, art. 1, § 1; P.L. 1985, ch. 262, § 1; P.L. 1991, ch. 6, art. 3, § 1; P.L. 1993, ch. 54, § 1; P.L. 2006, ch. 246, art. 30, § 11; P.L. 2010, ch. 239, § 41.

Collateral References.

Retailer’s or buyer’s defenses against exaction of penalties for failure to file, or deficiency in, state or local sales tax return. 20 A.L.R.4th 952.

44-19-10.1. Prepayment of sales tax on cigarettes.

  1. Every distributor and dealer licensed pursuant to chapter 20 of this title shall pay, as a prepayment for the taxes imposed by chapter 18 of this title, a tax on cigarettes possessed for sale or use in this state and upon which the distributor or dealer is required to affix cigarette stamps pursuant to chapter 20 of this title. The tax shall be computed annually by multiplying the minimum price of standard brands of cigarettes in effect as of April 1, 2005 and each April 1 thereafter, by the tax rate imposed by §§ 44-18-18 and 44-18-20 . The minimum price of standard brands of cigarettes shall be determined in accordance with chapter 6 of title 13 and the regulations promulgated by the tax administrator. The tax shall be prepaid at the time the distributor or dealer purchases such stamps from the tax administrator. However, the tax administrator may, in his or her discretion, permit a licensed distributor or licensed dealer to pay for the prepayment within thirty (30) days after the date of purchase, provided that a bond satisfactory to the tax administrator in an amount not less than the prepayment due shall have been filed with the tax administrator conditioned upon payment for the prepayment of sales tax. The tax administrator shall keep accurate records of all stamps sold to each distributor and dealer.
  2. The provisions of § 44-20-12 relating to the use of stamps to evidence payment of the tax imposed by chapter 20 of this title shall be applicable to the prepayment requirement of the sales/use tax imposed by this section. Provided, however, no sales/use tax is required to be prepaid on sales of cigarettes sold to the United States, its agencies and instrumentalities or the armed forces of the United States, this state (including any city, town, district or other political subdivision) and any other organization qualifying as exempt under § 44-18-30(5) .
  3. Except as otherwise provided in this section, all other provisions of chapters 18 and 19 of this title applicable to administration and collection of sales/use tax shall apply to the prepayment requirement pursuant to this section.
  4. All taxes paid pursuant to this section are conclusively presumed to be a direct tax on the retail consumer, precollected for the purpose of convenience and facility only.

History of Section. P.L. 2005, ch. 117, art. 16, § 7.

44-19-10.2. Floor stock tax on inventory.

  1. A floor tax is imposed on the inventory of stamped packages of cigarettes held for sale in this state at 12:01 A.M. on April 10, 2009. The floor tax will apply to the stamped cigarette inventory of distributors. In addition, the floor tax will apply to any unaffixed tax stamps in the possession of a distributor or dealer at 12:01 A.M. on April 10, 2009 that had been issued prior to that date. The inventory necessary to account for the floor tax must be taken as of the close of business on April 9, 2009.
  2. The floor tax shall be computed in the same manner as the prepayment of sales tax on cigarettes as set forth in subsection 44-19-10.1(a) ; provided, that credit shall be allowed for any sales tax paid on said cigarettes or unaffixed tax stamps prior to April 10, 2009.

History of Section. P.L. 2005, ch. 117, art. 16, § 7; P.L. 2009, ch. 5, art. 9, § 5.

44-19-10.3. Electronic filing of sales tax returns.

  1. Beginning on January 1, 2010, any person required to collect and remit sales and use tax to the state of Rhode Island who had an average monthly sales and use tax liability of two hundred dollars ($200) or more per month for the previous calendar year, shall remit said payments by electronic funds transfer or other electronic means defined by the tax administrator. The tax administrator shall adopt rules necessary to administer a program of electronic funds transfer or other electronic filing system.
  2. If any person fails to remit said taxes by electronic funds transfer or other electronic means defined by the tax administrator as required hereunder, the amount of tax required to have been electronically transferred shall be increased by the lesser of five percent (5%) of the amount that was not so transferred or five hundred dollars ($500), whichever is less, unless there was reasonable cause for the failure and such failure was not due to negligence or willful neglect.
  3. The tax administrator is authorized to waive the electronic filing requirement in a given year a person who can show that filing electronically will cause undue hardship.
  4. Any person engaged in commercial farming as defined in subdivision 44-18-30(32) shall not be subject to the electronic filing requirement as set forth in this section.

History of Section. P.L. 2009, ch. 68, art. 16, § 9; P.L. 2010, ch. 200, § 1; P.L. 2010, ch. 235, § 1.

Compiler’s Notes.

P.L. 2010, ch. 200, § 1, and P.L. 2010, ch. 235, § 1, enacted identical amendments to this section.

Applicability.

P.L. 2010, ch. 200, § 2, provides that the amendment to this section by that act takes effect upon passage [June 25, 2010], and shall apply to all returns required to be filed on or after January 1, 2010.

P.L. 2010, ch. 235, § 2, provides that the amendment to this section by that act takes effect upon passage [June 25, 2010], and shall apply to all returns required to be filed on or after January 1, 2010.

44-19-11. Deficiency determinations — Interest.

If the tax administrator is not satisfied with the return or returns or the amount of tax paid to the tax administrator by any person, the administrator may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns or upon the basis of any information in his or her possession or that may come into his or her possession. One or more deficiency determinations may be made of the amount due for one or for more than one month. The amount of the determination, exclusive of penalties, bears interest at the annual rate provided by § 44-1-7 from the fifteenth day (15th) after the close of the month for which the amount, or any portion of it, should have been paid until the date of payment.

History of Section. P.L. 1947, ch. 1887, art. 2, § 38; G.L. 1956, § 44-19-11 ; P.L. 1974, ch. 81, § 1; P.L. 1992, ch. 388, § 7.

44-19-12. Pecuniary penalties for deficiencies.

If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of the provisions of this chapter and chapter 18 of this title, a penalty of ten percent (10%) of the amount of the determination is added to it. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade the provisions of this chapter or chapter 18 of this title, a penalty of fifty percent (50%) of the amount of the determination is added to it.

History of Section. P.L. 1947, ch. 1887, art. 2, § 38; G.L. 1956, § 44-19-12 .

NOTES TO DECISIONS

In General.

Since this section identifies no exceptions to its provisions in circumstances where the taxpayer has a good-faith, albeit erroneous, belief that certain property is not subject to tax liability, it imposes a penalty upon intentional but nonfraudulent avoidance of the tax. Brier Mfg. Co. v. Norberg, 119 R.I. 317 , 377 A.2d 345, 1977 R.I. LEXIS 1912 (1977).

Superior court properly granted a seller’s motion for summary judgment in a purchasers’ action alleging that it breached its duty to calculate and collect sales tax because the seller did not owe a legal duty to the purchasers regarding the collection of taxes; therefore, the purchasers could not establish the tort of negligence. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

No Duty to Consumers.

Retailer does not owe a duty to consumers to properly collect sales tax; retailers already owe a duty to the State and are subject to penalties for under-collection, and it would be untenable to make retailers subject to State penalties for under-collection and civil suit for over-collection. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

Standing to Challenge Tax Exemption.

Retailers and purchasers of bibles and other canonized scriptures had standing to challenge the validity of a statutory sales tax exemption, since they faced potential liability for uncollected sales tax and, in the case of retailers, possible pecuniary penalties for failing to collect such taxes. Ahlburn v. Clark, 728 A.2d 449, 1999 R.I. LEXIS 89 (R.I. 1999).

44-19-13. Notice of determination.

  1. The tax administrator shall give to the retailer or to the person storing, using, or consuming the tangible personal property a written notice of his or her determination. Except in the case of fraud, intent to evade the provisions of this article, failure to make a return, or claim for additional amount pursuant to §§ 44-19-16 44-19-19 , every notice of a deficiency determination shall be mailed within three (3) years after the fifteenth (15th) day of the calendar month following the month for which the amount is proposed to be determined or within three (3) years after the return is filed, whichever period expires later, unless a longer period is agreed upon by the tax administrator and the taxpayer.
  2. Notwithstanding the provisions of subsection (a) of this section, under no circumstances shall the tax administrator issue a notice of a deficiency determination for any sales or use tax determined to be due and payable more than ten (10) years after the return is filed or was due to be filed, nor shall the tax administrator commence any collection action for any tax that is due and payable unless the collection action is commenced within ten (10) years after a notice of a deficiency determination becomes a final collectible assessment; provided, however, that the tax administrator may renew a statutory lien that was initially filed within the ten-year (10) period for collection actions. Both of the aforementioned ten-year (10) periods are tolled for any period of time the taxpayer is in federal bankruptcy or state receivership proceedings. “Collection action” refers to any activity undertaken by the division of taxation to collect on any state tax liabilities that are final, due, and payable under Rhode Island law. “Collection action” may include, but is not limited to, any civil action involving a liability owed under chapters 18, 18.1, 18.2, and 19 of title 44. This section excludes any sales and use tax liabilities that are deemed trust funds as defined in § 44-19-35 , as well as any meals and beverage tax liabilities that are collected pursuant to § 44-18-18.1 , and any hotel tax liabilities that are collected pursuant to § 44-18-36.1 .
  3. The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation periods set forth in this section.

History of Section. P.L. 1947, ch. 1887, art. 2, § 38; G.L. 1956, § 44-19-13 ; P.L. 2019, ch. 192, § 1; P.L. 2019, ch. 215, § 1.

Compiler’s Notes.

P.L. 2019, ch. 192, § 1, and P.L. 2019, ch. 215, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2019, ch. 192, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

P.L. 2019, ch. 215, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

NOTES TO DECISIONS

Failure to File Return.

Where no sales and use tax returns were filed, assessment of unpaid taxes for the previous six years was not barred by this section. Couture v. Norberg, 114 R.I. 704 , 338 A.2d 538, 1975 R.I. LEXIS 1476 (1975).

44-19-14. Determination without return — Interest and penalties.

If any person fails to make a return, the tax administrator shall make an estimate of the amount of the gross receipts of the person or, as the case may be, of the amount of the total sales price of tangible personal property sold or purchased by the person, the storage, use, or other consumption of which in this state is subject to the use tax. The estimate shall be made for the month or months in respect to which the person failed to make a return and is based upon any information, which is in the tax administrator’s possession or may come into his or her possession. Upon the basis of this estimate, the tax administrator computes and determines the amount required to be paid to the state, adding to the sum arrived at a penalty equal to ten percent (10%) of that amount. One or more determinations may be made for one or for more than one month. The amount of the determination, exclusive of penalties, bears interest at the annual rate provided by § 44-1-7 from the fifteenth (15th) day after the close of the month for which the amount or any portion of the amount should have been paid until the date of payment. If the failure of any person to file a return is due to fraud or an intent to evade the provisions of this chapter and chapter 18 of this title, a penalty of fifty percent (50%) of the amount required to be paid by the person, exclusive of penalties, is added to the amount in addition to the ten percent (10%) penalty provided in this section. After making his or her determination, the tax administrator shall mail a written notice of the estimate, determination, and penalty.

History of Section. P.L. 1947, ch. 1887, art. 2, § 39; G.L. 1956, § 44-19-14 ; P.L. 1974, ch. 81, § 1; P.L. 1992, ch. 388, § 7.

44-19-15. Jeopardy determinations.

If the tax administrator believes that collection of any tax or any amount of tax required to be collected and paid to the state or of any determination will be jeopardized by delay, the administrator shall thereupon make a determination of the tax or amount of tax required to be collected, including interest and penalties, if any, noting that fact upon the determination. The amount so determined is due and payable immediately upon the mailing by the tax administrator of the notice of that determination. Within thirty (30) days of the notice of jeopardy determination, the taxpayer may bring an action in the sixth (6th) division district court. Within twenty (20) days after the action is commenced, the district court shall determine whether or not the making of the jeopardy assessment is reasonable under the circumstances.

History of Section. P.L. 1947, ch. 1887, art. 2, § 40; G.L. 1956, § 44-19-15 ; P.L. 1984, ch. 183, § 8.

44-19-15.2. Flea markets.

    1. Notwithstanding any other provision of law, all persons making retail sales at a flea market shall register and pay the sales tax as provided in this section.
    2. “Flea market” is defined as a place of business that provides space more than six (6) times a year under a single promoter’s permit at the same location to two (2) or more people making retail sales of property, usually, but not exclusively, second-hand property that is not permanently displayed or stored at the flea market.
    3. Excluded from this definition of “flea market” are shows such as art shows, antique shows, industry, trade, and professional shows.
    1. Persons engaging in the business of making retail sales at flea markets shall register and pay an annual registration fee of one hundred twenty dollars ($120), this fee being due on July 1 of each year. This registration fee is credited against that person’s actual annual sales tax liability. This registration is valid at any location in the state during the period for which it is issued. In the event that the annual sales tax liability is less than one hundred twenty dollars ($120), then the person is not required to file an annual sales tax return, but in no event shall any person receive a refund of any portion of the registration fee.
    2. Should any person’s tax liability exceed one hundred twenty dollars ($120), then that person must file an annual return. The annual return is submitted upon forms prescribed, prepared and furnished by the tax division accounting for all sales or purchases taxable under this chapter during the preceding January 1 through December 31. The annual return is due on or before January 20 of the subsequent calendar year. Any person beginning business subsequent to January 1 is responsible for transmitting an annual return on or before January 20 of the subsequent calendar year for all months in which he or she made taxable sales or purchases through December 31 of the preceding year; or
    1. Persons engaging in the business of making retail sales at flea markets, not on a permanent basis, may, at their option, register as follows:
      1. On a quarterly basis for a fee of forty dollars ($40.00). This registration is valid at any location in the state during the period for which it is used. In no event shall a refund be payable from the registration fee. This registration fee is credited against any person’s actual sales tax liability;
      2. On a monthly basis for a fee of ten dollars ($10.00). This registration fee is to be paid per location at which retail sales are made. In no event shall a refund be payable from the registration fee. This registration fee is credited against any person’s actual sales tax liability; and
      3. Persons registering on a quarterly or monthly basis shall file quarterly returns if their tax liability exceeds the amount of the registration fees paid during that quarter. The quarterly returns are submitted upon forms prescribed, prepared and furnished by the tax administrator, showing the gross sales, or purchases, as the case may be, arising from all sales or purchases taxable under this chapter during the preceding quarter. The quarterly return is due on or before the twentieth day of the subsequent month following the last day of the preceding quarterly period.
    2. All permits issued pursuant to this section must be prominently displayed at the retailer’s booth.
  1. At the time of transmitting any of the returns required under paragraph (c)(1)(iii) of this section to the tax administrator, the retailer shall remit with the return the amount of tax due, and failure to remit the tax or to file the return causes the tax to become delinquent. The failure to remit the tax or to file the returns subjects the retailer to the penalty provided in this title for delinquent tax payments to the tax administrator.
    1. The flea market operator/promoter is responsible for ensuring that all retailers operating at his or her flea market are properly registered with the division of taxation. The flea market promoter/operator is empowered to accept applications for registration on a monthly basis from retailers not otherwise registered, along with all fees required under this section. The flea market promoter/operator shall supply the retailer with the application/permit, along with evidence of the amount of fee submitted. This permit shall be displayed by the retailer and serves as evidence of proper registration.
    2. The flea market promoter/operator shall submit the fees collected under this section within three (3) business days of receipt of fees on a form prescribed, prepared and furnished by the division of taxation. The failure to remit the fee or to file the return subjects the flea market promoter/operator to the penalty provided in this title for delinquent tax payments to the tax administrator.
  2. There is a penalty upon the retailer of ten dollars ($10.00) per booth per day for violations of this section. The division of taxation also imposes a penalty upon the flea market promoter/operator of twenty dollars ($20.00) per booth per day, up to a maximum fine of two hundred dollars ($200) per day at any location where it is determined by the tax administrator that the flea market operator has been negligent in allowing retailers to operate at the flea market without proper registration. For the purposes of this section, “negligent” includes, but is not limited to, any failure of the flea market promoter/operator to make a reasonable attempt to ensure that every dealer renting space from him or her is properly registered for tax purposes. A determination by the tax administrator that a flea market promoter/operator has been negligent is deemed presumptively correct. That determination may be rebutted only if the flea market promoter/operator makes a showing of due care. As used in this subdivision, “due care” means that the flea market promoter/operator has made every reasonable effort to ensure that every retailer renting space from him or her is properly registered for tax purposes.
  3. Persons selling only nontaxable items such as clothing are required to register for a special permit and display the permit but are not required to pay a registration fee.
  4. The provisions of this section do not apply to retailers selling prepared foods at flea markets for consumption.

History of Section. P.L. 1995, ch. 378, § 1; P.L. 1998, ch. 436, § 1; P.L. 2000, ch. 339, § 1; P.L. 2000, ch. 442, § 1.

44-19-16. Finality of determination — Time payment due.

Unless a hearing has been requested as provided in § 44-19-17 , any determination made by the tax administrator under §§ 44-19-11 44-19-14 becomes final and shall be paid within ten (10) days after mailing by the tax administrator of the notice of that determination. If that determination is not paid, a further penalty of ten percent (10%) of the amount of the determination, exclusive of interest and other penalties, is added to it.

History of Section. P.L. 1947, ch. 1887, art. 2, § 41; G.L. 1956, § 44-19-16 .

Cross References.

Proof of payment before registration of vehicle, § 31-3-4 .

44-19-17. Hearing by administrator on application.

Any person aggrieved by any assessment, deficiency, or otherwise, shall notify the tax administrator, in writing, within thirty (30) days from the date of mailing by the tax administrator of the notice of the assessment and request a hearing relative to the assessment; and the tax administrator shall, as soon as practicable, fix a time and place for a hearing and shall, after the hearing, determine the correct amount of the tax, interest, and penalties. When a jeopardy assessment or determination is made, the hearing is not had unless the jeopardy assessment with penalties and interest has been paid.

History of Section. P.L. 1947, ch. 1887, art. 2, § 41; G.L. 1956, § 44-19-17 ; P.L. 1962, ch. 102, § 1; P.L. 1993, ch. 459, § 7.

Cross References.

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

NOTES TO DECISIONS

Increase After Hearing Requested.

The commissioner has power to increase his determination after the taxpayer has requested an administrative hearing. Sportfisherman Charter v. Norberg, 115 R.I. 68 , 340 A.2d 143, 1975 R.I. LEXIS 1120 (1975).

Procedure for Hearing.

The procedure for a hearing provided by this section has been supplanted by the Administrative Procedures Act, especially §§ 42-35-9 to 42-35-13 . Sterling Shoe Co. v. Langton, 103 R.I. 688 , 240 A.2d 727, 1968 R.I. LEXIS 850 (1968).

Request for Exemption Certificate.

Hearing procedure established by this section and § 44-19-18 provides that district court is proper forum for challenges to tax administrators’ ruling on request for exemption certificate under § 44-18-30 . Church of Pan v. Norberg, 445 A.2d 294, 1982 R.I. LEXIS 869 (R.I. 1982).

44-19-18. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter are to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this chapter is expressly made conditional upon prepayment of all taxes, interest, and penalties, unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 41; G.L. 1956, § 44-19-18 ; P.L. 1976, ch. 140, § 27; P.L. 1982, ch. 388, §§ 3, 13; P.L. 1984, ch. 183, § 8.

Cross References.

Appeals under Administrative Procedures Act, § 42-35-15 et seq.

NOTES TO DECISIONS

Constitutionality.

Due process does not guarantee the right to judicial review of tax liability before payment. Langton v. Demers, 102 R.I. 375 , 230 A.2d 870, 1967 R.I. LEXIS 699 , cert. denied, 389 U.S. 330, 88 S. Ct. 506, 19 L. Ed. 2d 563, 1967 U.S. LEXIS 71 (1967).

Collateral Attack.

A taxpayer who failed to avail himself of the opportunity for a hearing before the tax administrator was without standing to attack collaterally the validity of the assessment legislation in a proceeding under this section. Langton v. Brady Elec. Co., 100 R.I. 366 , 216 A.2d 134, 1966 R.I. LEXIS 442 (1966).

De Novo Review.

The procedures and standards of review contained in § 42-35-15(b) were intended to be incorporated into this section and party was not entitled to a de novo review in the superior court. Herald Press, Inc. v. Norberg, 122 R.I. 264 , 405 A.2d 1171, 1979 R.I. LEXIS 2155 (1979).

Exclusiveness of Remedy.

A taxpayer who neither paid the tax alleged to be due nor filed his petition for review in the superior court within fifteen days after the administrator’s determination was precluded from contesting the administrator’s determination. Langton v. Demers, 102 R.I. 375 , 230 A.2d 870, 1967 R.I. LEXIS 699 , cert. denied, 389 U.S. 330, 88 S. Ct. 506, 19 L. Ed. 2d 563, 1967 U.S. LEXIS 71 (1967).

Since this section provides that review in the supreme court is by writ of certiorari, the supreme court dismissed an appeal of the tax administrator’s deficiency determination. Prospecting Unlimited v. Norberg, 119 R.I. 116 , 376 A.2d 702, 1977 R.I. LEXIS 1903 (1977).

Request for Exemption Certificate.

Hearing procedure established by § 44-19-17 and this section provides that district court is proper forum for challenges to tax administrators’ ruling on request for exemption certificate under § 44-18-30 . Church of Pan v. Norberg, 445 A.2d 294, 1982 R.I. LEXIS 869 (R.I. 1982).

Subject Matter Jurisdiction.

Superior court properly dismissed a taxpayer’s complaint because the general assembly conferred upon the district court exclusive jurisdiction over “tax matters,” in addition to the authority to adjudicate all claims for relief attached to the underlying matter. Barone v. State, 93 A.3d 938, 2014 R.I. LEXIS 104 (R.I. 2014).

44-19-19. Judgment on review.

If, upon final determination of the petition, it appears that the tax administrator’s assessment was correct, the court shall confirm the assessment; or, if incorrect, the court shall determine the proper amount of the tax, interest, and penalties, and if it appears that the petitioner, by reason of the payment of the tax, interest, and penalties, is entitled to recover them or any part of them, the court may order a refund with interest at the annual rate provided by § 44-1-7.1 or order a credit, as the circumstances may warrant. If a refund is ordered, it is paid by the general treasurer upon certification of the tax administrator with the approval of the director of administration. If it appears that the state is entitled to a greater amount of tax, interest, and penalties than assessed or determined by the tax administrator and paid by the petitioner, the court shall order the payment by the petitioner of an additional amount as the court determines, and the petitioner shall immediately pay that amount to the tax administrator.

History of Section. P.L. 1947, ch. 1887, art. 2, § 41; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-19-19 ; P.L. 1992, ch. 388, § 7.

NOTES TO DECISIONS

Constitutionality.

In respect to the federal statute prohibiting the federal district courts from enjoining the assessment or collection of any state tax where a plain, speedy, and efficient remedy may be had in the state courts, judicial review of a tax assessment under Rhode Island’s statutory scheme meets such a standard even though amounts paid by a taxpayer under protest are not segregated, but become part of the general state revenues subject to refund with interest by the general treasurer if the taxpayer prevails upon appeal. Sterling Shoe Co. v. Norberg, 411 F. Supp. 128, 1976 U.S. Dist. LEXIS 15707 (D.R.I. 1976).

44-19-20. Interest and penalties on delinquent payments.

Any person who fails to pay any tax to the state or any amount of tax required to be collected and paid to the state, except amounts of determinations made by the tax administrator under §§ 44-19-11 44-19-14 within the required time shall pay a penalty of ten percent (10%) of the tax or amount of the tax, in addition to the tax or amount of the tax, plus interest at the annual rate provided by § 44-1-7 from the date on which the tax or amount of the tax required to be collected became due and payable to the state until date of payment.

History of Section. P.L. 1947, ch. 1887, art. 2, § 42; G.L. 1956, § 44-19-20 ; P.L. 1974, ch. 81, § 1; P.L. 1992, ch. 388, § 7.

44-19-20.1. Interest on overpayments.

If it is determined that the tax has been overpaid, the amount of the overpayment bears interest at the annual rate established by § 44-1-7.1 . The acceptance of that check is without prejudice to any right of the taxpayer to claim any additional overpayment and interest on it.

History of Section. P.L. 1982, ch. 159, § 2; P.L. 1983, ch. 104, § 2.

44-19-21. Taxes as debt to state — Lien on real estate.

  1. The amount of any taxes, interest, and penalties imposed upon any taxpayer under the provisions of chapters 18 and 19 of this title is a debt due from the taxpayer to the state, is recoverable at law in the same manner as other debts, and until collected constitutes a lien upon all the real property of the taxpayer located in this state and the lien takes precedence over any other lien or encumbrance on the property except as provided in this section. The tax administrator may file a notice of the tax lien with the records of land evidence for the city or town where the property is located and it is the duty of the recorder of deeds or the city or town clerk having custody of those records to receive, file, and index the notice under the name of the taxpayer. Any of the preceding provisions of this section to the contrary notwithstanding, the lien imposed by this section is not valid with respect to property in any city or town as against any bona fide purchaser, mortgagee, or lessee, whose interest in the real property appears of record in that city or town prior to the time of filing of that notice of tax lien in that city or town.
  2. The notice of the tax lien filed shall be in writing; shall contain the name and last known address of the taxpayer, and shall state that the taxpayer is indebted to the state under chapters 18 and 19 of this title for which the tax administrator claims a lien; the notice does not need to describe the taxpayer’s property, or specify the amount of taxes owed, or the period of time covered by the delinquency. When the notice is filed in a city or town by the tax administrator, it, unless sooner discharged or released, also applies to property in the same city or town acquired by the taxpayer during a period of six (6) years from the date of filing and the filing does not need to be repeated for each successive delinquency of the taxpayer. The notice shall expire six (6) years from the date of filing unless renewed by again filing a notice on or before the expiration date. The tax administrator is obliged to discharge or release the notice of lien when the taxpayer is no longer delinquent in the payment of any of the taxes, interest, or penalties, whether incurred prior or subsequent to the date of filing of the notice, or upon request, following the expiration of the statutory lien period, as described in this subsection.
  3. For the filing of a notice of lien or discharge of lien, the recorder of deeds or the city or town clerk shall be paid out of any money appropriated for expenses of tax administration, a fee of one dollar and fifty cents ($1.50) for a completed entry.
  4. The authority granted in this section to the tax administrator to file a notice of lien shall not be held to repeal or amend in any other respect the provisions of § 44-19-30 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 43; G.L. 1956, § 44-19-21 ; R.P.L. 1957, ch. 85, § 1; P.L. 1958, ch. 148, § 1; P.L. 1959, ch. 159, § 1; P.L. 1973, ch. 263, art. 4, § 1; P.L. 1974, ch. 21, § 1.

Collateral References.

Priority of lien of sales or consumer’s tax. 136 A.L.R. 1015.

44-19-22. Notice of transfer of business — Taxes due immediately.

The sale or transfer by any taxpayer other than receivers, assignees under a voluntary assignment for the benefit of creditors, trustees in bankruptcy, debtors in possession in bankruptcy, or public officers acting under judicial process of the major part in value of the assets of the taxpayer, other than in the ordinary course of trade and the regular and usual prosecution of the taxpayer’s business, is fraudulent and void as against the state, unless the taxpayer, at least five (5) days before the sale or transfer, notifies the tax administrator of the proposed sale or transfer and of the price, terms, and conditions of the sale or transfer and of the character and location of those assets by requesting a letter of good standing from the tax division. Whenever the taxpayer makes a sale or transfer, any and all tax returns required to be filed under this title must be filed and any and all taxes imposed under this title must be paid at the time the tax administrator is so notified of the sale or transfer, or, if the administrator is not so notified, at the time when he or she should have been notified of the sale or transfer.

History of Section. P.L. 1947, ch. 1887, art. 2, § 44; G.L. 1956, § 44-19-22 ; P.L. 2017, ch. 302, art. 8, § 11.

44-19-23. Collection powers — Surety bond to pay.

  1. The tax administrator has for the collection of the taxes imposed by chapter 18 of this title the same powers prescribed for the collection of taxes in §§ 44-1-4 44-1-15 and chapters 7 — 9 of this title. The tax administrator may require any person subject to the taxes imposed by chapter 18 of this title to file with the administrator a bond, issued by a surety company authorized to transact business in this state, in an amount the tax administrator may fix, to secure the payment of the taxes, penalties, and interest due or which may become due from that person.
    1. The tax administrator may require the vendor to deposit with the general treasurer a bond by way of cash or other security satisfactory to the tax administrator in an amount to be determined by the tax administrator, but not greater than an amount equal to double the amount of the estimated tax that would normally be collected by the vendor each month under this chapter, but in no case shall the deposit be less than one hundred dollars ($100).
    2. Where a vendor who has deposited a bond with the general treasurer under subdivision (1) of this subsection has failed to collect or remit tax in accordance with this chapter, the tax administrator may, upon giving written notice to the vendor by registered mail or personal service, apply the bond in whole or in part to the amount that should have been collected, remitted, or paid by the vendor.

History of Section. P.L. 1947, ch. 1887, art. 2, § 45; G.L. 1956, § 44-19-22 ; P.L. 1973, ch. 263, art. 4, § 2; P.L. 1974, ch. 229, § 1.

Collateral References.

Dealer or manufacturer, right of taxing authorities to collect from, taxes illegally imposed on, when passed on by him to customer. 93 A.L.R. 1485; 119 A.L.R. 542.

44-19-24. Disposition of proceeds.

All moneys received by the tax administrator under chapters 18 and 19 of this title shall be paid over to the general treasurer.

History of Section. P.L. 1947, ch. 1887, art. 2, § 46; G.L. 1956, § 44-19-24 .

NOTES TO DECISIONS

Constitutionality.

In respect to federal statute prohibiting the federal district courts from enjoining the assessment or collection of any state tax where a plain, speedy, and efficient remedy may be had in the state courts, judicial review of a tax assessment under Rhode Island’s statutory scheme meets such a standard even though amounts paid by a taxpayer under protest are not segregated, but become part of the general state revenues subject to refund with interest by the general treasurer if the taxpayer prevails upon appeal. Sterling Shoe Co. v. Norberg, 411 F. Supp. 128, 1976 U.S. Dist. LEXIS 15707 (D.R.I. 1976).

44-19-25. Claims for refund — Hearing — Judicial review.

Every claim for a refund shall be made in writing, in a form, and stating information that the tax administrator may require. Within thirty (30) days after disallowing any claim in whole or in part, the tax administrator shall give notice of his or her decision to the claimant. Any person aggrieved by the decision may, within thirty (30) days from the date of the mailing by the tax administrator of notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing. After the hearing, if the taxpayer is aggrieved by the decision of the tax administrator, the taxpayer may petition the sixth (6th) division of the district court for relief from the decision of the tax administrator. No petition may be made under this section with respect to a re-determination as to which a petition has been made under § 44-19-18 . The court shall proceed in the manner provided in §§ 44-19-18 and 44-19-19 , and may confirm the decision of the tax administrator or order a refund or credit as provided in § 44-19-19 . A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. P.L. 1947, ch. 1887, art. 2, § 46; G.L. 1956, § 44-19-25 ; P.L. 1976, ch. 140, § 27; P.L. 1995, ch. 377, § 1.

NOTES TO DECISIONS

Subject Matter Jurisdiction.

Superior court properly dismissed a taxpayer’s complaint because the general assembly conferred upon the district court exclusive jurisdiction over “tax matters,” in addition to the authority to adjudicate all claims for relief attached to the underlying matter. Barone v. State, 93 A.3d 938, 2014 R.I. LEXIS 104 (R.I. 2014).

Collateral References.

Validity and applicability of statutory time limit concerning taxpayer’s claim for state tax refund. 1 A.L.R.6th 1.

44-19-26. Payment of refunds.

Whenever the tax administrator determines that any person is entitled to a refund of any moneys paid by a person under the provisions of chapters 18 and 19 of this title, or whenever a court of competent jurisdiction orders a refund of any moneys paid, the general treasurer shall, upon certification by the tax administrator and with the approval of the director of administration, pay the refund from any moneys in the treasury not appropriated without any further act or resolution making appropriation for the refund. No refund is allowed unless a claim is filed with the tax administrator within three (3) years from the fifteenth (15th) day after the close of the month for which the overpayment was made, or, with respect to determinations made under §§ 44-19-11 44-19-14 , within six (6) months from the date of overpayment, whichever period expires later.

History of Section. P.L. 1947, ch. 1887, art. 2, § 46; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-19-26 .

NOTES TO DECISIONS

Constitutionality.

In respect to federal statute prohibiting the federal district courts from enjoining the assessment or collection of any state tax where a plain, speedy, and efficient remedy may be had in the state courts, judicial review of a tax assessment under Rhode Island’s statutory scheme meets such a standard even though amounts paid by a taxpayer under protest are not segregated, but become part of the general state revenues subject to refund with interest by the general treasurer if the taxpayer prevails upon appeal. Sterling Shoe Co. v. Norberg, 411 F. Supp. 128, 1976 U.S. Dist. LEXIS 15707 (D.R.I. 1976).

Collateral References.

Limitation period for filing applications for refund, when begins to run. 175 A.L.R. 1108.

44-19-27. Records required — Users — Collectors of taxes — Promoters — Inspection and preservation of records.

  1. Every person storing, using, or consuming in this state tangible personal property purchased, leased, or rented from a retailer, or from a person other than a retailer in any transaction involving a taxable casual sale, shall keep books, records, receipts, invoices, and other pertinent papers in the form the tax administrator may require. Those books, records, receipts, invoices, and other papers shall at all reasonable times be open to the inspection of the tax administrator and his or her agents.
  2. Every person required to collect tax shall keep records of every sale or occupancy and of all amounts paid, charged, or due and of the tax payable, in forms the tax administrator may by regulation require. The records shall include a true copy of each sales slip, invoice, receipt, statement, or memorandum upon which § 44-19-8 requires that the tax be stated separately.
  3. Every promoter shall keep a record of the name, address and permit number of every person the promoter permits to display or sell tangible personal property, services, or food and drink at a show.
  4. The records shall be available for inspection and examination at any time upon demand by the tax administrator or his or her authorized agent or employee and preserved for a period of three (3) years, except that the tax administrator may consent to their destruction within that period or may require that they be kept longer.

History of Section. P.L. 1947, ch. 1887, art. 2, § 47; G.L. 1956, § 44-19-27 ; P.L. 1966, ch. 84, § 1; P.L. 1978, ch. 166, § 3.

NOTES TO DECISIONS

In General.

This section simply states that retailers shall keep such records as the tax administrator may require. Where the tax administrator, in his regulations, specifies that the most acceptable types of proof of out-of-state transportation of goods are various documents such as bills of lading, insurance receipts, and trip sheets, neither this section or the cited regulation stipulates that only those documents enumerated in the regulation are acceptable. Correia v. Norberg, 120 R.I. 793 , 391 A.2d 94, 1978 R.I. LEXIS 730 (1978).

44-19-27.1. Examination of taxpayer’s records — Witnesses.

The tax administrator and his or her agents for the purpose of ascertaining the correctness of any return, report, or other statement required to be filed under chapters 18 or 19 of this title or by the tax administrator under those chapters, or for the purpose of determining the amount of any tax imposed under the provisions of those chapters, may examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter which the tax administrator or his or her agent deems pertinent or material in determining the liability of any person to a tax imposed under the provisions of chapters 18 or 19 of this title.

History of Section. P.L. 1966, ch. 84, § 2.

44-19-27.2. Power to summon witnesses and evidence.

The tax administrator may summon any taxpayer, or officer, agent, or employee of the taxpayer, or any other person, to appear before the administrator and produce records and documents at a time and place named in the summons and to give testimony and to answer interrogatories, under oath, respecting any matter which the tax administrator deems pertinent or material to the administration of chapters 18 or 19 of this title.

History of Section. P.L. 1966, ch. 84, § 2.

Collateral References.

Authority of Internal Revenue Service to compel production of tax records and books for purposes of audit under Taxpayer Compliance Measurement Program. 69 A.L.R. Fed. 786.

44-19-27.3. Service of summons.

The summons may be sent by registered or certified mail to the taxpayer, or officer, agent, or employee of the taxpayer, or to any other authorized person, or may be left by any authorized agent of the tax administrator with the taxpayer, or officer, agent, or employee of the taxpayer, or other authorized person, or left at his or her last and usual place of abode. When the summons requires the production of records or documents, it is sufficient if those records and documents are described with reasonable certainty.

History of Section. P.L. 1966, ch. 84, § 2.

44-19-27.4. Enforcement of summons.

When any taxpayer, or officer, agent, or employee of the taxpayer, or other person, summoned under the provisions of §§ 44-19-27.2 and 44-19-27.3 neglects or refuses to obey the summons or to give testimony or to answer interrogatories as required, the tax administrator may apply to the sixth (6th) division of the district court for a citation against the taxpayer, or officer, agent, or employee of the taxpayer, or other person as for a contempt. Any judge of that court may hear the application and, if satisfactory proof is made, issue a citation for the arrest of the taxpayer, or officer, agent, or employee of the taxpayer, or other person, and upon the taxpayer, or officer, agent, or employee of the taxpayer, or other person, being brought before the judge, the judge shall proceed to a hearing of the case; and upon the hearing the judge has power to make any order the judge deems proper. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the Rules of Appellate Procedure of the Supreme Court.

History of Section. P.L. 1966, ch. 84, § 2; P.L. 1976, ch. 140, § 27.

44-19-28. Reports required as to use tax.

In the administration of the use tax, the tax administrator may require the filing of reports by any person or class of persons having in his or her or their possession or custody information relating to sales of tangible personal property the storage, use, or other consumption of which is subject to the tax. The reports shall be filed at that time and shall contain any information required by the tax administrator.

History of Section. P.L. 1947, ch. 1887, art. 2, § 48; G.L. 1956, § 44-19-28 .

44-19-29. Access to records of state agencies.

The records of any board, department, division, or commission of the state having information with respect to retailers and persons storing, using, or consuming in this state tangible personal property purchased from a retailer shall, notwithstanding any other provision of law, be open to the inspection of the tax administrator for the purpose of determining the names of those subject to the taxes imposed by chapter 18 of this title or for any other purpose in connection with the administration of those taxes.

History of Section. P.L. 1947, ch. 1887, art. 2, § 49; G.L. 1956, § 44-19-29 .

44-19-30. Information confidential — Types of disclosure authorized.

  1. It is unlawful, except in proceedings before a court of competent jurisdiction or to collect the taxes or enforce the penalties provided by chapters 18 and 19 of this title, for the tax administrator or any person having an administrative duty under those chapters to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular, stated or disclosed in any return, or to permit any return or copy or any book containing any abstract or particulars to be seen or examined by any person. The tax administrator may authorize examination of his or her records and the returns filed with the administrator by the tax authorities of another state or of the federal government if a reciprocal arrangement exists.
  2. Nothing in this section shall be construed to prevent the disclosure or publication of statistical or other information where the identity of individual taxpayers is not made known.
  3. The tax administrator may make available to the taxing officials of the various towns and cities of the state, for tax purposes only, any information that the administrator considers proper concerning state residents registering motor vehicles in other states.

History of Section. P.L. 1947, ch. 1887, art. 2, § 50; G.L. 1956, § 44-19-30 ; P.L. 1986, ch. 370, § 1.

Collateral References.

Validity, construction, and effect of state laws requiring public officials to protect confidentiality of income tax returns or information. 1 A.L.R.4th 959.

What are matters “related solely to the internal personnel rules and practices of an agency” exempted from disclosure under Freedom of Information Act (5 USCS § 552(b)(2) ). 28 A.L.R. Fed. 645.

44-19-30.1. Waiver of confidentiality.

The taxpayer may waive the confidentiality established by § 44-19-30 by notifying the hearing officer at any time, and may limit the waiver at his or her own discretion. The taxpayer is permitted to bring other persons into the hearing without waiving the confidentiality described in § 44-19-30 .

History of Section. P.L. 1990, ch. 131, § 1.

44-19-31. Penalty for violations generally.

Any retailer or other person failing to file a return or report required by this chapter, or filing or causing to be filed, or making or causing to be made, or giving or causing to be given any return, report, certificate, affidavit, representation, information, testimony, or statement required or authorized by this chapter, that is willfully false; or willfully failing to file a bond required by this chapter; or willfully failing to comply with the provisions of this chapter; or failing to file a registration certificate and that data in connection with it as the tax administrator by regulation or otherwise may require; or to display or surrender a permit as required by this chapter; or assigning or transferring the permit; or failing to file a notice of a show or failing to display a permit to operate a show or operating a show without obtaining a permit; or permitting a person to display or sell tangible personal property, services, or food and drink at a show without displaying a permit; or willfully failing to charge separately the tax imposed by this chapter or to state the tax separately on any bill, statement, memorandum, or receipt issued or employed by the person upon which the tax is required to be stated separately as provided in § 44-19-8 ; or willfully failing to collect the tax from a customer; or willfully failing to remit any tax to the state that was collected from a customer; or who refers or causes reference to be made to this tax in a form or manner other than that required by this chapter; or failing to keep any records required by this chapter, is, in addition to any other penalties in this chapter or elsewhere prescribed, guilty of a felony, punishment for which is a fine of not more than twenty-five thousand dollars ($25,000), or imprisonment for five (5) years, or both.

History of Section. P.L. 1947, ch. 1887, art. 2, § 51; G.L. 1956, § 44-19-31 ; P.L. 1978, ch. 166, § 3; P.L. 1986, ch. 103, § 6; P.L. 2017, ch. 302, art. 8, § 11.

NOTES TO DECISIONS

Collection.

Superior court properly granted a seller’s motion for summary judgment in a purchasers’ action alleging that it breached its duty to calculate and collect sales tax because the seller did not owe a legal duty to the purchasers regarding the collection of taxes; therefore, the purchasers could not establish the tort of negligence. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

Duty to State.

Retailer does not owe a duty to consumers to properly collect sales tax; retailers already owe a duty to the State and are subject to penalties for under-collection, and it would be untenable to make retailers subject to State penalties for under-collection and civil suit for over-collection. Long v. Dell, Inc., 93 A.3d 988, 2014 R.I. LEXIS 105 (R.I. 2014).

Collateral References.

Debts arising from tax penalties as exceptions to bankruptcy discharge under § 523(a)(7)(A) and (B) of Bankruptcy Code of 1978 (11 U.S.C.A. § 523(a)(7)(A) and (B)). 157 A.L.R. Fed. 313.

44-19-32. Deposit in mail as sufficient notice.

In the administration of chapters 18 and 19 of this title, the requirement that the tax administrator give notice by mail is fulfilled by the depositing in any United States post office of the notice, either as ordinary or registered or certified mail, directed to the latest address of the person concerned which has been filed with the tax administrator. It is the responsibility of each person liable for any tax under those chapters to keep the tax administrator informed of his or her correct address.

History of Section. P.L. 1947, ch. 1887, art. 2, § 52; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-19-32 .

44-19-33. Rules and regulations — Forms.

The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of chapters 18 and 19 of this title, which rules and regulations, when reasonably designed to carry out the intent and purpose of those chapters, are prima facie evidence of their proper interpretation. Those rules and regulations may from time to time be amended, suspended, or revoked, in whole or in part, by the tax administrator. The tax administrator may prescribe, and may furnish, any forms necessary or proper for the administration of those chapters.

History of Section. P.L. 1947, ch. 1887, art. 2, § 53; G.L. 1956, § 44-19-33 .

Cross References.

Severability of provisions, § 44-18-38 .

NOTES TO DECISIONS

In General.

Rules and regulations promulgated by the tax administrator are prima facie evidence of proper interpretation of the Sales and Use Tax Act. Herald Press, Inc. v. Norberg, 122 R.I. 264 , 405 A.2d 1171, 1979 R.I. LEXIS 2155 (1979).

Invalid Rule.

Where a regulation is plainly inconsistent with the operative language of the statute, it must be declared invalid. Brier Mfg. Co. v. Norberg, 119 R.I. 317 , 377 A.2d 345, 1977 R.I. LEXIS 1912 (1977).

Scope of Regulations.

Where regulations drawn up by a tax administrator purported to interpret the term “publication” as used in § 44-18-30(B) (now (2)) and actually would have altered and amended the scope of the statute, those regulations were void and the plain meaning of the statute controls. Statewide Multiple Listing Serv. v. Norberg, 120 R.I. 937 , 392 A.2d 371, 1978 R.I. LEXIS 741 (1978).

44-19-34. Service of process — Director of business regulation as agent of nonresident seller.

Any person not a resident of this state who engages in business in this state, as defined in § 44-18-23 , shall, as a condition precedent to engaging in business in this state, and by engaging in business in this state, consent that any process issued in the enforcement of the provisions of chapters 18 and 19 of this title may be served upon the director of the department of business regulation as agent of that person. The process may be served by leaving a copy of the process in the hands of the director of the department of business regulation or in the director’s office with someone in charge of the office. The service is sufficient service upon the person; provided, that notice of the service and a copy of the process, at least fifteen (15) days before the return day of the process, is sent by registered or certified mail, postage prepaid, by the tax administrator or the administrator’s attorney of record, to the person’s last known address, and the sender’s registered or certified mail receipt of sending and the tax administrator’s or the administrator’s attorney’s affidavit of compliance are appended to the process and entered with the declaration. Service of process in the manner provided for in this section, under the circumstances specified in this section, is of the same force and validity as if served upon the taxpayer personally within this state. Nothing in this section limits or affects the right to serve process upon a person not a resident of this state within this state in any other manner now or hereafter permitted by law.

History of Section. P.L. 1962, ch. 64, § 1; P.L. 1966, ch. 131, § 2.

44-19-35. Tax collection as property held in trust for the state.

All taxes collected by any retailer from purchasers in accordance with the provisions of chapter 18 of this title, and all taxes collected by any retailer from purchasers under color of those provisions, constitutes a trust fund for the state until paid to the tax administrator. That trust is enforceable against:

  1. The retailer;
  2. Any officer, agent, servant, or employee of any corporate retailer responsible for either the collection or payment, or both, of the tax;
  3. Any person receiving any part of the fund without consideration, or knowing that the retailer or any officer, agent, servant, or employee of any corporate retailer is committing a breach of trust; and
    1. Their estates, heirs, and representatives; provided, that a purchaser to whom a refund has been properly made, or any person who receives payment of a lawful obligation of the retailer from that fund, is presumed to have received that amount in good faith and without any knowledge of the breach of trust.
    2. The word “purchaser” includes a person who has paid rental charges on living quarters in any hotel, rooming house, or tourist camp.

History of Section. P.L. 1962, ch. 92, § 1; P.L. 1967, ch. 179, art. 2, § 12.

NOTES TO DECISIONS

Knowledge.

The clear import of the word “knowing” in subsection (c) (now (3)) is actual knowledge, not constructive knowledge. Norberg v. Feist, 495 A.2d 687, 1985 R.I. LEXIS 562 (R.I. 1985).

Standing to Challenge Tax Exemption.

Retailers and purchasers of bibles and other canonized scriptures had standing to challenge the validity of a statutory sales tax exemption, since they faced potential liability for uncollected sales tax and, in the case of retailers, possible pecuniary penalties for failing to collect such taxes. Ahlburn v. Clark, 728 A.2d 449, 1999 R.I. LEXIS 89 (R.I. 1999).

44-19-36. Notice to segregate trust funds.

If the tax administrator believes that the payment to the state of the trust fund established under § 44-19-35 will be jeopardized by delay, neglect, or misappropriation, the administrator shall notify the retailer that the trust fund shall be segregated, and kept separate and apart from all other funds and assets of the retailer and shall not be commingled with any other funds or assets. The notice shall be given by either hand delivery or by registered mail, return receipt requested. Within four (4) days after the sending of the notice, all of the taxes which thereafter either become collectible or are collected shall be deposited daily in any financial institution in the state as defined in title 19 and those taxes designated as a special fund in trust for the state and payable to the state by the retailer as trustee of that fund.

History of Section. P.L. 1962, ch. 92, § 1.

44-19-37. Penalty for misappropriation.

Any retailer and any officer, agent, servant, or employee of any corporate retailer responsible for either the collection or payment of the tax, who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter, shall upon conviction for each offense be fined not more than ten thousand dollars ($10,000), or be imprisoned for one year, or by both fine and imprisonment, both fine and imprisonment to be in addition to any other penalty provided by this chapter.

History of Section. P.L. 1962, ch. 92, § 1; P.L. 1988, ch. 268, § 1; P.L. 1988, ch. 504, § 1.

44-19-38. Remedy not exclusive.

The provisions of §§ 44-19-35 , 44-19-36 , and 44-19-37 are not exclusive, and are in addition to all other remedies, which the tax administrator may employ in the enforcement and collection of taxes.

History of Section. P.L. 1962, ch. 92, § 1.

44-19-39. Exclusion of certain small sales.

  1. Notwithstanding any of the provisions of chapters 18 and 19 of this title, any retailer who can establish to the satisfaction of the tax administrator that sixty percent (60%) or more of his or her receipts from the sale of nonexempt tangible personal property arise from individual transactions where the total sales price is less than the minimum amount on which the retailer can collect the tax in accordance with the brackets prescribed in § 44-18-19 may exclude the receipts from those sales when reporting and paying the tax imposed by this chapter. No retailer shall avail himself or herself of this provision without prior written approval of the tax administrator. The tax administrator shall grant that approval when the administrator is satisfied that the retailer qualifies on the basis stated in this section and when the retailer has submitted satisfactory evidence that the retailer can and will maintain records adequate to substantiate the exclusion authorized by this section. Any attempt on the part of any retailer to exercise this provision without prior written approval of the tax administrator is deemed to be a failure to pay the tax and the retailer is subject to assessment for taxes on those sales plus penalties and interest as provided for in this chapter.
  2. Regardless of the provisions contained in subsection (a) of this section, any retailer must have the permit and file the returns prescribed by this chapter even though the entire receipts of that retailer from the sale of tangible personal property consist of excludable receipts.

History of Section. P.L. 1966, ch. 263, § 1.

44-19-40. Disposition of revenue.

  1. Notwithstanding any other provisions of law to the contrary, all monies received by the tax administrator under the provisions of chapters 18 and 19 of this title will be paid over to the general treasurer; provided, that for the fiscal year commencing July 1, 2000, and until such time that the trustee for the bonds of the Rhode Island Depositors Economic Protection Corporation notifies the Corporation that all bonds and fees are paid in full or deemed to be paid in full, six-tenths of one percent (0.6%) within the existing sales and use tax rates established in §§ 44-18-18 and 44-18-20 , exclusive of any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1993, is appropriated to the Rhode Island Depositors Economic Protection Corporation special revenue fund within the Rhode Island Depositors Economic Protection Corporation established pursuant to § 42-116-31 for the purposes specified in chapter 116 of title 42. In clarification of the intent of the legislature, six-tenths of one percent (0.6%) within the existing sales and use tax rates established in chapter 18 of this title exclusive of any receipts resulting from any expansion of the coverage of the sales and use taxes through legislation enacted subsequent to February 1, 1993, will be dedicated to the special revenue fund created by § 42-116-31 subject to the making of an annual appropriation by the general assembly of those sales and use tax receipts. Provided, that the net taxes received and/or refunded through and including July 31, 2000, are deemed to be for the periods ending prior to July 1, 2000, and net taxes received and/or refunded on or after August 1, 2000, are deemed to be for periods ending on July 1, 2000, and thereafter. The state controller shall establish an escrow account within the general fund to be known as the “depositor’s protection account.”
  2. The state controller is authorized and directed to draw his or her orders upon the general treasurer for the transfer of the sum or the portion of the sum from the depositor’s protection account to the special revenue fund. These transfers will be made at the end of each calendar month.

History of Section. P.L. 1991, ch. 44, art. 36, § 1; P.L. 1992, ch. 133, art. 50, § 1; P.L. 1993, ch. 138, art. 4, § 1; P.L. 1994, ch. 70, art. 4, § 1; P.L. 1995, ch. 370, art. 3, § 1; P.L. 1996, ch. 100, art. 3, § 1; P.L. 1997, ch. 30, art. 3, § 1; P.L. 1998, ch. 31, art. 2, § 1; P.L. 1999, ch. 31, art. 3, § 1; P.L. 2000, ch. 55, art. 3, § 3.

Compiler’s Notes.

P.L. 1999, ch. 31, art. 3, § 2, provides that to the extent that monies appropriated by this section are not sufficient to pay the principal and interest becoming due on any special obligation bonds secured by the special revenue fund established pursuant to § 42-116-31 of the general laws during the fiscal year commencing July 1, 1999 or the amount required to be deposited into any debt service fund for the purposes, there is hereby appropriated to the special revenue fund an amount sufficient for the payment of principal and interest becoming due on any special obligation bonds secured by the special revenue fund in the fiscal year commencing on July 1, 1999 or the amount required to be deposited into any debt service fund for such purposes.

P.L. 2000, ch. 55, art. 3, § 4, provides that to the extent that funds appropriated by § 44-19-40 are not sufficient to pay the principal and interest becoming due on any special obligation bonds secured by the special revenue fund established pursuant to § 42-116-31 during the fiscal year commencing July 1, 2000 or the amount required to be deposited into any debt service fund for the purposes, an amount is appropriated to the special revenue fund sufficient for the payment of principal and interest becoming due on any such special obligation bonds secured by the special revenue fund in the fiscal year commencing July 1, 2000 or the amount required to be deposited into any debt service fund for such purposes.

44-19-41. Materialperson — Definitions and applicability.

  1. Notwithstanding any of the provisions of chapters 18 and 19 of this title, any retailer required to collect and remit state sales and use taxes pursuant to those chapters, who can demonstrate to the satisfaction of the tax administrator by February 1 of any year that for six (6) consecutive months within the most recent twelve (12) month period the retailer is a “materialperson” as defined in this section, may elect to report the sales on a cash basis as the consideration is received. Upon approval of the tax administrator, the materialperson shall, with respect to sales made beginning the succeeding July 1st through June 30th, collect the tax due on sales to any contractors, subcontractors or repairpersons of any building material, made during the period July 1st through June 30th, at the time and to the extent that the materialperson receives the receipts from, or consideration for, the sales from contractors, subcontractors or repairpersons. If a materialperson receives a portion of the receipts or consideration the materialperson shall collect the tax due on that portion at the time the portion is received, in which case the materialperson will be required to file his or her return and to pay the tax due in the manner provided in § 44-19-10(a)(1). The taxes imposed by chapter 18 of this title on receipts and consideration shall be deemed not to be imposed solely for purposes of determining when a materialperson is required to collect and pay over taxes to the tax administrator under § 44-19-10(a)(1), until the materialperson has received payment of the receipts or consideration in money (or money’s worth) from the contractor, subcontractor or repairperson. A contractor, subcontractor or repairperson who purchases building materials from a materialperson pursuant to this section shall, at the time the contractor, subcontractor or repairperson pays any portion of the purchase price, pay to the materialperson the tax due on the portion of the purchase price paid in accordance with § 44-18-19 . For purposes of chapters 18 and 19 of this title, “materialperson” is defined as those retailers of lumber who are engaged in the business primarily of selling lumber and building materials to contractors, subcontractors, or repairpersons to be used in the construction, erection, alteration, or repairing of a building or other structure or in the making of any other improvements on land or the preparation of making improvements, and whose lumber and building material sales comprise of at least fifty percent (50%) of their total sales and who may file a notice of intention to claim a lien pursuant to chapter 28 of title 34 for any materials sold.
  2. The provisions of subsection (a) of this section relating to the collection of tax at the time the materialperson receives the receipts or consideration from sales applies only to the in-house credit extended by the materialperson. In the event that a materialperson described in subsection (a) of this section finances any portion of the receipts or consideration from a sale described in subsection (a) of this section, including any tax due on the sale, directly or indirectly, with any person (other than a contractor, subcontractor or repairperson described in subsection (a) of this section), whether by factoring, or any other means, then the materialperson shall be deemed to have received payment of the receipts or consideration in money (or money’s worth) from the contractor, subcontractor or repairperson and shall be required to pay over tax on those sales with the next return due, with a credit against the tax for any tax already paid over with respect to the sale. Any amount of tax paid over in accordance with the prior sentence shall be on account of the tax required to be collected on the sale to which it relates and the materialperson may take a credit against any tax paid by the contractor, subcontractor or repairperson in the future on the sale, to ensure that tax paid over with respect to those sales does not exceed the amount of the tax imposed on the sale as if the entire purchase price has been paid at the time of sale.
  3. A materialperson described in subsection (a) of this section, who has not collected the tax due on the full purchase price for a sale described in subsection (a) of this section from a contractor, subcontractor or repairperson within one year of the date of sale, shall be required to pay over to the tax administrator the tax due on any balance of the full purchase price with the materialperson’s return for the period which includes the date which is one year after the date of the sale.
  4. The tax administrator may assess an additional tax due with respect to a sale described in subsection (a) of this section within three (3) years from the date the tax is required to be paid over to the tax administrator pursuant to this section. In the case of a willfully false or fraudulent return with intent to evade the tax, or where no return has been filed as prescribed by law, the tax may be assessed at any time.
  5. Every materialperson described in subsection (a) of this section shall, in addition to those records required to be kept in compliance with chapters 18 and 19 of this title, keep the following records with respect to each sale of building materials described in subsection (a) of this section to a contractor, subcontractor or repairperson: (1) the date of the sale; (2) proof that the sale meets the qualifications described in subsection (a) of this section; (3) the amount of credit, if any, extended by the materialperson to the contractor, subcontractor or repairperson for each sale; (4) the terms for payment of the purchase price or repayment of any credit; and (5) the date or dates on which the purchase price is paid or credit is repaid, in part or whole, and the amount of each payment or repayment. Notwithstanding the provisions of subsection (a) of this section, the records referred to in this subdivision shall be preserved by said materialperson for a period of three (3) years from the date the tax on each sale is paid over to the tax administrator in full; provided, however, that the tax administrator may consent to their destruction within that period or may require that they be kept longer.
  6. No retailer shall avail himself or herself of this section without prior written approval of the tax administrator. The tax administrator shall grant that approval when the administrator is satisfied that the retailer qualifies as a materialperson as defined in subsection (a) of this section and when the retailer has submitted satisfactory evidence that the retailer can and will maintain records, in accordance with subsection (e) of this section, adequate to substantiate the election authorized in this section. Any attempt on the part of any retailer to exercise this provision without prior written approval of the tax administrator shall be deemed to be failure to pay the tax and the retailer shall be subject to assessment for taxes on those sales plus penalties and interest on those sales as provided for in this chapter.
  7. Notwithstanding the provision of this section, any retailer to whom this section may apply shall comply with all the administration, collection, and other provisions of chapters 18 and 19 of this title.

History of Section. P.L. 2001, ch. 194, § 1.

Applicability.

P.L. 2001, ch. 194, § 2 provides that this section shall take effect upon passage [July 13, 2001] and shall apply to sales made and uses occurring on or after January 1, 2003, although made or occurring under a prior contract.

44-19-42. Suppression of sales — Definitions and applicability.

  1. As used in this section:
    1. “Automated sales suppression device,” also known as a “zapper,” means a software program, carried on a memory stick or removable compact disc, accessed through an internet link, or accessed through any other means, that falsifies transaction data, transaction reports, or any other electronic records of electronic cash registers and other point-of-sale systems.
    2. “Electronic cash register” means a device that keeps a register, accounting, or supporting documents through the means of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.
    3. “Phantom-ware” means a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that:
      1. Can be used to create a virtual second till; or
      2. May eliminate or manipulate transaction records in any manner.
    4. “Remote data manipulation” means and includes, but is not limited to, sending, transmitting, transporting, or receiving through any electronic means any and all transaction data to a remote location, whether or not that location is within Rhode Island or outside the state or the United States, for the purpose of manipulating and/or altering said data in any way, whether or not the actual manipulation is performed manually or through automated means.
    5. “Transaction data” includes: items purchased by a customer; the price for each item; a taxability determination for each item; a segregated tax amount for each of the taxed items; the amount of cash, debit, or credit tendered; the net amount returned to the customer in change; the date and time of the purchase; the name, address, and identification number of the vendor; and the receipt or invoice number of the transaction.
    6. “Transaction reports” means a report documenting, but not limited to the sales, the taxes collected, media totals, and discount voids at an electronic cash register that is printed on cash register tape at the end of a day or shift, or a report documenting every action at an electronic cash register that is stored electronically.
  2. A person shall not knowingly sell, purchase, install, transfer or possess an automated sales suppression device or phantom-ware.
  3. A person shall not knowingly suppress sales by engaging in remote data manipulation, either as the sender or the receiver of the information.
  4. Any person who violates subdivision (b) and/or (c) of this section shall be guilty of a felony and, upon conviction, shall be subject to a fine not exceeding fifty thousand dollars ($50,000) or imprisonment not exceeding five (5) years, or both.
  5. In addition, a person who violates subdivision (b) and/or (c) of this section shall be liable to the state for:
    1. All taxes, interest, and penalties due as the result of the person’s use of an automated sales suppression device or phantom-ware and/or remote data manipulation; and
    2. All profits associated with the person’s sale of an automated sales suppression device or phantom-ware and/or remote data manipulation.
  6. An automated sales suppression device or phantom-ware and any device containing such device or software shall be deemed contraband and shall be subject to seizure by the tax administrator or by a law enforcement officer when directed to do so by the tax administrator.
  7. Safe harbor.  A person shall not be subject to prosecution under § 44-19-42 , if by October 1, 2014, the person:
    1. Notifies the division of taxation of the person’s possession of an automated sales suppression device;
    2. Provides any information requested by the division of taxation, including transaction records, software specifications, encryption keys, passwords, and other data; and
    3. Corrects any underreported sales tax records and fully pays the division of taxation any amounts previously owed.
  8. This section shall not be construed to limit the person’s civil or criminal liability under any other provision of law.

History of Section. P.L. 2014, ch. 145, art. 12, § 8; P.L. 2017, ch. 302, art. 8, § 11.

44-19-43. Managed audit program.

  1. The tax administrator may, in a written agreement with a taxpayer, authorize a taxpayer to conduct a managed audit pursuant to this section. The agreement shall specify the period to be audited and the procedure to be followed, and shall be signed by an authorized representative of the tax administrator and the taxpayer.
  2. For purposes of this section, the term “managed audit” means a review and analysis of invoices, checks, accounting records, or other documents or information to determine the correct amount of tax. A managed audit may include, but is not required to include, the following categories of liability under this Chapter, including tax on:
    1. Sales of one or more types of taxable items.
    2. Purchases of assets.
    3. Purchases of expense items.
    4. Purchases under a direct payment permit.
    5. Any other category specified in an agreement authorized by this section. It shall be in the tax administrator’s sole discretion as to which categories of liability shall be included in any managed audit.
  3. The decision to authorize a managed audit rests solely with the tax administrator. In determining whether to authorize a managed audit, the tax administrator may consider, in addition to other facts the tax administrator may consider relevant, any of the following:
    1. The taxpayer’s history of tax compliance.
    2. The amount of time and resources the taxpayer has available to dedicate to the managed audit.
    3. The extent and availability of the taxpayer’s records.
    4. The taxpayer’s ability to pay any expected liability.
  4. The tax administrator may examine records and perform reviews that (s)he determines are necessary before the managed audit is finalized to verify the results of the managed audit. Unless the managed audit or information reviewed by the tax administrator discloses fraud or willful evasion of the tax, the tax administrator may not assess a penalty and may waive all or a part of the interest that would otherwise accrue on any amount identified as due in a managed audit. This subsection (d) does not apply to any amount collected by the taxpayer that was a tax or represented to be a tax that was not remitted to the state.

History of Section. P.L. 2015, ch. 141, art. 11, § 9.

Chapter 20 Cigarette and Other Tobacco Products Tax

44-20-1. Definitions.

Whenever used in this chapter, unless the context requires otherwise:

  1. “Administrator” means the tax administrator;
  2. “Cigarettes” means and includes any cigarettes suitable for smoking in cigarette form, and each sheet of cigarette rolling paper, including but not limited to, paper made into a hollow cylinder or cone, made with paper or any other material, with or without a filter suitable for use in making cigarettes;
  3. “Dealer” means any person whether located within or outside of this state, who sells or distributes cigarettes and/or other tobacco products to a consumer in this state;
  4. “Distributor” means any person:
    1. Whether located within or outside of this state, other than a dealer, who sells or distributes cigarettes and/or other tobacco products within or into this state. Such term shall not include any cigarette or other tobacco product manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712, if such person sells or distributes cigarettes and/or other tobacco products in this state only to licensed distributors, or to an export warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;
    2. Selling cigarettes and/or other tobacco products directly to consumers in this state by means of at least twenty-five (25) vending machines;
    3. Engaged in this state in the business of manufacturing cigarettes and/or other tobacco products or any person engaged in the business of selling cigarettes and/or other tobacco products to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five percent (75%) of all cigarettes and/or other tobacco products sold by that person in this state are sold to dealers or other persons for resale and selling cigarettes and/or other tobacco products directly to at least forty (40) dealers or other persons for resale; or
    4. Maintaining one or more regular places of business in this state for that purpose; provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products are purchased directly from the manufacturer and selling cigarettes and/or other tobacco products directly to at least forty (40) dealers or other persons for resale;
  5. “Importer” means any person who imports into the United States, either directly or indirectly, a finished cigarette or other tobacco product for sale or distribution;
  6. “Licensed,” when used with reference to a manufacturer, importer, distributor or dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for the type of business being engaged in. When the term “licensed” is used before a list of entities, such as “licensed manufacturer, importer, wholesale dealer, or retailer dealer,” such term shall be deemed to apply to each entity in such list;
  7. “Manufacturer” means any person who manufactures, fabricates, assembles, processes, or labels a finished cigarette and/or other tobacco products;
  8. “Other tobacco products” (OTP) means any cigars (excluding Little Cigars, as defined in § 44-20.2-1 , which are subject to cigarette tax), cheroots, stogies, smoking tobacco (including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco suitable for smoking in a pipe or otherwise), chewing tobacco (including Cavendish, twist, plug, scrap and any other kinds and forms of tobacco suitable for chewing), any and all forms of hookah, shisha and “mu’assel” tobacco, snuff, and shall include any other articles or products made of or containing tobacco, in whole or in part, or any tobacco substitute, except cigarettes;
  9. “Person” means any individual, including an employee or agent, firm, fiduciary, partnership, corporation, trust, or association, however formed;
  10. “Pipe” means an apparatus made of any material used to burn or vaporize products so that the smoke or vapors can be inhaled or ingested by the user;
  11. “Place of business” means any location where cigarettes and/or other tobacco products are sold, stored, or kept, including, but not limited to; any storage room, attic, basement, garage or other facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending machine;
  12. “Sale” or “sell” means gifts, exchanges, and barter of cigarettes and/or other tobacco products. The act of holding, storing, or keeping cigarettes and/or other tobacco products at a place of business for any purpose shall be presumed to be holding the cigarettes and/or other tobacco products for sale. Furthermore, any sale of cigarettes and/or other tobacco products by the servants, employees, or agents of the licensed dealer during business hours at the place of business shall be presumed to be a sale by the licensee;
  13. “Stamp” means the impression, device, stamp, label, or print manufactured, printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are intended for a sale or distribution in this state that is exempt from state tax under the provisions of state law; and also includes impressions made by metering machines authorized to be used under the provisions of this chapter.

History of Section. P.L. 1939, ch. 663, § 1; P.L. 1940, ch. 875, § 1; P.L. 1948, ch. 2092, § 1; P.L. 1948, ch. 2094, § 2; G.L. 1956, § 44-20-1 ; P.L. 1968, ch. 263, art. 8, §§ 2, 3; P.L. 1978, ch. 167, § 3; P.L. 1988, ch. 129, art. 13, § 1; P.L. 1991, ch. 6, art. 27, § 1; P.L. 2006, ch. 246, art. 30, § 16; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2008, ch. 104, § 1; P.L. 2011, ch. 257, § 1; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2017, ch. 302, art. 8, § 15; P.L. 2018, ch. 346, § 30.

Comparative Legislation.

Cigarette tax:

Conn. Gen. Stat., § 12-285 et seq.

Mass. Ann. Laws ch. 64C, § 1 et seq.

NOTES TO DECISIONS

Scope.

Given the language and intent of the Rhode Island Indian Claims Settlement Act, 25 U.S.C. §§ 1701-1716, state officers were authorized to execute the warrant against the tribe and to arrest tribal members incident to the enforcement of the state’s civil and criminal laws. Narragansett Indian Tribe v. Rhode Island, 449 F.3d 16, 2006 U.S. App. LEXIS 17472 (1st Cir.), cert. denied, 549 U.S. 1053, 127 S. Ct. 673, 166 L. Ed. 2d 516, 2006 U.S. LEXIS 9038 (2006).

44-20-2. Importer, distributor, and dealer licenses required — Licenses required.

Each person engaging in the business of selling cigarette and/or any tobacco products in this state, including any distributor or dealer, shall secure a license from the administrator before engaging in that business, or continuing to engage in it. A separate application and license is required for each place of business operated by a distributor or dealer; provided, that an operator of vending machines for cigarette products is not required to obtain a distributor’s license for each machine. If the applicant for a license does not have a place of business in this state, the license shall be issued for such applicant’s principal place of business, wherever located. A licensee shall notify the administrator within thirty (30) days in the event that it changes its principal place of business. A separate license is required for each class of business if the applicant is engaged in more than one of the activities required to be licensed by this section. No person shall maintain or operate or cause to be operated a vending machine for cigarette products without procuring a dealer’s license for each machine.

History of Section. P.L. 1939, ch. 663, § 2; P.L. 1951, ch. 2867, § 1; P.L. 1952, ch. 3007, § 1; G.L. 1956, § 44-20-2 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2012, ch. 241, art. 21, § 6.

Cross References.

License for Sunday sales, § 5-23-2 .

Collateral References.

Validity, construction, and application of state statutes forbidding possession, transportation, or sale of unstamped or unlicensed cigarettes or other tobacco products. 46 A.L.R.3d 1342.

44-20-3. Penalties for unlicensed business.

Any distributor or dealer who sells, offers for sale, or possesses with intent to sell, cigarettes and/or any other tobacco products without a license as provided in § 44-20-2 , shall be guilty of a misdemeanor, and shall be fined not more than ten thousand dollars ($10,000) for each offense, or be imprisoned for a term not to exceed one (1) year, or be punished by both a fine and imprisonment.

History of Section. P.L. 1939, ch. 663, § 2; P.L. 1951, ch. 2867, § 1; P.L. 1952, ch. 3007, § 1; G.L. 1956, § 44-20-3 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1996, ch. 321, § 3; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2017, ch. 302, art. 8, § 15.

44-20-4. Application for license — Display.

All licenses are issued by the tax administrator upon approval of application, stating, on forms prescribed by the tax administrator, the information he or she may require for the proper administration of this chapter. Each application for an importer’s, or distributor’s license shall be accompanied by a fee of one thousand dollars ($1,000); provided, that for a distributor who does not affix stamps, the fee shall be one hundred dollars ($100); each application for a dealer’s license shall be accompanied by a fee of twenty-five dollars ($25.00). Each issued license shall be prominently displayed on the premises within this state, if any, covered by the license. In the instance of an application for a distributor’s license, the administrator shall require, in addition to other information as may be deemed necessary, the filing of affidavits from three (3) cigarette manufacturers with national distribution stating that the manufacturer will supply the distributor if the applicant is granted a license.

History of Section. P.L. 1939, ch. 663, § 2; P.L. 1951, ch. 2867, § 1; P.L. 1952, ch. 3007, § 1; G.L. 1956, § 44-20-4 ; P.L. 1960, ch. 74, § 23; P.L. 1991, ch. 6, art. 27, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-4.1. License availability.

  1. No license under this chapter may be granted, maintained or renewed if the applicant, or any combination of persons owning directly or indirectly any interests in the applicant:
    1. Owes five hundred dollars ($500) or more in delinquent taxes;
    2. Is delinquent in any tax filings for one month or more;
    3. Had a license under this chapter revoked by the administrator within the past two (2) years;
    4. Has been convicted of a crime relating to cigarettes and/or other tobacco products;
    5. Is a cigarette manufacturer or importer that is neither: (i) A participating manufacturer as defined in subsection II (jj) of the “Master Settlement Agreement” as defined in § 23-71-2 ; nor (ii) In full compliance with chapter 20.2 of this title and § 23-71-3 ;
    6. Has imported, or caused to be imported, into the United States any cigarette or other tobacco product in violation of 19 U.S.C. § 1681a; or
    7. Has imported, or caused to be imported into the United States, or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.).
    1. No person shall apply for a new license or permit (as defined in § 44-19-1 ) or renewal of a license or permit, and no license or permit shall be issued or renewed for any applicant, or any combination of persons owning directly or indirectly any interests in the applicant, unless all outstanding fines, fees, or other charges relating to any license or permit held by the applicant, or any combination of persons owning directly or indirectly any interests in the applicant, as well as any other tax obligations of the applicant, or any combination of persons owning directly or indirectly any interests in the applicant have been paid.
    2. No license or permit shall be issued relating to a business until all prior licenses or permits relating to that business or to that location have been officially terminated and all fines, fees, or charges relating to the prior license or permit have been paid or otherwise resolved or the administrator has found that the person applying for the new license or permit is not acting as an agent for the prior licensee or permit holder who is subject to any such related fines, fees or charges that are still due. Evidence of such agency status includes, but is not limited to, a direct familial relationship and/or an employment, contractual, or other formal financial or business relationship with the prior licensee or permit holder.
    3. No person shall apply for a new license or permit pertaining to a specific location in order to evade payment of any fines, fees, or other charges relating to a prior license or permit.
    4. No new license or permit shall be issued for a business at a specific location for which a license or permit already has been issued unless there is a bona fide, good-faith change in ownership of the business at that location.
    5. No license or permit shall be issued, renewed, or maintained for any person, including the owners of the business being licensed or having applied and received a permit, that has been convicted of violating any criminal law relating to tobacco products, the payment of taxes, or fraud or has been ordered to pay civil fines of more than twenty-five thousand dollars ($25,000) dollars for violations of any civil law relating to tobacco products, the payment of taxes, or fraud.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2; P.L. 2009, ch. 335, § 1; P.L. 2009, ch. 336, § 1; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2017, ch. 302, art. 8, § 15.

44-20-5. Duration of importer’s and dealer’s licenses — Renewal.

  1. Any importer license and any license issued by the tax administrator authorizing a dealer to sell cigarettes in this state shall expire at midnight on June 30 next succeeding the date of issuance unless (1) suspended or revoked by the tax administrator, (2) the business with respect to which the license was issued changes ownership, (3) the importer or dealer ceases to transact the business for which the license was issued, or (4) after a period of time set by the administrator; provided such period of time shall not be longer than three (3) years, in any of which cases the license shall expire and terminate and the holder shall immediately return the license to the tax administrator.
  2. Every holder of a dealer’s license shall annually, on or before February 1 of each year, renew its license by filing an application for renewal along with a twenty-five dollar ($25.00) renewal fee. The renewal license is valid for the period July 1 of that calendar year through June 30 of the subsequent calendar year.

History of Section. P.L. 1948, ch. 2093, § 1; P.L. 1951, ch. 2867, § 2; P.L. 1952, ch. 3007, § 2; G.L. 1956, § 44-20-5 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1991, ch. 6, art. 27, § 1; P.L. 2004, ch. 595, art. 7, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-6. Expiration and renewal of distributors’ licenses.

Each distributor’s license issued under the provisions of § 44-20-4 expires at midnight on May 31 next succeeding the date of issuance, unless sooner revoked by the tax administrator, as provided in § 44-20-8 , or unless the business with respect to which the license was issued changes ownership, in either of which cases the holder of the license shall immediately return it to the tax administrator. The holder of each license may, annually, before the expiration date of the license then held by the licensee, renew his or her license for a further period of one year, on application accompanied by the fee prescribed in § 44-20-4 .

History of Section. P.L. 1939, ch. 663, § 3; impl. am. P.L. 1948, ch. 2093, § 1; G.L. 1956, § 44-20-6 .

44-20-7. Vending machine markers.

No person shall operate a machine for vending cigarettes unless there is attached to the machine a disc or marker, in a form to be determined by the tax administrator, showing that it is licensed by the tax administrator. The fee for each license is twenty-five dollars ($25.00) as provided in § 44-20-4 . Any licensed machine may be removed from one location to another within the state under regulations that the tax administrator may prescribe without payment of an additional fee. Any person who operates any machine for vending cigarettes in violation of the provisions of this section is subject to the same penalties as provided in § 44-20-3 for the sale of cigarettes without a license.

History of Section. P.L. 1939, ch. 663, § 3; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-7 ; P.L. 1960, ch. 74, § 23; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1991, ch. 6, art. 27, § 1; P.L. 1999, ch. 354, § 31.

44-20-8. Suspension or revocation of license.

The tax administrator may suspend or revoke any license under this chapter for failure of the licensee to comply with any provision of this chapter or with any provision of any other law or ordinance relative to the sale or purchase of cigarettes or other tobacco products. The tax administrator may also suspend or revoke any license for failure of the licensee to comply with any provision of chapter 19 of title 44 and chapter 13 of title 6, and, for the purpose of determining whether the licensee is complying with any provision of chapter 13 of title 6, the tax administrator and his or her authorized agents are empowered, in addition to authority conferred by § 44-20-40 , to examine the books, papers, and records of any licensee. The administrator shall revoke the license of any person who would be ineligible to obtain a new or renew a license by reason of any of the conditions for licensure provided in § 44-20-4.1 . Any person aggrieved by the suspension or revocation may apply to the administrator for a hearing as provided in § 44-20-47 , and may further appeal to the district court as provided in § 44-20-48 .

History of Section. P.L. 1939, ch. 663, § 4; P.L. 1941, ch. 1039, § 1; G.L. 1956, § 44-20-8 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1988, ch. 84, § 97; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2017, ch. 302, art. 8, § 15.

44-20-8.1. Maintenance and publication of list of licenses.

By July 1, 2008 the administrator shall create and maintain a website setting forth the identity of all licensed persons under this chapter, itemized by type of license possessed, and shall update the site no less frequently than six (6) times per year.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2.

44-20-8.2. Transactions only with licensed manufacturers, importers, distributors, and dealers.

A manufacturer or importer may sell or distribute cigarettes to a person located or doing business within this state, only if such person is a licensed importer or distributor. An importer may obtain cigarettes only from a licensed manufacturer. A distributor may sell or distribute cigarettes to a person located or doing business within this state, only if such person is a licensed distributor or dealer. A distributor may obtain cigarettes only from a licensed manufacturer, importer, or distributor. A dealer may obtain cigarettes only from a licensed distributor.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2.

44-20-9 — 44-20-11. Repealed.

History of Section. P.L. 1939, ch. 663, § 5; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-9 — 44-20-11; P.L. 1960, ch. 74, § 23; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1991, ch. 6, art. 27, § 1; Repealed by P.L. 2007, ch. 246, § 1, and by P.L. 2007, ch. 250, § 1, effective October 1, 2007.

Compiler’s Notes.

Former §§ 44-20-9 — 44-20-11 concerned solicitor’s permits, reports, and penalties for certain violations.

44-20-12. Tax imposed on cigarettes sold.

A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax to be evidenced by stamps, which may be affixed only by licensed distributors to the packages containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of two hundred twelve and one-half (212.5) mills for each cigarette.

History of Section. P.L. 1939, ch. 663, § 6; P.L. 1940, ch. 875, § 2; P.L. 1947, ch. 1887, art. 3, § 1; G.L. 1956, § 44-20-12 ; P.L. 1958, ch. 17, art. 4, § 1; P.L. 1960, ch. 77, art. 1, § 1; P.L. 1964, ch. 242, art. 4, § 1; P.L. 1968, ch. 263, art. 8, § 4; P.L. 1978, ch. 167, § 3; P.L. 1981, ch. 152, § 1; P.L. 1982, ch. 9, art. 5, § 1; P.L. 1985, ch. 181, art. 58, § 1; P.L. 1986, ch. 287, art. 28, § 1; P.L. 1988, ch. 129, art. 13, § 1; P.L. 1989, ch. 126, art. 17, § 1; P.L. 1993, ch. 138, art. 64, § 1; P.L. 1994, ch. 70, art. 13, § 1; P.L. 1995, ch. 370, art. 20, § 1; P.L. 1997, ch. 30, art. 12, § 1; P.L. 2001, ch. 77, art. 7, § 5; P.L. 2002, ch. 65, art. 16, § 11; P.L. 2003, ch. 376, art. 7, § 6; P.L. 2004, ch. 595, art. 3, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2009, ch. 5, art. 9, § 6; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2015, ch. 141, art. 11, § 10; P.L. 2017, ch. 302, art. 8, § 12.

Effective Dates.

P.L. 2015, ch. 141, art. 11, § 10 provides that the amendment to this section by that act takes effect on August 1, 2015.

P.L. 2017, ch. 302, art. 8, § 20, provides that the amendment to this section by that act takes effect on August 1, 2017.

Cross References.

Computation of cost for purposes of unfair sales practices law, § 6-13-2 .

Exemption from general sales and use taxes, § 44-18-30 .

NOTES TO DECISIONS

In General.

The cigarette tax is not like the general sales tax in which the retailer is required to add a tax separately to the price of the article; thus, the vendor is not a tax collector, there is no separate debt due from the purchaser to the vendor for the tax, and the state has no lien on the cigarettes. In re Melino Cigar & Candy Co., 22 B.R. 703, 1982 Bankr. LEXIS 3447 (Bankr. D.R.I. 1982).

Guarantor’s payment on a surety bond for cigarette tax stamp liability did not constitute a priority administrative expense pursuant to bankruptcy provisions 11 U.S.C. §§ 503(b)1(B) and 507(a)(1). In re Melino Cigar & Candy Co., 22 B.R. 703, 1982 Bankr. LEXIS 3447 (Bankr. D.R.I. 1982).

Persons Liable for Unpaid Taxes.

Once stamps are affixed to cigarettes, whether those stamps were paid for or purchased on credit, the tax is deemed to be paid with respect to all subsequent purchasers of the goods in question, and the state’s claim for unpaid taxes is limited to the purchaser of the stamps. In re Melino Cigar & Candy Co., 22 B.R. 703, 1982 Bankr. LEXIS 3447 (Bankr. D.R.I. 1982).

44-20-12.1. Floor stock tax on cigarettes and stamps.

  1. Whenever used in this section, unless the context requires otherwise:
    1. “Cigarette” means and includes any cigarette as defined in § 44-20-1(2) ;
    2. “Person” means and includes each individual, firm, fiduciary, partnership, corporation, trust, or association, however formed.
  2. Each person engaging in the business of selling cigarettes at retail in this state shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2004. In calendar year 2004, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on July 1, 2004 and is computed at the rate of thirty-seven and one-half (37.5) mills for each cigarette on July 1, 2004.
  3. Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in business during any part of the calendar year 2004. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by § 44-20-28 . In calendar year 2004 the tax is measured by the number of stamps, as defined in § 44-20-1(13) , whether affixed or to be affixed, held by the distributor at 12:01 a.m. on July 1, 2004, and is computed at the rate of thirty-seven and one-half (37.5) mills per cigarette in the package to which the stamps are affixed or to be affixed.
  4. Each person subject to the payment of the tax imposed by this section shall, on or before July 16, 2004, file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes or stamps in that person’s possession in this state at 12:01 a.m. on July 1, 2004, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.
  5. The tax administrator may prescribe rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

History of Section. P.L. 1989, art. 17, § 2; P.L. 1993, ch. 138, art. 64, § 1; P.L. 1994, ch. 70, art. 13, § 1; P.L. 1995, ch. 370, art. 20, § 1; P.L. 1997, ch. 30, art. 12, § 1; P.L. 2001, ch. 77, art. 7, § 5; P.L. 2002, ch. 65, art. 16, § 11; P.L. 2003, ch. 376, art. 7, § 6; P.L. 2004, ch. 595, art. 3, § 1.

44-20-12.2. Prohibited acts — Penalty.

  1. No person or other legal entity shall sell or distribute in the state; acquire, hold, own, possess, or transport for sale or distribution in this state; or import, or cause to be imported, into the state for sale or distribution in this state; nor shall tax stamps be affixed to any cigarette package:
    1. That bears any label or notice prescribed by the United States Department of Treasury to identify cigarettes exempt from tax by the United States pursuant to section 5704 of title 26 of the United States Code, 26 U.S.C. § 5704(b) (concerning cigarettes intended for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States), or for consumption beyond the jurisdiction of the internal revenue laws of the United States, including any notice or label described in section 44.185 of title 27 of the Code of Federal Regulations, 27 C.F.R. § 44.185;
    2. That is not labeled in conformity with the provisions of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1331 et seq., or any other federal requirement for the placement of labels, warnings, and other information applicable to cigarette packages intended for domestic consumption;
    3. The packaging of which has been modified or altered by a person other than the original manufacturer of the cigarettes, including by the placement of a sticker to cover information on the package. For purposes of this subsection, a cigarette package shall not be construed to have been modified or altered by a person other than the manufacturer if the most recent modification to, or alteration of, the package was by the manufacturer or by a person authorized by the manufacturer;
    4. Imported into the United States in violation of 26 U.S.C. § 5754 or any other federal law, or implementing federal regulations;
    5. That the person otherwise knows, or has reason to know, the manufacturer did not intend to be sold, distributed, or used in the United States; or
    6. That has not been submitted to the secretary of the U.S. Department of Health and Human Services the list or lists of the ingredients added to tobacco in the manufacture of those cigarettes required by the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1335a.
  2. The tax administrator is authorized to obtain and exchange information with the United States Customs Service for the purpose of enforcing this section.
  3. Any person who or that affixes or distributes a tax stamp in violation of this section shall be fined not more than ten thousand dollars ($10,000) for the first offense, and for each subsequent offense shall be fined not more than twenty thousand dollars ($20,000), or be imprisoned not more than five (5) years, or be both fined and imprisoned.
  4. Any cigarettes found in violation of this section shall be declared to be contraband goods and may be seized by the tax administrator, or his or her agents, or by any sheriff, or his or her deputy, or any police officer, without a warrant. The tax administrator may promulgate rules and regulations for the destruction of contraband goods pursuant to this section, including the administrator’s right to allow the true holder of the trademark rights in a cigarette brand to inspect contraband cigarettes prior to their destruction.
  5. The prohibitions of this section do not apply to:
    1. Tobacco products that are allowed to be imported or brought into the United States free of tax and duty under subsection IV of chapter 98 of the harmonized tariff schedule of the United States (see 19 U.S.C. § 1202); or
    2. Tobacco products in excess of the amounts described in subdivision (1) of this subsection if the excess amounts are voluntarily abandoned to the tax administrator at the time of entry, but only if the tobacco products were imported or brought into the United States for personal use and not with intent to defraud the United States or any state.
  6. If any part or provision of this section, or the application of any part to any person or circumstance is held invalid, the remainder of the section, including the application of that part or provision to other persons or circumstances, shall not be affected by that invalidity and shall continue in full force and effect. To this end, the provisions of this section are severable.

History of Section. P.L. 2000, ch. 160, § 1; P.L. 2000, ch. 377, § 1; P.L. 2005, ch. 410, § 32; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2016, ch. 512, art. 1, § 32.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-12.3. Floor stock tax on cigarettes and stamps.

  1. Whenever used in this section, unless the context requires otherwise:
    1. “Cigarette” means and includes any cigarette as defined in § 44-20-1(2) ;
    2. “Person” means and includes each individual, firm, fiduciary, partnership, corporation, trust, or association, however formed.
  2. Each person engaging in the business of selling cigarettes at retail in this state shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2009. In calendar year 2009, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on April 10, 2009 and is computed at the rate of fifty (50.0) mills for each cigarette on April 10, 2009.
  3. Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in business during any part of the calendar year 2009. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by § 44-20-28 . In calendar year 2009 the tax is measured by the number of stamps, as defined in § 44-20-1(13) , whether affixed or to be affixed, held by the distributor at 12:01 a.m. on April 10, 2009, and is computed at the rate of fifty (50.0) mills per cigarette in the package to which the stamps are affixed or to be affixed.
  4. Each person subject to the payment of the tax imposed by this section shall, on or before April 20, 2009, file a return with the tax administrator on forms furnished by him or her, under oath or certified under the penalties of perjury, showing the amount of cigarettes or stamps in that person’s possession in this state at 12:01 a.m. on April 10, 2009, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.
  5. The tax administrator may promulgate rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

History of Section. P.L. 2009, ch. 5, art. 9, § 7.

44-20-12.4. Floor stock tax on cigarettes and stamps.

  1. Whenever used in this section, unless the context requires otherwise:
    1. “Cigarette” means and includes any cigarette as defined in § 44-20-1(2) ;
    2. “Person” means and includes each individual, firm, fiduciary, partnership, corporation, trust, or association, however formed.
  2. Each person engaging in the business of selling cigarettes at retail in this state shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2012. In calendar year 2012, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on July 1, 2012, and is computed at the rate of two (2.0) mills for each cigarette on July 1, 2012.
  3. Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in business during any part of the calendar year 2012. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by § 44-20-28 . In calendar year 2012 the tax is measured by the number of stamps, as defined in § 44-20-1(13) , whether affixed or to be affixed, held by the distributor at 12:01 a.m. on July 1, 2012, and is computed at the rate of two (2.0) mills per cigarette in the package to which the stamps are affixed or to be affixed.
  4. Each person subject to the payment of the tax imposed by this section shall, on or before July 10, 2012, file a return with the tax administrator on forms furnished by him or her, under oath or certified under the penalties of perjury, showing the amount of cigarettes or stamps in that person’s possession in this state at 12:01 a.m. on July 1, 2012, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.
  5. The tax administrator may promulgate rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

History of Section. P.L. 2012, ch. 241, art. 21, § 7.

44-20-12.5. Floor stock tax on cigarettes and stamps.

  1. Whenever used in this section, unless the context requires otherwise:
    1. “Cigarette” means any cigarette as defined in § 44-20-1(2) ;
    2. “Person” means each individual, firm, fiduciary, partnership, corporation, trust, or association, however formed.
  2. Each person engaging in the business of selling cigarettes at retail in this state shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2015. In calendar year 2015, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on August 1, 2015, and is computed at the rate of twelve and one half (12.5) mills for each cigarette on August 1, 2015.
  3. Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2015. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by § 44-20-28 . In calendar year 2015 the tax is measured by the number of stamps, as defined in § 44-20-1(13) , whether affixed or to be affixed, held by the distributor at 12:01 a.m. on August 1, 2015, and is computed at the rate of twelve and one half (12.5) mills per cigarette in the package to which the stamps are affixed or to be affixed.
  4. Each person subject to the payment of the tax imposed by this section shall, on or before August 15, 2015, file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes and under subsection (b) above the number of stamps under subsection (c) above, in that person’s possession in this state at 12:01 a.m. on August 1, 2015, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.
  5. The tax administrator may prescribe rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

History of Section. P.L. 2015, ch. 141, art. 11, § 11.

Effective Dates.

P.L. 2015, ch. 141, art. 11, § 11 provides that this section takes effect on August 1, 2015.

44-20-12.6. Floor stock tax on cigarettes and stamps.

  1. Each person engaging in the business of selling cigarettes at retail in this state shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2017. In calendar year 2017, the tax shall be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on August 1, 2017, and is computed at the rate of twenty-five (25.0) mills for each cigarette on August 1, 2017.
  2. Each distributor licensed to do business in this state pursuant to this chapter shall pay a tax or excise to the state for the privilege of engaging in that business during any part of the calendar year 2017. The tax is measured by the number of stamps, whether affixed or to be affixed to packages of cigarettes, as required by § 44-20-28 . In calendar year 2017 the tax is measured by the number of stamps, whether affixed or to be affixed, held by the distributor at 12:01 a.m. on August 1, 2017, and is computed at the rate of twenty-five (25.0) mills per cigarette in the package to which the stamps are affixed or to be affixed.
  3. Each person subject to the payment of the tax imposed by this section shall, on or before August 15, 2017, file a return, under oath or certified under the penalties of perjury, with the tax administrator on forms furnished by him or her, showing the amount of cigarettes and the number of stamps in that person’s possession in this state at 12:01 a.m. on August 1, 2017, as described in this section above, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the tax administrator.
  4. The tax administrator may prescribe rules and regulations, not inconsistent with law, with regard to the assessment and collection of the tax imposed by this section.

History of Section. P.L. 2017, ch. 302, art. 8, § 13.

Effective Dates.

P.L. 2017, ch. 302, art. 8, § 20, provides that this section takes effect on August 1, 2017.

44-20-13. Tax imposed on unstamped cigarettes.

A tax is imposed at the rate of two hundred twelve and one-half (212.5) mills for each cigarette upon the storage or use within this state of any cigarettes not stamped in accordance with the provisions of this chapter in the possession of any consumer within this state.

History of Section. P.L. 1948, ch. 2092, § 2; G.L. 1956, § 44-20-13 ; P.L. 1958, ch. 17, art. 4, § 1; P.L. 1960, ch. 77, art. 1, § 1; P.L. 1964, ch. 242, art. 4, § 1; P.L. 1968, ch. 263, art. 8, § 5; P.L. 1975, ch. 260, art. 6, § 1; P.L. 1978, ch. 167, § 3; P.L. 1982, ch. 9, art. 5, § 10; P.L. 1987, ch. 176, § 1; P.L. 1988, ch. 129, art. 13, § 1; P.L. 1989, ch. 126, art. 17, § 1; P.L. 1993, ch. 138, art. 64, § 1; P.L. 1994, ch. 70, art. 13, § 1; P.L. 1995, ch. 370, art. 20, § 1; P.L. 1997, ch. 30, art. 12, § 1; P.L. 2001, ch. 77, art. 7, § 5; P.L. 2002, ch. 65, art. 16, § 11; P.L. 2003, ch. 376, art. 7, § 6; P.L. 2004, ch. 595, art. 3, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2009, ch. 5, art. 9, § 6; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2015, ch. 141, art. 11, § 10; P.L. 2017, ch. 302, art. 8, § 12.

Effective Dates.

P.L. 2015, ch. 141, art. 11, § 10 provides that the amendment to this section by that act takes effect on August 1, 2015.

P.L. 2017, ch. 302, art. 8, § 20, provides that the amendment to this section by that act takes effect on August 1, 2017.

44-20-13.1. Repealed.

History of Section. G.L. 1956, § 44-20-13.1 ; P.L. 1985, ch. 402, § 2; Repealed by P.L. 1986, ch. 287, art. 28, § 2, effective June 24, 1986.

Compiler’s Notes.

Former § 44-20-13.1 concerned an additional tax on cigarettes.

44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, and pipe tobacco products.

  1. A tax is imposed on all other tobacco products, smokeless tobacco, cigars, and pipe tobacco products sold, or held for sale in the state by any person, the payment of the tax to be accomplished according to a mechanism established by the administrator, division of taxation, department of revenue. The tax imposed by this section shall be as follows:
    1. At the rate of eighty percent (80%) of the wholesale cost of other tobacco products, cigars, pipe tobacco products, and smokeless tobacco other than snuff.
    2. Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of cigars, the tax shall not exceed fifty cents ($.50) for each cigar.
    3. At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight as listed by the manufacturer; provided, however, that any product listed by the manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2 ounces.
  2. Any dealer having in his or her possession any other tobacco products with respect to the storage or use of which a tax is imposed by this section shall, within five (5) days after coming into possession of the other tobacco products in this state, file a return with the tax administrator in a form prescribed by the tax administrator. The return shall be accompanied by a payment of the amount of the tax shown on the form to be due. Records required under this section shall be preserved on the premises described in the relevant license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the administrator.
  3. The proceeds collected are paid into the general fund.

History of Section. P.L. 1992, ch. 133, art. 102, § 3; P.L. 1994, ch. 70, art. 34, § 1; P.L. 2001, ch. 77, art. 7, § 5; P.L. 2005, ch. 117, art. 16, § 6; P.L. 2006, ch. 246, art. 30, §§ 15, 16; P.L. 2007, ch. 340, § 1; P.L. 2008, ch. 104, § 1; P.L. 2009, ch. 5, art. 9, § 8; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2017, ch. 302, art. 8, § 15; P.L. 2018, ch. 47, art. 4, § 12.

Compiler’s Notes.

P.L. 2018, ch. 47, art. 4, § 12 made no change to this section.

44-20-13.3, 44-20-13.4. Repealed.

History of Section. P.L. 1992, ch. 133, art. 102, § 3; Repealed by P.L. 1994, ch. 70, art. 34, § 2, and by P.L. 1994, ch. 70, art. 35, § 11, effective July 1, 1994.

Compiler’s Notes.

Former §§ 44-20-13.3 and 44-20-13.4 concerned restricted receipt account for fees and appropriations from the restricted receipt account.

44-20-13.5. Violations as to reports and records.

Any person who violates any provisions of § 44-20-13.2 is subject to the provisions of § 44-20-43 .

History of Section. P.L. 1992, ch. 133, art. 102, § 3.

44-20-14. Return and payment of use tax.

Any consumer having in his or her possession any cigarettes with respect to the storage or use of which a tax is imposed in § 44-20-13 shall, within twenty-four (24) hours after coming into possession of the cigarettes in this state, file a return with the tax administrator in a form prescribed by the tax administrator. The return shall be accompanied by a payment of the amount of the tax shown on the form to be due.

History of Section. P.L. 1948, ch. 2092, § 3; G.L. 1956, § 44-20-14 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-15. Confiscation of contraband cigarettes, other tobacco products, and other property.

  1. All cigarettes and other tobacco products that are held for sale or distribution within the borders of this state in violation of the requirements of this chapter are declared to be contraband goods and may be seized by the tax administrator or his or her agents, or employees, or by any sheriff, or his or her deputy, or any police officer when directed by the tax administrator to do so, without a warrant. All contraband goods seized by the state under this chapter shall be destroyed.
  2. All fixtures, equipment, and all other materials and personal property on the premises of any distributor or dealer who, with the intent to defraud the state, fails to keep or make any record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report, or inventory required by this chapter; refuses to pay any tax imposed by this chapter; or attempts in any manner to evade or defeat the requirements of this chapter shall be forfeited to the state.

History of Section. P.L. 1948, ch. 2092, § 4; G.L. 1956, § 44-20-15 ; P.L. 1991, ch. 6, art. 27, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2017, ch. 302, art. 8, § 15.

44-20-16. Exemptions from use tax.

The provisions of §§ 44-20-13 44-20-17 do not apply to cigarettes imported into the state on which the tax imposed by § 44-20-12 has been paid, and the provisions of §§ 44-20-13 44-20-17 do not apply to the use or storage of cigarettes to an amount not exceeding ten (10) packages as ordinarily defined by the practice of the trade, which have been brought into this state on the person.

History of Section. P.L. 1948, ch. 2092, § 5; G.L. 1956, § 44-20-16 ; P.L. 1968, ch. 263, art. 8, § 6; P.L. 1978, ch. 167, § 3; P.L. 1991, ch. 6, art. 27, § 1.

44-20-16.1. Repealed.

History of Section. P.L. 1974, ch. 286, § 1; Repealed by P.L. 1978, ch. 167, § 2.

Compiler’s Notes.

Former § 44-20-16.1 concerned an exemption for cigars and other tobacco products.

44-20-17. Penalty for use tax violations.

Any person who or that violates the provisions of §§ 44-20-13 44-20-14 is guilty of a felony and shall for each offense be fined up to ten thousand dollars ($10,000), or be imprisoned not more than three (3) years, or be both fined and imprisoned.

History of Section. P.L. 1948, ch. 2092, § 6; G.L. 1956, § 44-20-17 ; P.L. 1972, ch. 155, art. 5, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2016, ch. 512, art. 1, § 32.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-18. Securing stamps.

The tax administrator shall secure stamps, of those designs, types, and denominations as the tax administrator prescribes, suitable to be affixed to packages of cigarettes as evidence of the payment of the tax imposed by § 44-20-12 . Each roll of stamps, or group of sheets, shall have a separate serial number, which shall be legible at the point of sale. The administrator shall keep records of which distributor purchases each roll or group of sheets identified by serial number. If the administrator permits distributors to purchase partial rolls or sheets, in no case may stamps bearing the same serial number be sold to more than one distributor. The remainder of the roll or sheet, if any, shall either be retained for later purchases by the same distributor or destroyed. The tax administrator is the custodian of the stamps and of the dies, plates, and other materials and things used in the manufacture of the stamps.

History of Section. P.L. 1939, ch. 663, § 7; impl. am. P.L. 1940, ch. 875, § 1; P.L. 1947, ch. 1887, art. 3, § 2; G.L. 1956, § 44-20-18 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

Collateral References.

Validity, construction, and application of state statutes forbidding possession, transportation, or sale of unstamped or unlicensed cigarettes or other tobacco products. 46 A.L.R.3d 1342.

44-20-19. Sales of stamps to distributors.

The tax administrator shall sell stamps only to licensed distributors at a discount. The distributor remits to the division of taxation ninety-eight and three-fourths percent (98.75%) of the face value of the stamps thereby receiving a discount of one and one-quarter percent (1.25%) of the face value of the stamps. The ninety-eight and three-fourths percent (98.75%) remitted to the tax administrator is paid over to the general revenue. The tax administrator may, in his or her discretion, permit a licensed distributor to pay for the stamps within thirty (30) days after the date of purchase; provided, that a bond satisfactory to the tax administrator in an amount not less than the sale price of the stamps has been filed with the tax administrator conditioned upon payment for the stamps. The tax administrator shall keep accurate records of all stamps sold to each distributor.

History of Section. P.L. 1939, ch. 663, § 7; P.L. 1947, ch. 1887, art. 3, § 2; G.L. 1956, § 44-20-19 ; P.L. 1958, ch. 17, art. 4, § 2; P.L. 1964, ch. 242, art. 4, § 1; P.L. 1968, ch. 263, art. 8, § 7; P.L. 1975, ch. 260, art. 6, § 1; P.L. 1991, ch. 6, art. 27, § 1; P.L. 1993, ch. 138, art. 85, § 2; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-20. Use of metering machine in lieu of stamps.

The tax administrator, if he or she determines that it is practicable to stamp by impression packages of cigarettes by means of a metering machine, may, in lieu of selling stamps under the provisions of § 44-20-19 , authorize any licensed distributor to use any metering machine approved by the administrator; provided, that such meter impressions shall contain a number or mark, legible at the point of sale, that is unique to the particular distributor; and provided, further, that the metering machine shall be sealed by the administrator before being used and shall be used in accordance with regulations prescribed by the administrator. The administrator shall keep records of which distributor is assigned which meter impression number. Any licensed distributor authorized by the tax administrator to affix stamps to packages by means of a metering machine shall make a prepayment, allowing for the discount, if any, provided for in § 44-20-19 , covering the amount of tax for which his or her meter register is set, or in the discretion of the tax administrator file with the tax administrator a bond in an amount and with a surety as the tax administrator may determine, conditioned upon the payment of the tax upon stamped cigarettes. The bond shall be in full force and effect for a period of one year and a day after the expiration of the bond, unless a certificate is issued by the tax administrator to the effect that all taxes due to the state have been paid. The tax administrator shall cause each metering machine approved by the tax administrator to be read and inspected at least once a month and, unless being used on a prepayment basis, shall determine at the time of each inspection the amount of tax due from the distributor using the machine after allowing for the discount, if any, provided for in § 44-20-19, which tax is due and payable upon demand of the tax administrator or his or her authorized agent.

History of Section. P.L. 1939, ch. 663, § 8; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-20 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-21. Transfer of stamps prohibited — Redemption of unused stamps.

No person shall sell or transfer any stamps under the provisions of this chapter. The tax administrator shall redeem any unused, uncancelled stamps presented in unbroken sheets or packages, under rules and regulations of the tax administrator, by any licensed distributor within six (6) months of the date of purchase, at a price equal to ninety-eight percent (98%) of their face value.

History of Section. P.L. 1939, ch. 663, § 9; P.L. 1941, ch. 1039, § 2; G.L. 1956, § 44-20-21 ; P.L. 1958, ch. 17, art. 4, § 3; P.L. 1968, ch. 263, art. 8, § 7; P.L. 1978, ch. 167, § 3; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-22. Reimbursement for mutilated and other stamps — Claims.

The distributor shall be reimbursed, at a price equal to ninety-eight and three-fourths percent (98.75%) of their face value, for stamps purchased by the distributor which, in the process of affixing to packages, have become torn, mutilated, or unfit for use, or which, after affixing, have become detached, or in cases of the withdrawal from the market in this state by a manufacturer, of cigarettes upon which stamps have been impressed, or in those cases that the tax administrator, with the approval of the attorney general, after proof satisfactory to the tax administrator, determines that the distributor ought equitably to be reimbursed. All claims for reimbursement shall be made under oath to the tax administrator upon forms to be obtained by the tax administrator, and contain the information and proof the tax administrator may require. Claims for reimbursement shall be paid by the general treasurer from the general fund, upon certification by the tax administrator and with approval of the controller.

History of Section. P.L. 1939, ch. 663, § 9; P.L. 1941, ch. 1039, § 2; G.L. 1956, § 44-20-22 ; P.L. 1958, ch. 17, art. 4, § 3; P.L. 1968, ch. 263, art. 8, § 7; P.L. 1975, ch. 260, art. 6, § 1; P.L. 1991, ch. 6, art. 27, § 1.

44-20-23. Payment of tax by manufacturer or shipper outside state.

When the tax administrator finds that the collection of the tax imposed by this chapter would be facilitated, the tax administrator may, in his or her discretion, authorize any person resident or located outside of this state or who ships cigarettes into this state for sale in this state, to obtain a distributor’s license pursuant to this chapter, whether or not the person has a place of business in this state, upon complying with the requirements of the tax administrator, to affix, or cause to be affixed, the stamps required by this chapter on behalf of the purchasers of those cigarettes who would be taxable, and the tax administrator may sell the stamps to persons as provided in § 44-20-19 or authorize the use of a machine by such distributors as provided in § 44-20-20 .

History of Section. P.L. 1939, ch. 663, § 10; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-23 ; P.L. 1968, ch. 263, art. 8, § 8; P.L. 1978, ch. 167, § 3; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-24. Affixing of stamps outside state by vending machine operator.

Any distributor who operates vending machines for cigarettes in this state, but who maintains his or her regular business establishment or headquarters outside of this state may, in accordance with the provisions of § 44-20-23 , be permitted to affix, or cause to be affixed, the stamps required by this chapter at that establishment or headquarters outside of this state.

History of Section. P.L. 1939, ch. 663, § 10; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-24 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-25. Bond of nonresident authorized to pay tax.

The tax administrator shall require a bond of a nonresident person, in a form, in an amount and with a surety that the tax administrator may determine, conditioned upon the payment of the tax and compliance with any other requirements the tax administrator may specify. The bond shall be in full force and effect for a period of one year and a day after the expiration of the bond, unless a certificate is issued by the tax administrator to the effect that all taxes due to the state have been paid.

History of Section. P.L. 1939, ch. 663, § 10; G.L. 1956, § 44-20-25 .

44-20-26. Agreement by nonresident to submit records — Attorney to receive process.

Any nonresident distributor who receives authorization and permission to affix stamps under §§ 44-20-23 and 44-20-24 shall, upon the request of the tax administrator submit his or her books, accounts, and records to examination during reasonable business hours by the tax administrator or his or her authorized agent. Each nonresident person, other than a foreign corporation complying with the provisions of chapter 1.2 of title 7 shall, in writing, appoint the secretary of state, or his or her successors in office, to be his or her attorney, that appointment to be made, acknowledged, and filed in the manner prescribed for foreign corporations engaging in business in this state. Service upon the attorney is sufficient service upon any nonresident person, whether a foreign corporation complying with the provisions of chapter 1.2 of title 7 or not, and may be made by leaving an attested copy of the process with the secretary of state or at his or her office. When legal process against any nonresident person is served upon the secretary of state, the secretary shall notify the nonresident person in the manner provided for notification of service of process in the case of foreign corporations under chapter 1.2 of title 7 and collect the fee specified in that chapter.

History of Section. P.L. 1939, ch. 663, § 10; G.L. 1956, § 44-20-26 ; P.L. 2005, ch. 36, § 33; P.L. 2005, ch. 72, § 33; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-27. Repealed.

History of Section. P.L. 1939, ch. 663, § 10; G.L. 1956, § 44-20-27 ; Repealed by P.L. 2007, ch. 246, § 1, and by P.L. 2007, ch. 250, § 1, effective October 1, 2007.

Compiler’s Notes.

Former § 44-20-27 concerned nonresident as licensed distributor.

44-20-28. Stamping by distributors required.

  1. Each distributor shall affix, or cause to be affixed, at the location for which his or her license is issued, except as provided in this chapter, in the manner the tax administrator may specify in regulations issued pursuant to this chapter, to each package of cigarettes sold or distributed by the distributor, stamps of the proper denominations. Those stamps may be affixed by a distributor at any time before the cigarettes are transferred out of his or her possession.
  2. Any person who is doing business as both a distributor and a dealer shall maintain separate areas for stamped and unstamped cigarettes.

History of Section. P.L. 1939, ch. 663, § 11; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-28 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-28.1. Noncompliance with tobacco manufacturer’s escrow fund — Penalties.

    1. A distributor may not affix, or cause to be affixed, stamps to individual packages of cigarettes to be sold or distributed in this state by a distributor licensed in this state if the attorney general has notified the distributor that the tobacco product manufacturer of those cigarettes has:
      1. Failed to become a participating manufacturer as defined in § 23-71-3(1) ; and
      2. Failed to create a qualified escrow fund and make the required deposits in the escrow fund pursuant to § 23-71-3(2)(i) for any cigarettes the distributor sold or distributed for that tobacco product manufacturer in this state.
    2. As used in this section, “tobacco product manufacturer” has the same meaning as that term is defined in § 23-71-2 .
  1. A distributor who violates this section is subject to suspension or revocation of its license pursuant to § 44-20-8 .

History of Section. P.L. 2002, ch. 59, § 1; P.L. 2002, ch. 65, art. 8, § 3; P.L. 2002, ch. 67, § 6.

44-20-29. Repealed.

History of Section. P.L. 1939, ch. 663, § 12; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-29 ; Repealed by P.L. 2007, ch. 246, § 1, and by P.L. 2007, ch. 250, § 1, effective October 1, 2007.

Compiler’s Notes.

Former § 44-20-29 concerned stamping by dealers.

44-20-30. Manner of affixing stamps.

Stamps shall be affixed by a licensed distributor, and shall be affixed to the box or other container from which or in which cigarettes taxed by this chapter are normally sold at retail. The stamps are affixed in a manner that their removal will require continued application of water or steam. The required amount of stamps is affixed to each individual package or container. The tax administrator has power to determine how any particular brand, type, or kind of cigarettes is stamped, if any question arises under this chapter concerning that stamping.

History of Section. P.L. 1939, ch. 663, § 13; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-30 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-31. Packages in which cigarettes sold — Sample packages.

Whenever cigarettes are sold or offered for sale to consumers, the cigarettes must be sold or offered for sale in individual packages, boxes, or containers bearing stamps evidencing the payment of the tax provided in this chapter.

History of Section. P.L. 1939, ch. 663, § 14; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-31 ; P.L. 1996, ch. 321, § 3.

44-20-32. Cancellation of used stamps.

The administrator may require the cancellation, by a method or methods that he or she prescribes, of stamps affixed by a distributor to any or all packages of cigarettes.

History of Section. P.L. 1939, ch. 663, § 15; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-32 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-33. Sale of contraband cigarettes or contraband other tobacco products prohibited.

No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or possess with intent to sell any contraband other tobacco products or contraband cigarettes, the packages or boxes of which do not bear stamps evidencing the payment of the tax imposed by this chapter.

History of Section. P.L. 1939, ch. 663, § 16; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-33 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2017, ch. 302, art. 8, § 15.

44-20-33.1. Transportation of unstamped cigarettes.

  1. Any person who ships unstamped cigarette packages in or into this state other than to a licensed manufacturer, importer or distributor shall first file with the administrator notice of such shipment. This paragraph shall not apply to any common or contract carrier that is transporting cigarettes through this state to another location under a proper bill of lading or freight bill, which states the quantity, source, and destination of such cigarettes.
  2. Any person transporting unstamped cigarette packages into or within this state shall carry, in the vehicle used to convey the shipment, invoices or equivalent documentation of the shipment for all cigarettes in the shipment. The invoices or documentation shall show the true name and address of the consignor or seller, the true name and address of the consignee or purchaser, and the quantity by brand of the cigarettes so transported.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2.

44-20-34. Display of stamps in vending machines.

The tax administrator may, in his or her discretion, prohibit the sale of cigarettes through any vending machine unless that vending machine is so constructed as to permit the tax administrator’s agents to readily determine whether cigarettes being sold through the machine have the necessary tax stamps properly affixed to the packages; any machine used in violation of this prohibition by the tax administrator is presumed to be used for the sale of unstamped cigarettes.

History of Section. P.L. 1939, ch. 663, § 16; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-34 .

44-20-35. Penalties for violations as to unstamped contraband cigarettes or contraband other tobacco products.

  1. Any person who violates any provision of §§ 44-20-33 and 44-20-34 shall be fined or imprisoned, or both fined and imprisoned, as follows:
    1. For a first offense in a twenty-four-month (24) period, fined not more than ten (10) times the retail value of the contraband cigarettes, and/or contraband other tobacco products, or be imprisoned not more than one (1) year, or be both fined and imprisoned;
    2. For a second or subsequent offense in a twenty-four-month (24) period, fined not more than twenty-five (25) times the retail value of the contraband cigarettes, and/or contraband other tobacco products, or be imprisoned not more than three (3) years, or be both fined and imprisoned.
  2. When determining the amount of a fine sought or imposed under this section, evidence of mitigating factors, including history, severity, and intent shall be considered.

History of Section. P.L. 1939, ch. 663, § 16; G.L. 1956, § 44-20-35 ; P.L. 1972, ch. 155, art. 5, § 1; P.L. 1978, ch. 140, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2017, ch. 302, art. 8, § 15.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-36. Possession of unstamped cigarettes.

Except as provided in §§ 44-20-14 , 44-20-16 and 44-20-33.1 , no person, other than a licensed manufacturer or importer, or a licensed distributor that receives unstamped cigarette packages directly from a licensed cigarette manufacturer or importer and holds such cigarettes in accordance with subsection 44-20-28(a) , shall purchase and hold an unstamped cigarette package.

History of Section. P.L. 1939, ch. 663, § 17; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-36 ; P.L. 1972, ch. 155, art. 5, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-37. Seizure and destruction of unstamped cigarettes.

Any cigarettes found at any place in this state without stamps affixed as required by this chapter are declared to be contraband goods and may be seized by the tax administrator, his or her agents, or employees, or by any deputy sheriff, or police officer when directed by the tax administrator to do so, without a warrant. Any cigarettes seized under the provisions of this chapter shall be destroyed. The seizure and/or destruction of any cigarettes under the provisions of this section does not relieve any person from a fine or other penalty for violation of this chapter.

History of Section. P.L. 1939, ch. 663, § 18; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-37 ; P.L. 1991, ch. 6, art. 27, § 1; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2012, ch. 324, § 77.

NOTES TO DECISIONS

Entry Onto Settlement Lands.

State of Rhode Island may have the power to enter onto the settlement lands and seize unstamped cigarettes as contraband, from the Indian distributor, provided that the action does not violate the Narragansett Tribe’s sovereign immunity. Narragansett Indian Tribe v. Rhode Island, 407 F.3d 450, 2005 U.S. App. LEXIS 8323 (1st Cir.), vacated, 415 F.3d 134, 2005 U.S. App. LEXIS 13573 (1st Cir. 2005).

State violated the Narragansett Tribe’s sovereign rights when it enforced the criminal provisions of its cigarette tax laws by executing a search warrant against the Tribal government’s smoke shop, forcibly entering the shop and seizing the Tribe’s stock of unstamped cigarettes, and arresting tribal officials who were acting in their official capacity. Narragansett Indian Tribe v. Rhode Island, 407 F.3d 450, 2005 U.S. App. LEXIS 8323 (1st Cir.), vacated, 415 F.3d 134, 2005 U.S. App. LEXIS 13573 (1st Cir. 2005).

44-20-38. Hearing on cigarettes seized.

When any cigarettes are seized under the provisions of § 44-20-37 , any person claiming an interest in the cigarettes may make written application to the tax administrator for a hearing, stating his or her interest in the cigarettes and his or her reasons why they should not be forfeited. Further proceedings on the application for a hearing are taken as provided in §§ 44-20-47 and 44-20-48 . No destruction of any cigarettes under the provisions of § 44-20-37 shall be carried out while an application for a hearing is pending before the tax administrator, but the pendency of an appeal under the provisions of § 44-20-48 shall not prevent the destruction unless the appellant posts a satisfactory bond, with surety, in an amount double the estimated value of the cigarettes, conditioned upon the successful termination of the appeal.

History of Section. P.L. 1939, ch. 663, § 19; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-38 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-39. Forgery and counterfeiting — Tampering with meters — Reuse of stamps or containers.

Any person who or that fraudulently makes or utters or forges or counterfeits any stamp, disc, license, or marker, prescribed by the tax administrator under the provisions of this chapter, or who causes or procures this to be done; or who willfully utters, publishes, passes or renders as true, any false, altered, forged, or counterfeited stamp, license, disc, or marker; or who knowingly possesses more than twenty (20) packs of cigarettes containing any false, altered, forged, or counterfeited stamp, license, disc, or marker; or who tampers with, or causes to be tampered with, any metering machine authorized to be used under the provisions of this chapter; or who removes or prepares any stamp with intent to use, or cause that stamp to be used, after it has already been used; or who buys, sells, offers for sale, or gives away any washed or removed or restored stamp to any person; or who has in his or her possession any washed or restored or removed or altered stamp that was removed from the article to which it was affixed, or who reuses or refills with cigarettes any package, box, or container required to be stamped under this chapter from which cigarettes have been removed, is deemed guilty of a felony, and, upon conviction, shall be fined one hundred thousand dollars ($100,000), or be imprisoned for not more than fifteen (15) years, or both.

History of Section. P.L. 1939, ch. 663, § 20; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-39 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2016, ch. 512, art. 1, § 32.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-40. Records — Investigation and inspection of books, premises and stock.

  1. Each manufacturer, importer, distributor and dealer shall maintain copies of invoices or equivalent documentation for, or itemized for, each of its facilities for each transaction (other than a retail transaction with a consumer) involving the sale, purchase, transfer, consignment, or receipt of cigarettes. The invoices or documentation shall show the name and address of the other party and the quantity by brand style of the cigarettes involved in the transaction. All records and invoices required under this section must be safely preserved for three (3) years in a manner to insure permanency and accessibility for inspection by the administrator or his or her authorized agents.
  2. Records required under this section shall be preserved on the premises described in the relevant license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the administrator. With the administrator’s permission, persons with multiple places of business may retain centralized records, but shall transmit duplicates of the invoices or the equivalent documentation to each place of business within twenty-four (24) hours upon the request of the administrator or his or her designee.
  3. The administrator or his or her authorized agents may examine the books, papers, reports and records of any manufacturer, importer, distributor or dealer in this state for the purpose of determining whether taxes imposed by this chapter have been fully paid, and may investigate the stock of cigarettes in or upon any premises for the purpose of determining whether the provisions of this chapter are being obeyed. The administrator in his or her sole discretion may share the records and reports required by such sections with law enforcement officials of the federal government or other states.

History of Section. P.L. 1939, ch. 663, § 21; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-40 ; P.L. 1968, ch. 263, art. 8, § 9; P.L. 1978, ch. 167, § 3; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3.

44-20-40.1. Inspections.

  1. The administrator or his or her duly authorized agent shall have authority to enter and inspect, without a warrant during normal business hours, and with a warrant during nonbusiness hours, the facilities and records of any manufacturer, importer, distributor, or dealer.
  2. In any case where the administrator or his or her duly authorized agent, or any police officer of this state, has knowledge or reasonable grounds to believe that any vehicle is transporting cigarettes or other tobacco products in violation of this chapter, the administrator, such agent, or such police officer, is authorized to stop such vehicle and to inspect the same for contraband cigarettes or other tobacco products.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2; P.L. 2017, ch. 302, art. 8, § 15.

44-20-41. Monthly reports of distributors and dealers.

Every distributor and every dealer who comes into possession of unstamped cigarettes must file with the tax administrator on the tenth (10th) day of each month a report for the preceding calendar month sworn to and executed by the distributor or dealer or his or her authorized agent or representative in which the distributor or dealer furnishes any information that the tax administrator requires concerning cigarettes and tax stamps. These reports shall, when required by the tax administrator, contain any or all of the following information: (1) the amount of unstamped and stamped cigarettes on hand at the beginning of the month; (2) the amount of unstamped and stamped cigarettes purchased or received during the month; (3) the amount of unstamped and stamped cigarettes returned from customers or received from any other sources during the month; (4) the amount of unstamped and stamped cigarettes sold, used, lost, stolen, returned to the factory, or otherwise disposed of during the month; and (5) the amount of unstamped and stamped cigarettes on hand at the end of the month. This information may be required separately by brands, types, sizes, and kinds of cigarettes. If required by the tax administrator, this report must show separately the amount of cigarettes sold or distributed in intrastate commerce and the amount sold or distributed in interstate commerce. If required by the tax administrator, this report must also show the number, types, denominations, and face value of unused stamps on hand at the beginning of the month covered by the report; the number, types, denominations, and face value of stamps purchased and received; the number, types, denominations, and face value of stamps used, lost, stolen, exchanged, returned to the tax administrator, and disposed of; and the number, types, denominations, and face value of stamps on hand at the end of the month covered by the report. This report must also contain any other information, which the administrator prescribes. The administrator shall furnish forms to distributors and dealers required to report under this chapter, but failure to obtain those forms is no excuse for the failure to file a report containing all the information that is required to be reported.

History of Section. P.L. 1939, ch. 663, § 21; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-41 ; P.L. 1968, ch. 263, art. 8, § 10; P.L. 1978, ch. 167, § 3.

44-20-42. Reports and records of carriers, bailees and warehouse persons.

The tax administrator may, in his or her discretion, require reports from any common or contract carrier who transports cigarettes to any point or points within the state, and from any bonded warehouseperson or bailee who has in his or her possession any cigarettes, these reports to contain any information concerning shipments of cigarettes that the tax administrator determines. All common and contract carriers, bailees, and warehousepersons shall permit the examination by the tax administrator or his or her authorized agent of any records relating to the shipment or receipt of cigarettes.

History of Section. P.L. 1939, ch. 663, § 22; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-42 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3.

44-20-43. Violations as to reports and records.

Any person who fails to submit the reports required in this chapter or by the tax administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who refuses to permit the tax administrator or his or her authorized agent to examine any books, records, papers, or stocks of cigarettes or other tobacco products as provided in this chapter, or who refuses to supply the tax administrator with any other information which the tax administrator requests for the reasonable and proper enforcement of the provisions of this chapter, shall be guilty of a misdemeanor punishable by imprisonment up to one (1) year, or a fine of not more than five thousand dollars ($5,000), or both, for the first offense, and for each subsequent offense, shall be fined not more than ten thousand dollars ($10,000), or be imprisoned not more than five (5) years, or both.

History of Section. P.L. 1939, ch. 663, § 23, impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-43 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1986, ch. 103, § 7; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2017, ch. 302, art. 8, § 15.

44-20-44. Declarations under penalty of perjury.

The oath or affirmation required by the provisions of this chapter as to any report or written statement is not required if the report or statement to be sworn to contains or is verified by a written declaration that it is made under the penalties of perjury; and if any report or statement is willfully false, any person who signs and issues any statement containing or verified by this declaration is guilty of perjury.

History of Section. P.L. 1939, ch. 663, § 24; G.L. 1956, § 44-20-44 .

Cross References.

Perjury, penalty, § 11-33-2 .

44-20-45. Importation of cigarettes and/or other tobacco products with intent to evade tax.

Any person, firm, corporation, club, or association of persons who or that orders any cigarettes and/or other tobacco products for another; or pools orders for cigarettes and/or other tobacco products from any persons; or conspires with others for pooling orders; or receives in this state any shipment of contraband cigarettes and/or contraband other tobacco products on which the tax imposed by this chapter has not been paid, for the purpose and intention of violating the provisions of this chapter or to avoid payment of the tax imposed in this chapter, is guilty of a felony and shall be fined one hundred thousand dollars ($100,000) or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not more than fifteen (15) years, or both.

History of Section. P.L. 1939, ch. 663, § 25; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-45 ; P.L. 1968, ch. 263, art. 8, § 11; P.L. 1978, ch. 167, § 3; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2012, ch. 241, art. 21, § 6; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2016, ch. 512, art. 1, § 32; P.L. 2017, ch. 302, art. 8, § 15.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-46. Witnesses before tax administrator.

  1. The tax administrator and any agent of the tax administrator authorized to conduct any inquiry, investigation, or hearing under this chapter has power to administer oaths and take testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by the tax administrator, the tax administrator or his or her agent may subpoena witnesses and require the production of books, papers, and documents pertinent to the inquiry. No witness under subpoena authorized to be issued by the provisions of this chapter is excused from testifying or from producing books or papers on the ground that the testimony or the production of the books or other documentary evidence would tend to incriminate the witness, but the testimony or the evidence of the books or papers so produced shall not be used in any criminal proceedings against the witness.
  2. If any person disobeys this process or, having appeared in obedience to it, refuses to answer any pertinent question put to the person by the tax administrator or his or her authorized agent or to produce any books and papers pursuant to the process, the tax administrator or the agent may apply to the sixth (6th) division of the district court, stating the disobedience to process or refusal to answer, and the court shall cite the person to appear before the court to answer that question or to produce those books and papers, and, upon his or her refusal so to do, shall commit the person to the adult correctional institutions, for a period not to exceed sixty (60) days. Notwithstanding the serving of the term of this commitment by any person, the tax administrator may proceed in all respects with this inquiry and examination as if the witness had not previously been called upon to testify.
  3. Officers who serve subpoenas issued by the tax administrator or under his or her authority and witnesses subpoenaed by the tax administrator under this section shall receive fees and compensation at the same rates as officers and witnesses in the district courts of the state, to be paid from the proper appropriation for the administration of this chapter.
  4. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the rules of appellate procedure of the supreme court.

History of Section. P.L. 1939, ch. 663, § 26; impl. am. P.L. 1956, ch. 3721, § 1; G.L. 1956, § 44-20-46 ; P.L. 1976, ch. 140, § 28.

44-20-47. Hearings by tax administrator.

Any person aggrieved by any action under this chapter of the tax administrator or his or her authorized agent for which a hearing is not elsewhere provided may apply to the tax administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons why the hearing should be granted and the manner of relief sought. The tax administrator shall notify the applicant of the time and place fixed for the hearing. After the hearing, the tax administrator may make the order in the premises as may appear to the tax administrator just and lawful and shall furnish a copy of the order to the applicant. The tax administrator may, by notice in writing, at any time, order a hearing on his or her own initiative and require the taxpayer or any other individual whom the tax administrator believes to be in possession of information concerning any manufacture, importation, or sale of cigarettes to appear before the tax administrator or his or her authorized agent with any specific books of account, papers, or other documents, for examination relative to the hearing.

History of Section. P.L. 1939, ch. 663, § 27; impl. am. P.L. 1940, ch. 875, § 1; G.L. 1956, § 44-20-47 ; P.L. 1968, ch. 263, art. 8, § 2; P.L. 1978, ch. 167, § 3; P.L. 1993, ch. 459, § 8.

Cross References.

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

44-20-48. Appeal to district court.

Any person aggrieved by any decision of the tax administrator under the provisions of this chapter may appeal the decision within thirty (30) days thereafter to the sixth (6th) division of the district court. The appellant shall at the time of taking an appeal file with the court a bond of recognizance to the state, with surety to prosecute the appeal to effect and to comply with the orders and decrees of the court in the premises. These appeals are preferred cases, to be heard, unless cause appears to the contrary, in priority to other cases. The court may grant relief as may be equitable. If the court determines that the appeal was taken without probable cause, the court may tax double or triple costs, as the case demands; and, upon all those appeals, which may be denied, costs may be taxed against the appellant at the discretion of the court. In no case shall costs be taxed against the state, its officers, or agents. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .

History of Section. P.L. 1939, ch. 663, § 28; G.L. 1956, § 44-20-48 ; P.L. 1976, ch. 140, § 28; P.L. 1982, ch. 328, § 4.

Cross References.

Appeals under Administrative Procedures Act, § 42-35-15 et seq.

44-20-49. Disposition of revenue — Payment of refunds.

All moneys received by the tax administrator under the provisions of this chapter, except for the funds allocated to the tax administrator pursuant to § 44-20-19 , are paid over to the general treasurer. Whenever the tax administrator determines that any person is entitled to a refund of any moneys paid by that person under the provisions of this chapter, or whenever a court of competent jurisdiction orders a refund of any paid moneys, the general treasurer shall, upon certification by the tax administrator and with the approval of the controller, pay the refunds from any moneys in the treasury not appropriated without any further act or resolution making appropriation for any moneys.

History of Section. P.L. 1939, ch. 663, § 29; G.L. 1956, § 44-20-49 ; P.L. 1968, ch. 263, art. 8, § 12; P.L. 1978, ch. 167, § 3; P.L. 1985, ch. 181, art. 58, § 1; P.L. 1985, ch. 402, § 3; P.L. 1986, ch. 287, art. 28, § 1; P.L. 1991, ch. 6, art. 27, § 1.

44-20-50. Administration — Forms — Rules and regulations.

The administration of this chapter is vested in the tax administrator and all forms necessary and proper for the enforcement of this chapter are prescribed and may be furnished by the tax administrator. The tax administrator may prescribe regulations and rulings, not inconsistent with law, to carry into effect the provisions of this chapter, which regulations and rulings, when reasonably designed to carry out the intent and purpose of this chapter, are prima facie evidence of its proper interpretation.

History of Section. P.L. 1939, ch. 663, § 30; G.L. 1956, § 44-20-50 .

44-20-51. Penalty for violations generally.

  1. Except as otherwise provided in this chapter, any person who or that violates any provision of this chapter shall be fined or imprisoned, or both fined and imprisoned, as follows:
    1. For a first offense in a twenty-four-month (24) period, fined not more than one thousand dollars ($1,000);
    2. For a second or subsequent offense in a twenty-four-month (24) period, fined not more than five thousand dollars ($5,000) or imprisoned for not more than three (3) years, or both fined and imprisoned.
  2. Whoever knowingly violates any provision of this chapter, or of regulations prescribed thereunder, shall, in addition to any other penalty provided in this chapter, for each such offense, be fined not more than five thousand dollars ($5,000) or imprisoned not more than one year, or both.
  3. When determining the amount of a fine sought or imposed under this section, evidence of mitigating factors, including history, severity, and intent, shall be considered.

History of Section. P.L. 1939, ch. 663, § 33; G.L. 1956, § 44-20-51 ; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2016, ch. 512, art. 1, § 32.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

Cross References.

Sale or delivery of cigarettes to minors, penalty, § 11-9-13 .

44-20-51.1. Civil penalties.

  1. Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her by this chapter, or to do, or cause to be done, any of the things required by this chapter, or does anything prohibited by this chapter, shall, in addition to any other penalty provided in this chapter, be liable as follows:
    1. For a first offense in a twenty-four-month (24) period, a penalty of not more than ten (10) times the retail value of the cigarettes and/or other tobacco products involved; and
    2. For a second or subsequent offense in a twenty-four-month (24) period, a penalty of not more than twenty-five (25) times the retail value of the cigarettes and/or other tobacco products involved.
  2. Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever is greater.
  3. When determining the amount of a penalty sought or imposed under this section, evidence of mitigating or aggravating factors, including history, severity, and intent, shall be considered.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2017, ch. 302, art. 8, § 15.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-51.2. Criminal penalty for fraudulent offenses.

Whoever, with intent to defraud the state, fails to comply with any requirement of this chapter or regulations prescribed thereunder shall, in addition to any other penalty provided in this chapter, for each such offense, be fined one hundred thousand dollars ($100,000), or imprisoned not more than fifteen (15) years, or both.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-51.3. Counterfeit cigarettes.

  1. Notwithstanding any other provision of law, the sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, or dealer shall result in the seizure of the product and related machinery by the administrator or any law enforcement agency and shall be punishable as follows:
    1. A knowing violation involving a total quantity of less than two (2) cartons of cigarettes shall be punishable by a fine of ten thousand dollars ($10,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed five (5) years, or both.
    2. A subsequent knowing violation involving a total quantity of less than two (2) cartons of cigarettes shall be punishable by a fine of fifty thousand dollars ($50,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed ten (10) years, or both, and shall also result in the revocation by the administrator of the manufacturer, importer, distributor, or dealer license.
    3. A first knowing violation involving a total quantity of two (2) cartons of cigarettes or more shall be punishable by a fine of twenty thousand dollars ($20,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed five (5) years, or both.
    4. A subsequent knowing violation involving a quantity of two (2) cartons of cigarettes or more shall be punishable by a fine of one hundred thousand dollars ($100,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed fifteen (15) years, or both, and shall also result in the revocation by the administrator of the manufacturer, importer, distributor, or dealer license.
  2. For purposes of this section, counterfeit cigarettes includes cigarettes that have false manufacturing labels or packages of cigarettes bearing counterfeit tax stamps. Any counterfeit cigarettes seized by the administrator shall be destroyed.

History of Section. P.L. 2007, ch. 246, § 2; P.L. 2007, ch. 250, § 2; P.L. 2010, ch. 239, § 42; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1.

Compiler’s Notes.

P.L. 2014, ch. 151, § 1, and P.L. 2014, ch. 168, § 1 enacted identical amendments to this section.

44-20-52. Exercise of powers and duties.

Whenever in this chapter any reference is made to any power or duty of the tax administrator, or controller, the reference is construed to mean that the power or duty shall be exercised by the tax administrator, or controller, or by the authorized agent of the officer, under the supervision and direction of the director of revenue.

History of Section. P.L. 1939, ch. 663, § 34; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-20-52 ; P.L. 2008, ch. 98, § 43; P.L. 2008, ch. 145, § 43.

44-20-53. Direct tax on consumer.

All taxes paid in pursuance of this chapter are conclusively presumed to be a direct tax on the retail consumer, pre-collected for the purpose of convenience and facility only.

History of Section. P.L. 1939, ch. 663, § 39; P.L. 1956, ch. 3635, § 1; G.L. 1956, § 44-20-53 ; P.L. 1968, ch. 263, art. 8, § 13.

NOTES TO DECISIONS

Incidence of Tax.

Legal incidence of the Rhode Island cigarette tax falls on the consumer, not the Narragansett Tribe. The State may require the Tribe to comply with the cigarette tax in order for the State to collect the cigarette taxes that are passed on to the Tribe’s non-Indian consumers. Narragansett Indian Tribe v. Rhode Island, 407 F.3d 450, 2005 U.S. App. LEXIS 8323 (1st Cir.), vacated, 415 F.3d 134, 2005 U.S. App. LEXIS 13573 (1st Cir. 2005).

44-20-54. Taxes and fees as debt to state.

Any tax imposed under the provisions of this chapter, together with all license fees or charges, also become, from the time they are due and payable, a debt to the state of Rhode Island from the person or corporation liable for the payment of the tax, fees or charges.

History of Section. P.L. 1939, ch. 663, § 37; G.L. 1956, § 42-20-54.

44-20-55. Severability.

The provisions of this chapter are declared to be severable; and in case any part, section, or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, sections, and provisions of the chapter are not impaired or affected.

History of Section. P.L. 1939, ch. 663, § 36; G.L. 1956, § 44-20-55 .

44-20-56 — 44-20-58. Repealed.

History of Section. P.L. 1968, ch. 263, art. 8, § 14; Repealed by P.L. 1978, ch. 167, § 2.

Compiler’s Notes.

Former §§ 44-20-56 — 44-20-58 concerned the failure to pay the tax or to file the return relating to tobacco products.

Chapter 20.1 Delivery Sales of Cigarettes

44-20.1-1. Definitions.

For purposes of this chapter:

  1. “Administrator” means the tax administrator.
  2. “Adult” means a person who is at least the legal minimum purchase age.
  3. “Consumer” means an individual who is not licensed as a wholesaler or retailer pursuant to the provisions of § 44-20-2 .
  4. “Delivery sale” means any sale of cigarettes to a consumer in the state where either:
    1. The purchaser submits the order for such sale by means of a telephonic or other method of voice transmission, the mail or any other delivery service, or the Internet or other online service; or
    2. The cigarettes are delivered by use of the mails or other delivery service. A sale of cigarettes shall be a delivery sale regardless of whether the seller is located within or without the state. A sale of cigarettes not for personal consumption to a person who is a wholesale dealer or a retail dealer shall not be a delivery sale.
  5. “Delivery service” means any person who is engaged in the commercial delivery of letters, packages, or other containers.
  6. “Legal minimum purchase age” means the minimum age at which an individual may legally purchase cigarettes in the state.
  7. “Mail” or “mailing” means the shipment of cigarettes through the United States Postal Service.
  8. “Person” means the same as that term is defined in § 44-20-1 .
  9. “Shipping container” means bills of lading, airbills, or any other documents used to evidence the undertaking by a delivery service to deliver letters, packages, or other containers.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2; P.L. 2010, ch. 239, § 43.

44-20.1-2. Requirements for delivery sales.

  1. No person shall make a delivery sale of cigarettes to any individual who is under the legal minimum purchase age in the state.
  2. Each person accepting a purchase order for a delivery sale shall comply with:
    1. The age verification requirements set forth in § 44-20.1-3 ;
    2. The disclosure requirements set forth in § 44-20.1-4 ;
    3. The shipping requirements set forth in § 44-20.1-5 ;
    4. The registration and reporting requirements set forth in § 44-20.1-6 ;
    5. The tax collection requirements set forth in § 44-20.1-7 ; and
    6. All other laws of the state generally applicable to sales of cigarettes that occur entirely within the state, including, but not limited to, those laws imposing: (i) excise taxes; (ii) sales taxes; (iii) license and revenue-stamping requirements; and (iv) escrow payment obligations as set forth in § 23-71-3 .

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-3. Age Verification requirements.

  1. No person shall mail, ship, or otherwise deliver cigarettes in connection with a delivery sale unless such person prior to the first delivery sale to such consumer:
    1. Obtains from the prospective consumer a certification that includes:
      1. A reliable confirmation that the consumer is at least the legal minimum purchase age; and
      2. A statement signed by the prospective consumer in writing that certifies the prospective consumer’s address and that the consumer is at least eighteen (18) years of age. Such statement shall also confirm:
        1. That the prospective consumer understands that signing another person’s name to such certification is illegal;
        2. That the sale of cigarettes to individuals under the legal minimum purchase age is illegal;
        3. That the purchase of cigarettes by individuals under the legal minimum purchase age is illegal under the laws of the state; and
        4. That the prospective consumer wants to receive mailings from a tobacco company;
    2. Makes a good faith effort to verify the information contained in the certification provided by the prospective consumer pursuant to subsection (1) against a commercially available database, or obtains a photocopy or other image of the valid, government-issued identification stating the date of birth or age of the individual placing the order;
    3. Provides to the prospective consumer, via e-mail or other means, a notice that meets the requirements of § 44-20.1-4 ; and
    4. In the case of an order for cigarettes pursuant to an advertisement on the Internet, receives payment for the delivery sale from the prospective consumer by a credit or debit card that has been issued in such consumer’s name or by check.
  2. Persons accepting purchase orders for delivery sales may request that the prospective consumers provide their e-mail addresses.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-4. Disclosure requirements.

The notice required under subdivision 44-20.1-3(a)(3) shall include:

  1. A prominent and clearly legible statement that cigarette sales to consumers below the legal minimum purchase age are illegal;
  2. A prominent and clearly legible statement that sales of cigarettes are restricted to those consumers who provide verifiable proof of age in accordance with § 44-20.1-3 ; and
  3. A prominent and clearly legible statement that cigarette sales are subject to tax under the provisions of § 44-20-12 , and an explanation of how such tax has been, or is to be paid with respect to such delivery sale.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-5. Shipping requirements.

  1. Each person who mails, ships, or otherwise delivers cigarettes in connection with a delivery sale:
    1. Shall include as part of the bill of lading or other shipping documents a clear and conspicuous statement providing as follows: “Cigarettes: Rhode Island law prohibits shipping to individuals under 18, and requires the payment of all applicable taxes”:
    2. Shall use a method of mailing, shipping or delivery that obligates the delivery service to require: (i) the consumer placing the purchase order for the delivery sale or another adult of legal minimum purchase age residing at the consumer’s address, to sign to accept delivery of the shipping container; and (ii) proof, in the form of a valid, government-issued identification bearing a photograph of the individual who signs to accept delivery of the shipping container, demonstrating that he/she either the addressee or another adult of legal minimum purchase age residing at the consumer’s address. However, proof of the legal minimum purchase age shall be required only if such individual appears to be under twenty-seven (27) years of age; and
    3. Shall provide to the delivery service retained for such delivery sale evidence of full compliance with § 44-20.1-7 .
  2. If the person accepting a purchase order for a delivery sale delivers the cigarettes without using a delivery service, such person shall comply with all requirements of this chapter applicable to a delivery service and shall be in violation of the provisions of this chapter if he/she fails to comply with any such requirement.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-6. Registration and reporting requirements.

  1. Prior to making delivery sales or mailing, shipping or otherwise delivering cigarettes in connection with any such sales, every person shall file with the administrator a statement setting forth such person’s name, trade, name, and the address of such person’s principal place of business and any other place of business.
  2. Not later than the tenth (10th) day of each calendar month, each person that has made a delivery sale or mailed, shipped, or otherwise delivered cigarettes in connection with any such sale during the previous calendar month shall file with the administrator a memorandum or a copy of the invoice that provides for and every such delivery sale:
    1. The name and address of the consumer to whom such delivery sale was made;
    2. The brand or brands of cigarettes that were sold in such delivery sale; and
    3. The quantity of cigarettes that were sold in such delivery sale.
  3. Any person that satisfies the requirements of section 376 of title 15 of the United States Code shall be deemed to satisfy the requirements of this section.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-7. Collection of taxes.

Each person accepting a purchase order for a delivery sale shall collect and remit to the administrator all cigarette taxes imposed by the state with respect to such delivery sale, except that such collection and remission shall not be required to the extent such person has obtained proof (in the form of the presence of applicable tax stamps or otherwise) that such taxes already have been paid to the state.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-8. Penalties.

  1. Except as otherwise provided in this section, a first violation of any provision of this chapter shall be punishable by a fine of one thousand dollars ($1,000) or five (5) times the retail value of the cigarettes involved, whichever is greater. A second or subsequent violation of any provision of this chapter shall be punishable by a fine of five thousand dollars ($5,000) or five (5) times the retail value of the cigarettes involved, whichever is greater.
  2. Any person who knowingly violates any provision of this chapter, or who knowingly and falsely submits a certification under subsection 44-20.1-3(a)(1) in another person’s name, shall, for each such offense, be fined ten thousand dollars ($10,000) or five (5) time the retail value of the cigarettes involved, whichever is greater, or imprisoned not more than five (5) years, or both.
  3. Any person failing to collect of remit to the administrator any tax required in connection with a delivery sale, shall be assessed, in addition to any other penalty, a penalty of five (5) times the retail value of the cigarettes involved.
    1. Any cigarettes sold or attempted to be sold in a delivery sale that does not meet the requirements of this chapter shall be forfeited to the state and destroyed.
    2. All fixtures, equipment, and all other materials and personal property on the premises of any person who, with the intent to defraud the state, violates and of the requirements of this chapter, shall be forfeited to the state.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

44-20.1-9. Enforcement.

The attorney general, or his or her designee, or any person who holds a valid permit under 26 U.S.C. § 5712, may bring an action on the appropriate court in the state to prevent or restrain violation of this chapter by any person, or any person controlling such person.

History of Section. P.L. 2005, ch. 346, § 2; P.L. 2005, ch. 392, § 2.

Chapter 20.2 Little Cigar Tax

44-20.2-1. Definitions.

Whenever used in this chapter, unless the context requires otherwise:

  1. “Administrator” means the tax administrator;
  2. “Dealer” means any person whether located within or outside of this state, who sells or distributes little cigars to a consumer in this state;
  3. “Distributor” means any person:
    1. Whether located within or outside of this state, other than a dealer, who sells or distributes little cigars within or into this state. Such term shall not include any little cigar manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712, if such person sells or distributes little cigars in this state only to licensed distributors, or to an export warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;
    2. Selling little cigars directly to consumers in this state by means of at least twenty-five (25) little cigar vending machines.
  4. “Importer” means any person who imports into the United States, either directly or indirectly, a finished little cigar for sale or distribution;
  5. “Licensed” when used with reference to a manufacturer, importer, distributor or dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for the type of business being engaged in. When the term “licensed” is used before a list of entities, such as “licensed manufacturer, importer, wholesale dealer, or retailer dealer,” such term shall be deemed to apply to each entity in such list;
  6. “Little cigars” means and includes any roll, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco wrapped in leaf tobacco or any substance containing tobacco paper or any other material and where such roll has an integrated filter, except where such wrapper is wholly or in greater part made of tobacco and where such roll has an integrated filter and weighs over four (4) pounds per thousand (1,000);
  7. “Manufacturer” means any person who manufactures, fabricates, assembles, processes, or labels a finished little cigar;
  8. “Person” means any individual, firm, fiduciary, partnership, corporation, trust, or association, however formed;
  9. “Place of business” means and includes any place where little cigars are sold or where little cigars are stored or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine;
  10. “Sale” or “Sell” includes and applies to gifts, exchanges, and barter;
  11. “Snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked;
  12. “Stamp” means the impression, device, stamp, label, or print manufactured, printed, or made as prescribed by the administrator to be affixed to packages of little cigars, as evidence of the payment of the tax provided by this chapter or to indicate that the little cigars are intended for a sale or distribution in this state that is exempt from state tax under the provisions of state law and also includes impressions made by metering machines authorized to be used under the provisions of this chapter.

History of Section. P.L. 2008, ch. 104, § 2; P.L. 2010, ch. 239, § 44; P.L. 2012, ch. 241, art. 21, § 8.

44-20.2-2. Tax imposed on little cigars sold.

The tax imposed on little cigars shall be imposed in accordance with the provisions of §§ 44-20-2 44-20-55 .

History of Section. P.L. 2008, ch. 104, § 2.

Chapter 21 Duty on Auction Sales

44-21-1. Sales subject to duty.

All sales by auction are made by an auctioneer and are subject to a duty to the state, except the following:

  1. Sales made pursuant to any judgment, sentence, decree, order, or rule of any court or judicial officer of the state or of any court of the United States having jurisdiction within the state;
  2. Sales made by virtue of any writ, execution, warrant of distress, or order of law, or the property of any city or town, sales of property held by executors, administrators, or guardians of estates lying or being within the state;
  3. Sales of pews, or choice of pews in houses of public worship; and
  4. Sales of goods exhibited at any fair held by the Rhode Island society for the encouragement of domestic industry, or by the Aquidneck agricultural society, and which may be sold by auction during the continuance of the fair.

History of Section. G.L. 1896, ch. 159, § 11; G.L. 1909, ch. 188, § 11; G.L. 1923, ch. 216, § 11; G.L. 1938, ch. 337, § 11; G.L. 1956, § 44-21-1 .

44-21-2. Duty imposed — Apportionment between state and city or town.

The duty upon all property sold by auction in the state and which is liable to duty is one-tenth of one percent (.1%), and inures one-eighth (1/8) part of the duty to the use of the city or town in which sales are made and the remainder of the duty to the use of the state.

History of Section. G.L. 1896, ch. 159, § 12; G.L. 1909, ch. 188, § 12; G.L. 1923, ch. 216, § 12; G.L. 1938, ch. 337, § 12; G.L. 1956, § 44-21-2 .

Cross References.

Disposition of duties, § 16-4-2 .

44-21-3. Amount on which duty based — Retention and payment by auctioneer.

The duties listed in § 44-21-2 are calculated on the sums for which the exposed property to sale is struck off, and is retained by the officer selling the property out of the amount of the sales and paid over to the proper officer.

History of Section. G.L. 1896, ch. 159, § 13; G.L. 1909, ch. 188, § 13; G.L. 1923, ch. 216, § 13; G.L. 1938, ch. 337, § 13; G.L. 1956, § 44-21-3 .

44-21-4. Bidding on part of property to be sold.

Whenever any sale or bidding is made at public auction in regard to any real estate or in regard to any goods, wares, merchandise or other personal property, upon any less quantity than the whole, for the purpose of fixing the price of any larger quantity or of the whole, the whole amount of the property sold, transferred, contracted for or negotiated by the terms and conditions of the auction is subject to a duty as if the whole has been set up and sold by auction.

History of Section. G.L. 1896, ch. 159, § 14; G.L. 1909, ch. 188, § 14; G.L. 1923, ch. 216, § 14; G.L. 1938, ch. 337, § 14; G.L. 1956, § 44-21-4 .

44-21-5. Purchase by auctioneer or original owner.

Whenever any auction has actually begun and the final purchase or bidding has been made by the owner of the property, by the auctioneer or by any person employed by either of them, the duty is paid as if the bidding has been made by any other person.

History of Section. G.L. 1896, ch. 159, § 15; G.L. 1909, ch. 188, § 15; G.L. 1923, ch. 216, § 15; G.L. 1938, ch. 337, § 15; G.L. 1956, § 44-21-5 .

44-21-6. Accounts rendered by auctioneers.

  1. Every auctioneer shall by January 31, and July 31, as of December 31 and June 30, render a just and true account, in writing, subscribed by the auctioneer, to the general treasurer of all property subject to duty sold by the auctioneer, the amount of each day’s sale and the date of the sale.
  2. The treasury, at reasonable times and upon reasonable notice, may examine the records of any licensee to determine whether the person has complied with the account.
  3. The treasury may file a request with the director of business regulations to deny, suspend, or revoke the license of any licensee for not rendering the account.

History of Section. G.L. 1896, ch. 159, § 16; G.L. 1909, ch. 188, § 16; G.L. 1923, ch. 216, § 16; G.L. 1938, ch. 337, § 16; G.L. 1956, § 44-21-6 ; P.L. 1991, ch. 64, § 1.

Cross References.

Duties of general treasurer, § 42-10-1 .

44-21-7. Oath to auctioneer’s account.

The auctioneer shall take, before some magistrate authorized to administer oaths, the following oath, to be endorsed and certified on the account so rendered: “I, [naming the person] do solemnly swear (or, affirm) that this account, to which I have subscribed my name, contains a just and true account of all property sold or struck off by me, subject to duty by law within the time mentioned in the account, and of the days on which the properties were sold and that I have attended the sales personally, and have examined the entries of the sales in the book kept by me for that purpose, and know this account to be in all respects correct”; to which oath the auctioneer subscribes his or her name.

History of Section. G.L. 1896, ch. 159, § 17; G.L. 1909, ch. 188, § 17; G.L. 1923, ch. 216, § 17; G.L. 1938, ch. 337, § 17; G.L. 1956, § 44-21-7 .

44-21-8. Payments to general and city or town treasurers.

Every auctioneer shall, within ten (10) days after rendering the account and taking the oath under § 44-21-7 , pay the amount of duty upon the account of sales to the general treasurer for the use of the state, and the amount of duty due the city or town, to the city or town treasurer; and in case no sales on which duties are payable have been made, the auctioneer shall make an affidavit of this fact at the time and in the manner directed by this chapter, and transmit the affidavit to the general treasurer.

History of Section. G.L. 1896, ch. 159, § 18; G.L. 1909, ch. 188, § 18; G.L. 1923, ch. 216, § 18; G.L. 1938, ch. 337, § 18; G.L. 1956, § 44-21-8 ; P.L. 1999, ch. 354, § 32.

44-21-9. Forfeiture for neglect of duty by auctioneer.

Every auctioneer who fails to render his or her account or affidavit to the general treasurer, or fails to pay the duty due the state or city or town at the time and in the manner provided:

  1. May be required to pay to the state and/or city or town interest at the annual rate of twelve percent (12%) from the date the duty should have been paid; and/or
  2. Shall forfeit for every neglect five hundred dollars ($500), to be sued for by the general treasurer to the use of the state, unless the neglect is not paying the duty due the city or town, and then by the city or town treasurer to the use of the city or town.

History of Section. G.L. 1896, ch. 159, § 19; G.L. 1909, ch. 188, § 19; G.L. 1923, ch. 216, § 19; G.L. 1938, ch. 337, § 19; G.L. 1956, § 44-21-9 ; P.L. 1991, ch. 64, § 1.

Chapter 22 Estate and Transfer Taxes — Liability and Computation

44-22-1. Tax on net estate of decedents — Additional tax on postponed enjoyment — Deductions — Marital deduction.

  1. A tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is imposed at the rate of two percent (2%) upon all amounts not in excess of twenty-five thousand dollars ($25,000); at the rate of three percent (3%) upon all amounts in excess of twenty-five thousand dollars ($25,000) and not exceeding fifty thousand dollars ($50,000); at the rate of four percent (4%) upon all amounts in excess of fifty thousand dollars ($50,000) and not exceeding one hundred thousand dollars ($100,000); at the rate of five percent (5%) upon all amounts in excess of one hundred thousand dollars ($100,000) and not exceeding two hundred fifty thousand dollars ($250,000); at the rate of six percent (6%) upon all amounts in excess of two hundred fifty thousand dollars ($250,000) and not exceeding five hundred thousand dollars ($500,000); at the rate of seven percent (7%) upon all amounts in excess of five hundred thousand dollars ($500,000) and not exceeding seven hundred fifty thousand dollars ($750,000); at the rate of eight percent (8%) upon all amounts in excess of seven hundred fifty thousand dollars ($750,000) and not exceeding one million dollars ($1,000,000); at the rate of nine percent (9%) upon all amounts in excess of one million dollars ($1,000,000). An additional tax is imposed at the rate of two percent (2%) upon all or any part of each estate devised, bequeathed, or conveyed in such manner that it becomes necessary to postpone the assessment of taxes imposed by this chapter until the person entitled to the estate comes into beneficial enjoyment or possession of the estate; and provided, further, that an additional tax is not assessed and collected, as provided in §§ 44-23-9 44-23-12 , in case a settlement of taxes is effected under the provisions of § 44-23-25 .
  2. In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the tax twenty-five thousand dollars ($25,000).
  3. In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the tax all property or interests transferred to any corporation, association, or institution located in Rhode Island which is exempt from taxation by charter or under the laws of this state; or to any corporation, association, or institution located outside of this state, which if located within this state, would be exempt from taxation; provided, that the state of domicile of the corporation, association, or institution allows a reciprocal exemption to any similar Rhode Island corporation, association, or institution; or to any person in trust for the same or for use by the same for charitable purposes; or to any city or town in this state for public purposes.
  4. In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the tax United States civil and federal military service annuity payments.
  5. In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the estate tax a marital deduction, as defined in 26 U.S.C. § 2056, in the amount of one hundred seventy-five thousand dollars ($175,000), from property or beneficial interests which pass or have passed from the decedent to the surviving spouse, but only to the extent that the interests are included in determining the value of the gross estate.
    1. In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the estate tax, an orphan’s deduction, provided, that: (i) the decedent does not have a surviving spouse, and (ii) the decedent is survived by a minor child who, immediately after the death of the decedent, has no known parent, an amount equal to the value of any interest in property which passes or has passed from the decedent to the child, but only to the extent that the interest is included in determining the value of the gross estate. The aggregate amount of the deductions allowed under this section (computed without regard to this subsection) with respect to interests in property passing to any minor child shall not exceed an amount equal to five thousand dollars ($5,000) multiplied by the excess of twenty-one (21) over the age (in years) which the child has attained on the date of the decedent’s death.
    2. For purposes of this subsection, any term used in the subsection has the same meaning as when used in a comparable context in 26 U.S.C. § 2057 unless a different meaning is clearly required.
  6. Notwithstanding any other provisions of this chapter, the total estate tax payment on account of the estate of a decedent whose death occurs on or after January 1, 1986, is that percentage of the estate tax which would be payable under this chapter determined in accordance with the following schedule:
    1. Death prior to January 1, 1987.  Ninety percent (90%) in the case of decedents whose deaths occur on or after January 1, 1986, and prior to January 1, 1987;
    2. Death prior to January 1, 1988.  Eighty percent (80%) in the case of decedents whose deaths occur on or after January 1, 1987, and prior to January 1, 1988;
    3. Death prior to January 1, 1989.  Sixty percent (60%) in the case of decedents whose deaths occur on or after January 1, 1988, and prior to January 1, 1989;
    4. Death prior to January 1, 1990.  Forty percent (40%) in the case of decedents whose deaths occur on or after January 1, 1989, and prior to January 1, 1990;
    5. Death prior to June 1, 1990.  Twenty percent (20%) in the case of decedents whose deaths occur on or after January 1, 1990, and prior to June 1, 1990;
    6. Death prior to January 1, 1992.  Forty percent (40%) in the case of decedents whose deaths occur on or after June 1, 1990, and prior to January 1, 1992.
    7. Death on or after January 1, 1992.  The estate tax payable on or account of the estate of a decedent whose death occurs on or after January 1, 1992, is determined in accordance with § 44-22-1.1 .
  7. The estate tax payable under this section shall in no event be less than the estate tax due under § 44-22-1.1 , computed without regard to the date of death.

History of Section. P.L. 1916, ch. 1339, § 1; G.L. 1923, ch. 39, § 1; P.L. 1923, ch. 426, § 1; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 1; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-22-1 ; P.L. 1965, ch. 81, § 1; P.L. 1969, ch. 158, § 1; P.L. 1978, ch. 170, § 1; P.L. 1980, ch. 275, § 2; P.L. 1984, ch. 206, art. 6, § 1; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 181, art. 45, § 1; P.L. 1990, ch. 65, art. 61, § 1; P.L. 1991, ch. 155, § 1.

Federal Act References.

Section 2057 of Title 26 of the United States Code, referred to in subsection (f)(2), was repealed by Pub. L. 101-239, Title VII, § 7304(a)(1), on December 19, 1989.

Comparative Legislation.

Estate and transfer taxes:

Conn. Gen. Stat., § 12-391 et seq.

Mass. Ann. Laws ch. 65, § 1 et seq.

NOTES TO DECISIONS

Nonresidents.

This section requires the administrator to undertake a two-step analysis to determine the taxable status of nonresident entities. He must examine the laws of this state first to determine whether Rhode Island would exempt the entity if located here. If not, he must tax the entity without reference to the law of its state of domicile. If the administrator determines, however, that Rhode Island would exempt the entity from taxation, he must then look to the law of its state of domicile. The entity’s state of domicile must provide a reciprocal exemption for similar Rhode Island entities before he may exempt the nonresident entity from the estate and transfer taxes. Gott v. Norberg, 417 A.2d 1352, 1980 R.I. LEXIS 1669 (R.I. 1980).

Collateral References.

Absentee’s estate, inheritance tax on. 24 A.L.R. 854.

Construction and application of “pay-all-taxes” provision in will, as including liability of nontestamentary property for inheritance and estate taxes. 56 A.L.R.5th 133.

Domicile of decedent, danger of multiple taxation of decedent’s estate inherent in diverse adjudication by courts of different states as to. 121 A.L.R. 1200.

Employees’ retirement funds, state succession, transfer, inheritance, or estate tax in respect of. 73 A.L.R.2d 157.

Partnership, tax in respect of decedent’s interest in. 144 A.L.R. 1134.

Pendency of administration on estate of decedent at time of death of beneficiary as affecting inheritance or succession tax in respect of latter’s estate. 122 A.L.R. 935.

Property tax or excise tax, inheritance tax as. 103 A.L.R. 81.

Retrospective operation of succession or estate tax. 26 A.L.R. 1461; 66 A.L.R. 404; 109 A.L.R. 858; 114 A.L.R. 518.

Treaty as affecting power to impose succession tax. 4 A.L.R. 1391; 134 A.L.R. 882.

44-22-1.1. Tax on net estate of decedent.

    1. For decedents whose death occurs on or after January 1, 1992, but prior to January 1, 2002, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. § 2011.
    2. For decedents whose death occurs on or after January 1, 2002, but prior to January 1, 2010, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001; provided, however, that the tax shall be imposed only if the net taxable estate shall exceed six hundred seventy-five thousand dollars ($675,000). Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on January 1, 2001, or thereafter, shall not apply.
    3. For decedents whose death occurs on or after January 1, 2010, and prior to January 1, 2015, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001; provided, however, that the tax shall be imposed only if the net taxable estate shall exceed eight hundred and fifty thousand dollars ($850,000); provided, further, beginning on January 1, 2011, and each January 1 thereafter until January 1, 2015, said amount shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics determined as of September 30 of the prior calendar year; said adjustment shall be compounded annually and shall be rounded up to the nearest five dollar ($5.00) increment. Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on January 1, 2003, or thereafter, shall not apply.
    4. For decedents whose death occurs on or after January 1, 2015, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. § 2011, as it was in effect as of January 1, 2001; provided, however, that a Rhode Island credit shall be allowed against any tax so determined in the amount of sixty-four thousand four hundred ($64,400). Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on January 1, 2003, or thereafter, shall not apply; provided, further, beginning on January 1, 2016, and each January 1 thereafter, said Rhode Island credit amount under this section shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics determined as of September 30 of the prior calendar year; said adjustment shall be compounded annually and shall be rounded up to the nearest five dollar ($5.00) increment.
  1. If the decedent’s estate contains property having a tax situs not within the state, then the tax determined by this section is reduced to an amount determined by multiplying the tax by a fraction whose numerator is the gross estate excluding all property having a tax situs not within the state at the decedent’s death and whose denominator is the gross estate. In determining the fraction, no deductions are considered and the gross estate is not reduced by a mortgage or other indebtedness for which the decedent’s estate is not liable.
    1. The terms “gross taxable estate,” “federal gross estate” or “net taxable estate” used in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context in the laws of the United States, unless a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws of the United States means the Internal Revenue Code of 1954, 26 U.S.C. § 1 et seq.
    2. For decedents whose death occurs on or after January 1, 2002, the terms “gross taxable estate” “federal gross estate” or “net taxable estate” used in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context in the laws of the United States, unless a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws of the United States means the Internal Revenue Code of 1954, 26 U.S.C. § 1 et seq., as they were in effect as of January 1, 2001, unless otherwise provided.
  2. All values are as finally determined for federal estate tax purposes.
  3. Property has a tax situs within the state of Rhode Island:
    1. If it is real estate or tangible personal property and has actual situs within the state of Rhode Island; or
    2. If it is intangible personal property and the decedent was a resident.

History of Section. P.L. 1985, ch. 181, art. 45, § 4; P.L. 1990, ch. 65, art. 61, § 1; P.L. 2001, ch. 77, art. 7, § 3; P.L. 2002, ch. 65, art. 16, § 2; P.L. 2009, ch. 68, art. 16, § 14; P.L. 2014, ch. 145, art. 12, § 12.

Applicability.

P.L. 2002, ch. 65, art. 16, § 13 provides that the amendment to this section by that act takes effect upon passage [July 1, 2002] and applies to persons who have died on or after January 1, 2002.

NOTES TO DECISIONS

Federal Tax.

Federal estate tax, though it may diminish amount to be received by residuary legatee, did not diminish the amount that was transferred and taxed under former § 44-22-7. Hazard v. Bliss, 43 R.I. 431 , 113 A. 469, 1921 R.I. LEXIS 16 (1921).

Federal estate tax should not be treated as an expense of administration and deducted from the gross estate in ascertaining the value of the net estate for the purpose of the tax upon the right to transfer and the right to receive. Hazard v. Bliss, 43 R.I. 431 , 113 A. 469, 1921 R.I. LEXIS 16 (1921).

Insurance Proceeds.

When mortgage redemption life insurance accrued to mortgagee, it was considered as other life insurance with respect to the estate. Petrarca v. Tax Adm'r, 113 R.I. 449 , 322 A.2d 621, 1974 R.I. LEXIS 1199 (1974).

Mortgages.

The fact that a mortgage unpaid at time of death of decedent was covered by mortgage insurance did not disallow the mortgage deduction and the tax administrator did not have authority to promulgate a rule that so provided. Petrarca v. Tax Adm'r, 113 R.I. 449 , 322 A.2d 621, 1974 R.I. LEXIS 1199 (1974).

Personal Guaranty Not Deduction.

A personal guaranty cannot be claimed as a deduction. Estate of Dodenhoff v. Clark, 572 A.2d 1326, 1990 R.I. LEXIS 66 (R.I. 1990).

Power of Appointment.

Remainder interest transferred through failure of decedent to exercise a testamentary power of appointment was taxable as a transfer from the decedent. Manning v. Board of Tax Comm'rs, 46 R.I. 400 , 127 A. 865, 1925 R.I. LEXIS 9 (1925).

Retaining Ownership In Insurance Policies.

Majority shareholder of a closely-held corporation which held legal title to insurance policies on his life retained “incidents of ownership” in the policies even though he had placed his stock in a revocable trust, where he had the power to change the beneficiaries, to assign the policies as collateral security, and to sell, assign, and transfer the policies. Estate of Dodenhoff v. Clark, 572 A.2d 1326, 1990 R.I. LEXIS 66 (R.I. 1990).

Collateral References.

Construction and application of “pay-all-taxes” provision in will, as including liability of nontestamentary property for inheritance and estate taxes. 56 A.L.R.5th 133.

Construction and application of statutes apportioning or prorating estate taxes. 71 A.L.R.3d 247.

Deduction of federal gift tax in computing state inheritance tax. 56 A.L.R.3d 1322.

Devise or bequest pursuant to testator’s contractual obligation as subject to estate, succession, or inheritance tax. 59 A.L.R.3d 969.

Income tax, deductibility in computing, of expenses incurred in connection with estate or inheritance tax. 39 A.L.R. Fed. 221.

Refund of state inheritance or estate tax where claims are proven against estate after tax was paid. 63 A.L.R.3d 924.

Remedies and practice under estate tax apportionment statutes. 71 A.L.R.3d 371.

Renunciation of devise or legacy as affecting succession tax. 27 A.L.R.3d 1354.

Valuation of closely held stock for federal estate tax purposes under § 2031(b) of Internal Revenue Code of 1954 (26 USCS § 2031(b)), and implementing regulations. 22 A.L.R. Fed. 31.

Valuation of corporate stock for purposes of state gift, inheritance, or estate tax, as affected by predetermined price in buy-out or first-option agreement among stockholders or with corporation. 58 A.L.R.3d 1104.

Valuation of United States Treasury bonds for state inheritance or estate tax purposes. 62 A.L.R.3d 1272.

What constitutes “income in respect of a decedent” within meaning of § 691(a)(1) of Internal Revenue Code of 1954 (26 USCS § 691(a)(1)). 13 A.L.R. Fed. 613.

44-22-2. Exemption — Missing persons in military action.

An estate of a serviceman or servicewoman who has been classified by the armed forces of the United States as missing in action is exempt from provisions of this chapter pertaining to taxation.

History of Section. P.L. 1977, ch. 213, § 1; P.L. 1983, ch. 178, § 1; P.L. 1984, ch. 206, art. VI, § 2; P.L. 1984 (s.s.), ch. 450, § 2; G.L. 1956, § 44-22-2 ; P.L. 1990, ch. 65, art. 61, § 3.

44-22-3 — 44-22-7. Repealed.

History of Section. P.L. 1916, ch. 1339, §§ 1, 2 and 5; P.L. 1920, ch. 1946, §§ 1, 2; G.L. 1923, ch. 39, §§ 1, 2, 4 and 5; P.L. 1923, ch. 423, § 1; P.L. 1923, ch. 426, § 1; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; P.L. 1932, ch. 1963, § 1; G.L. 1938, ch. 43, §§ 1, 4; P.L. 1939, ch. 664, § 1; G.L. 1956, §§ 44-22-2 — 44-22-7; P.L. 1957, ch. 154, § 1; P.L. 1960, §§ 1, 2; P.L. 1978, ch. 170, § 1; P.L. 1979, ch. 74, § 1; P.L. 1980, ch. 275, § 2; P.L. 1982, ch. 148, § 1; P.L. 1984, ch. 206, art. VI, § 2; P.L. 1984 (s.s.), ch. 450, § 2; Repealed by P.L. 1990, ch. 65, art. 61, § 2, effective January 1, 1992.

Compiler’s Notes.

Former §§ 44-22-3 — 44-22-7 concerned estate and transfer taxes.

44-22-8 — 44-22-11. Repealed.

History of Section. P.L. 1916, ch. 1339, §§ 7-9; G.L. 1923, ch. 39, §§ 6-9; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 6-9; P.L. 1939, ch. 664, § 1; P.L. 1948, ch. 2098, § 2; G.L. 1956, §§ 44-22-8 — 44-22-11; P.L. 1960, ch. 218, § 3; P.L. 1969, ch. 158, § 2; P.L. 1978, ch. 170, § 1; Repealed by P.L. 1980, ch. 275, § 1.

44-22-12 — 44-22-20. Repealed.

History of Section. P.L. 1916, ch. 1339, §§ 13-15, 28; G.L. 1923, ch. 39, §§ 11-15, 26-28, 32-39; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 11-14, 26, 27, 32, 34, 36, 38; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-22-12 — 44-22-20; P.L. 1980, ch. 275, § 2; P.L. 1984, ch. 206, art. VI, § 2; P.L. 1984 (s.s.), ch. 450, § 2; Repealed by P.L. 1990, ch. 65, art. 61, § 2, effective January 1, 1992.

Compiler’s Notes.

Former §§ 44-22-12 — 44-22-20 concerned the liability and computation of estate and transfer taxes.

44-22-21. Repealed.

History of Section. P.L. 1916, ch. 1339, § 16; G.L. 1923, ch. 39, §§ 14-16; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 14, 15; P.L. 1939, ch. 654, § 1; G.L. 1956, § 44-22-21 ; Repealed by P.L. 1980, ch. 275, § 1.

Compiler’s Notes.

Former § 44-22-21 concerned appraisal of estates in expectancy on coming into enjoyment.

44-22-22 — 44-22-24. Repealed.

History of Section. P.L. 1916, ch. 1339, §§ 4, 17, 30; G.L. 1923, ch. 39, §§ 3, 4, 15-17, 28-30; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 3, 15, 16, 28, 29; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-22-22 — 44-22-24; P.L. 1984, ch. 206, art. VI, § 2; P.L. 1984 (s.s.), ch. 450, § 2; Repealed by P.L. 1990, ch. 65, art. 61, § 2, effective January 1, 1992.

Compiler’s Notes.

Former §§ 44-22-22 — 44-22-24 concerned the liability and computation of estate and transfer taxes.

44-22-25. Repealed.

History of Section. P.L. 1916, ch. 1339, § 12; G.L. 1923, ch. 39, §§ 10-12; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 10, 11; P.L. 1939, ch. 654, § 1; G.L. 1956, § 44-22-25 ; Repealed by P.L. 1980, ch. 275, § 1.

Compiler’s Notes.

Former § 44-22-25 concerned refunds to legatees after contribution required for claims against estate.

44-22-26. [Renumbered.]

Compiler’s Notes.

Section 3 of P.L. 1990, ch. 65, art. 61, § 3 provides that § 44-22-26 is renumbered as § 44-22-2 , effective January 1, 1992.

Chapter 23 Estate and Transfer Taxes — Enforcement and Collection

44-23-1. Statements filed by executors, administrators and heirs-at-law.

  1. Every executor, administrator, and heir-at-law, within nine (9) months after the death of the decedent, shall file with the tax administrator a statement under oath showing the full and fair cash value of the estate, the amounts paid out from the estate for claims, expenses, charges, and fees, and the statement shall also provide the names and addresses of all persons entitled to take any share or interest of the estate as legatees or distributees of the estate.
  2. A fee of fifty dollars ($50.00) is paid when filing any statement required by this section. All fees received under this section are allocated to the tax administrator for enforcement and collection of taxes.

History of Section. P.L. 1916, ch. 1339, § 22; P.L. 1920, ch. 1946, § 6; G.L. 1923, ch. 39, §§ 20-22; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 20, 21; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-1 ; P.L. 1971, ch. 48, § 2; P.L. 1978, ch. 170, § 2; P.L. 1984, ch. 206, art. VI, § 5; P.L. 1984, ch. 243, § 1; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 181, art. 45, § 5; P.L. 1990, ch. 65, art. 61, § 4; P.L. 1993, ch. 138, art. 38, § 1; P.L. 2011, ch. 151, art. 19, § 15.

Cross References.

Application to net estate and transfer taxes, § 44-23-37 .

Comparative Legislation.

Estate and transfer taxes:

Conn. Gen. Stat., § 12-340 et seq.

Mass. Ann. Laws ch. 65, § 1 et seq.

Collateral References.

Corporate stock, valuation for purposes of succession, inheritance or estate tax, as affected by quantity involved. 23 A.L.R.2d 775.

Liability of executor, administrator, trustee, or his counsel, for interest, penalty, or extra taxes assessed against estate because of tax law violations. 47 A.L.R.3d 507.

Liability of executor or administrator to estate because of overpaying or unnecessarily paying tax. 55 A.L.R.3d 785.

Partnership, valuation of interest in. 144 A.L.R. 1140.

Time as of which value of property is to be computed for purpose of inheritance, succession, or estate tax. 13 A.L.R. 127; 86 A.L.R. 1030; 160 A.L.R. 1059.

44-23-2. Statements filed by trustees.

Whenever any person during his or her life appoints a trustee, naming that person or others as beneficiaries, and providing for the administration of the trust after his or her death, or providing for a termination of the trust and a distribution of the trust estate or any part of the trust estate at his or her death, any person acting as the trustee or any trustee of property subject to a power of appointment, shall, within thirty (30) days after the death of the creator of the trust, or within thirty (30) days after the death of the donee of the power file with the tax administrator a sworn statement showing:

  1. The trust agreement, if any;
  2. The full and fair cash value of the trust estate;
  3. The extent of the duration of the trust;
  4. The manner provided for its termination;
  5. The names and addresses of the beneficiaries of the trust; and
  6. Any other information relating to the trust, which the tax administrator may deem necessary for the proper assessment of the tax on the estate.

History of Section. P.L. 1916, ch. 1339, § 22; P.L. 1920, ch. 1946, § 6; G.L. 1923, ch. 39, §§ 20-22; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 20, 21; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-2 .

44-23-3. Extension of time for filing of statement.

The tax administrator has authority to grant extensions of time corresponding to the approved extension granted by the Internal Revenue Service for the filing of federal form 706 within which any statement is required to be filed upon written application of the executor, administrator, heir-at-law, or trustee desiring an extension, and it is the duty of the executor, administrator, heir-at-law, or trustee, to file the statement within the extension of time granted.

History of Section. P.L. 1916, ch. 1339, § 22; P.L. 1920, ch. 1946, § 6; G.L. 1923, ch. 39, § 22; G.L. 1923, ch. 39, § 21, as enacted by P.L. 1926, ch. 810, § 1; G.L. 1926, ch. 39, § 20; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 20; G.L. 1938, ch. 43, § 21; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-3 ; P.L. 1978, ch. 170, § 2; P.L. 1995, ch. 379, § 1.

44-23-4. Declarations under penalties of perjury.

The oath or affirmation required by the provisions of this chapter as to any report or written statement is not required if the report or statement to be sworn to contains or is verified by a written declaration that it is made under the penalties of perjury; and whoever signs or issues any report or statement containing or verified by a written declaration is, if the report or statement is willfully false, guilty of perjury.

History of Section. G.L. 1938, ch. 43, § 21; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-4 .

Cross References.

Perjury, penalty, § 11-33-2 .

44-23-5. Appraisal of estate.

  1. If any statement filed in accordance with the provisions of this chapter is considered to be an erroneous or incomplete statement of the property, real, tangible personal, intangible personal, or of any part of the property, of the decedent, the tax administrator shall give notice to the executor, administrator, heir-at-law, beneficiary, or trustee filing the statement, to appear before the tax administrator for the purpose of examination of and concerning the statement, and concerning all matters appertaining to the estate and the value of the estate of the decedent; and if the executor, administrator, heir-at-law, beneficiary, or trustee fails to appear after due notice, or if after appearance and examination of the executor, administrator, heir-at-law, beneficiary, or trustee the tax administrator still considers the statement to be an erroneous or incomplete statement, or if the executor, administrator, heir-at-law, beneficiary, or trustee refuses or neglects to answer the questions propounded in reference to the statement, the tax administrator may appraise the estate. The tax administrator shall give notice by mail to the executor, administrator, heir-at-law, beneficiary, or trustee and to all persons known to have a claim or interest in the estate or property to be appraised, of the time and place of the appraisal, and the tax administrator or his or her authorized agent shall at that time and place appraise the estate or property at its full and fair cash value as prescribed in this section; and for that purpose the tax administrator is authorized to issue subpoenas and to compel the attendance of witnesses and to take the evidence of the witnesses under oath if necessary, concerning the estate or property and the value of the estate, and the witnesses shall receive the same fees as those now paid to witnesses subpoenaed to attend the superior court. From the appraisal and other proof relating to the estate or property, the tax administrator determines the full and fair cash value of the estate or property upon which all taxes imposed by chapter 22 of this title are computed and the amount of taxes to which it is liable. If no appraisal is made as provided in this section, the tax administrator may determine the value of the property upon which all the taxes are computed and the amount of taxes to which it is liable.
  2. Notwithstanding the provisions of § 44-23-5(a) , all farmland, as such term is defined in § 44-27-2 , included as part of an estate for purposes of this section and utilized by the executor, administrator, heir-at-law, beneficiary or trustee as farmland, shall be appraised at its use value according to applicable federal and state law and not at its full and fair cash value.

History of Section. P.L. 1916, ch. 1339, § 24; G.L. 1923, ch. 39, §§ 22-24; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 22, 23; P.L. 1939, ch. 659, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-5 ; P.L. 1978, ch. 170, § 2; P.L. 2013, ch. 144, art. 9, § 11.

44-23-6. Notice by probate clerk of grant of letters on estate.

Every probate clerk shall, within thirty (30) days after the granting of letters testamentary or letters of administration upon any estate, notify the tax administrator of the name of the decedent, the name and address of the executor, administrator, or trustee appointed, and the amount of the bond required by the court; and shall also furnish upon request certified copies of documents and any further information from the records and files of his or her office in regard to the estate that the tax administrator may from time to time require.

History of Section. P.L. 1916, ch. 1339, § 23; G.L. 1923, ch. 39, §§ 21-23; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 21, 22; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-6 .

44-23-7. Fees of probate clerk.

The probate clerk furnishing the information required by § 44-23-6 is paid out of any money appropriated for expenses of tax administration a fee of fifteen cents ($.15) for every hundred words of copy, but the tax administrator may in his or her discretion make copies of the documents or of any other records of the probate court. If the copies are found by the probate clerk to be correct, the clerk shall certify to their correctness and be paid a fee of twenty-five cents ($.25) for each certification. All fees paid to a probate clerk under this section are disposed of in the same manner as is provided for the disposition of other probate fees under the provisions of chapter 22 of title 33.

History of Section. P.L. 1916, ch. 1339, § 23; G.L. 1923, ch. 39, §§ 21-23; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 21, 22; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-7 .

Collateral References.

Validity of statutes imposing a graduated probate fee based upon value of estate. 76 A.L.R.3d 1117.

44-23-8. Estates where no will has been offered or letters granted.

If upon the decease of a person leaving an estate liable to a tax under the provisions of chapter 22 of this title, a will disposing of the estate is not offered for probate or an application for administration is not made within three (3) months after the decease, the tax administrator may in his or her discretion, with the approval of the attorney general, agree with the persons interested in the estate as to the value of the estate and the amount of the tax to be assessed on the estate, or the tax administrator may apply to the probate court for the appointment of an administrator of the estate, and the probate court upon the application shall appoint an administrator of the estate.

History of Section. P.L. 1916, ch. 1339, § 31; G.L. 1923, ch. 39, §§ 29-31; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 29, 30; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-8 .

Collateral References.

Ultimate burden of estate tax in absence of statute, will, or other provisions. 68 A.L.R.3d 714.

44-23-9. Assessment and notice of estate tax — Collection powers — Lien.

  1. The tax imposed by § 44-22-1.1 shall be assessed upon the full and fair cash value of the net estate determined by the tax administrator as provided in this chapter. Notice of the amount of the tax shall be mailed to the executor, administrator, or trustee, but failure to receive the notice does not excuse the nonpayment of or invalidate the tax. The tax administrator shall receive and collect the assessed taxes in the same manner and with the same powers as are prescribed for and given to the collectors of taxes by chapters 7 — 9 of this title. The tax shall be due and payable as provided in § 44-23-16 , shall be paid to the tax administrator, and shall be and remain a lien upon the estate until it is paid. All executors, administrators, and trustees are personally liable for the tax until it is paid.
  2. Notwithstanding the provisions of subsection (a) of this section, under no circumstances shall the tax administrator issue any notice of deficiency determination for the amount of the estate tax due more than ten (10) years after the return was filed or should have been filed, nor shall the tax administrator commence any collection action for any estate tax due and payable unless the collection action is commenced within ten (10) years after the date a notice of deficiency determination became a final collectible assessment. “Collection action” refers to any activity undertaken by the division of taxation to collect on any state tax liabilities that are final, due, and payable under Rhode Island law. “Collection action” may include, but is not limited to, any civil action involving a liability owed under chapters 22 and 23 of title 44.
  3. The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation periods set forth in this section.

History of Section. P.L. 1916, ch. 1339, § 3; P.L. 1920, ch. 1946, § 2; G.L. 1923, ch. 39, §§ 2, 3; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-9 ; P.L. 1995, ch. 379, § 1; P.L. 2019, ch. 192, § 2; P.L. 2019, ch. 215, § 2.

Compiler’s Notes.

P.L. 2019, ch. 192, § 2, and P.L. 2019, ch. 215, § 2 enacted identical amendments to this section.

Applicability.

P.L. 2019, ch. 192, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

P.L. 2019, ch. 215, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

Cross References.

Assessment and collection by tax administrator, § 44-1-2 .

Collateral References.

Corpus and income, burden as between, of inheritance, estate, or succession tax. 117 A.L.R. 121.

44-23-9.1. Hearing by tax administrator on application.

An executor, administrator, trustee, legatee or other person aggrieved by a final assessment of the tax administrator as to the amount of the tax imposed by chapter 22 of this title on any estate or any part of the estate shall notify the tax administrator, in writing, within thirty (30) days from the date of mailing by the tax administrator of the notice of the final assessment or date tax is due, whichever is later, and shall request a hearing relative to the tax; and the tax administrator shall, as soon as practicable, fix a time and place for the hearing and shall, after the hearing, determine the correct amount of the tax, interest, and penalties.

History of Section. P.L. 1983, ch. 109, § 1.

44-23-10. Deposit with tax administrator to cover taxes.

An executor, administrator, or trustee may deposit with the tax administrator a sum of money sufficient in the opinion of the tax administrator to pay all taxes, which may become due under the provisions of chapter 22 of this title. When the taxes have been determined, the general treasurer shall, upon certification by the tax administrator and with the approval of the controller, repay to the executor, administrator, or trustee the difference between the determined taxes and the amount deposited, or the tax administrator shall collect any deficiency in the tax. The lien upon the estate imposed under § 44-23-9 is discharged by the acceptance of the deposit.

History of Section. P.L. 1916, ch. 1339, § 3; P.L. 1920, ch. 1946, § 2; G.L. 1923, ch. 39, §§ 2, 3; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-10 ; P.L. 1999, ch. 354, § 33.

44-23-11. Tentative assessment.

At the request of an executor, administrator, or trustee the tax administrator may make a tentative assessment of taxes under the provisions of §§ 44-22-1 and 44-22-1.1 , whichever section is in effect at the time, to prevent interest charges on the amount of the tentative assessment, and shall accept payment of that sum, and when the taxes have been finally determined, the general treasurer shall, upon certification by the tax administrator and with the approval of the controller, repay to the executor, administrator, or trustee the difference between the taxes so determined and the amount of the tentative assessment, or the tax administrator shall collect any deficiency in the taxes together with interest on the deficiency, if any is due.

History of Section. G.L. 1923, ch. 39, § 2; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-11 ; P.L. 1980, ch. 275, § 3; P.L. 1984, ch. 206, art. VI, § 5; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 181, art. 45, § 5.

44-23-12. Recording of lien against real estate — Discharge.

Whenever a statement is filed with the tax administrator showing the ownership of real property, the tax administrator shall notify the recorder of deeds or the clerk of the city or town, as the case may be, in which the real property is located, and the recorder of deeds shall note in the land records of his or her office the decedent’s name, and the fact that all real property belonging to the decedent is impressed with a lien under the provisions of this chapter. Upon the discharge of the lien, the tax administrator shall send the recorder of deeds a further notice showing the discharge and the manner of the discharge. The recorder of deeds is paid out of any money appropriated for expenses of tax administration, a fee of one dollar and fifty cents ($1.50) for a completed entry.

History of Section. P.L. 1916, ch. 1339, § 3; P.L. 1920, ch. 1946, § 2; G.L. 1923, ch. 39, § 3; G.L. 1923, ch. 39, § 2; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-12 ; P.L. 1973, ch. 263, art. 5, § 1; P.L. 1978, ch. 170, § 2.

44-23-13. Assessment and notice of transfer tax — Collection powers — Lien on property.

  1. All taxes imposed by § 44-22-1.1 shall be assessed by the tax administrator upon the full and fair cash value of the property transferred at the rates described in chapter 22 of this title and only upon the amount in excess of the exemptions or deductions specified in that chapter, to be paid to the tax administrator, and all executors, administrators, or trustees are personally liable for any and all taxes until they are paid. Notice of the amount of the taxes shall be mailed to the executor, administrator or trustee liable for the taxes, and upon request made to the tax administrator to any other person by whom the taxes are payable, but failure to receive the notice does not excuse the nonpayment of or invalidate the taxes. Unless appeal is taken from the assessment, as provided in this chapter, the amount of assessed taxes is final.
  2. The tax administrator shall receive and collect the assessed taxes in the manner and with the powers prescribed and given to the collectors of taxes by chapters 7 — 9 of this title. Payment of the certified amount is a discharge of the tax.
  3. The taxes are and remain a lien upon the property transferred, and upon all property acquired by the executor, administrator or trustee in substitution for the property while that property remains in his or her hands until the taxes are paid, but the lien does not affect any tangible personal property or intangible personal property after it has passed to a bona fide purchaser for value. Nothing contained in this section gives the owner of any securities specified in § 44-23-34 the right to have the securities transferred to the owner by the corporation, association, company or trust issuing the securities, until the permit required by § 44-23-34 has been filed as provided in § 44-23-34.

History of Section. P.L. 1916, ch. 1339, § 6; G.L. 1923, ch. 39, §§ 5, 6; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 5; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-13 ; P.L. 1980, ch. 275, § 3; P.L. 1995, ch. 379, § 1.

Collateral References.

Barred claim of government against taxpayer as available to defeat or diminish claim of taxpayer against government, or vice versa. 109 A.L.R. 1354; 130 A.L.R. 838; 154 A.L.R. 1052; 12 A.L.R.2d 815.

44-23-14. Discharge of lien on real estate — Liability of heir or devisee.

The lien imposed under § 44-23-13 upon any real estate or separate parcel of real estate may be discharged by the payment of all taxes due and to become due upon the real estate or separate parcel, or by an order of the tax administrator transferring the lien to other real estate owned by the person to whom the real estate or separate parcel of the real estate passes, or by the acceptance of the surety for the payment of taxes which the tax administrator may approve. The heir, devisee, or other donee is personally liable for the tax on the real estate, as well as the executor, administrator, or trustee; and if the executor, administrator, or trustee pays the tax he or she shall, unless the tax is made an expense of administration by the will or other instrument of the decedent, have the right to recover the tax from the heir, devisee, or other donee of the real estate.

History of Section. P.L. 1916, ch. 1339, § 6; G.L. 1923, ch. 39, §§ 5, 6; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 5; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-14 ; P.L. 1999, ch. 354, § 33.

Collateral References.

Renunciation of inheritance, devise, or legacy as affecting state inheritance, estate, or succession tax. 27 A.L.R.3d 1354.

Right of tax authority to proceed against beneficiary of estate for collection of inheritance, succession, or estate tax. 144 A.L.R. 702.

Surviving spouse taking elective share as chargeable with estate or inheritance tax. 67 A.L.R.3d 199.

44-23-15. Taxes as debt to state.

The taxes imposed under the provisions of chapter 22 of this title, together with all penalties, charges and interest shall also become, from the time the taxes are due and payable, a debt to the state of Rhode Island from the person or corporation liable for the payment of the taxes.

History of Section. G.L. 1938, ch. 43, § 10; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-15 .

44-23-16. Time taxes due — Interest and additions to tax on delinquent payments.

All taxes imposed by chapter 22 of this title, unless provided, are due and payable nine (9) months after the date of death of the decedent. If the taxes are not paid within nine (9) months from the date of death, interest shall be charged and collected at the annual rate provided by § 44-1-7 from the time the tax is due, determined without regard to any extension of time for payment. In addition, if the taxes are not paid when due (determined with regard to any extension of time for payment), there is added to the amount of tax due five-tenths percent (0.5%) of the tax per month to a maximum of twenty-five percent (25%) unless it is shown that the failure to pay is due to reasonable cause and not due to willful neglect.

History of Section. P.L. 1982, ch. 159, § 3; P.L. 1983, ch. 104, § 3; P.L. 1990, ch. 65, art. 61, § 4; P.L. 1992, ch. 388, § 8.

Collateral References.

Penalty for nonpayment of tax when due as affected by lack of notice to taxpayer. 102 A.L.R. 408.

Time of mailing or time of receipt of notice as determinative of liability for penalty for additional amount for failure to pay tax within prescribed time. 158 A.L.R. 370.

44-23-16.1. Interest on overpayments.

If it is determined that any overpayment has been made with respect to taxes imposed by chapter 22 of this title, the amount of the overpayment bears interest at the annual rate established by § 44-1-7.1 . The acceptance of the check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest.

History of Section. P.L. 1982, ch. 159, § 3; P.L. 1983, ch. 104, § 3.

44-23-17. Suspension of tax payment pending claim against estate.

Whenever it is necessary in the settlement of any estate to retain property or funds for the purpose of paying the claim of any creditor, the amount or validity of which is contested and is not determined, the payment of the whole or a proportionate part of the tax may be suspended, by and with the approval of the tax administrator, to await the disposition of the claim.

History of Section. P.L. 1916, ch. 1339, § 20; G.L. 1923, ch. 39, §§ 18-20; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 18, 19; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-17 .

Cross References.

Application to net estate and transfer taxes, § 44-23-37 .

44-23-18. Extension of time for payment of additional estate tax.

Whenever the tax administrator finds that the payment of the tax imposed by § 44-22-1.1 causes undue hardship, the tax administrator may, in his or her discretion, with the approval of the attorney general and by agreement with the executor, administrator, or trustee, extend the time for payment of the whole or any part of the tax for a period not to exceed four (4) years from the date the tax is due and payable, and may provide for payment in installments. In that case the amount in respect of which the extension is granted shall be paid with or without interest, on or before the date of the expiration of the period of the extension.

History of Section. G.L. 1923, ch. 39, §§ 37, 38; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 37; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-18 ; P.L. 1995, ch. 323, § 33; P.L. 1995, ch. 379, § 1.

44-23-19 — 44-23-22. Repealed.

History of Section. P.L. 1916, ch. 1339, § 18; G.L. 1923, ch. 39, §§ 16-18, 33, 34; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; P.L. 1936, ch. 2449, § 1; G.L. 1938, ch. 43, §§ 16, 17, 33; P.L. 1939, ch. 664, § 1; G.L. 1956, §§ 44-23-19 to 44-23-22; R.P.L. 1957, ch. 154, § 2; Repealed by P.L. 1971, ch. 155, § 2.

44-23-23. Sale of property to pay tax.

Every executor, administrator, or trustee has full power to sell, upon application to the probate court, so much of the property of the decedent as will enable him or her to pay any tax imposed by chapter 22 of this title in the manner he or she might be entitled by law to do for the payment of the debts of the testator or intestate.

History of Section. P.L. 1916, ch. 1339, § 21; G.L. 1923, ch. 39, §§ 19-21; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 19, 20; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-23 .

Cross References.

Application to net estate and transfer taxes, § 44-23-37 .

44-23-24. Refusal to furnish information or obey subpoena.

If any executor, administrator, heir-at-law, or trustee, probate clerk or other person neglects or refuses to file any statement as required by the provisions of this chapter, or to furnish any other information required by this chapter, or neglects or refuses to comply with any subpoena issued under the authority of § 44-23-5 , the tax administrator may apply to the sixth (6th) division of the district court, upon proof by affidavit of the neglect or refusal, for an order returnable in not less than two (2) nor more than five (5) days, directing the person charged in the affidavit with the neglect or refusal to show cause before the judge who made the order, or any other judge of the court, why the person should not be adjudged in contempt. Upon the return of the order, the judge before whom the matter is brought for a hearing shall examine the person under oath, and the person shall be given an opportunity to be heard. If the judge determines that the person has without reasonable cause been guilty of the neglect or refusal complained of, the judge may immediately commit the offender to the adult correctional institutions, to remain there until the offender submits to file the statement required or to furnish the information required, or to obey the subpoena, as the case may be, or is discharged according to law, or the judge may make any other order in the premises that the circumstances of the case may seem to the judge to require, and may from time to time alter, amend or suspend any order entered by the judge under this section. Notwithstanding anything contained in this section or in § 44-23-5 , whenever any executor, administrator, heir-at-law, trustee, or other person liable for any tax imposed under the provisions of chapter 22 of this title, refuses or neglects to furnish any information which in the opinion of the tax administrator is necessary for the proper computation of the taxes payable under that chapter, after having been requested so to do, the tax administrator may in his or her discretion assess and collect the taxes at the highest rate at which they could in any event be computed. A party aggrieved by an order of the court may appeal the order to the supreme court in accordance with the procedures contained in the rules of appellate procedure of the supreme court.

History of Section. P.L. 1916, ch. 1339, § 25; G.L. 1923, ch. 39, §§ 23-25; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 23, 24; P.L. 1939, ch. 664, § 1; impl. am. P.L. 1956, ch. 3721, § 1; G.L. 1956, § 44-23-24 ; P.L. 1976, ch. 140, § 29; P.L. 1978, ch. 170, § 2.

Cross References.

Application to net estate and transfer taxes, § 44-23-37 .

44-23-25. Settlement of taxes due.

The tax administrator, with the approval of the attorney general, may effect a settlement of the amount of any taxes imposed by chapter 22 of this title as they deem to be for the best interests of the state, and the payment of amount agreed upon is a full satisfaction of the taxes; provided, that the settlement and assessment are made only with the consent of the executor of the will or the trustee under the other instrument, or, in the case of a transfer by will of real estate, of the persons entitled to the real estate, or, if the real estate passes to a trustee for those persons, then of the trustee. The settlement, in accordance with the provisions of this section, of a tax upon any transfer of property subject to a power of appointment, if the agreement of settlement provides, precludes the assessment under this chapter or under any act hereafter passed of any further tax, with respect to the right to transfer, upon or with respect to the transfer of any property at the time subject to the power, as a part of the estate of the donee of the power. The agreement is binding upon all persons taking property subject to the tax, except for fraud or manifest error; and executors and trustees are expressly authorized to enter into an agreement unless a contrary intention appears in the instrument defining their powers.

History of Section. P.L. 1916, ch. 1339, § 19; P.L. 1920, ch. 1946, § 5; G.L. 1923, ch. 39, §§ 17-19; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 17, 18; P.L. 1939, ch. 659, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-25 ; P.L. 1980, ch. 275, § 3; P.L. 1984, ch. 206, art. VI, § 1; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 181, art. 45, § 5.

NOTES TO DECISIONS

In General.

This section does not change the rules as to the estate from which property subject to a power of appointment is derived but merely authorizes a present settlement as to future interests. Van Allen v. Bliss, 49 R.I. 379 , 142 A. 671, 1928 R.I. LEXIS 72 (1928).

44-23-26. Adjustment of clerical or palpable errors.

Whenever a clerical or palpable error or mistake has been made in any statement filed with the tax administrator under the provisions of this chapter concerning any matter of information, or in entering amounts or figures, the tax administrator may assess an additional tax and receive and collect the tax. In the event that the error or mistake has resulted in an over assessment, and in case the tax has already been paid to the tax administrator the general treasurer shall, upon certification by the tax administrator and with the approval of the controller, refund any overpayment to the executor, administrator, heir-at-law, or trustee, or to the person by whom the tax was paid, without any further act or resolution making appropriation for the refund; provided, that not more than four (4) years have elapsed from the payment of the tax.

History of Section. P.L. 1916, ch. 1339, § 19; P.L. 1920, ch. 1946, § 5; G.L. 1923, ch. 39, §§ 17-19; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 17, 18; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-26 ; P.L. 1978, ch. 170, § 2.

44-23-27. Conflict of laws as to domicile — Definition of terms.

When used in §§ 44-23-27 44-23-32 the following terms have the following meanings:

  1. “Death tax” means any tax levied by a state on account of the transfer or shifting of economic benefits in property at death, or in contemplation of death, or intended to take effect in possession or enjoyment at or after death, whether denominated an “inheritance tax,” “transfer tax,” “succession tax,” “estate tax,” “death duty,” “death dues,” or otherwise;
  2. “Executor” means any executor of the will or administrator of the estate of a decedent, except an ancillary administrator;
  3. “Interested person” means any person who may be entitled to receive or who has received any property or interest which may be required to be considered in computing the death tax of any state involved;
  4. “Taxing official” means the tax administrator in this state, and in any other reciprocal state the officer or body designated in the statute of the state substantially similar to §§ 44-23-27 44-23-32 .

History of Section. G.L. 1938, ch. 43, § 43; P.L. 1950, ch. 2508, § 1; G.L. 1956, § 44-23-27 .

44-23-28. Election to invoke remedy as to conflict of laws.

  1. In any case in which this state and one or more other states each claim that it was the domicile of a decedent at the time of his or her death, and no judicial determination of domicile for death tax purposes has been made in any of those states, any executor or the taxing official of any of those states, may elect to invoke the provisions of §§ 44-23-27 44-23-32 . The election is evidenced by sending a notice by registered or certified mail, receipt requested, to the taxing officials of each of those states and to each executor, ancillary administrator and interested person.
  2. Any executor may reject the election by sending a notice by registered or certified mail, receipt requested, to the taxing officials involved and to all other executors within forty (40) days after the receipt of the notice of election. If the election is rejected, no further proceedings shall be had under §§ 44-23-27 44-23-32 . If the election is not rejected, the dispute as to the death taxes shall be determined solely as provided in this chapter, and no other proceedings to determine or assess the death taxes shall be instituted in the courts of this state or otherwise.

History of Section. G.L. 1938, ch. 43, § 43; P.L. 1950, ch. 2508, § 1; impl. am. P.L. 1956, ch. 3717, § 1; G.L. 1956, § 44-23-28 .

44-23-29. Agreement as to amount due when domicile is in question — Adjustment for credits against federal tax.

In any case in which an election is made as provided in § 44-23-28 and not rejected, the tax administrator may enter into a written agreement with the other taxing officials involved and with the executors, to accept a certain sum in full payment of any death tax, together with interest and penalties, that may be due this state; provided, that the agreement also fixes the amount to be paid the other state or states. If an agreement cannot be reached and the arbitration proceeding specified in § 44-23-30 is commenced, and thereafter an agreement is arrived at, a written agreement may be entered into at any time before the proceeding is concluded notwithstanding the commencement of the proceeding. Upon the filing of the agreement or duplicate of it with the authority which would have jurisdiction to assess the death tax of this state if the decedent died domiciled in this state, an assessment shall be made as provided in the agreement. The assessment, except as hereinafter provided, shall finally and conclusively fix and determine the amount of death tax due this state. In the event that the aggregate amount payable under the agreement to the states involved is less than the maximum credit allowable to the estate against the United States estate tax imposed with respect to the tax, the executor shall also immediately pay to the taxing administrator that percentage of the difference between the aggregate amount and the amount of the credit, which the amount payable to the taxing administrator under the agreement bears to the aggregate amount.

History of Section. G.L. 1938, ch. 43, § 43; P.L. 1950, ch. 2508, § 1; G.L. 1956, § 44-23-29 .

44-23-30. Interstate arbitration as to domicile.

If in any case it appears that an agreement cannot be reached as provided in § 44-23-29 , or if one year has elapsed from the date of the election without an agreement having been reached, the domicile of the decedent at the time of his or her death shall be determined solely for death tax purposes as follows:

  1. Where only this state and one other state are involved, the taxing administrator and the taxing official of the other state shall each appoint a member of a board of arbitration, and the appointed members shall select the third member of the board. If this state and more than one other state are involved, the taxing officials of the states shall agree upon the authorities charged with the duty of administering death tax laws in three (3) states not involved, each of which authorities shall appoint a member of the board. The members of the board shall elect one of their number as chairperson.
  2. The board shall hold hearings at those places as are deemed necessary, upon reasonable notice to the executors, ancillary administrators, all other interested persons, and the taxing officials of the states involved, all of whom are entitled to be heard.
  3. The board has the power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of books, papers and documents and issue commissions to take testimony. Subpoenas may be issued by any member of the board. Failure to obey a subpoena may be punished by a judge or justice of any court of record in the same manner as if the subpoena had been issued by the judge or justice or by the court in which the judge or justice functions.
  4. The board shall apply, whenever practicable, the rules of evidence which prevail in federal courts under the federal rules of civil procedure at the time of hearing.
  5. The board shall, by majority vote, determine the domicile of the decedent at the time of his or her death. The determination is final and conclusive, and binds this state and all its judicial and administrative officials on all questions concerning the domicile of the decedent for death tax purposes.
  6. The reasonable compensation and expenses of the members of the board and employees of the board shall be agreed upon among the members, the taxing officials of the states involved, and the executors. In the event an agreement cannot be reached, the compensation and expenses shall be determined by the appropriate probate court of the state determined to be the domicile. The amount is borne by the estate and is deemed an administration expense.
  7. The determination of the board and the record of its proceedings shall be filed with the authority having jurisdiction to assess the death tax in the state determined to be the domicile of the decedent and with the authorities which would have had jurisdiction to assess the death tax in each of the other states involved if the decedent had been found to be domiciled in that state.

History of Section. G.L. 1938, ch. 43, § 43; P.L. 1950, ch. 2508, § 1; G.L. 1956, § 44-23-30 .

44-23-31. Interest on tax pending arbitration of domicile.

In any case where it is determined by the board of arbitration referred to in § 44-23-30 that the decedent died domiciled in this state, penalties and interest for nonpayment of the tax, between the date of the election and the final determination of the board, shall not exceed, in the aggregate, four percent (4%) of the amount of the taxes per annum.

History of Section. G.L. 1938, ch. 43, § 43; P.L. 1950, ch. 2508, § 1; G.L. 1956, § 44-23-31 .

44-23-32. Reciprocal laws required.

The provisions of §§ 44-23-27 44-23-31 apply only to cases in which each of the states involved has in effect a law substantially similar to those sections.

History of Section. G.L. 1938, ch. 43, § 43; P.L. 1950, ch. 2508, § 1; G.L. 1956, § 44-23-32 .

44-23-33. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter are to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section is expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirements pursuant to § 8-8-26 .

History of Section. P.L. 1916, ch. 1339, § 26; G.L. 1923, ch. 39, §§ 24-26; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 24, 25; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-33 ; P.L. 1976, ch. 140, § 29; P.L. 1982, ch. 388, § 25; P.L. 1983, ch. 109, § 2; P.L. 1984, ch. 183, § 9.

Cross References.

Application to net estate and transfer taxes, § 44-23-37 .

44-23-34. Permit required for transfer of securities of resident decedent.

No banking association organized under the laws of the United States and located within this state, no corporation incorporated within this state, and no incorporated association or joint stock company or business trust having certificates representing shares of stock and carrying on business in this state, shall record a transfer of its stock made by any executor, administrator, or trustee of a resident decedent or issue a new certificate for any share of its stock at the instance of the executor, administrator, or trustee, until a permit authorizing the transfer is issued by the tax administrator and filed with the corporation, association, company or trust. Any corporation, association, company, or trust making a transfer before a permit authorizing the transfer is issued is liable for the amount of any tax which may be assessed on account of the bequest or gift of the stock, bond or other evidence of indebtedness, together with its interest, to be collected in an action brought in the name of the tax administrator.

History of Section. P.L. 1916, ch. 1339, § 27; G.L. 1923, ch. 39, §§ 25-27; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 25, 26; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-34 .

44-23-35. Statement required as to delivery of decedent’s property to other than administrator.

No person having in possession or under control of property forming a part of the estate of a resident decedent, as provided in this chapter, may deliver or transfer the property to any person other than the executor, administrator, or trustee of the decedent unless the person making delivery or transfer of the property immediately furnishes the tax administrator with a statement under oath describing the property delivered or transferred together with the name of the person to whom the property is delivered or transferred; provided, that any insurance company engaging in the business of writing contracts of insurance in the state notifies the tax administrator of the amount of any payment or payments made, or to be made to any person or persons under any insurance contract, as a result of the death of a Rhode Island resident, whenever the total amount of payment or payments made or to be made to the person or persons exceeds fifty thousand dollars ($50,000); and provided, that banks and other institutions having deposits standing in the joint names of two (2) or more persons, or standing in the joint names of two (2) or more persons and payable to either or the survivor or survivors, are not required to furnish the statement with respect to deposits of one thousand dollars ($1,000) or less. In the case of deposits of over one thousand dollars ($1,000), the bank or other institution, having knowledge of the decease of one of the persons in whose names the deposit stands, or upon request of the tax administrator, shall, in lieu of the statement furnish a certificate showing the amount of each deposit together with the names of the persons in whose names the deposit stands. Any person who makes delivery or transfer without furnishing a statement is liable for the amount of any tax which may be assessed on account of the transfer of the property, together with its interest, to be collected in an action brought in the name of the tax administrator.

History of Section. G.L. 1923, ch. 39, §§ 25, 26; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 25, 26; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-35 ; P.L. 1960, ch. 218, § 4; P.L. 1962, ch. 34, § 1; P.L. 1978, ch. 170, § 2; P.L. 1995, ch. 379, § 1.

44-23-36. Payment of tax as prerequisite for allowance of final account.

The final account of an executor, administrator, or trustee shall not be allowed by the court having jurisdiction of the estate unless the account shows, and the court finds, that all taxes imposed under the provisions of chapter 22 of this title upon any property or interest in property belonging to the estate to be settled by the account and then payable have been paid, that the payment of the taxes has been extended, or that the property or any interest in property is not liable for any tax imposed under chapter 22 of this title. The receipt of the tax administrator for the amount of the tax is conclusive as to the payment of the tax to the extent of the receipt, and the certification of the tax administrator that an estate, property, or interest is not liable for any tax imposed by chapter 22 of this title is conclusive of that fact.

History of Section. P.L. 1916, ch. 1339, § 29; G.L. 1923, ch. 39, §§ 27-29; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 27, 28; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-36 .

44-23-37. Applicability of enforcement provisions.

Sections 44-23-1 44-23-8 , 44-23-17 , 44-23-23 , 44-23-24 , and 44-23-33 44-23-36 apply to the tax imposed under the provisions of § 44-22-1 or 44-22-1 .1, whichever is in effect at the time.

History of Section. P.L. 1916, ch. 1339, § 33; G.L. 1923, ch. 39, §§ 30, 31, 33; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, §§ 30, 31; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-37 ; P.L. 1980, ch. 275, § 3; P.L. 1984, ch. 206, art. VI, § 5; P.L. 1984 (s.s.), ch. 450, § 2; P.L. 1985, ch. 181, art. 45, § 5.

44-23-38. Termination of lien.

Any other provision of this or chapter 22 of this title to the contrary notwithstanding, a lien created by those chapters ceases to be a lien upon or enforceable against real estate upon the expiration of a period of ten (10) years from and after the death of the person whose act, failure to act, or death gave rise to the lien, regardless of the date of death.

History of Section. G.L. 1938, ch. 43, § 44; P.L. 1955, ch. 3525, § 1; G.L. 1956, § 44-23-38 ; P.L. 1961, ch. 128, § 1; P.L. 1999, ch. 354, § 33; P.L. 2001, ch. 395, § 1; P.L. 2009, ch. 358, § 1.

44-23-39. Proof of payment of domiciliary tax by administrator of nonresident.

At any time before the expiration of eighteen (18) months after the appointment in any probate court of this state of an executor of the will, or administrator of the estate of, any nonresident decedent, the executor or administrator shall file with the probate court proof that all death taxes, together with interest, or penalties attached to or in connection with the death taxes, which are due to the state of domicile of the decedent, or to any of its political subdivisions, have been paid or secured, or that no taxes, interest, or penalties are due, as the case may be; provided, that the filing of the proof is not required if it appears that letters testamentary have been issued in the state of domicile. The proof may be in the form of a certificate issued by the official or body charged with the administration of the death tax laws of the state of domicile.

History of Section. G.L. 1923, ch. 39, § 41; P.L. 1932, ch. 1963, § 3; G.L. 1938, ch. 43, § 40; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-39 .

44-23-40. Information furnished to foreign tax officials.

If the proof is not filed with a probate court in this state as provided by § 44-23-39 , the clerk of the probate court shall immediately notify by mail the official or body of the state of domicile charged with the administration of the death tax laws of that state with respect to the estate, and shall present in the notification, so far as is known to the clerk: (1) the name, date of death and last domicile of the decedent; (2) the name and address of the executor or administrator; (3) a summary of the values of the real estate, tangible personalty, and intangible personalty, wherever situated, belonging to the decedent at the time of his or her death; and (4) the fact that the executor or administrator has not previously filed the proof required by § 44-23-39 . The clerk shall also attach to the notification a copy of the will of the decedent, if the decedent died testate, or if the decedent died intestate, a list of his or her heirs and next of kin, so far as is known to the clerk. For each copy of the notice, the probate clerk furnishing the information shall be paid out of any money appropriated for expenses of tax administration the fees provided in § 44-23-7 .

History of Section. G.L. 1923, ch. 39, § 41; P.L. 1932, ch. 1963, § 3; G.L. 1938, ch. 43, § 40; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-40 ; P.L. 1999, ch. 354, § 33.

44-23-41. Accounting on petition by foreign tax official.

Within sixty (60) days after the mailing of the notice, the official or body charged with the administration of the death tax laws of the state of domicile may file with the probate court in this state a petition for an accounting in the estate. The official or body of the state of domicile is, for the purposes of this chapter, a party in interest for the purpose of petitioning the probate court for the accounting. If the petition is filed within the period of sixty (60) days, the probate court shall decree the accounting, and upon the accounting being filed and approved shall decree the remission to the fiduciary appointed by the probate court of the state of domicile of the balance of the intangible personal property after the payment of creditors and expenses of administration in this state.

History of Section. G.L. 1923, ch. 39, § 41; P.L. 1932, ch. 1963, § 3; G.L. 1938, ch. 43, § 40; P.L. 1939, ch. 659, § 2; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-41 .

44-23-42. Noncompliance by administrator of nonresident — “State” defined.

Failure to comply with any of the provisions of §§ 44-23-39 44-23-41 bars any executor or administrator from the right to a final accounting or discharge in any probate court in this state. The word “state” for the purposes of §§ 44-23-39 44-23-41 includes any territory of the United States, the District of Columbia, and any foreign country.

History of Section. G.L. 1923, ch. 39, § 41; P.L. 1932, ch. 1963, § 3; G.L. 1938, ch. 43, § 40; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-42 .

44-23-43. Reciprocal laws required — Liberal construction — Remission of intangible property.

The provisions of §§ 44-23-39 44-23-42 apply to the estate of a nonresident decedent whenever the laws of the state of domicile of the decedents contain a provision, of any nature or however expressed, where this state is given reasonable assurance of the collection of its death taxes, interest and penalties, from the estates of decedents dying domiciled in this state but whose estates are being administered by a court having probate jurisdiction in the other state; or whenever the state of domicile does not grant letters testamentary or of administration in nonresident estates until after the letters have been issued by the state of domicile. The provisions are liberally construed in order to ensure that the state of domicile of any decedent receives any death taxes, which may be due it, together with interest and penalties. Nothing in those sections shall be construed to prevent a probate court from ordering the remission of any intangible personal property belonging to a nonresident decedent whose estate is being administered in this state, and the probate court is authorized to order the remission whenever good cause is shown.

History of Section. G.L. 1923, ch. 39, § 42; P.L. 1932, ch. 1963, § 3; G.L. 1938, ch. 43, § 41; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-43 .

44-23-44. Exercise of statutory power.

Whenever in this chapter or chapter 22 of this title any reference is made to any power or duty of the tax administrator, the reference shall be construed to mean that the power or duty is exercised by the tax administrator or by his or her authorized agent, under the supervision and direction of the director of revenue. Whenever in this chapter or chapter 22 of this title any reference is made to any power or duty of the controller, the reference shall be construed to mean that the power or duty is exercised by the controller or by his or her authorized agent, under the supervision and direction of the director of revenue.

History of Section. G.L. 1938, ch. 43, § 42; P.L. 1939, ch. 664, § 1; impl. am. P.L. 1951, ch. 2727, art. 1, § 3; G.L. 1956, § 44-23-44 ; P.L. 2008, ch. 98, § 44; P.L. 2008, ch. 145, § 44.

44-23-45. Liberal construction — Incidental powers.

The provisions of this chapter and chapter 22 of this title shall be interpreted and construed liberally in order to accomplish the purpose of those chapters, and the tax administrator has, in addition to the powers in those chapters specified, mentioned and indicated, all additional implied and incidental powers which may be proper and necessary to effect and carry out, perform and execute all the powers specified, mentioned and indicated in those chapters.

History of Section. G.L. 1923, ch. 39, §§ 35, 36; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 35; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-45 .

44-23-46. Severability.

If any clause, sentence, paragraph, section, or part of this chapter and chapter 22 of this title is for any reason adjudged by any court of competent jurisdiction to be invalid, that judgment does not affect, impair or invalidate any other portion of those chapters which can be given reasonable effect without the part adjudged invalid.

History of Section. G.L. 1923, ch. 39, §§ 40, 41; P.L. 1926, ch. 810, § 1; P.L. 1929, ch. 1355, § 1; G.L. 1938, ch. 43, § 39; P.L. 1939, ch. 664, § 1; G.L. 1956, § 44-23-46 .

Chapter 23.1 Uniform Estate Tax Apportionment

44-23.1-1. Definitions.

In this chapter:

  1. “Estate” means the gross estate of a decedent as determined for the purpose of federal estate tax and the estate and transfer taxes payable as provided by this title;
  2. “Fiduciary” means executor, administrator of any description, and trustee;
  3. “Person” means any individual, partnership, association, joint stock company, corporation, government, political subdivision, governmental agency, or local governmental agency;
  4. “Person interested in the estate” means any person, including a personal representative, guardian, or trustee, entitled to receive, or who has received, from a decedent while alive or by reason of the death of a decedent any property or interest in property included in the decedent’s taxable estate;
  5. “State” means any state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico; and
  6. “Tax” means the federal estate tax and the estate and transfer taxes payable as provided by this title and interest and penalties imposed in addition to the tax.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-2. Apportionment.

Unless the will provides, the tax is apportioned among all persons interested in the estate. The apportionment is made in the proportion that the value of the interest of each person interested in the estate bears to the total value of the interests of all persons interested in the estate. The values used in determining the tax are used for that purpose.

History of Section. P.L. 1971, ch. 155, § 1.

NOTES TO DECISIONS

Language of Will.

Settlor’s will directed that taxes arising from “any other property” included in his gross estate had to be apportioned against and paid out of that property. The trust was “any other property” included in his gross estate, and as the tax allocation clause of the trust conflicted with the language of the will, the language of the will controlled. Steinhof v. Murphy, 991 A.2d 1028, 2010 R.I. LEXIS 44 (R.I. 2010).

44-23.1-3. Procedure for determining apportionment.

  1. The court having jurisdiction over the administration of the estate of a decedent determines the apportionment of the tax. If there are no probate proceedings, the superior court of the county where the decedent was domiciled at death determines the apportionment of the tax upon the application of the person required to pay the tax.
  2. If the court finds that it is inequitable to apportion interest and penalties in the manner provided in this chapter because of special circumstances, it may direct apportionment in the manner it finds equitable.
  3. The expenses reasonably incurred by any fiduciary and by other persons interested in the estate in connection with the determination of the amount and apportionment of the tax are apportioned as provided in § 44-23.1-2 and charged and collected as a part of the tax apportioned. If the court finds it is inequitable to apportion the expenses as provided in § 44-23.1-2 , it may direct apportionment of the expenses equitably.
  4. If the court finds that the assessment of penalties and interest assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties and interest.
  5. In any suit or judicial proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this chapter, the determination of the court in respect to the tax is prima facie correct.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-4. Method of proration.

  1. The fiduciary or other person required to pay the tax may withhold from any property of the decedent in his or her possession, distributable to any person interested in the estate, the amount of tax attributable to his or her interest. If the property in possession of the fiduciary or other person required to pay the tax and distributable to any person interested in the estate is insufficient to satisfy the proportionate amount of the tax determined to be due from the person, the fiduciary or other person required to pay the tax may recover the deficiency from the person interested in the estate. If the property is not in the possession of the fiduciary or other person required to pay the tax, the fiduciary or the other person required to pay the tax may recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this chapter.
  2. If property held by the fiduciary or other person is distributed prior to final apportionment of the tax, the fiduciary or other person may require the distributee to provide a bond or other security for the apportionment liability in the form and amount prescribed by the fiduciary, with the approval of the court having jurisdiction of the administration of the estate.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-5. Allowance for exemptions, deductions, and credits.

  1. In making an apportionment, allowances are made for any exemptions granted, any classification made of persons interested in the estate and for any deductions and credits allowed by the law imposing the tax.
  2. Any exemption or deduction allowed by reason of the relationship of any person to the decedent or by reason of the purposes of the gift inures to the benefit of the person bearing that relationship or receiving the gift. When an interest is subject to a prior present interest which is not allowable as a deduction, the tax apportioned against the present interest is paid from principal.
  3. Any deduction for previously taxed property and any credit for gift taxes or death taxes of a foreign country paid by the decedent or his or her estate inures to the proportionate benefit of all persons liable to apportionment.
  4. Any credit for inheritance, succession or estate taxes or taxes in their nature in respect to property or interests includable in the estate inures to the benefit of the person or interests chargeable with their payment to the extent that, or in proportion as the credit reduces the tax.
  5. To the extent that property passing to or in trust for a surviving spouse or any charitable, public, or similar gift or bequest does not constitute an allowable deduction for purposes of the tax solely by reason of an inheritance tax or other death tax imposed upon and deductible from the property, the property shall not be included in the computation provided for in this chapter, and to that extent no apportionment shall be made against the property. This does not apply in any instance where the result deprives the estate of a deduction otherwise allowable under 26 U.S.C. § 2053(d), relating to deduction for state death taxes on transfers for public, charitable, or religious uses.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-6. No apportionment between temporary and remainder interests.

No interest in income and no estate for years or for life or other temporary interest in any property or fund is subject to apportionment as between the temporary interest and the remainder. The tax on the temporary interest and the tax, if any, on the remainder is chargeable against the corpus of the property or funds subject to the temporary interest and remainder.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-7. Exoneration of fiduciary.

Neither the fiduciary nor other person required to pay the tax is under any duty to institute any suit or proceeding to recover from any person interested in the estate the amount of the tax apportioned to that person until the expiration of the three (3) months next following final determination of the tax. A fiduciary or other person required to pay the tax who institutes the suit or proceeding within one year after the three (3) month period is not subject to any liability or surcharge because any portion of the tax apportioned to any person interested in the estate was collectible at a time following the death of the decedent but thereafter became uncollectible. If the fiduciary or other person required to pay the tax cannot collect from any person interested in the estate the amount of the tax apportioned to the person, the amount not recoverable is paid from the residuary estate. To the extent that the residuary estate is not adequate, the balance is equitably apportioned among the other persons interested in the estate who are subject to apportionment.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-8. Action by nonresident, reciprocity.

Subject to this section, a fiduciary acting in another state or a person required to pay the tax who is domiciled or resident in another state may institute an action in the courts of this state and may recover a proportionate amount of the federal estate tax or an estate tax payable to another state or of a death duty due by the decedent’s estate to another state from a person interested in the estate who is either domiciled or resident in this state or who owns property in this state subject to attachment or execution. For the purposes of the action, the determination of apportionment by the court having jurisdiction of the administration of the decedent’s estate in the other state is prima facie correct. The provisions of this section apply only if the state in which the determination of apportionment was made affords a substantially similar remedy.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-9. Uniformity of interpretation.

This chapter shall be applied and construed as to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among those states, which enact it.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-10. Short title.

This chapter may be cited as the “Uniform Estate Tax Apportionment Act”.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-11. Severability.

If any provision of this chapter or the application of this chapter to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

History of Section. P.L. 1971, ch. 155, § 1.

44-23.1-12. Time of application of chapter.

This chapter does not apply to taxes due on account of the death of decedents dying prior to six (6) months after July 6, 1971.

History of Section. P.L. 1971, ch. 155, § 1.

Chapter 24 Gift Tax [Repealed.]

44-24-1 — 44-24-18. Repealed.

History of Section. P.L. 1942, ch. 1212, art. 10, §§ 1-7, 9-16; P.L. 1948, ch. 2098, § 1; P.L. 1951, ch. 2721, art. 1, § 3; G.L. 1956, §§ 44-24-1 44-24-1 8; P.L. 1960, ch. 51, § 1; P.L. 1960, ch. 65, §§ 1, 2; P.L. 1961, ch. 127, § 1; P.L. 1962, ch. 99, § 1; P.L. 1962, ch. 101, § 1; P.L. 1974, ch. 156, § 1; P.L. 1976, ch. 140, § 30; P.L. 1980, ch. 310, § 1; P.L. 1982, ch. 159, § 4; P.L. 1982, ch. 388, § 3; P.L. 1983, ch. 104, § 4; P.L. 1984, ch. 183, § 10; Repealed by P.L. 1985, ch. 344, § 1.

Compiler’s Notes.

Former §§ 44-24-1 44-24-1 8 concerned a gift tax. Section 2 of P.L. 1985, ch. 344 provides that the repeal of this chapter by that Act shall take effect July 1, 1985 and shall be applicable to gifts made on or after July 1, 1985.

Chapter 25 Real Estate Conveyance Tax

44-25-1. Tax imposed — Payment — Burden.

  1. There is imposed, on each deed, instrument, or writing by which any lands, tenements, or other realty sold is granted, assigned, transferred, or conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his, her, or their direction, or on any grant, assignment, transfer, or conveyance or such vesting, by such persons that has the effect of making any real estate company an acquired real estate company, when the consideration paid exceeds one hundred dollars ($100), a tax at the rate of two dollars and thirty cents ($2.30) for each five hundred dollars ($500), or fractional part of it, that is paid for the purchase of property or the interest in an acquired real estate company (inclusive of the value of any lien or encumbrance remaining at the time the sale, grant, assignment, transfer or conveyance or vesting occurs, or in the case of an interest in an acquired real estate company, a percentage of the value of such lien or encumbrance equivalent to the percentage interest in the acquired real estate company being granted, assigned, transferred, conveyed or vested). The tax is payable at the time of making, the execution, delivery, acceptance or presentation for recording of any instrument affecting such transfer grant, assignment, transfer, conveyance or vesting. In the absence of an agreement to the contrary, the tax shall be paid by the grantor, assignor, transferor or person making the conveyance or vesting.
  2. In addition to the tax imposed by subsection (a), there is imposed, on each deed, instrument, or writing by which any residential real property sold is granted, assigned, transferred, or conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his, her, or their direction, or on any grant, assignment, transfer, or conveyance or such vesting, by such persons that has the effect of making any real estate company an acquired real estate company, when the consideration paid exceeds eight hundred thousand dollars ($800,000), a tax at the rate of two dollars and thirty cents ($2.30) for each five hundred dollars ($500), or fractional part of it, of the consideration in excess of eight hundred thousand dollars ($800,000) that is paid for the purchase of property or the interest in an acquired real estate company (inclusive of the value of any lien or encumbrance remaining at the time the sale, grant, assignment, transfer, or conveyance or vesting occurs, or in the case of an interest in an acquired real estate company, a percentage of the value of such lien or encumbrance equivalent to the percentage interest in the acquired real estate company being granted, assigned, transferred, conveyed, or vested). The tax imposed by this subsection shall be paid at the same time and in the same manner as the tax imposed by subsection (a).
  3. In the event no consideration is actually paid for the lands, tenements, or realty, the instrument or interest in an acquired real estate company of conveyance shall contain a statement to the effect that the consideration is such that no documentary stamps are required.
  4. The tax shall be distributed as follows:
    1. With respect to the tax imposed by subsection (a): the tax administrator shall contribute to the distressed community relief program the sum of thirty cents ($.30) per two dollars and thirty cents ($2.30) of the face value of the stamps to be distributed pursuant to § 45-13-12 , and to the housing resources commission restricted receipts account the sum of thirty cents ($.30) per two dollars and thirty cents ($2.30) of the face value of the stamps. Funds will be administered by the office of housing and community development, through the housing resources commission. The state shall retain sixty cents ($.60) for state use. The balance of the tax shall be retained by the municipality collecting the tax.
    2. With respect to the tax imposed by subsection (b): the tax administrator shall contribute the entire tax to the housing production fund established pursuant to § 42-128-2.1 .
    3. Notwithstanding the above, in the case of the tax on the grant, transfer, assignment or conveyance or vesting with respect to an acquired real estate company, the tax shall be collected by the tax administrator and shall be distributed to the municipality where the real estate owned by the acquired real estate company is located; provided, however, in the case of any such tax collected by the tax administrator, if the acquired real estate company owns property located in more than one municipality, the proceeds of the tax shall be allocated amongst said municipalities in the proportion the assessed value of said real estate in each such municipality bears to the total of the assessed values of all of the real estate owned by the acquired real estate company in Rhode Island. Provided, however, in fiscal years 2004 and 2005, from the proceeds of this tax, the tax administrator shall deposit as general revenues the sum of ninety cents ($.90) per two dollars and thirty cents ($2.30) of the face value of the stamps. The balance of the tax on the purchase of property shall be retained by the municipality collecting the tax. The balance of the tax on the transfer with respect to an acquired real estate company, shall be collected by the tax administrator and shall be distributed to the municipality where the property for which interest is sold is physically located. Provided, however, that in the case of any tax collected by the tax administrator with respect to an acquired real estate company where the acquired real estate company owns property located in more than one municipality, the proceeds of the tax shall be allocated amongst the municipalities in proportion that the assessed value in any such municipality bears to the assessed values of all of the real estate owned by the acquired real estate company in Rhode Island.
  5. For purposes of this section, the term “acquired real estate company” means a real estate company that has undergone a change in ownership interest if (1) The change does not affect the continuity of the operations of the company; and (2) The change, whether alone or together with prior changes has the effect of granting, transferring, assigning, or conveying or vesting, transferring directly or indirectly, 50% or more of the total ownership in the company within a period of three (3) years. For purposes of the foregoing subsection (e)(2), a grant, transfer, assignment, or conveyance or vesting, shall be deemed to have occurred within a period of three (3) years of another grant(s), transfer(s), assignment(s), or conveyance(s) or vesting(s) if during the period the granting, transferring, assigning, or conveying party provides the receiving party a legally binding document granting, transferring, assigning, or conveying or vesting the realty or a commitment or option enforceable at a future date to execute the grant, transfer, assignment, or conveyance or vesting.
  6. A real estate company is a corporation, limited liability company, partnership, or other legal entity that meets any of the following:
    1. Is primarily engaged in the business of holding, selling, or leasing real estate, where 90% or more of the ownership of the real estate is held by 35 or fewer persons and which company either (i) derives 60% or more of its annual gross receipts from the ownership or disposition of real estate; or (ii) owns real estate the value of which comprises 90% or more of the value of the entity’s entire tangible asset holdings exclusive of tangible assets that are fairly transferrable and actively traded on an established market; or
    2. Ninety percent or more of the ownership interest in such entity is held by 35 or fewer persons and the entity owns as 90% or more of the fair market value of its assets a direct or indirect interest in a real estate company. An indirect ownership interest is an interest in an entity 90% or more of which is held by 35 or fewer persons and the purpose of the entity is the ownership of a real estate company.
  7. In the case of a grant, assignment, transfer or conveyance or vesting that results in a real estate company becoming an acquired real estate company, the grantor, assignor, transferor, or person making the conveyance or causing the vesting, shall file or cause to be filed with the division of taxation, at least five (5) days prior to the grant, transfer, assignment, or conveyance or vesting, notification of the proposed grant, transfer, assignment, or conveyance or vesting, the price, terms and conditions thereof, and the character and location of all of the real estate assets held by the real estate company and shall remit the tax imposed and owed pursuant to subsection (a). Any such grant, transfer, assignment, or conveyance or vesting which results in a real estate company becoming an acquired real estate company shall be fraudulent and void as against the state unless the entity notifies the tax administrator in writing of the grant, transfer, assignment, or conveyance or vesting as herein required in subsection (g) and has paid the tax as required in subsection (a). Upon the payment of the tax by the transferor, the tax administrator shall issue a certificate of the payment of the tax which certificate shall be recordable in the land evidence records in each municipality in which such real estate company owns real estate. Where the real estate company has assets other than interests in real estate located in Rhode Island, the tax shall be based upon the assessed value of each parcel of property located in each municipality in the state of Rhode Island.

History of Section. P.L. 1968, ch. 89, § 2; P.L. 1978, ch. 290, § 1; P.L. 1989, ch. 126, art. 52, § 1; P.L. 1998, ch. 31, art. 25, § 1; P.L. 2002, ch. 65, art. 16, § 12; P.L. 2004, ch. 595, art. 16, § 1; P.L. 2014, ch. 145, art. 12, § 5; P.L. 2015, ch. 141, art. 11, § 6; P.L. 2021, ch. 162, art. 14, § 6, effective January 1, 2022.

Delayed Effective Date.

P.L. 2021, ch. 162, art. 14, § 9, provides that the amendment to this section by that act takes effect on January 1, 2022.

Comparative Legislation.

Deed and document stamp tax:

Conn. Gen. Stat. § 12-494 et seq.

Mass. Ann. Laws ch. 64D, § 1 et seq.

44-25-2. Exemptions.

  1. The tax imposed by this chapter does not apply to any instrument or writing given to secure a debt.
  2. The tax imposed by this chapter does not apply to any deed, instrument, or writing wherein the United States, the state of Rhode Island, or its political subdivisions are designated the grantor.
  3. The tax imposed by this chapter does not apply to any deed, instrument, or writing that has or shall be executed, delivered, accepted, or presented for recording in furtherance of, or pursuant to, that certain master property conveyance contract dated December 29, 1982, and recorded in the land evidence records of the city of Providence on January 27, 1983, at 1:30 p.m. in book 1241 at page 849, and relating to the capital center project in the city of Providence.
  4. The qualified sale of a mobile or manufactured home community to a resident-owned organization as defined in § 31-44-1 is exempt from the real estate conveyance tax imposed under this chapter.
  5. No transfer tax or fee shall be imposed by a land trust or municipality upon the acquisition of real estate by the state of Rhode Island or any of its political subdivisions.
  6. Nothing in § 44-25-1 shall be construed to impose a tax upon any grant, assignment, transfer, conveyance, or vesting of any interest, direct or indirect, among owners, members, or partners in any real estate company with respect to an affordable housing development where:
    1. The housing development has been financed in whole or in part with federal low-income housing tax credits pursuant to § 42 of the Internal Revenue Code [26 U.S.C. § 42]; or
    2. At least one of the owners, members, or partners of the company is a Rhode Island nonprofit corporation or an entity exempt from tax under § 501(c)(3) of the Internal Revenue Code, or is owned by a Rhode Island nonprofit corporation or an entity that is exempt from tax under § 501(c)(3) of the Internal Revenue Code, and the housing development is subject to a recorded deed restriction or declaration of land use restrictive covenants in favor of the Rhode Island housing and mortgage finance corporation, the state of Rhode Island housing resources commission, the federal home loan bank or any of its members, or any other state or local government instrumentality under an affordable housing program. No such real estate company shall be an acquired real estate company under this section.

History of Section. P.L. 1968, ch. 89, § 2; P.L. 1984, ch. 205, § 1; P.L. 2000, ch. 109, § 49; P.L. 2012, ch. 364, § 3; P.L. 2012, ch. 391, § 3; P.L. 2015, ch. 173, § 1; P.L. 2015, ch. 194, § 1; P.L. 2021, ch. 162, art. 14, § 7, effective July 6, 2021.

Compiler’s Notes.

P.L. 2012, ch. 364, § 3, and P.L. 2012, ch. 391, § 3 enacted identical amendments to this section.

P.L. 2015, ch. 173, § 1, and P.L. 2015, ch. 194, § 1 enacted identical amendments to this section.

44-25-3. Documentary stamps — Affixing — Cancellation.

The payment of the tax imposed by this chapter is evidenced by the affixing of a documentary stamp or stamps to every original instrument by the person making, executing, delivering, or presenting for recording the instrument and only the original instrument is accepted for recording. The stamps shall be affixed in the manner that:

  1. Their denomination may be clearly determined;
  2. Their removal requires the continued application of steam or water;
  3. The person using or affixing the stamps writes or stamps or causes to be written or stamped thereon the initials of his or her name and the date upon which the stamps are affixed or used so that the stamps may not be used again; and
  4. The cancellation is not obscured by one stamp overlapping another; provided, that the tax administrator may prescribe any other method of cancellation that the administrator deems expedient.

History of Section. P.L. 1968, ch. 89, § 2.

NOTES TO DECISIONS

In General.

The recorder of deeds has no option but to accept for recording only an original or certified copy of a deed containing the documentary stamps required by law to appear in the register. Bionomic Church v. Gerardi, 414 A.2d 474, 1980 R.I. LEXIS 1555 (R.I. 1980).

Construction.

Section 34-13-6 , which permits a certified copy of a deed to be filed in place of the original deed, cannot be construed to change the requirement of this section that documentary stamps appear on the recorded deed. Bionomic Church v. Gerardi, 414 A.2d 474, 1980 R.I. LEXIS 1555 (R.I. 1980).

44-25-4. Repealed.

History of Section. P.L. 1968, ch. 89, § 2; P.L. 1978, ch. 290, § 1; P.L. 1989, ch. 126, art. 52, § 1; P.L. 1995, ch. 370, art. 40, § 148; P.L. 1996, ch. 176, § 1; Repealed by P.L. 1998, ch. 31, art. 25, § 2, effective July 1, 1998.

Compiler’s Notes.

Former § 44-25-4 concerned the tax administrator to furnish stamps.

44-25-4.1. Hand stamps.

In lieu of the affixing of a documentary stamp or stamps to every original instrument, the tax administrator may authorize and approve the use of a hand stamp to be used as a means of evidencing the payment of the tax imposed by this chapter. Where the use of a hand stamp is authorized, the recorder of deeds or clerks shall affix upon the face of each original instrument, by hand stamp issued by the tax administrator, a receipt clearly showing the amount of tax paid by the person making, executing, delivering, or presenting for recording the original instrument.

History of Section. P.L. 1988, ch. 507, § 1; P.L. 1998, ch. 31, art. 25, § 1.

44-25-4.2. Records required.

Every recorder of deeds, city or town clerk or other person acting as agent of the tax administrator for the collection of the tax due under this chapter shall keep any books, including records, receipts, and other pertinent papers, in a form that the tax administrator may require. Those records shall be open at all times to the inspection of the tax administrator and his or her agents and, upon summons issued by the tax administrator, shall be produced at the time and place that the tax administrator may designate for inspection by him or her or by his or her agents.

History of Section. P.L. 1989, ch. 43, § 1.

44-25-5. [Obsolete.]

Compiler’s Notes.

This former section (G.L. 1956, § 44-25-5 ; P.L. 1968, ch. 89, § 2; P.L. 1969, ch. 204, § 1) relating to recomputation of taxes paid between January 1, 1968 and May 3, 1968 was deemed obsolete because it expired by its own terms on June 30, 1969.

44-25-6. Enforcement — Rules and regulations.

The tax administrator shall enforce the provisions of this chapter and may adopt and enforce rules and regulations relating to:

  1. The denominations and sale of stamps.
  2. The use of hand stamps.
  3. Any other matter or thing pertaining to the administration and enforcement of the provisions of this chapter.

History of Section. P.L. 1968, ch. 89, § 2; P.L. 1988, ch. 507, § 2.

44-25-7. General collection powers.

The tax administrator receives and collects any tax imposed under this chapter in the manner and with the powers prescribed for, and given to collectors of taxes by chapters 7 — 9 of this title.

History of Section. P.L. 1968, ch. 89, § 2.

44-25-8. Tax as debt to state.

Any tax imposed under the provisions of this chapter, together with all penalties and interest also become, from the time they are due and payable, a debt due to the state from the person liable for the payment of the tax.

History of Section. P.L. 1968, ch. 89, § 2.

Chapter 26 Declaration of Estimated Tax by Corporations

44-26-1. Definitions and purpose.

  1. Definitions.  The following words as used in this chapter, unless the context otherwise requires, have the following meanings:
    1. “Advance” means a sum equal to one hundred percent (100%) of the full amount of the tax which a corporation estimates it will be required to pay under the provisions of any of the chapters enumerated in subdivision (2) of this subsection, or in any act or acts in lieu, addition or amendment of those chapters.
    2. “Corporation” means every corporation, utility, banking institution, insurance company, organization, or association subject to taxation under chapters 11, 12, 13, 14, 15, and 17 of this title, § 27-3-38 , or under any special act or acts in lieu of the provisions of these chapters and section, or in addition to or amendment of these chapters and section.
    3. “Taxable year,” in the case of a corporation subject to taxation:
      1. Under chapter 11 or 12 of this title, means “taxable year” as defined in § 44-11-1 ;
      2. Under chapter 14 of this title, means “income period” as defined in § 44-14-2 ; and
      3. Under chapter 13, 15, or 17 of this title, or under § 27-3-38 , means the calendar year ending December 31st next preceding the year during which the corporation is required to file the return prescribed by § 44-13-6 , 44-15-5 or 44-17-1 .
  2. Purpose.  The purpose of this chapter is to provide for accelerating the payment of the respective taxes imposed under the provisions of the chapters enumerated in subdivision (a)(2) of this section by requiring that a corporation pay a sum equal to the entire amount of its estimated tax during its current taxable year.

History of Section. P.L. 1968, ch. 263, art. 11, § 1; P.L. 1970, ch. 139, art. 2, §§ 1, 2; P.L. 1989, ch. 126, art. 33, § 1; P.L. 1992, ch. 15, art. 2, § 1.

Comparative Legislation.

Estimated Corporate Tax:

Conn. Gen. Stat. § 12-242a et seq.

Mass. Ann. Laws ch. 63B, § 1 et seq.

44-26-2. Repealed.

History of Section. P.L. 1968, ch. 263, art. 11, § 1; P.L. 1970, ch. 139, art. 2, § 3; P.L. 1989, ch. 126, art. 33, § 1; Repealed by P.L. 1992, ch. 409, § 1, effective July 21, 1992.

Compiler’s Notes.

Former § 44-26-2 concerned when a tax declaration is required.

44-26-2.1. Declaration — Due date — Payment — Interest.

  1. Notwithstanding any general or specific statute to the contrary, every corporation having a taxable year ending December 31, 1990, or thereafter, until December 31, 2017, shall file a declaration and payment of its estimated tax for the taxable year ending December 31, 1990, or thereafter, until December 31, 2017, as applicable herein, if its estimated tax can reasonably be expected to exceed five hundred dollars ($500). Every corporation having a taxable year after December 31, 2017, shall file its declaration and estimated payment in accordance with subsection (n) herein and in conformity with federal statute and regulations notwithstanding any Rhode Island statute to the contrary. The declaration, sworn to by the officer of the corporation who is required to sign its return under any of the chapters and section mentioned in § 44-26-1 shall contain the pertinent information and be in the form that the tax administrator may prescribe. The entire amount of the estimated tax shall constitute the amount of the advance required to be paid.
    1. Except as provided in subdivision (2) of this subsection, the declaration of estimated tax required of corporations by subsection (a) of this section shall be filed as follows:
    2. The declaration of estimated tax required of corporations subject to § 27-3-38 relating to surplus line brokers premium tax or under any special act or acts in lieu of the provisions of that section or in amendment of or in addition to that section shall be filed as follows:
  2. An amendment of a declaration may be filed in any interval between installment dates prescribed for the taxable year, but only one amendment may be filed in each interval.
  3. The tax administrator may grant a reasonable extension of time, not to exceed thirty (30) days, for filing a declaration.
    1. The amount of the advance based on the estimated tax declared under subsection (a) of this section by corporations described in subdivision (b)(1) of this section shall be paid as follows:
      1. If the declaration is filed on or before the fifteenth (15th) day of the third (3rd) month of the taxable year, the advance shall be paid in two (2) installments. The first installment in the amount of forty percent (40%) of the estimated tax shall be paid at the time of the filing of the declaration. The second and last installment in the amount of sixty percent (60%) of the estimated tax shall be paid on or before the fifteenth (15th) day of the sixth (6th) month of the taxable year.
      2. If the declaration is filed after the fifteenth (15th) day of the third (3rd) month of the taxable year and is not required by subsection (b) of this section to be filed on or before the fifteenth (15th) day of the third (3rd) month of the taxable year, but is required to be filed on or before the fifteenth (15th) day of the sixth (6th) month, the advance shall be paid in full at the time of filing.
      3. If the declaration is filed on or before the thirtieth (30th) day of the tenth (10th) month of the taxable year, the advance shall be paid in two (2) equal installments. The first installment shall be paid on or before the thirtieth (30th) day of the tenth (10th) month of the taxable year and the second installment shall be paid on or before the thirty-first (31st) day of the twelfth (12th) month of the taxable year.
      4. If the declaration is filed after the time prescribed in subdivision (b)(2) of this section, including cases in which an extension of time for filing the declaration has been granted, there shall be paid at the time of the filing all installments of the advance which would have been payable on or before that time if the declaration had been filed within the time prescribed in subdivision (b)(2) of this section.
    2. The amount of the advance based in the estimated tax declared under subsection (a) of this section by corporations listed in subdivision (b)(2) of this section shall be paid as follows:
  4. If the declaration is filed after the time prescribed in subsection (b) of this section including cases in which an extension of time for filing the declaration has been granted, paragraph (e)(1)(ii) of this section does not apply, and there shall be paid at the time of the filing all installments of the advance which would have been payable on or before that time if the declaration had been filed within the time prescribed in subsection (b).
  5. If any amendment of a declaration is filed, the installment payable on or before the fifteenth (15th) day of the sixth (6th) month, if any, or in the case of corporations licensed as surplus line brokers under § 27-3-38 , the installments payable on or before the thirtieth (30th) days of the sixth (6th) or tenth (10th) month and thirty-first (31st) day of the twelfth (12th) month are ratably increased or decreased, as the case may be, to reflect the increase or decrease, as the case may be, in the estimated tax by reason of the amendment.
  6. At the election of the corporation, any installment of the advance may be paid prior to the date prescribed for payment.
  7. In the case of any underpayment of the advance by a corporation, except as provided in this section, there is added to the tax due under chapters 11 — 15 and 17 of this title, or § 27-3-38 , for the taxable year an amount determined at the rate described in § 44-1-7 upon the amount of the underpayment for the period of the underpayment. For the purpose of this subsection, the “amount of the underpayment” is the excess of the amount of the installment or installments which would be required to be paid if the advance payments were equal to eighty percent (80%) of the tax shown on the return for the taxable year. For the purposes of this subsection, the “period of the underpayment” is the period from the date the installment was required to be paid to the date prescribed under any of the chapters previously mentioned in this section for the payment of the tax for the taxable year or, with respect to any portion of the underpayment, the date on which the portion is paid, whichever date is the earlier. A payment of the advance on the fifteenth (15th) day of the sixth (6th) month, or for § 27-3-38 on the thirtieth (30th) day of the sixth (6th) month, of the taxable year is considered a payment of any previous underpayment only to the extent that the payment exceeds the amount of the installment due on the fifteenth (15th) day of the sixth (6th) month, or for § 27-3-38 on the thirtieth (30th) day of the sixth (6th) month, of the taxable year.
  8. Notwithstanding the provisions of this section, the addition to the tax with respect to any underpayment of any installment is not imposed if the total amount of all payments of the advance made on or before the last date prescribed for payment of the installment equals or exceeds the amount that would have been required to be paid on or before that date if the amount of the advance was an amount equal to one hundred percent (100%) of the tax computed at the rates applicable to the taxable year but otherwise on the basis of the fact shown on the return of the corporation for and the law applicable to the preceding taxable year.
  9. This section is effective for estimated payments being made by corporations for taxable years ending on or after December 31, 1990.
  10. Notwithstanding any other provisions of this section, any taxpayer required to make an adjustment in accordance with § 44-11-11(f) in a tax year beginning in calendar year 2008 shall compute estimated payments for that tax year as follows:
    1. The installments must equal 100% of the tax due for the prior year plus any additional tax due for the current year adjustment under § 44-11-11(f); or
    2. That installments must equal 100% of the current year tax liability.
  11. Notwithstanding any other provisions of this section any taxpayer required to file a combined report in accordance with § 44-11-4.1 in a tax year beginning on or after January 1, 2015, shall compute estimated payments for that tax year as follows:
    1. The installments must equal one hundred percent (100%) of the tax due for the prior year plus any additional tax due to the combined report provisions under § 44-1-4.1; or
    2. The installments must equal one hundred percent (100%) of the current year tax liability.
  12. Notwithstanding any Rhode Island statute to the contrary, every corporation having a taxable year beginning after December 31, 2017, shall file its declaration and estimated payment in accordance with federal statute and regulations: with current federal filing requirements, the four (4) estimated tax installment payments of twenty-five percent (25%) each are due: on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. If any due date falls on a Saturday, Sunday, or Rhode Island legal holiday, the installment is due on the next regular business day.

If the requirements of The declaration shall subsection (a) are first be filed on or before: met: before the first day of the third month of the taxable year the fifteenth day of the third month of the taxable year; after the first day of the third month and before the first day of the sixth month of the taxable year the fifteenth day of the sixth month of the taxable year.

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If the requirements of The declaration shall subsection (a) are first be filed on or before: met: Before the first day of the fourth month of the taxable year the thirtieth day of the fourth month of the taxable year After the first day of the fourth month and before the first day of the sixth month of the taxable year the thirtieth day of the sixth month of the taxable year After the first day of the sixth month and before the first day of the tenth month of the taxable year the thirtieth day of the tenth month of the taxable year After the first day of the tenth month and before the first day of the twelfth month of the taxable year the thirty-first day of of the twelfth month of the taxable year

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(i) If the declaration is filed on or before the thirtieth (30th) day of the fourth (4th) month of the taxable year, the advance shall be paid in four (4) equal installments. The first installment shall be paid on or before the thirtieth (30th) day of the fourth (4th) month of the taxable year, and the second (2nd), third (3rd), and fourth (4th) installments shall be paid on or before the thirtieth (30th) day of the sixth (6th) month, the thirtieth (30th) day of the tenth (10th) month, and the thirty-first (31st) day of the twelfth (12th) month of the taxable year, respectively.

(ii) If the declaration is filed before the thirtieth (30th) day of the sixth (6th) month of the taxable year, the advance shall be paid in three (3) equal installments. The first installment shall be paid on or before the thirtieth (30th) day of the sixth (6th) month of the taxable year and the second (2nd) and third (3rd) installments shall be paid on or before the thirtieth (30th) day of the tenth (10th) month and the thirty-first (31st) day of the twelfth (12th) month of the taxable year respectively.

History of Section. P.L. 1990, ch. 27, § 2; P.L. 1992, ch. 15, art. 2, § 1; P.L. 1992, ch. 446, § 1; P.L. 1999, ch. 354, § 34; P.L. 2000, ch. 381, § 1; P.L. 2007, ch. 73, art. 7, § 3; P.L. 2014, ch. 145, art. 12, § 19; P.L. 2017, ch. 302, art. 8, § 16.

Compiler’s Notes.

Sub section 44-11-11(f), referred to in subsection ( l ) of this section, was deleted by P.L. 2014, ch. 145, art. 12, § 17.

Applicability.

P.L. 2007, ch. 73, art. 7, § 15, provides that the amendment to this section by that act takes effect upon passage [July 1, 2007] and applies to tax years beginning on or after January 1, 2008.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

44-26-3, 44-26-4. Repealed.

History of Section. G.L. 1956, § 44-26-5 ; P.L. 1968, ch. 263, art. 11, § 1; P.L. 1970, ch. 139, art. 2, § 4; Repealed by P.L. 1992, ch. 409, § 1, effective July 21, 1992.

Compiler’s Notes.

Former §§ 44-26-3 and 44-26-4 concerned tax declaration due dates and payments.

44-26-5. Credit against tax.

All payments of any advance or any installment payment, for any taxable year is allowed as a credit to the corporation against the tax imposed upon the corporation for the taxable year under the provisions of any of the chapters enumerated in § 44-26-1 or any act or acts in lieu of § 44-26-1 , and under any act or acts in addition to or amendment of § 44-26-1.

History of Section. P.L. 1968, ch. 263, art. 11, § 1.

44-26-6. Repealed.

History of Section. P.L. 1968, ch. 263, art. 11, § 1; P.L. 1969, ch. 207, art. 3, § 1; P.L. 1970, ch. 139, art. 2, § 6; P.L. 1982, ch. 9, art. 3, § 1; P.L. 1989, ch. 126, art. 33, § 1; Repealed by P.L. 1992, ch. 409, § 1, effective July 21, 1992.

Compiler’s Notes.

Former § 44-26-6 concerned interest on underpayments.

44-26-7. Short taxable years.

The application of this chapter to taxable years of less than twelve (12) months is in accordance with regulations prescribed by the tax administrator.

History of Section. P.L. 1968, ch. 263, art. 11, § 1.

44-26-8. Failure to file.

If any corporation is required under this chapter to file a declaration of estimated tax for any taxable year at any time on or before the fifteenth day of the tenth month of the taxable year and the corporation fails to file any declaration, although the declaration may otherwise be late, on or before that date, there shall be assessed as a penalty against the corporation an amount equal to five percent (5%) of the tax imposed upon the corporation for the taxable year. The tax administrator may waive the penalty, if it is shown to his or her satisfaction that the failure to file the declaration was due to reasonable cause and not to willful neglect.

History of Section. P.L. 1968, ch. 263, art. 11, § 1.

44-26-9. Willful failure.

Any officer, director, or employee of any corporation which is required under this chapter to file a declaration of estimated tax, who is willfully responsible for the failure of the corporation to file the declaration or pay any installment of the advance due under this chapter, or both, is liable for the amount of tax lost to the state and to a penalty of not less than five hundred dollars ($500) nor more than ten thousand dollars ($10,000), or be imprisoned not exceeding one year, or both.

History of Section. P.L. 1968, ch. 263, art. 11, § 1; P.L. 1986, ch. 103, § 8.

44-26-10. Applicability of laws.

All provisions of chapters 11, 12, 13, 14, 15, 17 of this title and § 27-3-38 relative to the assessment, collection, verification, and administration of taxes, including penalties, applicable to corporations subject to taxation under any of these chapters and section, so far as pertinent and consistent, are applicable to the provisions of this chapter. Any addition of tax or penalty imposed by this chapter, is assessed and collected by the tax administrator in the same manner as taxes imposed upon corporations under any of the chapters mentioned in this section.

History of Section. P.L. 1968, ch. 263, art. 11, § 1; P.L. 1989, ch. 126, art. 33, § 1; P.L. 1992, ch. 15, art. 2, § 1.

44-26-11. Administration.

The tax administrator is charged with the administration of this chapter, and all forms necessary and proper for the enforcement of this chapter are prescribed and furnished by the tax administrator. The state tax administrator may prescribe regulations and rulings, not inconsistent with law, to carry into effect the provisions of this chapter and these regulations and rulings, when reasonably designed to carry out the intent and purposes of this chapter, are prima facie evidence of its proper interpretation.

History of Section. P.L. 1968, ch. 263, art. 11, § 1.

Chapter 27 Taxation of Farm, Forest, and Open Space Land

44-27-1. Legislative declaration.

It is declared:

  1. That it is in the public interest to encourage the preservation of farm, forest, and open space land in order to maintain a readily available source of food and farm products close to the metropolitan areas of the state, to conserve the state’s natural resources, and to provide for the welfare and happiness of the inhabitants of the state.
  2. That it is in the public interest to prevent the forced conversion of farm, forest, and open space land to more intensive uses as the result of economic pressures caused by the assessment for purposes of property taxation at values incompatible with their preservation as farm, forest, and open space land.
  3. That the necessity in the public interest of the enactment of the provisions of this chapter is a matter of legislative determination.

History of Section. P.L. 1980, ch. 252, § 2.

Comparative Legislation.

Farm taxation:

Mass. Ann. Laws ch. 61, § 1 et seq.; ch. 61A, § 1 et seq.

Collateral References.

Validity, construction, and effect of state statutes affording preferential property tax treatment to land used for agricultural purposes. 98 A.L.R.3d 916.

44-27-2. Definitions.

When used in this chapter:

  1. “Farmland” means:
    1. Any tract or tracts of land, including woodland and wasteland constituting a farm unit;
    2. Land which is actively devoted to agricultural or horticultural use including, but not limited to: forages and sod crops; grains and feed crops; fruits and vegetables; poultry, dairy, and other livestock and their products; nursery, floral, and greenhouse products; other food or fiber products useful to people;
    3. When meeting the requirements and qualifications for payments pursuant to a soil conservation program under an agreement with the federal government, the director of environmental management is authorized to promulgate and adopt rules and regulations defining particular categories and minimum acreages of land eligible for designation as farmland under this chapter.
  2. “Forest land” means any tract or contiguous tracts of land, ten (10) acres or larger bearing a dense growth of trees, including any underbrush, and having either the quality of self perpetuation, or being dependent upon its development by the planting and replanting of trees in stands of closely growing timber, actively managed under a forest management plan approved by the director of environmental management.
  3. “Open space land” means any tract or contiguous tracts of undeveloped land, where the undeveloped land serves to enhance agricultural values, or land in its natural state that conserves forests, enhances wildlife habitat or protects ecosystem health, and that is:
    1. Ten (10) total acres or larger, exclusive of house site, where “house site” means the zoned lot size or one acre, whichever is smaller, and land surrounding dwellings or devoted to developed facilities, such as tennis courts, pool, etc., related to the use of the residence; or
    2. Tracts of land of any size that are designated as open space land in the comprehensive community plan; or
    3. Tracts of land of any size that have conservation restrictions or easements in full force and applied for as open space, which shall be taxed on an equitable basis.

History of Section. P.L. 1980, ch. 252, § 2; P.L. 2001, ch. 350, § 1.

NOTES TO DECISIONS

Land Parcel as Open Space Land.

Land purchaser is entitled to a reversal of a decision of the board of assessment review that he is not entitled to a continuance of an open space classification of his land, where there is evidence that his parcel, although comprising fewer than ten acres, nevertheless fits within the statutory definition of open space land. Denault v. Fitzgerald, 593 A.2d 453, 1991 R.I. LEXIS 132 (R.I. 1991).

44-27-3. Classification of farmland or dairy farmland.

  1. An owner of land may file a written application with the director of environmental management, for its designation by the director as farmland or as dairy farmland. When the application is made and after a filing fee of ten dollars ($10.00) is paid, the director shall examine the land and, if the director determines that it is farmland or dairy farmland, the director shall issue a certificate in his or her office, furnish a copy to the owner of the land, and file one copy in the office of the assessor of the city or town in which the land is located.
  2. When requested to do so by the assessor or whenever the director deems it necessary, the director of environmental management shall re-examine land designated by the director as farmland or as dairy farmland. If the director finds that this land is no longer farmland or dairy farmland, the director shall send a notice to the landowner that the landowner has thirty (30) days either to bring the land into compliance or to request a formal hearing before the director. If after the thirty (30) days or after the hearing, the director confirms that the land is no longer farmland or dairy farmland, the director shall issue a certificate canceling his or her designation of the land as farmland or dairy farmland, and shall furnish one copy to the owner and file one in the office of the assessor. Loss of designation by action of the director of environmental management makes the land subject to the land use change tax provided for in § 44-5-39 .
    1. An owner of land designated as farmland or dairy farmland by the director of environmental management may apply for its classification as farmland or dairy farmland on any assessment list of the city or town where it is located by filing a written application for that classification with the assessor of the city or town not earlier than thirty (30) days before nor later than thirty (30) days after the date of assessment, except that in years of revaluation not later than thirty (30) days after written notice of revaluation or in its absence after receipt of the tax bill, and if the director has not cancelled his or her designation of that land as farmland or dairy farmland as of a date at or prior to the date of the assessment, the assessor shall classify the land as farmland or dairy farmland and include it as farmland or dairy farmland on the assessment list.
    2. In order to maintain this classification, each year thereafter, the property owner shall submit to the assessor a certificate on a form prescribed by the assessor confirming that the land is still used in farming or dairy farming. The assessor shall in the first notification mail the forms by first class mail not later than the thirtieth of November and if a second notification is needed, it shall be mailed certified. Failure to submit the certificate by thirty (30) days after the date of assessment is construed as voluntary withdrawal of the classification, except that the assessor may waive this requirement for good cause.
    3. Notwithstanding the preceding subsections, whenever the owner of land designated and classified as farmland or dairy farmland is a municipal land trust, municipal conservation commission, or private nonprofit land trust, annual certification is not required, and the classification continues until the voluntary withdrawal of the classification by the owner, or the transfer of the land by the owner in fee simple.
  3. Application to the director of environmental management for designation as farmland or dairy farmland shall be made upon a form prescribed by the director and shall present a description of the land and any other information that he or she may require to aid the director in determining whether the land qualifies for that designation. An application to an assessor for classification of land as farmland or dairy farmland shall be made upon a form prescribed by the assessor and shall present a description of the land and the date of issuance by the director of environmental management of his or her certificate designating it as farmland or dairy farmland.
  4. Failure to file an application for classification of farmland or dairy farmland within the time limit prescribed in subsection (c) of this section and in the manner and form prescribed in subsection (d) of this section shall be construed as a waiver of the right to that classification on the assessment list.
  5. Any landowner aggrieved by: (1) the cancellation of a designation under subsection (b) of this section or the denial of an application, filed in accordance with the provisions of subsections (c) and (d) of this section, by the assessor of a city or town for a classification of land as farmland or dairy farmland; or (2) the use value assessment placed on land classified as farmland or dairy farmland by the assessor; has the right to file an appeal within ninety (90) days of receiving notice, in writing, of the denial or the use value assessment with the board of assessment review of the city or town. Should the city or town not have a board of assessment review, the city or town council shall review the appeal. The assessor shall be given the opportunity to explain either his or her refusal to classify the land or the assessment placed on the classified land. The board of review, or city or town council, shall also consider the testimony of the landowner and the city or town’s planning board and conservation commission, if they exist. They shall also seek and consider the advice of the office of state planning, the department of environmental management, the dean of the college of resource development, and the conservation district in which the city or town is located.
    1. The board of assessment review, or city or town council, shall not disturb the designation of the director issued pursuant to subsection (a) of this section, unless the tax assessor has shown by a preponderance of the evidence that that designation was erroneous.
    2. The board of assessment review, or city or town council, shall render a decision within forty-five (45) days of the date of filing the appeal. Decisions of the board of assessment review, or city or town council, may be appealed to the superior court pursuant to § 44-27-6 .

History of Section. P.L. 1980, ch. 252, § 2; P.L. 1986, ch. 73, § 1; P.L. 1990, ch. 339, § 1; P.L. 2013, ch. 303, § 1; P.L. 2013, ch. 430, § 1; P.L. 2021, ch. 182, § 3, effective July 6, 2021; P.L. 2021, ch. 183, § 3, effective July 6, 2021.

Compiler’s Notes.

P.L. 2013, ch. 303, § 1, and P.L. 2013, ch. 430, § 1 enacted identical amendments to this section.

P.L. 2021, ch. 182, § 3 and P.L. 2021, ch. 183, § 3 enacted identical amendments to this section.

NOTES TO DECISIONS

Classification Requirement.

Years during which property was used for farming prior to its classification as farmland under the farm, forest, and open space program could not be applied as program time credits in calculating the land use change tax due upon withdrawal of the property from the program. Nunes v. Marino, 707 A.2d 1239, 1998 R.I. LEXIS 58 (R.I. 1998).

44-27-4. Classification of forest land.

  1. An owner of not less than ten (10) acres of forest land may file a written application with the director of environmental management for its designation by the director as forest land. When the application is made and a filing fee of ten dollars ($10.00) is paid, the director shall examine the land and, if the director determines that it is forest land, the director shall issue a certificate in his or her office, furnish a copy to the owner of the land, and file a copy in the office of the assessor of the city or town where the land is located.
    1. When requested to do so by the assessor or whenever the director deems it necessary, the director of environmental management shall re-examine land designated by him or her as forest land. If the director finds that the land is no longer forest land or if the director finds that the land is not being managed in accordance with the forest management plan approved by the director, he or she shall send a notice to the landowner that the landowner has thirty (30) days either to bring the land into compliance or to request a formal hearing before the director. If after the thirty (30) days or after the hearing, the director confirms that the land is no longer forest land, the director shall issue a certificate canceling his or her designation of the land as forest land and shall furnish one copy to the owner and shall file one copy in the office of the assessor.
    2. Loss of designation by action of the director of environmental management makes the land subject to the land use change tax provided for in § 44-5-39 .
    1. An owner of land designated as forest land by the director of environmental management may apply for its classification as forest land on any assessment list of the city or town where it is located by filing a written application for the classification with the assessor of the city or town not earlier than thirty (30) days before nor later than thirty (30) days after the date of assessment, except that in years of revaluation not later than thirty (30) days after written notice of revaluation or in its absence after receipt of the tax bill. If the director has not cancelled his or her designation of the land as forest land as of a date at or prior to the date of the assessment, the assessor shall classify the land as forest land and include the land as forest land on the assessment list.
    2. In order to maintain this classification, each year thereafter, the property owner shall submit to the assessor a certificate on a form prescribed by the assessor confirming that the land is still managed as forest land. The assessor shall in the first notification mail these forms by first class mail not later than November thirtieth and if a second notification is needed, it shall be mailed certified. Failure to submit the certificate by thirty (30) days after the date of assessment is construed as voluntary withdrawal of the classification; except that the assessor may waive this requirement for good cause.
    3. Notwithstanding the preceding subsections, whenever the owner of land designated and classified as forest land is a municipal land trust, municipal conservation commission, or private nonprofit land trust, annual certification is not required, and the classification continues until the voluntary withdrawal of the classification by the owner or transfer of the land by the owner in fee simple.
  2. Application to the director of environmental management for designation of land as forest land shall be made upon a form prescribed by the director and shall present a description of the land and any other information that he or she may require to aid the director in determining whether the land qualifies for that designation, including a written forest management plan prepared by a professionally qualified forester on the director’s staff or another professionally qualified forester in consultation with the landowner, with recommended management practices to be followed. An application to an assessor for classification of land as forest land shall be made on a form prescribed by the assessor and shall present a description of the land and the date of the issuance by the director of his or her certificate designating it as forest land.
  3. Failure to file an application for classification of land as forest land within the time limit prescribed in subsection (c) of this section and in the manner and form prescribed in subsection (d) of this section is considered a waiver of the right to that classification on the assessment lists.
  4. Any landowner aggrieved by: (1) the cancellation of a designation under subsection (b) of this section or the denial of an application, filed in accordance with the provisions of subsections (c) and (d) of this section, by the assessor of a city or town for a classification of land as forest land; or (2) the use value assessment placed on land classified as forest land by the assessor; has the right to file an appeal within ninety (90) days of receiving notice, in writing, of the denial or the use value assessment with the board of assessment review of the city or town. Should the city or town not have a board of assessment review, the city or town council shall review the appeal. The assessor is given the opportunity to explain either his or her refusal to classify the land or the assessment placed on the classified land. The board of review, or city or town council, shall also consider the testimony of the landowner and the city or town’s planning board and conservation commission, if they exist. They shall also seek and consider the advice of the office of state planning, the department of environmental management, the dean of the college of resource development and the conservation district in which the city or town is located.
    1. The board of assessment review, or city or town council, shall not disturb the designation of the director issued pursuant to subsection (a) of this section, unless the tax assessor has shown by a preponderance of the evidence that that designation was erroneous.
    2. The board of assessment review, or city or town council, shall render a decision within forty-five (45) days of the date of filing the appeal. Decisions of the board of assessment review, or city or town council, may be appealed to the superior court pursuant to the provisions of § 44-27-6 .

History of Section. P.L. 1980, ch. 252, § 2; P.L. 1986, ch. 73, § 1; P.L. 1990, ch. 339, § 2; P.L. 2013, ch. 303, § 1; P.L. 2013, ch. 430, § 1.

Compiler’s Notes.

P.L. 2013, ch. 303, § 1, and P.L. 2013, ch. 430, § 1 enacted identical amendments to this section.

NOTES TO DECISIONS

Valuation of Land.

The grant of a forest-land certificate to the taxpayer did not entitle her to a reduction in the land’s tax valuation, where the tax assessor had valued the land as forest-land prior to the certificate’s issuance. Ajootian v. Hazard, 488 A.2d 413, 1985 R.I. LEXIS 443 (R.I. 1985).

44-27-5. Classification of open space land.

    1. An owner of land may apply for its classification as open space land on any assessment list of a city or town by filing a written application for that classification with the assessor of the city or town, not later than thirty (30) days before nor later than thirty (30) days after the date of assessment, except in years of revaluation when the landowner may file not later than thirty (30) days after receiving written notice of revaluation or in its absence after receipt of the tax bill. The assessor shall determine whether the land is open space and, if the assessor determines that the land is open space, the assessor shall classify the land as open space land and include the land as open space on the assessment list.
    2. In order to maintain this classification, each year thereafter, the landowner shall submit to the assessor a certificate, on a form prescribed by the assessor, confirming that the land is still open space. The assessor shall in the first notification mail the forms by first class mail not later than the thirtieth of November and if a second notification is needed, it shall be mailed certified. Failure to submit the certificate by thirty (30) days after the date of assessment is construed as voluntary withdrawal of the classification; except that the assessor may waive this requirement for good cause.
    3. Notwithstanding the preceding subdivision, whenever the owner of land designated and classified as open space land is a municipal land trust, municipal conservation commission, or private nonprofit land trust, annual certification is not required, and the classification continues until the voluntary withdrawal of the classification by the owner, or the transfer of the land by the owner is fee simple.
  1. An application for classification of land as open space land shall be made upon a form prescribed by the assessor and shall present a description of the land, a general description of the use to which it is being put, and any other information that the assessor may require to aid him or her in determining whether the land qualifies for that classification.
  2. Failure to file an application for classification of land as open space land within the time limit prescribed in subsection (a) of this section and in the manner and form prescribed in subsection (b) of this section is considered a waiver of the right to that classification on the assessment list.
  3. Any landowner aggrieved by: (1) the denial of an application filed in accordance with the provisions of subsections (a) and (b) of this section by the assessor of a city or town for classification of land as open space land; or (2) the use value assessment placed on land classified as open space land by the assessor; has the right to file an appeal within ninety (90) days of receiving notice, in writing, of the denial or the use value assessment with the board of assessment of review of the city or town. Should the city or town not have a board of assessment review, the city or town council shall review the appeal. The assessor shall be given the opportunity to explain either his or her refusal to classify the land or the assessment placed on the classified land. The board of review or city or town council shall also consider the testimony of the landowner and the city or town’s planning board and conservation commission, if they exist. They shall also seek and consider the advice of the office of state planning, the department of environmental management, the dean of the college of resource development and the conservation district in which the city or town is located.
    1. The board of assessment review, or city or town council, shall not disturb the designation of the director issued pursuant to subsection (a) of this section, unless the tax assessor has shown by a preponderance of the evidence that that designation was erroneous.
    2. The board of assessment review or city or town council shall render a decision within forty-five (45) days of the date of filing the appeal. Decisions of the board of assessment review, or city or town council, may be appealed to the superior court pursuant to the provisions of § 44-27-6 .

History of Section. P.L. 1980, ch. 252, § 2; P.L. 1986, ch. 73, § 1; P.L. 1986, ch. 247, § 1; P.L. 1990, ch. 339, § 3; P.L. 2013, ch. 303, § 1; P.L. 2013, ch. 430, § 1.

Compiler’s Notes.

P.L. 2013, ch. 303, § 1, and P.L. 2013, ch. 430, § 1 enacted identical amendments to this section.

44-27-6. Appeals to superior court.

  1. Any person or persons jointly or severally aggrieved by a decision of the board of assessment review, or city or town council, may appeal to the superior court for the county in which the municipality is situated by filing a complaint stating the reasons of appeal within ninety (90) days after the decision has been filed in the office of the board of assessment review, or city or town council. The board of assessment review, or city or town council, shall file the original documents acted upon by it and constituting the record of the case appealed from, or certified copies of the original documents, together with any other facts that may be pertinent with the clerk of the court within ten (10) days after being served with a copy of the complaint. When the complaint is filed by someone other than the original applicant or appellant, the original applicant or appellant and the members of the board of review, or city or town council, are made parties to the proceedings. The appeal shall not stay proceedings upon the decision appealed from, but the court may, in its discretion, grant a stay on appropriate terms and make other orders that it deems necessary for an equitable disposition of the appeal.
  2. If, before the date set for the hearing in the superior court, application is made to the court for leave to present additional evidence before the board of assessment review, or city or town council, and it is shown to the satisfaction of the court that the additional evidence is material and that there were good reasons for the failure to present it at the hearing before the board of review, or city or town council, the court may order that the additional evidence be taken before the board of review, or city or town council, upon conditions determined by the court. The board of review, or city or town council, may modify its findings and decision by reason of that additional evidence and file that evidence and any modification, new findings, or decisions with the superior court.
  3. The review shall be conducted by the superior court without a jury. The court shall consider the record of the hearing before the board of assessment review, or city or town council, and if it appears to the court that additional evidence is necessary for the proper disposition of the matter, it may allow any party to the appeal to present that evidence in open court, which evidence along with the record constitutes the record upon which the determination of the court is made. The court shall not substitute its judgment for that of the board of assessment review, or city or town council, as to the weight of the evidence on question of fact. The court may affirm the decision of the board of assessment review, or city or town council, or remand the case for further proceedings, or may reverse or modify the decision if substantial rights of the appellant have been prejudiced because of findings, inferences, conclusions, or decisions which are:
    1. In violation of constitutional, statutory, or ordinance provisions;
    2. In excess of the authority granted to the board of assessment review, or city or town council, by statute or ordinance;
    3. Made upon unlawful procedure;
    4. Affected by other error of law;
    5. Clearly erroneous in view of the reliable, probative, and substantial evidence of the whole record; or
    6. Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
  4. If the taxpayer’s tax is paid, whether before or after the filing of the petition, then the court shall upon a finding in favor of the petitioner, give judgment for the petitioner for the sum by which he or she has been overtaxed, or illegally taxed, plus the amount of any penalty paid, with interest at the rate of twelve percent (12%) per annum from the date on which the tax and penalty were paid and costs. The judgment shall be paid to the petitioner by the city or town treasurer out of the treasury.

History of Section. P.L. 1980, ch. 252, § 2; P.L. 1990, ch. 442, § 1.

NOTES TO DECISIONS

Applicability.

Section 44-5-26 , not this section, offers the proper method of appealing an excessive or illegal land use change tax to the superior court. Nunes v. Marino, 707 A.2d 1239, 1998 R.I. LEXIS 58 (R.I. 1998).

Evidence of Parcel as Open Space Land.

Land purchaser is entitled to a reversal of a decision of the board of assessment review that he is not entitled to a continuance of an open space classification of his land, where there is evidence that his parcel, although comprising fewer than ten acres, nevertheless fits within the statutory definition of open space land. Denault v. Fitzgerald, 593 A.2d 453, 1991 R.I. LEXIS 132 (R.I. 1991).

44-27-7. Rules and regulations.

The director of environmental management is authorized to promulgate those rules and regulations that the director deems necessary to carry out his or her responsibilities and fulfill the purposes of this chapter.

History of Section. P.L. 1980, ch. 252, § 2.

44-27-8. Availability of current values — Duties of the department of revenue.

The department of revenue shall annually publish all information, which it collects that relates to land values for different types of farm, forest, or open space lands. This information shall be made available to local assessors.

History of Section. P.L. 1980, ch. 252, § 2; P.L. 1985, ch. 181, art. 61, § 20; P.L. 2008, ch. 98, § 45; P.L. 2008, ch. 145, § 45.

44-27-9. Change of ownership — Procedure for continuance of classification — Effect on land use change tax.

  1. Upon the change of ownership of title, as recorded in the land evidence records of the city or town, of land previously classified as farm, forest, or open space land, the assessor of the city or town where the land is located shall notify the new owner that the land is classified as farm, forest, or open space and that land withdrawn from that classification is subject to the land use change tax provided for in § 44-5-39 . The new owner may apply to the local assessor for continuance of classification and special assessment as provided in § 44-5-12 . Upon certification by the new owner that the land continues its use as farmland, its management as forest land, or its preservation as open space land, the assessor shall continue it as that on the assessment list and notify the director of environmental management of the change in ownership.
  2. A change of ownership of land classified as farm, forest, or open space land, except for change in ownership through inheritance or interfamily transfer, where the new owner continues its classification as farm, forest, or open space land, commences anew the computation of the period the land has been so classified for the purposes of determining the land use change tax provided for in § 44-5-39 .
  3. For the purposes of this section, transfer of ownership of land from an individual to a corporation wholly owned by that individual and/or his or her immediate family is not considered a change of ownership of the land. Where the owner of land classified under this chapter is a corporation, any change in ownership of ten percent (10%) or more of the outstanding common stock of the corporation is considered a change in ownership of the land, and shall be reported to the assessor of the town or city in which the land is located.
  4. New owners of land previously classified as farm, forest, or open space land who do not apply for continuance of classification as in subsection (a) of this section are considered to have voluntarily withdrawn the classification and become liable for the land use change tax in effect at the time of change of ownership. This tax is determined by the assessor within forty-five (45) days of the end of the recertification period provided for in subsection (a) of this section and falls due at the time the use of the land is changed. This tax constitutes a lien against the land and runs with the deed until the obligation is satisfied.

History of Section. P.L. 1980, ch. 252, § 2.

NOTES TO DECISIONS

Classification Procedure Is Nondiscretionary.

This section confers no discretion to the tax assessor but simply directs the assessor to continue a designated land classification upon certification by the new owner that the transferred land has retained its prior designation. Denault v. Fitzgerald, 593 A.2d 453, 1991 R.I. LEXIS 132 (R.I. 1991).

Reversal of Assessment Board’s Decision.

Land purchaser is entitled to a reversal of a decision of the board of assessment review that he is not entitled to a continuance of an open space classification of his land, where there is evidence that his parcel, although comprising fewer than ten acres, nevertheless fits within the statutory definition of open space land. Denault v. Fitzgerald, 593 A.2d 453, 1991 R.I. LEXIS 132 (R.I. 1991).

44-27-10. Reclassification of land withdrawn from classification — Effect on obligations and the land use change tax.

Land, previously classified as farm, forest, or open space land, which was withdrawn from that classification may be reclassified as that classification if it still meets the requirements of this chapter. This reclassification of the land commences anew the computation of the period for purposes of the land use change tax. Any unpaid lien obligated by the previous withdrawal is voided. At no time shall an obligation incurred under the provisions of this chapter exceed ten percent (10%) of the then fair market value of the land.

History of Section. P.L. 1980, ch. 252, § 2.

44-27-10.1. Land withdrawn from classification for commercial renewable-energy production — Effect on obligation and the land use change tax.

  1. Farmlands classified in the farm, forest, or open-space program in chapter 27 of title 44 shall not be subject to a land use change tax if the landowner converts no more than twenty percent (20%) of the total acreage of land that is actively devoted to agricultural or horticultural use to install a renewable energy system. Any acreage used for a renewable energy system that is designated for dual use under subsection (c) of this section shall not be included in the calculation of the twenty percent (20%) restriction. For purposes of this section, land that is actively devoted to agricultural or horticultural use shall be defined by rules and regulations established by the department of environmental management in consultation with the office of energy resources and shall include, at a minimum, any land that is actively devoted to agricultural or horticultural use that was previously used to install a renewable energy system. Those rules shall also define renewable energy system to include, at a minimum, any buffers, access roads, and other supporting infrastructure associated with the generation of renewable energy.
  2. The tax assessor shall only withdraw from farmland classification the actual acreage of the farmland used for a renewable energy system that is not concurrently used as farmland. The rest of the farmland shall remain eligible as long as it still meets the program qualification criteria. This reclassification of farmlands shall not be considered an exception to the tax treatment for renewable energy systems prescribed by § 44-5-3(c) .
  3. The dual purpose designation for installing a renewable energy system and utilizing the land below and surrounding the system for agriculture purposes, shall be determined pursuant to rules and regulations that will be established by the department of environmental management in consultation with the office of energy resources. The regulations shall be adopted no later than December 30, 2017.

History of Section. P.L. 2017, ch. 126, § 1; P.L. 2017, ch. 149, § 1; P.L. 2018, ch. 346, § 31.

Compiler’s Notes.

P.L. 2017, ch. 126, § 1, and P.L. 2017, ch. 149, § 1 enacted identical versions of this section.

44-27-11. Powers of the board of assessment review or city or town council.

The board of assessment review, or city or town council, has the power to:

  1. Retain by contract or employ counsel, appraisers, private consultants, and other personnel for other service if funds are available.
  2. Conduct hearings, examinations, and investigations as may be necessary and appropriate for the conduct of its operations.
  3. Obtain access to public records and apply for the process of subpoena, if necessary, to produce books, papers, records, and other data.
  4. Require the tax assessor of a city or town to classify land as farmland, forest land, or open space land if in the board’s judgment the land should be so classified.
  5. Change the use value assessment placed on land classified as farmland, forest land, or open space land if in the board’s judgment land so classified has been incorrectly or inequitably assessed.
  6. Change the fair market value placed on land subject to the land use change tax in § 44-5-39 if, in the judgment of the board, the land has been appraised in excess of its fair market value at the time of the change of use or withdrawal of classification.
  7. Otherwise do all things necessary for the performance of its duties.

History of Section. P.L. 1980, ch. 252, § 2.

44-27-12. Duties of the board of assessment review or city or town council.

The board of assessment review, or city or town council, shall hear and render a judgment on all appeals of:

  1. Landowners denied certification as farmland or forest land by the director of the department of environmental management or when the certification has been cancelled;
  2. Tax assessors aggrieved by the certification of land as farmland or forest land by the director of the department of environmental management;
  3. Landowners denied classification as farm, forest, and open space land by the local assessor;
  4. Landowners aggrieved by the use value assessment set by the local assessor;
  5. Landowners appealing the fair market value set by the local assessor for use in determining the land use change tax payable under the provisions of §§ 44-5-39 44-5-41 .

History of Section. P.L. 1980, ch. 252, § 2.

44-27-13. Severability.

If any clause, sentence, paragraph, or part of this chapter is for any reason judged invalid by any court of competent jurisdiction, the judgment does not affect, impair, or invalidate the remainder of this chapter but is confined in its operation to the clause, sentence, paragraph, or part of this chapter directly involved in the controversy in which the judgment has been rendered.

History of Section. P.L. 1980, ch. 252, § 2.

Chapter 28 Investment Tax [Repealed.]

44-28-1 — 44-28-36. Repealed.

History of Section. P.L. 1969, ch. 197, art. 1, § 1; P.L. 1970, ch. 28, § 1; P.L. 1970, ch. 302, § 1; P.L. 1970, ch. 311, § 1; P.L. 1970, ch. 312, § 1; P.L. 1970, ch. 323, § 1; Repealed by P.L. 1971, ch. 8, art. 3, § 1.

Compiler’s Notes.

Former §§ 44-28-1 — 44-28-36 concerned investment tax. For present comparable provisions, see § 44-31-1 .

Chapter 29 Admissions Tax to Racing Events at Which Pari-Mutuel Betting Is Permitted

44-29-1. Definitions.

As used in this chapter:

  1. “Admission” means all charges established for admission except those specifically designated as service charges;
  2. “Licensee” means a person conducting racing events at which betting under the pari-mutuel system is permitted;
  3. “Person” includes, but is not limited to, individuals, associations, and corporations;
  4. “Racing event” means a racing event at which pari-mutuel betting is permitted;
  5. “Seller” means a person required by this chapter to collect any tax imposed under this chapter.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

Comparative Legislation.

Admissions tax:

Conn. Gen. Stat. § 12-540 et seq.

44-29-2. Imposition of tax.

There is levied and assessed a tax on admissions to any racing event in this state which is at the rate of one cent ($.01) for each five cents ($.05) or major fraction of the admission. This tax shall be collected by the seller of any admission at the time of the sale and shall be paid over in accordance with the following sections.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

NOTES TO DECISIONS

Constitutionality.

Imposition of admissions tax only on events where pari-mutuel betting is allowed does not deprive plaintiffs of equal protection, since gambling presents well-known dangers and is subject to abuse, thereby justifying treatment different from that accorded other activities. Burrillville Racing Ass'n v. State, 118 R.I. 154 , 372 A.2d 979, 1977 R.I. LEXIS 1440 (1977).

Imposition of this tax on racing, but not on other events like jai alai games, does not deny plaintiffs equal protection, as racing is an established sport and the legislature could reasonably conclude that a tax should not be imposed upon other sports in which pari-mutuel betting is permitted until their economic viability is more clearly apparent. Burrillville Racing Ass'n v. State, 118 R.I. 154 , 372 A.2d 979, 1977 R.I. LEXIS 1440 (1977).

This tax, intended as a revenue-raising rather than a regulatory tax, is a rational exercise of legislative power and does not deny plaintiff’s due process. Burrillville Racing Ass'n v. State, 118 R.I. 154 , 372 A.2d 979, 1977 R.I. LEXIS 1440 (1977).

Collateral References.

Validity of state or local gross receipts tax on gambling. 21 A.L.R.5th 812.

44-29-3. Filing of returns — Date due — Interest and penalty.

On or before the tenth day of the month next succeeding the month in which any taxes imposed by this chapter are collected, the seller shall pay the taxes to the tax administrator and at the same time shall file with him or her a return in a form the administrator may by regulation prescribe. If any taxes are not paid to the tax administrator when due, there is added to the taxes, and made a part of the taxes, interest at the annual rate provided by § 44-1-7 from the date when the taxes became due until the date of payment; if any return is not filed when due, there shall be added to the taxes, and made a part of the taxes, a ten percent (10%) penalty of the amount of taxes due, which penalty shall be in addition to any interest added.

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1992, ch. 388, § 9.

44-29-4. Deficiency determination — Interest.

If the tax administrator is not satisfied with the amount of taxes paid to him or her or with the return or returns filed with the administrator by any seller, the tax administrator may compute and determine the amount required by this chapter to be paid to the administrator, upon the basis of the facts contained in the return or returns or upon the basis of any information in his or her possession or that may come into his or her possession. The amount of his or her determination, exclusive of penalties, shall bear interest at the annual rate provided by § 44-1-7 from the tenth day after the close of the month for which the amount, or any portion of the amount, should have been paid until the date of payment.

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1992, ch. 388, § 9.

44-29-5. Pecuniary penalties for deficiencies.

If any part of the deficiency for which a determination is made is due to negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to it. If any part of the deficiency for which a determination is made is due to fraud or intent to evade the provisions of this chapter, a penalty of fifty percent (50%) of the amount of the determination shall be added to it.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-6. Notice of determination.

The tax administrator shall give to the seller a written notice of his or her determination. Except in the case of fraud, intent to evade the provisions of this chapter, or failure to make a return, every notice of a determination shall be mailed within three (3) years after the tenth day of the calendar month following the month for which the amount is proposed to be determined or within three (3) years after the return is filed, whichever period expires later, unless a longer period is agreed upon by the tax administrator and the seller.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-7. Determination without return — Interest and penalties.

If any seller fails to file a return, the tax administrator shall determine the amount of taxes required to be paid to the administrator, which determination shall be made for the month or months in respect to which the seller failed to file a return and shall be based upon any information which is in the tax administrator’s possession or may come into his or her possession. If the failure of any seller to file a return is due to fraud or intent to evade the provisions of this chapter, a penalty of fifty percent (50%) of the amount required to be paid by the seller, exclusive of penalties, shall be added to the amount required to be paid in addition to the ten percent (10%) penalty provided in § 44-29-3 . After making this determination the tax administrator shall mail to the seller a written notice of the determination, interest at the annual rate provided by § 44-1-7 , and penalties.

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1992, ch. 388, § 9.

44-29-8. Taxes as debt to state — Lien on real estate.

The amount of any taxes, including interest and penalties, imposed by this chapter shall be a debt due from the seller to the state, shall be recoverable at law in the same manner as other debts, and until collected shall constitute a lien upon all the seller’s real property located in this state, and this lien shall take precedence over any other lien or encumbrance on the property.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-9. Collection powers.

The tax administrator shall have for the collection of the taxes, including interest and penalties imposed by this chapter, the same powers as are prescribed for collection of taxes in chapters 1 and 7 — 9 of this title.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-10. Payment of refunds.

All moneys received by the tax administrator under this chapter shall be paid over to the general treasurer. Whenever the tax administrator determines that any seller is entitled to a refund of any moneys paid by the seller under the provisions of this chapter, or whenever a court of competent jurisdiction orders a refund of any paid moneys, the general treasurer shall, upon certification by the tax administrator and with the approval of the director of the department of revenue, pay the refund from any moneys in the treasury not appropriated without any further act or resolution making appropriation; provided, that no refund shall be allowed unless a claim is filed with the tax administrator within three (3) years from the tenth day after the close of the month for which the overpayment was made. Every claim for a refund shall be made in writing, shall be in any form, and shall present any information that the tax administrator may by regulation require. Within thirty (30) days after disallowing any claim in whole or in part, the tax administrator shall give notice of his or her decision to the seller. If aggrieved by the decision, the seller, within thirty (30) days from the date of the mailing by the tax administrator of notice of the claim denial, may request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing. After the hearing, if aggrieved by the decision of the tax administrator, the seller may petition within thirty (30) days the sixth division of the district court for relief from the decision of the tax administrator. The court may confirm the decision of the tax administrator or order a refund or credit. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 8-8-32 .

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1976, ch. 140, § 31; P.L. 2008, ch. 98, § 46; P.L. 2008, ch. 145, § 46.

44-29-11. Hearing by administrator on application.

Any person aggrieved by any assessment, deficiency, or otherwise, shall notify the tax administrator, in writing, within thirty (30) days from the date of mailing by the tax administrator of the notice of the assessment and request a hearing relative to the assessment. The tax administrator or a hearing officer designated by the tax administrator shall, as soon as practicable, fix a time and place for the hearing and shall, after the hearing, determine the correct amount of the tax, interest, and penalties.

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1993, ch. 459, § 9.

Cross References.

Hearings under Administrative Procedures Act, § 42-35-9 et seq.

44-29-12. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section shall be expressly made conditional upon prepayment of all taxes, interest, and penalties unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 .

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1976, ch. 140, § 131; P.L. 1984, ch. 183, § 11.

Cross References.

Appeals under Administrative Procedures Act, § 42-35-15 et seq.

44-29-13. Judgment on review.

If, upon final determination of the petition, it appears that the tax administrator’s assessment was correct, the court shall confirm the assessment; or, if incorrect, the court shall determine the proper amount of the tax, interest, and penalties. If it appears that the petitioner, by reason of the payment of the tax, interest, and penalties, is entitled to recover this money or any part of the tax, interest, and penalties, the court may order a refund with interest at the annual rate provided by § 44-1-7.1 or order a credit, as the circumstances may warrant. If a refund is ordered, it shall be paid by the general treasurer upon certification of the tax administrator with the approval of the director of the department of administration. If it appears that the state is entitled to a greater amount of tax, interest, and penalties than assessed or determined by the tax administrator and paid by the petitioner, the court shall order the payment by the petitioner of the additional amount as the court determines, and the petitioner shall immediately pay the amount to the tax administrator. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 8-8-32 .

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1976, ch. 140, § 31; P.L. 1992, ch. 388, § 9.

44-29-14. Penalty for violations generally.

Any person who fails or refuses to furnish any return required to be made, or fails or refuses to furnish any other data required by the tax administrator, or makes any false or fraudulent return, or violates any provision of this chapter for which no other penalty is provided, is guilty of a felony and shall be fined not more than ten thousand dollars ($10,000) for each offense, or be imprisoned not exceeding one year, or both.

History of Section. P.L. 1969, ch. 197, art. 2, § 1; P.L. 1986, ch. 103, § 9.

44-29-15. Records required.

Every seller shall keep any books, including records, receipts, and other pertinent papers, in any form that the tax administrator may require. These records shall be open at all times to the inspection of the tax administrator and his or her agents and, upon summons issued by the administrator, shall be produced at any time and place that the administrator may designate for inspection by him or her or his or her agents.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-16. Rules and regulations — Forms.

The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter. These rules and regulations, when reasonably designed to carry out the intent and purpose of this chapter, are prima facie evidence of its proper interpretation. These rules and regulations may from time to time be amended, suspended, or revoked, in whole or in part, by the tax administrator. The tax administrator may prescribe and furnish any forms necessary or proper for the administration of this chapter.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-17. Taxes imposed as additional to other taxes.

Except as provided in this chapter, the taxes imposed by this chapter shall be in addition to any other taxes imposed under the authority of this state.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

44-29-18. Severability.

The provisions of this chapter are declared to be severable; and in case any part, section, or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, sections, and provisions of the chapter shall not be impaired or affected.

History of Section. P.L. 1969, ch. 197, art. 2, § 1.

Chapter 30 Personal Income Tax

Part I General

44-30-1. Persons subject to tax.

  1. Imposition of tax.  A Rhode Island personal income tax determined in accordance with the rates set forth in § 44-30-2 is imposed for each taxable year (which shall be the same as the taxable year for federal income tax purposes) on the Rhode Island income of every individual, estate, and trust.
  2. Partners and partnerships.  A partnership as such shall not be subject to the Rhode Island personal income tax. Persons carrying on business as partners shall be liable for the Rhode Island personal income tax only in their separate or individual capacities.
  3. Associations taxable as corporations.  An association, trust, or other unincorporated organization, which is taxable as a corporation under the provisions of chapter 11 of this title, shall not be subject to the Rhode Island personal income tax.
  4. Exempt trusts and organizations.  A trust or other unincorporated organization, which by reason of its purposes or activities is exempt from federal income tax, shall be exempt from the Rhode Island personal income tax, except with respect to its unrelated business taxable income.
  5. Cross references.  For definitions of Rhode Island income of:
    1. Resident individuals, see § 44-30-12 .
    2. Resident estate or trust, see § 44-30-16 .
    3. Nonresident individual, see § 44-30-32 .
    4. Nonresident estate or trust, see § 44-30-35 .

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2005, ch. 410, § 33.

Comparative Legislation.

Personal income tax:

Conn. Gen. Stat. § 12-700 et seq.

Mass. Ann. Laws ch. 62, § 1 et seq.; ch. 62B, § 1 et seq.

Collateral References.

Divorce and separation: Consideration of tax consequences in distribution of marital property. 9 A.L.R.5th 568.

44-30-1.1. Exemption from tax for writers, composers, and artists.

  1. This section shall only apply to writers, composers, and artists residing within a section of the defined economic development zone within the city of Providence, Pawtucket, Woonsocket, Warwick, or East Providence, or the economic development zone within the town of Westerly as defined in § 44-18-30B(c)(1)(i) , or within the city of Newport or within the town of Tiverton or the town of Little Compton, or within those areas of the town of Warren that are zoned “waterfront district,” “special district,” “village business district,” “manufacturing district,” “business district,” or “Warren historic district,” or a tax pass-through entity wholly owned by one or more such individuals and who create such work while residing in the zone, or in the case of Newport or the town of Little Compton, within those areas of the city or town that are zoned “general business,” “waterfront business,” or “limited business,” or have been designated by the city of Newport as part of the arts district, or in the case of Warren, within those areas of the town that are zoned “waterfront district,” “special district,” “village business district,” “manufacturing district,” “business district,” or “Warren historic district,” or in the case of Tiverton within those areas of the town that are zoned “business commercial,” “business waterfront,” or “village commercial.” For the purposes of this section, a “work” means an original and creative work, whether written, composed, created, or executed for “one-of-a-kind, limited” production, before or after the passing of this section, that falls into one of the following categories: (1) A book or other writing; (2) A play or the performance of said play; (3) A musical composition or the performance of said composition; (4) A painting or other like picture; (5) A sculpture; (6) Traditional and fine crafts; (7) The creation of a film or the acting of said film; (8) The creation of a dance or the performance of said dance. For purposes of this section, a “work” does not apply to any piece or performance created or executed for industry oriented or related production.
  2. This section shall apply to any individual:
    1. Who is a resident within the section of the economic development zone designated as the arts and entertainment district in the downtown areas of the cities of Providence, Woonsocket, Pawtucket or East Providence, and deriving the income exempted from within said district while a resident of said zone, or who is a resident within the section of the arts and entertainment district in the town of Westerly, as defined in § 44-18-30B(c)(1)(i) and who derives the income exempted from within said district while a resident of said zone. For the purposes of this section, the “Providence arts and entertainment district” is defined as the area bounded by Pine Street to the southeast, Dorrance Street to the northeast, Sabin Street to the northwest, and Empire Street to the southwest. Said Providence arts and entertainment district also includes the area beginning at the point of intersection of Acorn Street and Harris Avenue, then turning east onto Atwells Avenue to Service Road 7, then turning southerly onto Service Road 7 to Westminster Street, then turning westerly onto Westminster Street, continuing until Bridgham, then turning south onto Bridgham to Cranston Street, then turning southwesterly onto Cranston Street, then continuing to Messer Street, then turning north onto Messer Street to Westminster Street, turning west onto Westminster Street to US Hwy 6 off ramp, then heading west on US Hwy 6 to Sheridan Street, then heading northeast on Sheridan Street to Aleppo Street, then turning southeast along Aleppo Street to Pelham Street, then heading northeast on Pelham Street to Manton Avenue, then continuing southeast on Manton Avenue until Delaine Street, then heading northeast on Delaine Street until Appleton Street, then continuing northwesterly on Appleton Street until Bowdoin Street, then heading north on Bowdoin Street until Barstow Street, then heading east on Barstow until Valley Street, then heading northeast on Valley Street to Hemlock Street, then turning southeast on Hemlock Street until Promenade Street, then heading east on Promenade Street to Acorn Street, then heading south on Acorn Street to the intersection of Acorn Street and Harris Avenue. The abovementioned streets shall be included in the district. The “Westerly arts and entertainment district” is defined in § 44-18-30B(c)(1)(i) . The “Pawtucket arts and entertainment district” shall be defined as the area beginning at the point of intersection of Dexter Street and the Central Falls line, then east along the Central Falls Line to the Blackstone River, then north along the city boundary on the Blackstone River to the Cumberland line, then west along the Pawtucket city boundary line to I-95, then south along I-95 to Pine Street, then north on Pine Street to AMTRAK Right of Way, then northwest along the AMTRAK Right of Way to Dexter Street, then north on Dexter Street to the Central Falls line. The abovementioned streets shall be included in the district. The “Woonsocket arts and entertainment district” shall be defined as the area beginning at a point of land on the southwest bank of the Blackstone River abutting the bridge for the Providence & Worcester Railroad and proceeding northerly to a point at the intersection of Worrall Street, Clinton Street and Harry S. Truman Drive, then proceeding northwesterly along Worrall Street to its intersection with Social Street, then turning westerly on Social Street proceeding to its intersection with Main Street, Blackstone Street and North Main Street, then turning northwesterly and proceeding along Blackstone Street to its intersection with River Street, then turning northerly and proceeding along River Street to its intersection with the northeast bank of Blackstone River, then following the riverbank southerly to the bridge at Bernon Street and turning easterly crossing the Blackstone River via Bernon Street and proceeding to its intersection with Front Street, then turning northeasterly on Front Street and proceeding to its intersection with Hamlet Avenue, and to include the former Courthouse on the southerly side of Front Street at its intersection with Hamlet Avenue, then turning easterly on Hamlet Avenue and proceeding to its intersection with Manville Road, then turning southeasterly on Manville Road and proceeding to its intersection with Davison Avenue, then turning northeasterly on Davison Avenue and proceeding to a point on the southwest bank of the Blackstone River, then turning northerly, following the southerly riverbank to the point of beginning. The abovementioned streets are included in the district. The Warwick arts district is defined as that area known as Pontiac Village, beginning on Route 5 at the Warwick/Cranston municipal boundary, then south to the intersection of Route 5 and the Pawtuxet River, then following the Pawtuxet River in an easterly and northerly direction to the municipal boundary in the vicinity of Knight Street, then from the intersection of Knight Street and the municipal boundary westerly along the Warwick/Cranston municipal boundary to the intersection of Route 5 and Greenwich Avenue. The above named streets are included in the district. The “East Providence art district” shall be defined at a point of land on the northeast bank of the Seekonk River abutting the Henderson Bridge and proceeding easterly along Wilmarth Avenue to a point at the intersection of North Broadway, then proceeding southerly to South Broadway and continuing to the intersection of Warren Avenue, then proceeding westerly on the southerly side of Warren Avenue to the intersection with Burgess Avenue, then proceeding southerly to the intersection at Veterans Memorial Parkway, then proceeding westerly to the intersection at Waterfront Drive, including the area known as Bold Point Park, then northerly along the southeast bank of the Seekonk River back to the point of the beginning.
    2. Who is determined by the tax administrator, after consideration of any evidence in relation to the matter which the individual submits to him or her and after such consultation as may seem to him or her to be necessary with such person or body of persons as in his or her opinion may be of assistance to him or her, to have written, composed or executed either solely or jointly with another individual, a work or works that would fall into one of the categories listed in subsection (a) of this section.
    1. An individual to whom this section applies and who duly makes a claim to the tax administrator in that behalf shall, subject to subsection (c)(2) of this section, be entitled to have the profits or gains arising to him or her from the publication, production or sale of a work or works in relation to which the tax administrator has made a determination under subsection (b)(2) of this section to be taken as a modification reducing federal adjusted gross income.
    2. The modification authorized by this section shall apply to the year in which the profit or gain from the publication, production or sale of a work is realized.
  3. The tax administrator may serve on an individual who makes a claim under this section a notice or notices, in writing, requiring him or her to make available within any time that may be specified in the notice of all such books, accounts and documents in his or her possession or power as may be requested, being books, accounts and documents relating to the publication, production or sale of the work in respect of the profits or gains of which exemption is claimed.
  4. For the purpose of determining the amount of profits or gains subject to modification under this section, the tax administrator may make any apportionment of receipts and expenses that may be necessary.
  5. Notwithstanding any other provisions of this chapter, any individual seeking relief under this section shall file a Rhode Island personal income tax return listing the modification reducing federal adjusted gross income relating to profits or gains realized from the works as defined in this section.

This section shall also apply to any individual who is a resident of the city of Newport or the town of Tiverton or the town of Little Compton and whose income otherwise qualifies for an exemption as provided for in this section.

This section shall also apply to any individual who is a resident of the town of Warren and whose income otherwise qualifies for an exemption as provided for in this section.

History of Section. P.L. 1996, ch. 431, § 1; P.L. 1997, ch. 329, § 2; P.L. 1998, ch. 382, § 2; P.L. 1998, ch. 406, § 2; P.L. 1998, ch. 414, § 1; P.L. 2003, ch. 226, § 1; P.L. 2003, ch. 312, § 1; P.L. 2004, ch. 445, § 2; P.L. 2004, ch. 470, § 2; P.L. 2004, ch. 542, § 2; P.L. 2004, ch. 546, § 2; P.L. 2005, ch. 257, § 2; P.L. 2005, ch. 270, § 2; P.L. 2005, ch. 425, § 2; P.L. 2021, ch. 258, § 1, effective July 14, 2021.

Compiler's Notes.

The description of the economic development zone within the town of Westerly, as referred to in subsections (a) and (b) of this section, was deleted from § 44-18-30B by P.L. 2013, ch. 144, art. 9, § 15.

44-30-1.2. Annual Rhode Island personal income and tax data report.

No later than March 15, the division of taxation shall annually submit a report for the previous calendar year of Rhode Island individual income and tax data by size of adjusted gross income to the chairpersons of the house finance committee and senate finance committee, and the house fiscal advisor and the senate fiscal advisor. The report should be as similar as practical to the individual and income tax data for Rhode Island federal taxpayers issued by the Statistics of Income Division of the Internal Revenue Service.

History of Section. P.L. 2006, ch. 246, art. 30, § 3.

44-30-2. Rate of tax.

  1. General.
      1. A Rhode Island personal income tax is imposed upon the Rhode Island income of residents and nonresidents, including estates and trusts, for the period January 1, 1971 through June 30, 1971 equal to twenty percent (20%) of one-half (1/2) of the taxpayer’s federal income tax liability for the taxable year commencing January 1, 1971; for the period July 1, 1971 through December 31, 1971 equal to fifteen percent (15%) of one-half (1/2) of the taxpayer’s federal income tax liability for the taxable year commencing January 1, 1971; and for each taxable year on and after January 1, 1972, and ending on or before December 31, 1974 equal to fifteen percent (15%) of the taxpayer’s federal income tax liability; for each taxable year on and after January 1, 1975 and ending on or before December 31, 1977 equal to seventeen percent (17%) of the taxpayer’s federal income tax liability; for each taxable year ending after December 31, 1977 equal to nineteen percent (19%) of the taxpayer’s federal income tax liability; for each taxable year ending after December 31, 1980 equal to nineteen and twenty-four one-hundredths percent (19.24%) of the taxpayer’s federal income tax liability; for each taxable year ending after December 31, 1981 equal to twenty-one and nine-tenths percent (21.9%) of the taxpayer’s federal income tax liability; for the period January 1, 1983 through June 30, 1983 equal to twenty-seven and five-tenths percent (27.5%) of the taxpayer’s federal income tax liability; for the period July 1, 1983 and through June 30, 1984 equal to twenty-six percent (26%) of the taxpayer’s federal income tax liability; for the period July 1, 1984 and through December 31, 1984 equal to twenty-four and nine-tenths percent (24.9%) of the taxpayer’s federal income tax liability; in accordance with subsection (2) of this section for the period January 1, 1985 through June 30, 1985 equal to twenty-three and sixty-five one-hundredths percent (23.65%) of the taxpayer’s federal income tax liability; for the period July 1, 1985 through December 31, 1985, equal to twenty-two and sixty-five one-hundredths percent (22.65%) of the taxpayer’s federal income tax liability; in accordance with subsection (3) of this section for January 1, 1986 and thereafter shall be equal to twenty-two and twenty-one one-hundredths percent (22.21%) of the taxpayer’s federal income tax liability; in accordance with the Tax Reform Act of 1986, codified primarily at 26 U.S.C. § 1 et seq., for the period January 1, 1987 through June 30, 1987 shall be equal to twenty-three and ninety-six one-hundredths percent (23.96%) of the taxpayer’s federal income tax liability; for the period July 1, 1987 through December 31, 1990 shall be equal to twenty-two and ninety-six one-hundredths percent (22.96%) of the taxpayer’s federal income tax liability; for the period January 1, 1991 through June 30, 1992 and for the period January 1, 1994 and thereafter shall be equal to twenty-seven and five tenths percent (27.5%) of the taxpayer’s federal income tax liability; for the period July 1, 1992 through December 31, 1992 if the taxpayer’s federal income tax liability is fifteen thousand dollars ($15,000) or less shall be equal to twenty-seven and five tenths percent (27.5%) of the taxpayer’s federal income tax liability but if the taxpayer’s federal income tax liability is greater than fifteen thousand dollars ($15,000) shall be the sum of twenty-seven and five-tenths percent (27.5%) of the taxpayer’s federal income tax liability up to and including fifteen thousand dollars ($15,000) and thirty-two percent (32%) of the taxpayer’s federal income tax liability in excess of fifteen thousand dollars ($15,000).
      2. The effective rate for the year 1983 shall be equal to twenty-six and seventy-five hundredths percent (26.75%) of the taxpayer’s federal income tax liability. The effective rate for the year 1984 shall be equal to twenty-five and five-tenths percent (25.5%) of the taxpayer’s federal income tax liability.
      3. The effective rate for the year 1985 shall be equal to twenty- three and fifteen-hundredths percent (23.15%) of the taxpayer’s federal income tax liability. The effective rate for the year 1987 shall be twenty-three and forty-six one-hundredths percent (23.46%) of the taxpayer’s federal income tax liability.
      4. For the year 1992, if the taxpayer’s federal income tax liability for the year is greater than fifteen thousand dollars ($15,000), the effective rate on such the federal income tax liability in excess of fifteen thousand dollars ($15,000) shall be twenty-nine and seventy-five one-hundredths percent (29.75%).
      5. The personal income tax rate for the year 1993 shall be in accordance with the following schedules:
      6. The purpose of the 1993 rate schedules and/or the Rhode Island Schedule D shall be such that a taxpayer’s 1993 Rhode Island personal income tax liability shall remain the same as it would have been prior to the enactment of the Federal Omnibus Budget Reconciliation Act of 1993, (OBRA), P.L. 103-66, 107 Stat. 312.
      7. For the year 1994 through December 31, 1997, the rate shall be twenty-seven and five-tenths percent (27.5%) of the taxpayers entire federal income tax liability.
      8. For the period January 1, 1998, through December 31, 1998, the rate shall be equal to twenty-seven percent (27%) of the taxpayer’s federal income tax liability.
      9. For the period January 1, 1999, through December 31, 1999, the rate shall be equal to twenty-six and five-tenths (26.5%) of the taxpayer’s federal income tax liability.
      10. For the period January 1, 2000, through December 31, 2000, the rate shall be equal to twenty-six percent (26%) of the taxpayer’s federal income tax liability.
      11. For the period January 1, 2001, through December 31, 2001, the rate shall be equal to twenty-five and five-tenths percent (25.5%) of the taxpayer’s federal income tax liability.
      12. For the period January 1, 2002, and thereafter the rate shall be twenty-five percent (25%) of the taxpayer’s federal income tax liability.
    1. In the event that the indexing of the federal personal income tax scheduled to take effect on January 1, 1985, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., does take effect or is replaced by similar legislation, as the result of an action of the United States Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this section for the period January 1, 1985, and through June 30, 1985, shall be changed and be equal to twenty-three and sixty-five one-hundredths percent (23.65%) of the taxpayer’s federal income tax liability.
    2. In the event that the indexing of the federal personal income tax scheduled to take effect on January 1, 1986, as enacted by the Economic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., does take effect or is replaced by similar legislation as the result of an action of the United States Congress, then the Rhode Island personal income tax rate as set forth in subdivision (a)(1) of this section for the period January 1, 1986, and thereafter shall be changed and be equal to twenty-two and twenty-one one-hundredths percent (22.21%) of the taxpayer’s federal income tax liability.
  2. Federal income tax liability.  Federal income tax liability shall be the amount of federal income tax without deduction for any new federal credit(s) enacted after January 1, 1996, (excluding self-employment tax, social security tax or any supplemental Medicare premium) or supplemental premium surcharge imposed by the Medicare Catastrophic Coverage Act of 1988 (P.L. 100-360), codified primarily at 42 U.S.C. § 1395 et seq., which the taxpayer would have been liable if the taxpayer had paid federal income tax based on federal taxable income as adjusted by the modifications provided in parts II and III of this chapter. The federal taxable income shall not include modifications which would decrease federal taxable income resulting from the applications of § 15 of chapter 489 of the public laws of 1923, as amended by § 8 of chapter 151 of the public laws of 1963; §§ 28-17-3 , 36-10-32 , 45-21-45 , or any other sections of Rhode Island law which would provide or would be construed to provide that any pension, annuity, retirement allowance, benefit, or right shall be exempt from any state tax.
  3. Cross references.  For credit in respect of:
    1. Taxes withheld on wages, see § 44-30-73 ;
    2. Taxes imposed on a resident by other states, see § 44-30-18 ;
    3. Taxes overpaid for a prior taxable year, see § 44-30-86 .
  4. Tax credit.
    1. There shall be allowed as a credit against the Rhode Island personal income tax otherwise due for a taxable year, commencing for the tax year 1988, a contribution of five dollars ($5.00), or ten dollars ($10.00) if married and filing a joint return, to the account for the public financing of the electoral system. The first two dollars ($2.00), or four dollars ($4.00) if married and filing a joint return, shall go to a political party as defined in § 17-12.1-12 to be designated by the taxpayer or to a nonpartisan account if so indicated up to a total of two hundred thousand dollars ($200,000) collectively for all parties and the nonpartisan account. The remainder shall be deposited as general revenue.
    2. The credit for the public financing of the electoral system shall appear on the face of the state personal income tax return. The tax administrator shall annually forward by August 1, all contributions to said account to the state general treasurer and the treasurer shall annually remit by September 1, the designated partisan contributions to the chairperson of the appropriate political party and the contributions made to the nonpartisan general account shall be allocated by the state general treasurer to each political party in proportion to the combined number of votes its candidates for governor received in the previous election, after five percent (5%) of the amount in the account is allocated to each party for each general officer elected in the previous statewide election. Each political party may expend moneys received under this provision for all purposes and activities permitted by the laws of Rhode Island and the United States, except that no such moneys shall be utilized for expenditures to be directly made or incurred to support or defeat a candidate in any election within the meaning of chapter 25 of title 17, or in any election for any political party nomination, or for political party office within the meaning of chapter 12 of title 17. The remaining funds shall be allocated for the public financing of campaigns for governor as set forth in §§ 17-25-19 17-25-27 .
  5. Tax adjustment.
    1. Notwithstanding the provisions of subsection (a) of this section, for taxable years ending after December 31, 1980, in the event that during a period when the general assembly is not in session a change is made in the provisions of the Internal Revenue Code of the United States and amendments thereto, or other provisions of the law of the United States relating to federal income taxes, or the rules and regulations issued under these laws that alters the taxpayer’s federal income tax liability, the tax administrator is directed to so change the Rhode Island personal income tax rate of the taxpayer's federal income tax liability as to retain the tax product upon receipt of which state appropriations were predicated.
    2. The rate so set by the tax administrator will be effective until such time as the general assembly shall ratify this rate or set a different rate.

SCHEDULE X-RI: Single Individuals FEDERAL INCOME TAX RI INCOME TAX LIABILITY Of The But not % ON Amount Over Over Pay + Excess Over - $ 0 - $15,000 $ 0 27.5% $ 0 15,000 - 31,172 4,125 32% 15,000 31,172 - 79,772 9,300 27.55% 31,172 79,772 - 22,689 25.05% 79,772

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The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $115,000.00. Those individuals must file a Rhode Island Schedule D.

SCHEDULE Y-1-RI: Married Filing Jointly or Qualifying Widow(er) FEDERAL INCOME TAX RI INCOME TAX LIABILITY Of The But not % ON Amount Over Over Pay + Excess Over - $ 0 - $15,000 $ 0 27.5% $ 0 15,000 - 35,929 4,125 32% 15,000 35,929 - 75,528 10,822 27.55% 35,928 75,528 - 21,732 25.05% 75,528

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The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $140,000.00. Those individuals must file a Rhode Island Schedule D.

SCHEDULE Y-2-RI: Married Filing Separately FEDERAL INCOME TAX RI INCOME TAX LIABILITY Of The But not % ON Amount Over Over Pay + Excess Over - $ 0 - $15,000 $ 0 27.5% $ 0 15,000 - 17,964 4,125 32% 15,000 17,964 - 37,764 5,073 27.55% 17,964 37,764 - 10,528 25.05% 37,764

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The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $70,000.00. Those individuals must file a Rhode Island Schedule D.

SCHEDULE Z-RI: Head of Household FEDERAL INCOME TAX RI INCOME TAX LIABILITY Of The But not % ON Amount Over Over Pay + Excess Over - $ 0 - $15,000 $ 0 27.5% $ 0 15,000 - 33,385 4,125 32% 15,000 33,385 - 77,485 10,008 27.55% 33,385 77,485 - 22,158 25.05% 77,485

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The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $127,500.00. Those individuals must file a Rhode Island Schedule D.

RI INCOME TAX RATE SCHEDULES FOR USE BY ESTATES AND TRUSTS FEDERAL INCOME TAX RI INCOME TAX LIABILITY Of The But not % ON Amount Over Over Pay + Excess Over - $ 0 - $ 1,405 $ 0 27.5% $ 0 1,405 - 2,125 386 23.68% 1,405 2,125 - 15,000 557 21.53% 2,125 15,000 - 3,329 25.05% 15,000

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The above rate table may not be used by a taxpayer who files a federal Schedule D and has taxable income in excess of $5,500.00. Those individuals must file a Rhode Island Schedule D.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1973, ch. 230, § 1; P.L. 1975, ch. 260, art. 9, § 1; P.L. 1978, ch. 22, § 1; P.L. 1978, ch. 205, art. 6, § 1; P.L. 1981, ch. 291, art. 8, § 1; P.L. 1982, ch. 344, art. 9, § 1; P.L. 1983, ch. 2, art. 7, § 1; P.L. 1983, ch. 167, art. 21, § 1; P.L. 1984, ch. 245, art. VII, § 1; P.L. 1984, ch. 405, § 1; P.L. 1985, ch. 5, § 1; P.L. 1985, ch. 181, art. 44, § 1; P.L. 1985, ch. 496, art. 5, § 1; P.L. 1986, ch. 287, art. 6, § 1; P.L. 1987, ch. 118, art. 6, § 1; P.L. 1988, ch. 420, § 2; P.L. 1989, ch. 15, § 1; P.L. 1989, ch. 16, § 1; P.L. 1989, ch. 218, § 1; P.L. 1991, ch. 6, art. 16, § 1; P.L. 1992, ch. 133, art. 30, § 1; P.L. 1994, ch. 166, § 1; P.L. 1995, ch. 370, art. 40, § 149; P.L. 1996, ch. 100, art. 27, § 1; P.L. 1997, ch. 30, art. 29, § 1.

Cross References.

Campaign contributions, § 17-25-1 et seq.

Tax credit for persons hiring juveniles pursuant to juvenile victim restitution program, § 14-1-32.1 .

NOTES TO DECISIONS

Excess Parachute Payment.

The 20 percent tax the taxpayers paid on the excess parachute payment was not subject to the piggyback provisions of the state income tax statutes because it was an excise tax and not a federal income tax. Knaggs v. Clark, 686 A.2d 466, 1996 R.I. LEXIS 286 (R.I. 1996).

“Federal Taxable Income”.

“Federal taxable income” is used in subsection (b) should be interpreted as meaning a taxpayer’s adjusted gross income. Based on that interpretation, “federal income tax liability” as used in subdivision (a)(1)(i) would mean the amount of federal income tax based on a taxpayer’s adjusted gross income, the figure reported on line 40. The figure reported on line 53 is not the proper basis for state income taxes. Knaggs v. Clark, 686 A.2d 466, 1996 R.I. LEXIS 286 (R.I. 1996).

Legislative Intent.

Because the Legislature explicitly designated adjusted gross income as the base figure when modifications are applicable, the most obvious intent of the Legislature was to provide that, when modifications are inapplicable, the federal adjusted gross income should then be used as the base figure for determining the amount of a taxpayer’s federal income tax liability. Knaggs v. Clark, 686 A.2d 466, 1996 R.I. LEXIS 286 (R.I. 1996).

Public Financing of Electoral System.

Scheme for distributing funds from the nonpartisan account under R.I. Gen. Laws § 44-30-2(d)(2) did not violate a new political party’s constitutional rights because the state’s method of gauging public support by looking at who occupied the general officer positions in Rhode Island and who received more votes in the last gubernatorial election was within the range of permissible qualification criteria. Moderate Party of R.I. v. Lynch, 764 F. Supp. 2d 373, 2011 U.S. Dist. LEXIS 13416 (D.R.I. 2011).

Collateral References.

Validity of statutory classifications based on population—tax statutes. 98 A.L.R.3d 1083.

44-30-2.1. Refund deduction for contribution to U.S. Olympic Committee.

There shall be provided as a deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year, contributions of one dollar ($1.00), or two dollars ($2.00) if married and filing a joint return, to the U.S. Olympic Committee. The provision for the contribution shall appear on the state personal income tax return. The tax administrator shall annually forward by August 1, all contributions made to the U.S. Olympic Committee to the state general treasurer and the treasurer shall annually deposit by September these contributions to the U.S. Olympic Committee; provided, the general treasurer may deduct the costs of the administrative expenses in conjunction with these contributions.

History of Section. P.L. 1983, ch. 192, § 1; P.L. 1985, ch. 444, § 1; P.L. 1996, ch. 377, § 1.

44-30-2.2. Refund deduction for contribution to the non-game wildlife general revenue appropriations.

  1. There shall be provided as a deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year a contribution to the non-game wildlife general revenue appropriations established in chapter 18.1 of title 20. The provision for the contribution shall appear on the state personal income tax return as follows:
  2. The tax administrator shall deposit all contributions made to the non-game wildlife as general revenues. State appropriations for non-game wildlife shall be made pursuant to § 20-18.1-3 .

Rhode Island non-game wildlife. Check if you wish to contribute [ ] $1, [ ] $5, [ ] $10, or [ ] $ (write in amount of your tax REFUND for this program).

History of Section. P.L. 1986, ch. 437, § 2; P.L. 1989, ch. 384, § 2; P.L. 1995, ch. 370, art. 40, § 150.

44-30-2.3. Refund deduction for contribution to the childhood disease victims' fund.

  1. There shall be provided as a deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year a contribution to the childhood disease victims' fund established in chapter 14 of title 23. The provision for the contribution shall appear on the state personal income tax return as follows: Childhood disease victims' fund. Check if you wish to contribute [ ] $1, [ ] $5, [ ] $10, or [ ] $ (write in amount of your tax REFUND for this program). (b) The tax administrator shall annually forward by August 1, all contributions made to the childhood disease victims’ fund to the general treasurer to be deposited in the fund created in . The general treasurer shall annually distribute the proceeds of the said fund as prescribed in chapter 14 of title 23. § 23-14-3 (c) The provisions of this section shall commence for returns filed for the tax year ending December 31, 1989.

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History of Section. P.L. 1989, ch. 384, § 3.

44-30-2.4. Refund deduction for contribution to the drug program account.

  1. There shall be provided as a deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year a contribution to the drug program established in chapter 7 of title 42. The provision for the contribution shall appear before all other requests for contributions on the state personal income tax return as follows: Drug program. Check if you wish to contribute [ ] $1, [ ] $5, [ ] $10, or [ ] $ (write in the amount of your tax REFUND for this program). (b) The tax administrator shall annually forward by August 1, all contributions made to the drug program account to the general treasurer to be deposited as general revenues. (c) The provisions of this section shall commence for returns filed for the tax year ending December 31, 1990.

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History of Section. P.L. 1990, ch. 322, § 2; P.L. 1995, ch. 370, art. 40, § 150.

44-30-2.5. Refund deduction for contribution to the Rhode Island organ transplant fund.

  1. There shall be provided as a deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year a contribution to the Rhode Island organ transplant fund. The provision for the contribution shall appear on the state personal income tax return as follows: Rhode Island Organ Transplant Fund. Check if you wish to contribute [ ] $1, [ ] $5, [ ] $10, or [ ] $ (write in amount of your tax REFUND for this program). (b) The tax administrator shall forward all contributions made to the Rhode Island organ transplant fund to the general treasurer who shall deposit them, minus administrative expenses, into the fund.

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History of Section. P.L. 1996, ch. 377, § 2.

44-30-2.6. Rhode Island taxable income — Rate of tax.

  1. “Rhode Island taxable income” means federal taxable income as determined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and as modified by the modifications in § 44-30-12 .
  2. Notwithstanding the provisions of §§ 44-30-1 and 44-30-2 , for tax years beginning on or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter of the federal income tax rates, including capital gains rates and any other special rates for other types of income, except as provided in § 44-30-2.7 , which were in effect immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or her personal income tax liability.
  3. For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by multiplying the federal tentative minimum tax without allowing for the increased exemptions under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s Rhode Island alternative minimum tax.
    1. For tax years beginning on or after January 1, 2005, and thereafter, the exemption amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by the tax administrator in the manner prescribed for adjustment by the commissioner of Internal Revenue in 26 U.S.C. § 1(f).
    2. For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode Island taxable income shall be determined by deducting from federal adjusted gross income as defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island itemized-deduction amount and the Rhode Island exemption amount as determined in this section.
      1. Tax imposed.
        1. There is hereby imposed on the taxable income of married individuals filing joint returns and surviving spouses a tax determined in accordance with the following table:
        2. There is hereby imposed on the taxable income of every head of household a tax determined in accordance with the following table:
        3. There is hereby imposed on the taxable income of unmarried individuals (other than surviving spouses and heads of households) a tax determined in accordance with the following table:
        4. There is hereby imposed on the taxable income of married individuals filing separate returns and bankruptcy estates a tax deter- mined in accordance with the following table:
        5. There is hereby imposed a taxable income of an estate or trust a tax determined in accordance with the following table:
        6. Adjustments for inflation.
          1. Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;
          2. The cost-of-living adjustment determined under section (J) with a base year of 1993;
          3. The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall be determined under section (J) by substituting “1994” for “1993.”
      2. Maximum capital gains rates.
        1. In general.
          1. 2.5% of the net capital gain as reported for federal income tax purposes under section 26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b).
          2. 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(c).
          3. 6.25% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(d).
          4. 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(e).
        2. For tax years beginning on or after January 1, 2010, the tax imposed on net capital gain shall be determined under subdivision 44-30-2.6(c)(2)(A) .
      3. Itemized deductions.
        1. In general.
        2. Individuals who do not itemize their deductions.
        3. Basic standard deduction.
        4. Additional standard deduction for the aged and blind.
        5. Limitation on basic standard deduction in the case of certain dependents.
          1. $850;
          2. The sum of $300 and such individual’s earned income;
        6. Certain individuals not eligible for standard deduction.
          1. A married individual filing a separate return where either spouse itemizes deductions;
          2. Nonresident alien individual;
          3. An estate or trust;
        7. Adjustments for inflation.
          1. Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied by
          2. The cost-of-living adjustment determined under section (J) with a base year of 1988.
      4. Overall limitation on itemized deductions.
        1. General rule.
          1. Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 over the applicable amount; or
          2. Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for such taxable year.
        2. Applicable amount.
          1. In general.
          2. Adjustments for inflation.
            1. Such dollar amount contained in paragraph (a) in the year 1991, multiplied by
            2. The cost-of-living adjustment determined under section (J) with a base year of 1991.
        3. Phase-out of Limitation.
          1. In general.
          2. Applicable fraction.
      5. Exemption amount.
        1. In general.
        2. Exemption amount disallowed in case of certain dependents.
        3. Adjustments for inflation.
          1. Such dollar amount contained in paragraph (1) in the year 1989, multiplied by
          2. The cost-of-living adjustment determined under section (J) with a base year of 1989.
        4. Limitation.
          1. In general.
          2. Applicable percentage.
          3. Threshold Amount.
          4. Adjustments for inflation.
            1. Such dollar amount contained in paragraph (b) in the year 1991, multiplied by
            2. The cost-of-living adjustment determined under section (J) with a base year of 1991.
        5. Phase-out of limitation.
          1. In general.
          2. Applicable fraction.
      6. Alternative minimum tax.
        1. General rule. There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of:
          1. The tentative minimum tax for the taxable year, over
          2. The regular tax for the taxable year.
        2. The tentative minimum tax for the taxable year is the sum of:
          1. 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus
          2. 7.0 percent of so much of the taxable excess above $175,000.
        3. The amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year.
        4. Taxable excess. For the purposes of this subsection the term “taxable excess” means so much of the federal alternative minimum taxable income as modified by the modifications in § 44-30-12 as exceeds the exemption amount.
        5. In the case of a married individual filing a separate return, subparagraph (2) shall be applied by substituting “$87,500” for $175,000 each place it appears.
        6. Exemption amount.
        7. Treatment of unearned income of minor children
          1. In general.
            1. Such child's earned income, plus
            2. $6,000.
        8. Adjustments for inflation.
          1. Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by
          2. The cost-of-living adjustment determined under section (J) with a base year of 2004.
        9. Phase-out.
          1. In general.
          2. Threshold amount.
          3. Adjustments for inflation
            1. Such dollar amount contained in paragraph (9) in the year 2004, multiplied by
            2. The cost-of-living adjustment determined under section (J) with a base year of 2004.
      7. Other Rhode Island taxes.
        1. General rule. There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to twenty-five percent (25%) of:
          1. The Federal income tax on lump-sum distributions.
          2. The Federal income tax on parents' election to report child's interest and dividends.
          3. The recapture of Federal tax credits that were previously claimed on Rhode Island return.
      8. Tax for children under 18 with investment income.
        1. General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of:
          1. The Federal tax for children under the age of 18 with investment income.
      9. Averaging of farm income.
        1. General rule. At the election of an individual engaged in a farming business or fishing business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:
          1. The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 1301].
      10. Cost-of-living adjustment.
        1. In general.
          1. The CPI for the preceding calendar year exceeds
          2. The CPI for the base year.
        2. CPI for any calendar year.
        3. Consumer price index.
        4. Rounding.
          1. In general.
          2. In the case of a married individual filing a separate return, subparagraph (a) shall be applied by substituting “$25” for $50 each place it appears.
      11. Credits against tax.  For tax years beginning on or after January 1, 2001, a taxpayer entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to a credit against the Rhode Island tax imposed under this section:
        1. [Deleted by P.L. 2007, ch. 73, art. 7, § 5.]
        2. Child and dependent care credit;
        3. General business credits;
        4. Credit for elderly or the disabled;
        5. Credit for prior year minimum tax;
        6. Mortgage interest credit;
        7. Empowerment zone employment credit;
        8. Qualified electric vehicle credit.
      12. Credit against tax for adoption.  For tax years beginning on or after January 1, 2006, a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island tax imposed under this section if the adopted child was under the care, custody, or supervision of the Rhode Island department of children, youth and families prior to the adoption.
      13. The credit shall be twenty-five percent (25%) of the aforementioned federal credits provided there shall be no deduction based on any federal credits enacted after January 1, 1996, including the rate reduction credit provided by the federal Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax purposes shall determine the Rhode Island amount to be recaptured in the same manner as prescribed in this subsection.
      14. Rhode Island earned-income credit.
        1. In general.
        2. Refundable portion.
          1. For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-income credit exceeds the Rhode Island income tax.
          2. For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) refundable earned-income credit means one hundred percent (100%) of the amount by which the Rhode Island earned-income credit exceeds the Rhode Island income tax.
        3. For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode Island taxable income” means federal adjusted gross income as determined under the Internal Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 44-30-2.6(c)(3)(C).
      15. The tax administrator shall recalculate and submit necessary revisions to paragraphs (A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years thereafter for inclusion in the statute.
        1. Tax imposed.
          1. There is hereby imposed on the taxable income of married individuals filing joint returns, qualifying widow(er), every head of household, unmarried individuals, married individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the following table:
          2. There is hereby imposed on the taxable income of an estate or trust a tax determined in accordance with the following table:
        2. Deductions:
          1. Rhode Island Basic Standard Deduction.
          2. Nonresident alien individuals, estates and trusts are not eligible for standard deductions.
          3. In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. The term “applicable percentage” means twenty (20) percentage points for each five thousand dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).
        3. Exemption Amount:
          1. The term “exemption amount” means three thousand five hundred dollars ($3,500) multiplied by the number of exemptions allowed for the taxable year for federal income tax purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and Jobs Act (Pub. L. No. 115-97) on December 22, 2017.
          2. Exemption amount disallowed in case of certain dependents. In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for the same taxable year, the exemption amount applicable to such individual for such individual’s taxable year shall be zero.
          3. Identifying information required.
        4. In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term “applicable percentage” means twenty (20) percentage points for each five thousand dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).
        5. Adjustment for inflation.  The dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount equal to:
          1. Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by;
          2. The cost-of-living adjustment with a base year of 2000.
          3. For the purposes of this section, the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on August 31, of such calendar year.
          4. For the purpose of this section the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section the revision of the consumer price index that is most consistent with the consumer price index for calendar year 1986 shall be used.
          5. If any increase determined under this section is not a multiple of fifty dollars ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a married individual filing separate return, if any increase determined under this section is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple of twenty-five dollars ($25.00).
        6. Credits against tax.
          1. Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be as follows:
            1. Rhode Island earned-income credit: Credit shall be allowed for earned-income credit pursuant to subparagraph 44-30-2.6(c)(2)(N) .
            2. Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided in § 44-33-1 et seq.
            3. Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax credit as provided in § 44-30.3-1 et seq.
            4. Credit for income taxes of other states. Credit shall be allowed for income tax paid to other states pursuant to § 44-30-74 .
            5. Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit as provided in § 44-33.2-1 et seq.
            6. Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture production tax credit as provided in § 44-31.2-1 et seq.
            7. Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of the federal child and dependent care credit allowable for the taxable year for federal purposes; provided, however, such credit shall not exceed the Rhode Island tax liability.
            8. Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for contributions to scholarship organizations as provided in chapter 62 of title 44.
  4. (i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable as if no withholding were required, but any amount of Rhode Island personal income tax actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax administrator on behalf of the person from whom withheld, and the person shall be credited with having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable year of less than twelve (12) months, the credit shall be made under regulations of the tax administrator.
  5. Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in RI wavemaker fellowship program as provided in § 42-64.26-1 et seq.
  6. Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in § 42-64.20-1 et seq.
  7. Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq.
  8. Historic homeownership assistance act: Effective for tax year 2017 and thereafter, unused carryforward for such credit previously issued shall be allowed for the historic homeownership assistance act as provided in § 44-33.1-4 . This allowance is for credits already issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits under the historic homeownership assistance act.

If taxable income is: The tax is: Not over $53,150 3.75% of taxable income Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700

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If taxable income is: The tax is: Not over $42,650 3.75% of taxable income Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700

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If taxable income is: The tax is: Not over $31,850 3.75% of taxable income Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700

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If taxable income is: The tax is: Not over $26,575 3.75% of taxable income Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850

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If taxable income is: The tax is: Not over $2,150 3.75% of taxable income Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 Over $10,450 $737.50 plus 9.90% of the excess over $10,450

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The dollars amount contained in paragraph (A) shall be increased by an amount equal to:

If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax imposed by this section for such taxable year shall not exceed the sum of:

For the purposes of section (2), “itemized deductions” means the amount of federal itemized deductions as modified by the modifications in § 44-30-12 .

In the case of an individual who does not elect to itemize his deductions for the taxable year, they may elect to take a standard deduction.

The Rhode Island standard deduction shall be allowed in accordance with the following table:

Filing status Amount Single $5,350 Married filing jointly or qualifying widow(er) $8,900 Married filing separately $4,450 Head of Household $7,850

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An additional standard deduction shall be allowed for individuals age sixty-five (65) or older or blind in the amount of $1,300 for individuals who are not married and $1,050 for individuals who are married.

In the case of an individual to whom a deduction under section (E) is allowable to another taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of:

In the case of:

The standard deduction shall be zero.

Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount equal to:

In the case of an individual whose adjusted gross income as modified by § 44-30-12 exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of:

For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the case of a separate return by a married individual)

Each dollar amount contained in paragraph (a) shall be increased by an amount equal to:

In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which would be the amount of such reduction.

For purposes of paragraph (a), the applicable fraction shall be determined in accordance with the following table:

For Taxable years beginning in calendar year The applicable fraction is 2006 and 2007 2/3 2008 and 2009 1/3

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Except as otherwise provided in this subsection, the term “exemption amount” means $3,400.

In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for the same taxable year, the exemption amount applicable to such individual for such individual's taxable year shall be zero.

The dollar amount contained in paragraph (1) shall be increased by an amount equal to:

In the case of any taxpayer whose adjusted gross income as modified for the taxable year exceeds the threshold amount shall be reduced by the applicable percentage.

In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the threshold amount, the exemption amount shall be reduced by two (2) percentage points for each $2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting ‘‘$1,250’’ for ‘‘$2,500.’’ In no event shall the applicable percentage exceed one hundred percent (100%).

For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with the following table:

Filing status Amount Single $156,400 Married filing jointly or qualifying widow(er) $234,600 Married filing separately $117,300 Head of Household $195,500

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Each dollar amount contained in paragraph (b) shall be increased by an amount equal to:

In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which would be the amount of such reduction.

For the purposes of paragraph (a), the applicable fraction shall be determined in accordance with the following table:

For Taxable years beginning The applicable fraction is in calendar year 2006 and 2007 2/3 2008 and 2009 1/3

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For purposes of this section “exemption amount” means:

Filing status Amount Single $39,150 Married filing jointly or qualifying widow(er) $53,700 Married filing separately $26,850 Head of Household $39,150 Estate or trust $24,650

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In the case of a minor child, the exemption amount for purposes of section (6) shall not exceed the sum of:

The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount equal to:

The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income of the taxpayer exceeds the threshold amount.

For purposes of this paragraph, the term “threshold amount” shall be determined with the following table:

Filing status Amount Single $123,250 Married filing jointly or qualifying widow(er) $164,350 Married filing separately $82,175 Head of Household $123,250 Estate or trust $82,150

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Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:

The cost-of-living adjustment for any calendar year is the percentage (if any) by which:

For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer price index as of the close of the twelve (12) month period ending on August 31 of such calendar year.

For purposes of paragraph (2), the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For purposes of the preceding sentence, the revision of the consumer price index that is most consistent with the consumer price index for calendar year 1986 shall be used.

If any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.

For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent (25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax.

For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax.

For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax.

For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island income tax.

In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall be allowed as follows.

RI Taxable Income RI Income Tax Over But not over Pay + % on Excess on the amount over $0 - $55,000 $0 + 3.75% $0 55,000 - 125,000 2,063 + 4.75% 55,000 125,000 - 5,388 + 5.99% 125,000

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RI Taxable Income RI Income Tax Over But not over Pay + % on Excess on the amount over $0 - $2,230 $0 + 3.75% $0 2,230 - 7,022 84 + 4.75% 2,230 7,022 - 312 + 5.99% 7,022

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Only the Rhode Island standard deduction shall be allowed in accordance with the following table:

Filing status Amount Single $7,500 Married filing jointly or qualifying widow(er) $15,000 Married filing separately $7,500 Head of Household $11,250

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(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be allowed under this section with respect to any individual unless the Taxpayer Identification Number of such individual is included on the federal return claiming the exemption for the same tax filing period.

(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event that the Taxpayer Identification Number for each individual is not required to be included on the federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer Identification Number must be provided on the Rhode Island tax return for the purpose of claiming said exemption(s).

(2) Except as provided in section 1 above, no other state and federal tax credit shall be available to the taxpayers in computing tax liability under this chapter.

History of Section. P.L. 2001, ch. 77, art. 7, § 1; P.L. 2003, ch. 376, art. 7, § 2; P.L. 2005, ch. 117, art. 16, § 4; P.L. 2005, ch. 340, § 1; P.L. 2005, ch. 401, § 1; P.L. 2006, ch. 246, art. 30, § 7; P.L. 2007, ch. 73, art. 7, § 5; P.L. 2008, ch. 100, art. 32, § 3; P.L. 2009, ch. 68, art. 16, § 15; P.L. 2010, ch. 19, § 1; P.L. 2010, ch. 20, § 1; P.L. 2014, ch. 145, art. 12, § 7; P.L. 2015, ch. 141, art. 11, § 12; P.L. 2016, ch. 142, art. 13, § 15; P.L. 2017, ch. 302, art. 8, § 19; P.L. 2017, ch. 451, § 21; P.L. 2018, ch. 47, art. 4, § 13.

Compiler’s Notes.

P.L. 2010, ch. 19, § 1, and P.L. 2010, ch. 20, § 1, enacted identical amendments to this section.

This section was amended by two acts ( P.L. 2017, ch. 302, art. 8, § 19; P.L. 2017, ch. 451, § 21) as passed by the 2017 General Assembly. Since the acts are not in conflict with each other, the section is set out as amended by both acts.

Effective Dates.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect on January 1, 2017.

P.L. 2010, ch. 19, § 4, provides that the amendment to this section by that act takes effect on January 1, 2011.

P.L. 2010, ch. 20, § 4, provides that the amendment to this section by that act takes effect on January 1, 2011.

Applicability.

P.L. 2003, ch. 376, art. 7, § 15, provides that the amendment to this section by that act takes effect upon passage [July 15, 2003] and shall apply to the tax year beginning on or after January 1, 2003.

P.L. 2009, ch. 68, art. 16, § 17 provides that the amendment to this section by that act takes effect upon passage [July 1, 2009], applies to tax years beginning on or after January 1, 2010.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act takes effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2015.

Severability.

P.L. 2018, ch. 47, art. 4, § 16 provides: “If any provisions of the article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect any other provisions or applications of this article, which can be given effect without the invalid provision or application, and to this end the provisions of this article are declared to be severable.”

Federal Act References.

The Economic Growth and Tax Relief Reconciliation Act of 2001, referred to in this section, is Public Law 107-16, and is codified throughout Title 26 of the United States Code.

44-30-2.7. Capital gains rates for assets held more than five (5) years.

  1. All capital assets purchased prior to January 1, 2002 and sold on or after January 1, 2007, shall be deemed to have a holding period beginning January 1, 2002. For tax years beginning in 2007 and ending prior to January 1, 2010, the capital gains rate for assets held more than five (5) years shall be as follows:
    1. 0.83% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b).
    2. 1.67% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(c).
    3. 2.08% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(d).
    4. 2.33% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. § 1(h)(1)(e).

History of Section. P.L. 2001, ch. 77, art. 7, § 1; P.L. 2001, ch. 123, § 1; P.L. 2007, ch. 73, art. 7, § 5; P.L. 2009, ch. 68, art. 16, § 16.

Applicability.

P.L. 2009, ch. 68, art. 16, § 17 provides that the amendment to this section by that act takes effect upon passage [July 1, 2009], applies to tax years beginning on or after January 1, 2010.

Federal Act References.

The Economic Growth and Tax Relief Reconciliation Act of 2001, referred to in this section, is Public Law 107-16, and is codified throughout Title 26 of the United States Code.

44-30-2.8. Net operating loss deduction.

For purposes of net operating losses under this chapter, the five (5) year carryback provision provided by the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147)(see 26 U.S.C. § 172) for federal tax purposes shall not be allowed for Rhode Island tax purposes.

History of Section. P.L. 2002, ch. 65, art. 16, § 4.

Compiler’s Notes.

P.L. 2002, ch. 65, art. 16, § 5 provides: “In the event that the United States Congress passes legislation that provides this state with full federal reimbursement for the tax losses incurred by the provisions of the Job Creation and Worker Assistance Act of 2002 (P.L. 107-147), relating to bonus depreciation and/or five (5) year carryback of net operating losses, then the respective chapter and/or section of this article to which the reimbursement applied shall be repealed in its entirety.”

Federal Act References.

The bracketed reference to the United States Code was inserted by the compiler. The Job Creation and Worker Assistance Act of 2002 affected various sections of Title 26 of the United States Code.

44-30-2.9. Refund deduction for contribution to the Rhode Island Military Family Relief Fund.

  1. There shall be provided as a tax deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year a contribution to the Rhode Island Military Family Relief Fund. The provision for the contribution shall appear on the state personal income tax return as follows: Rhode Island Military Family Relief Fund. Check as you wish to contribute [ ] $1, [ ] $5, [ ] $10, or [ ] $ (write in amount of your tax refund for this program). (b) The tax administrator shall forward all contributions made to the Rhode Island Military Family Relief Fund to the general treasurer who shall deposit them into the Rhode Island Military Family Relief Fund created under . § 30-3-41

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History of Section. P.L. 2004, ch. 261, § 2; P.L. 2004, ch. 347, § 2.

44-30-2.10. Alternative flat tax rate.

  1. For tax years beginning on or after January 1, 2006 and ending prior to January 1, 2011, a taxpayer may elect to compute his or her Rhode Island personal income tax liability as provided in this section. If no election is made, the taxpayer’s personal income tax liability shall be computed as otherwise provided in this chapter.
  2. For purposes of this section, “alternative Rhode Island taxable income” shall mean federal adjusted gross income as determined for federal income tax purposes as modified by §§ 44-30-12 and 44-30-32 for residents and nonresidents, respectively. No other state or federal deductions or adjustments to income shall be available to the taxpayer.
  3. For purposes of this section, the “alternative tax rate” shall be eight percent (8.0%) for the tax year 2006; seven and one-half percent (7.5%) for tax year 2007; seven percent (7%) for tax year 2008; six and one-half percent (6.5%) for tax year 2009; and six percent (6%) for tax year 2010;
  4. The alternative personal income tax shall be determined by multiplying the taxpayer’s alternative Rhode Island taxable income by the alternative tax rate, less the following credits:
    1. Credit for income taxes paid to other states as provided for in § 44-30-18 ;
    2. Credit for Rhode Island personal income tax withheld as provided in § 44-30-74 ;
    3. Credit for Rhode Island payments of estimated tax as provided in § 44-30-56(e) and RI Reg. Sec. PIT 90-17;
    4. Credit for Rhode Island overpayment of taxes as provided in § 44-30-86(a) ; and
    5. Credit for Rhode Island amount remitted by a limited liability company on behalf of a nonresident member as provided in § 7-16-73(4).
  5. The provisions of this section may apply regardless of the taxpayer’s filing status.

No other state or federal tax credits shall be available to the taxpayer in computing the alternative personal income tax liability.

History of Section. P.L. 2006, ch. 246, art. 30, § 8; P.L. 2010, ch. 19, § 2; P.L. 2010, ch. 20, § 2.

Compiler’s Notes.

P.L. 2010, ch. 19, § 2, and P.L. 2010, ch. 20, § 2, enacted identical amendments to this section.

Effective Dates.

P.L. 2010, ch. 19, § 4, provides that the amendment to this section by that act takes effect on January 1, 2011.

P.L. 2010, ch. 20, § 4, provides that the amendment to this section by that act takes effect on January 1, 2011.

44-30-2.11. Refund deduction for contribution to the substance use and mental health leadership council of RI.

  1. There shall be provided as a deduction from any refund from the Rhode Island personal income tax otherwise due to a taxpayer for a taxable year a contribution to the substance use and mental health leadership council of RI. The provision for the contribution shall appear on the state personal income tax return as follows:
  2. The tax administrator shall annually forward by August 1, all contributions made to the substance use and mental health leadership council of RI to the general treasurer to be deposited in the fund created in § 23-14-3 . The general treasurer shall annually distribute the proceeds of the fund as prescribed in chapter 14 of title 23.
  3. The provisions of this section shall commence for returns filed for the tax year ending December 31, 2018.

Substance use and mental health leadership council of RI. Check if you wish to contribute $1.00 $5.00 $10.00 $ (write in amount of your tax REFUND for this program.)

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History of Section. P.L. 2018, ch. 120, § 1; P.L. 2018, ch. 223, § 1.

Compiler’s Notes.

P.L. 2018, ch. 120, § 1, and P.L. 2018, ch. 223, § 1 enacted identical versions of this section.

44-30-3. Optional tax tables for resident individuals.

  1. General.  The tax administrator may promulgate uniform tax tables for resident individual taxpayers for any taxable year. An individual may elect to use or not to use any tax table for which he or she is eligible.
  2. Preparation of tax tables.  Tax tables promulgated pursuant to this section shall be based either upon: (i) the individual’s Rhode Island taxable income, or (ii) the individual’s federal income tax liability. In either case the tax administrator shall prescribe by regulation the conditions of eligibility for the use of a tax table. In no case shall the amount of tax calculated by use of a tax table be more than five dollars ($5.00) lower than the amount otherwise due under § 44-30-2 .

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2001, ch. 77, art. 7, § 2.

NOTES TO DECISIONS

Purpose of Tables.

The main purpose of the tax tables is to allow the taking of Rhode Island deductions. Rhode Island Federation of Teachers v. Norberg, 630 F.2d 855, 1980 U.S. App. LEXIS 13967 (1st Cir. 1980).

44-30-4. Accounting periods and methods.

  1. Accounting periods.  A taxpayer’s taxable year for the Rhode Island personal income tax shall be the same as his or her taxable year for federal income tax purposes.
  2. Change of accounting periods.  If a taxpayer’s taxable year is changed for federal income tax purposes, his or her taxable year for Rhode Island personal income tax purposes shall be similarly changed.
  3. Accounting methods.  A taxpayer’s method of accounting for Rhode Island personal income tax purposes shall be the same as his or her method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, Rhode Island taxable income shall be computed under any method that the tax administrator shall determine clearly reflects income.
  4. Change of accounting methods.
    1. If a taxpayer’s method of accounting is changed for federal income tax purposes, his or her method of accounting for Rhode Island personal income tax purposes shall be similarly changed.
    2. If a taxpayer’s method of accounting is changed from an accrual to an installment method, any additional tax for the year of the change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of the installment payments, in accordance with regulations of the tax administrator.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-5. “Resident” and “nonresident” defined.

  1. Resident individual.  A resident individual means an individual:
    1. Who is domiciled in this state. In determining the domicile of an individual, the geographic location of professional advisors selected by an individual, including without limitation advisors who render medical, financial, legal, insurance, fiduciary or investment services, as well as charitable contributions to Rhode Island organizations, shall not be taken into consideration.
    2. Who is not domiciled in this state but maintains a permanent place of abode in this state and is in this state for an aggregate of more than one hundred eighty-three (183) days of the taxable year, unless the individual is in the armed forces of the United States.
  2. Nonresident individual.  A nonresident individual means an individual who is not a resident.
  3. Resident estate or trust.  A resident estate or trust means:
    1. The estate of a decedent who at his or her death was a resident individual in this state.
    2. A revocable trust which becomes irrevocable upon the occurrence of any event (including death) which terminates a person’s power to revoke, but only after the event, and only if the person having the power to revoke was a Rhode Island resident individual at the time of the event.
    3. A trust created by will of a decedent who at his or her death was a resident individual in this state.
    4. An irrevocable trust created by or consisting of property contributed by a person who is a resident individual in this state at the time the trust was created or the property contributed (A) while the person is alive and a resident individual in this state, and (B) after the person’s death if the person died a resident individual of this state.
    5. In subdivisions (2), (3), and (4) of this subsection the trust shall be a resident trust only to the extent that the beneficiaries are Rhode Island resident individuals, subject to such regulations as may be promulgated by the tax administrator.
  4. Nonresident estate or trust. A nonresident estate or trust means an estate or trust that is not resident.
  5. Cross references.  For effect of change of an individual’s resident status, see § 44-30-54 .

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1978, ch. 164, § 1; P.L. 1998, ch. 267, § 1; P.L. 2007, ch. 7, § 1; P.L. 2007, ch. 8, § 1.

NOTES TO DECISIONS

Permanent Abode.

The establishment of a permanent place of abode requires the maintenance of a fixed place of abode over a sufficient period of time to create a well-settled physical connection with a given locality. Flather v. Norberg, 119 R.I. 276 , 377 A.2d 225, 1977 R.I. LEXIS 1907 (1977).

Abode is generally understood to mean a person’s place of dwelling, i.e., where he actually lives regardless of the length of time he has spent there. Flather v. Norberg, 119 R.I. 276 , 377 A.2d 225, 1977 R.I. LEXIS 1907 (1977).

Significant factors to be considered in determining whether an individual has a permanent place of abode are: (1) the amount of time he spends in the locality, (2) the nature of his place of abode, (3) his activities in the locality, and (4) his intentions with regard to the length and nature of his stay. Flather v. Norberg, 119 R.I. 276 , 377 A.2d 225, 1977 R.I. LEXIS 1907 (1977).

— Out of State.

An officer who lived for six months of the year in question in a leased apartment in Virginia, owned real property and purchased and registered a car in Virginia and only had minimal contacts with Rhode Island, maintained a permanent abode elsewhere under the exception to subsection (a)(1), even though he was always, at least potentially, subject to military orders for transfer. Flather v. Norberg, 119 R.I. 276 , 377 A.2d 225, 1977 R.I. LEXIS 1907 (1977).

44-30-6. Meaning of terms.

Any term used in the Rhode Island personal income tax law shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required. Any reference to the laws of the United States means the provisions of the Internal Revenue Code of 1954, and amendments thereto thereto, and other provisions of the laws of the United States relating to federal income taxes for the same taxable year, except that if this reference should ever be declared unconstitutional then to the provisions that existed on January 1, 1972.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1972, ch. 155, art. 1, § 1.

44-30-7. Amortization of air or water pollution control facilities.

  1. General rule.
    1. Every taxpayer, at his or her election, shall be entitled to a deduction with respect to the amortization of the adjusted basis, for determining gain, of any “treatment facility”, as defined in subsection (d) of this section, based on a period of sixty (60) months. This amortization deduction shall be an amount, with respect to each month of that period within the taxable year, equal to the adjusted basis of the facility at the end of each month divided by the number of months, including the month for which the deduction is computed, remaining in the period. The adjusted basis at the end of the month shall be computed without regard to the amortization deduction for that month.
    2. The amortization deduction provided in this section with respect to any month shall be in lieu of the depreciation deduction with respect to the facility for that month provided for under § 44-11-11 . The sixty (60) month period shall begin as to any treatment facility, at the election of the taxpayer, with the month following the month in which the facility was completed, or with the succeeding taxable year.
  2. Election of amortization.  The election of the taxpayer under subsection (a) of this section to take the amortization deduction and to begin the sixty (60) month period with the month following the month in which the facility was completed shall be made only by a statement to that effect in the return for the taxable year in which the facility was completed. The election of the taxpayer under subsection (a) of this section to take the amortization deduction and to begin that period with the taxable year succeeding that year shall be made only by a statement to that effect in the return for the succeeding taxable year.
  3. Termination of amortization deduction.  A taxpayer that has elected under subsection (b) of this section to take the amortization deduction provided in subsection (a) of this section may, at any time after making that election, discontinue the amortization deduction with respect to the remainder of the amortization period, the discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice, in writing, filed with the tax administrator before the beginning of that month. The depreciation deduction provided for under § 44-11-11 shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the taxpayer shall not be entitled to any further amortization deduction with respect to the treatment facility.
  4. Treatment facility.  For the purposes of this section, “treatment facility” means any land, facility, device, building, machinery, or equipment, the construction, reconstruction, erection, installation, or acquisition of which: (i) is in furtherance of, or in compliance with, federal or state requirements or standards for the control of water or air pollution or contamination, (ii) has been made by the taxpayer primarily to control the pollution or contamination of the water or the air of the state as defined in chapter 12 of title 46 and chapter 25 of title 23, respectively, and (iii) has been certified as approved in an order entered by the director of the department of health. This provision shall apply only to any water and air pollution control properties and facilities that are installed for the treatment of waste waters and air contaminants resulting from industrial processing and it shall apply only to water or air pollution control properties and facilities placed in operation for the first time after April 13, 1970.
  5. Certificate of compliance.  Any taxpayer who has adopted a “treatment facility” as defined in subsection (d) of this section shall be entitled to the deduction afforded in subsection (a) of this section; provided, that in no event shall an amortization deduction be allowed in respect to any “treatment facility” for any taxable year unless an attested copy of the order of approval of the facility entered by the director of the department of health, and a written statement of the department of health certifying that the installation of the facility has been completed and that it is in proper operation, are provided to the tax administrator at the time of filing of the taxpayer’s return.

History of Section. P.L. 1974, ch. 84, § 1.

Part II Residents

44-30-11. Resident husband and wife.

  1. If the federal adjusted gross income of husband or wife is determined on a separate federal return, their Rhode Island incomes shall be separately determined.
  2. If the federal adjusted gross income of husband and wife, both of whom are residents, is determined on a joint federal return, their tax shall be determined on their joint Rhode Island income.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

Collateral References.

Domicil for state tax purposes of wife living apart from husband. 82 A.L.R.3d 1274.

44-30-12. Rhode Island income of a resident individual.

  1. General.  The Rhode Island income of a resident individual means his or her adjusted gross income for federal income tax purposes, with the modifications specified in this section.
  2. Modifications increasing federal adjusted gross income.  There shall be added to federal adjusted gross income:
    1. Interest income on obligations of any state, or its political subdivisions, other than Rhode Island or its political subdivisions;
    2. Interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the extent exempted by the laws of the United States from federal income tax but not from state income taxes;
    3. The modification described in § 44-30-25(g) ;
      1. The amount defined below of a nonqualified withdrawal made from an account in the tuition savings program pursuant to § 16-57-6.1 . For purposes of this section, a nonqualified withdrawal is:
        1. A transfer or rollover to a qualified tuition program under Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-6.1 ; and
        2. A withdrawal or distribution that is:
          1. Not applied on a timely basis to pay “qualified higher education expenses” as defined in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;
          2. Not made for a reason referred to in § 16-57-6.1(e) ; or
          3. Not made in other circumstances for which an exclusion from tax made applicable by Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover, withdrawal, or distribution is made within two (2) taxable years following the taxable year for which a contributions modification pursuant to subsection (c)(4) of this section is taken based on contributions to any tuition savings program account by the person who is the participant of the account at the time of the contribution, whether or not the person is the participant of the account at the time of the transfer, rollover, withdrawal or distribution;
      2. In the event of a nonqualified withdrawal under subsection (b)(4)(i)(A) or (b)(4)(i)(B) of this section, there shall be added to the federal adjusted gross income of that person for the taxable year of the withdrawal an amount equal to the lesser of:
        1. The amount equal to the nonqualified withdrawal reduced by the sum of any administrative fee or penalty imposed under the tuition savings program in connection with the nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the person’s federal adjusted gross income for the taxable year; and
        2. The amount of the person’s contribution modification pursuant to subsection (c)(4) of this section for the person’s taxable year of the withdrawal and the two (2) prior taxable years less the amount of any nonqualified withdrawal for the two (2) prior taxable years included in computing the person’s Rhode Island income by application of this subsection for those years. Any amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode Island income for residents, nonresidents and part-year residents;
    4. The modification described in § 44-30-25.1(d)(3)(i) ;
    5. The amount equal to any unemployment compensation received but not included in federal adjusted gross income;
    6. The amount equal to the deduction allowed for sales tax paid for a purchase of a qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6); and
    7. For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount of the loan forgiven exceeds $250,000, including an individual’s distributive share of the amount of a pass-through entity’s loan forgiveness in excess of $250,000.
  3. Modifications reducing federal adjusted gross income.  There shall be subtracted from federal adjusted gross income:
    1. Any interest income on obligations of the United States and its possessions to the extent includible in gross income for federal income tax purposes, and any interest or dividend income on obligations, or securities of any authority, commission, or instrumentality of the United States to the extent includible in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States; provided, that the amount to be subtracted shall in any case be reduced by any interest on indebtedness incurred or continued to purchase or carry obligations or securities the income of which is exempt from Rhode Island personal income tax, to the extent the interest has been deducted in determining federal adjusted gross income or taxable income;
    2. A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1) ;
    3. The amount of any withdrawal or distribution from the “tuition savings program” referred to in § 16-57-6.1 that is included in federal adjusted gross income, other than a withdrawal or distribution or portion of a withdrawal or distribution that is a nonqualified withdrawal;
    4. Contributions made to an account under the tuition savings program, including the “contributions carryover” pursuant to subsection (c)(4)(iv) of this section, if any, subject to the following limitations, restrictions and qualifications:
      1. The aggregate subtraction pursuant to this subdivision for any taxable year of the taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint return;
      2. The following shall not be considered contributions:
        1. Contributions made by any person to an account who is not a participant of the account at the time the contribution is made;
        2. Transfers or rollovers to an account from any other tuition savings program account or from any other “qualified tuition program” under section 529 of the Internal Revenue Code, 26 U.S.C. § 529; or
        3. A change of the beneficiary of the account;
      3. The subtraction pursuant to this subdivision shall not reduce the taxpayer’s federal adjusted gross income to less than zero (0);
      4. The contributions carryover to a taxable year for purpose of this subdivision is the excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition savings program for all preceding taxable years for which this subsection is effective over the sum of:
        1. The total of the subtractions under this subdivision allowable to the taxpayer for all such preceding taxable years; and
        2. That part of any remaining contribution carryover at the end of the taxable year which exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable years not included in the addition provided for in this subdivision for those years. Any such part shall be disregarded in computing the contributions carryover for any subsequent taxable year;
      5. For any taxable year for which a contributions carryover is applicable, the taxpayer shall include a computation of the carryover with the taxpayer’s Rhode Island personal income tax return for that year, and if for any taxable year on which the carryover is based the taxpayer filed a joint Rhode Island personal income tax return but filed a return on a basis other than jointly for a subsequent taxable year, the computation shall reflect how the carryover is being allocated between the prior joint filers;
    5. The modification described in § 44-30-25.1(d)(1) ;
    6. Amounts deemed taxable income to the taxpayer due to payment or provision of insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36 or other coverage plan;
    7. Modification for organ transplantation.
      1. Travel expenses.
      2. Lodging expenses.
      3. Lost wages.
    8. Modification for taxable Social Security income.
      1. For a person who has attained the age used for calculating full or unreduced social security retirement benefits who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for the taxable year is less than eighty thousand dollars ($80,000); or
      2. A married individual filing jointly or individual filing qualifying widow(er) who has attained the age used for calculating full or unreduced social security retirement benefits whose joint federal adjusted gross income for the taxable year is less than one hundred thousand dollars ($100,000), an amount equal to the social security benefits includible in federal adjusted gross income.
    9. Modification for up to fifteen thousand dollars ($15,000) of taxable retirement income from certain pension plans or annuities.
      1. For a person who has attained the age used for calculating full or unreduced social security retirement benefits who files a return as an unmarried individual, head of household, or married filing separate whose federal adjusted gross income for such taxable year is less than the amount used for the modification contained in subsection (c)(8)(i)(A) of this section an amount not to exceed $15,000 of taxable pension and/or annuity income includible in federal adjusted gross income; or
      2. For a married individual filing jointly or individual filing qualifying widow(er) who has attained the age used for calculating full or unreduced social security retirement benefits whose joint federal adjusted gross income for such taxable year is less than the amount used for the modification contained in subsection (c)(8)(i)(B) of this section an amount not to exceed $15,000 of taxable pension and/or annuity income includible in federal adjusted gross income.
    10. Modification for Rhode Island investment in opportunity zones.  For purposes of a taxpayer’s state tax liability, in the case of any investment in a Rhode Island opportunity zone by the taxpayer for at least seven (7) years, a modification to income shall be allowed for the incremental difference between the benefit allowed under 26 U.S.C. § 1400Z-2(b)(2)(B)(iv) and the federal benefit allowed under 26 U.S.C. § 1400Z-2(c).
  4. Modification for Rhode Island fiduciary adjustment.  There shall be added to, or subtracted from, federal adjusted gross income (as the case may be) the taxpayer’s share, as beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-30-17 .
  5. Partners.  The amounts of modifications required to be made under this section by a partner, which relate to items of income or deduction of a partnership, shall be determined under § 44-30-15 .

(i) An individual may subtract up to ten thousand dollars ($10,000) from federal adjusted gross income if he or she, while living, donates one or more of his or her human organs to another human being for human organ transplantation, except that for purposes of this subsection, “human organ” means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract modification that is claimed hereunder may be claimed in the taxable year in which the human organ transplantation occurs.

(ii) An individual may claim that subtract modification hereunder only once, and the subtract modification may be claimed for only the following unreimbursed expenses that are incurred by the claimant and related to the claimant’s organ donation:

(iii) The subtract modification hereunder may not be claimed by a part-time resident or a nonresident of this state;

(i) For tax years beginning on or after January 1, 2016:

(ii) Adjustment for inflation. The dollar amount contained in subsections (c)(8)(i)(A) and (c)(8)(i)(B) of this section shall be increased annually by an amount equal to:

(A) Such dollar amount contained in subsections (c)(8)(i)(A) and (c)(8)(i)(B) of this section adjusted for inflation using a base tax year of 2000, multiplied by;

(B) The cost-of-living adjustment with a base year of 2000.

(iii) For the purposes of this section the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on August 31, of such calendar year.

(iv) For the purpose of this section the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section the revision of the consumer price index which is most consistent with the consumer price index for calendar year 1986 shall be used.

(v) If any increase determined under this section is not a multiple of fifty dollars ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a married individual filing separate return, if any increase determined under this section is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple of twenty-five dollars ($25.00);

(i) For tax years beginning on or after January 1, 2017, a modification shall be allowed for up to fifteen thousand dollars ($15,000) of taxable pension and/or annuity income that is included in federal adjusted gross income for the taxable year:

(ii) Adjustment for inflation. The dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B) of this section shall be increased annually for tax years beginning on or after January 1, 2018, by an amount equal to:

(A) Such dollar amount contained by reference in subsections (c)(9)(i)(A) and (c)(9)(i)(B) of this section adjusted for inflation using a base tax year of 2000, multiplied by;

(B) The cost-of-living adjustment with a base year of 2000.

(iii) For the purposes of this section, the cost-of-living adjustment for any calendar year is the percentage (if any) by which the consumer price index for the preceding calendar year exceeds the consumer price index for the base year. The consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve-month (12) period ending on August 31, of such calendar year.

(iv) For the purpose of this section, the term “consumer price index” means the last consumer price index for all urban consumers published by the department of labor. For the purpose of this section, the revision of the consumer price index which is most consistent with the consumer price index for calendar year 1986 shall be used.

(v) If any increase determined under this section is not a multiple of fifty dollars ($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a married individual filing a separate return, if any increase determined under this section is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple of twenty-five dollars ($25.00); and

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1972, ch. 155, art. 1, § 1; P.L. 1979, ch. 297, § 1; P.L. 1988, ch. 427, § 1; P.L. 1996, ch. 431, § 2; P.L. 2001, ch. 364, § 3; P.L. 2002, ch. 65, art. 9, § 1; P.L. 2002, ch. 215, § 3; P.L. 2006, ch. 189, § 3; P.L. 2006, ch. 316, § 3; P.L. 2009, ch. 5, art. 9, § 12; P.L. 2009, ch. 224, § 1; P.L. 2015, ch. 141, art. 11, § 12; P.L. 2016, ch. 142, art. 13, § 16; P.L. 2019, ch. 88, art. 12, § 5; P.L. 2021, ch. 162, art. 6, § 13, effective July 6, 2021.

Compiler's Notes.

Subdivision (a)(6) of 26 U.S.C. § 164, referred to in this section, has been deleted from the federal statute.

Effective Dates.

P.L. 2016, ch. 142, art. 13, § 20, provides that the amendment to this section by that act takes effect on January 1, 2017.

Applicability.

P.L. 2006, ch. 189, § 4, provides that the amendment to this section by that act takes effect upon passage [June 28, 2006] and applies to tax years commencing on or after January 1, 2006.

P.L. 2006, ch. 316, § 4, provides that the amendment to this section by that act takes effect upon passage [July 4, 2006] and applies to tax years commencing on or after January 1, 2006.

NOTES TO DECISIONS

Pension Benefits.

Special act granting beneficiaries of city employee’s retirement system an exemption from state personal income tax controlled over general state taxation statute which did not purport to provide an exemption for state or municipal pensions in its definition of adjusted gross income. Police & Firefighters Retirement Ass'n v. Norberg, 476 A.2d 1034, 1984 R.I. LEXIS 525 (R.I. 1984).

This section specifically repeals the inconsistent portions of all preceding statutory enactments, including §§ 36-10-32 and 45-21-45 , insofar as such statutes would otherwise purport to exempt retirement benefits from the state income tax. Linnane v. Clark, 557 A.2d 480 (R.I. 1989).

Collateral References.

Construction and Application of 26 U.S.C.A. § 105(a) Respecting Determination Whether Taxpayer’s Disability Insurance Payments Constitute Gross Income. 25 A.L.R. Fed. 3d Art. 11 ((2017)).

Decision to take foreign income taxes as federal credit under § 901 of the Internal Revenue Code (26 USC § 901) as precluding their deduction for state income tax purposes. 77 A.L.R.4th 823.

44-30-13, 44-30-14. Repealed.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; Repealed by P.L. 1971, ch. 204, art. 3, § 2.

44-30-15. Resident partners.

  1. Partner’s modifications.  In determining Rhode Island income of a resident partner, any modification described in subsection (b), (c), or (d) of § 44-30-12 , which related to an item of partnership income or deduction shall be made in accordance with the partner’s distributive share, for federal income tax purposes, of the item to which the modification relates. Where a partner’s distributive share of any item is not required to be taken into account separately for federal income tax purposes, the partner’s distributive share of the item shall be determined in accordance with his distributive share for federal income tax purposes of partnership taxable income or loss generally.
  2. Character of items.  Each item of partnership income or deduction shall have the same character for a partner as for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner as if realized directly from the source from which realized by the partnership or incurred in the same manner as incurred by the partnership.
  3. Rhode Island tax avoidance or evasion.  Where a partner’s distributive share of an item of partnership income or deduction is determined for federal income tax purposes by special provision in the partnership agreement with respect to the item, and where the principal purpose of the provision is the avoidance or evasion of the Rhode Island personal income tax, the partner’s distributive share of the item, and any modification required with respect thereto, shall be determined as if the partnership agreement made no special provision with respect to the item.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-16. Rhode Island income of a resident estate or trust.

  1. The Rhode Island income of a resident estate or trust means its federal adjusted gross income as modified by the addition or subtraction (as the case may be) of the share of the estate or trust in the Rhode Island fiduciary adjustment determined under § 44-30-17 .
  2. Amounts allowable under § 44-22-1 as a deduction in computing the taxable estate of a decedent shall not be allowed as a deduction in computing the taxable income of the estate or of any other person, unless there is filed, within the time and in the manner and form prescribed by the tax administrator, a statement that the amounts have not been allowed as deductions under § 44-22-1 , and a waiver of the right to have the amounts allowed at any time as deductions under § 44-22-1.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1972, ch. 155, art. 1, § 1.

Collateral References.

State tax on trust income as affected by foreign elements. 5 A.L.R.3d 606.

44-30-17. Share of a resident estate, trust, or beneficiary in Rhode Island fiduciary adjustment.

  1. General.  An adjustment shall be made in determining Rhode Island income of a resident estate or trust under § 44-30-16 , or Rhode Island income of a resident beneficiary of any estate or trust under § 44-30-12(d) , in the amount of the share of each in the Rhode Island fiduciary adjustment as determined in this section.
  2. Definition.  The Rhode Island fiduciary adjustment shall be the net amount of the modifications described in § 44-30-12 (excluding subdivisions (b)(4), (c)(3) and (c)(4) of that section) and including subsection (d) of that section if the estate or trust is a beneficiary of another estate or trust), which relates to items of income or deduction of an estate or trust.
  3. Shares of Rhode Island fiduciary adjustment.
    1. The respective shares of an estate or trust and its beneficiaries (including, solely for the purpose of this allocation, nonresident beneficiaries) in the Rhode Island fiduciary adjustment shall be in proportion to their respective shares of federal distributable net income of the estate or trust.
    2. If the estate or trust has no federal distributable net income for the taxable years, the share of each beneficiary in the Rhode Island fiduciary adjustment shall be in proportion to his or her share of the estate or trust income for that year, under the law governing the instrument, which is required to be distributed currently and any other amounts of that income distributed in that year. Any balance of the Rhode Island fiduciary adjustment shall be allocated to the estate or trust.
  4. Alternate attribution of modifications.  The tax administrator may by regulation authorize the use of any other methods of determining to whom the items comprising the fiduciary adjustment shall be attributed that may be appropriate and equitable, on any terms and conditions that the tax administrator may require.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2001, ch. 364, § 3; P.L. 2002, ch. 65, art. 9, § 1.

44-30-18. Credit for income taxes of other states.

  1. General.  A resident shall be allowed a credit, against the Rhode Island personal income tax otherwise due for the taxable year, for the aggregate of net income taxes imposed on him or her for the taxable year by other states (including the District of Columbia) of the United States if the taxes are imposed irrespective of the residence or domicile of the taxpayer.
  2. Limitation of credit.  The credit shall not exceed the proportion of the taxpayer’s Rhode Island personal income tax that the taxpayer’s Rhode Island income derived from the other taxing states bears to his or her entire Rhode Island income for the same taxable year. The source of income shall be determined in accordance with the rules prescribed in § 44-30-32 .
  3. Readjustment of another state’s tax.  If the taxpayer is allowed credit under this section for more or less of another state’s tax than the taxpayer is finally required to pay, the taxpayer shall send notice of the difference to the tax administrator who shall re -determine the tax for any years affected regardless of any otherwise applicable statute of limitations.
  4. Double residence.  If the taxpayer is regarded as a resident both of Rhode Island and of another state for purposes of both their net income tax laws, the portion of Rhode Island tax allocable on average to the income taxed twice by reason solely of dual residence shall be reduced by the “appropriate percentage” of the lower of the two (2) state taxes allocable on average to the income taxed twice, if the other state also allows a similar reduction of its tax. The “appropriate percentage” shall be the percentage, which the Rhode Island tax is of the combined taxes of the two (2) states, allocable on average to the income taxed twice.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1972, ch. 155, art. 1, § 1.

44-30-19. Credit to trust beneficiary receiving accumulation distribution.

  1. General.  A resident beneficiary of a trust whose Rhode Island income includes all or part of an accumulation distribution by the trust, as defined in 26 U.S.C. § 665, shall be allowed a credit against the tax otherwise due under this chapter for all or a proportionate part of any tax paid by the trust under this chapter for any preceding taxable year which would not have been payable if the trust had in fact made distributions to its beneficiaries at the times and in the amounts specified in 26 U.S.C. § 666.
  2. Limitation.  The credit under this section shall not reduce the tax otherwise due from the beneficiary under this chapter to an amount less than would have been due if the accumulation distribution or his or her part thereof were excluded from his or her Rhode Island income.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-20. Tax credit for installation costs to hydroelectric power developers — Legislative findings and declaration of policy.

  1. The general assembly recognizes and declares that because the worldwide supply of fossil fuel and of other nonrenewable energy resources is limited, it is necessary to encourage the utilization of renewable natural resources for the production of energy; that there are many existing dams which could be retrofitted to generate hydroelectric power; and that a major factor inhibiting the development of hydroelectric power generation is the presently higher capital costs for new construction of hydro plants compared to conventional thermal systems.
  2. It is the policy of this state to support and foster the development of hydropower generating facilities by the establishment of tax incentives for those owners of existing dams who install hydroelectric power generation equipment.

History of Section. P.L. 1980, ch. 246, § 1; P.L. 1981, ch. 223, § 1.

44-30-21. Hydroelectric development tax credit — Definitions.

For purposes of this chapter:

  1. “Existing dam” means any dam located in this state or immediately adjacent to it, the construction of which was completed on or before May 20, 1981, and which does not require any construction or enlargement of impoundment structures, other than repairs or reconstruction, in connection with the installation of any small hydroelectric power project;
  2. “Hydroelectric power developer” means any person or corporation who owns or leases an existing dam and who installs hydroelectric power generation equipment and utilizes that equipment to generate hydroelectric power;
  3. “Installation costs” means all expenditures related to the design, construction, installation, or repair of all facilities necessary for hydroelectric power production in this state;
  4. “Small hydroelectric power production facility” means any hydroelectric power project which is located in this state, which uses the water power potential of an existing dam, and which has not more than fifteen thousand (15,000) kilowatts of installed capacity.

History of Section. P.L. 1980, ch. 246, § 1; P.L. 1981, ch. 223, § 1.

44-30-22. Tax credit for installation costs.

  1. A hydroelectric power developer will be allowed an income tax credit for the installation costs of a small hydroelectric power production facility.
  2. For the purposes of this section, a hydroelectric power developer shall be allowed a non-refundable state income tax credit in the amount of ten percent (10%) of the installation costs of a hydropower facility. This credit shall be limited to five hundred thousand dollars ($500,000) in expenditures for a maximum income tax credit of fifty thousand dollars ($50,000). This income tax credit shall be allowed as either a personal or a corporate income tax credit, depending on the hydropower developer’s income tax filing status on the last day of his or her income tax filing period; provided, that if the installation costs were incurred by a corporation, then a non-refundable corporate income tax credit shall be allowed, and if installation costs were not incurred by a corporation, then a non-refundable personal income tax credit shall be allowed. In no event shall both a corporate and personal non-refundable income tax credit be allowed for installation costs at a single dam site.

History of Section. P.L. 1980, ch. 246, § 1.

44-30-23. Extended credits.

If the allowable credit exceeds the taxes due on the developer’s income, the amount of the claim not used as an offset against the income taxes of that taxable year may be carried forward as a credit against subsequent income tax liability. The provision may not exceed five (5) years from the tax year in which the first credit was applied.

History of Section. P.L. 1983, ch. 162, § 1.

44-30-24. Tax credit for art.

Upon presentation of written certification by the board of curators, an individual shall be entitled to a tax credit. The tax credit shall be equal to ten percent (10%) of each one thousand dollars ($1,000) of the purchase price of the art up to a maximum purchase price of ten thousand dollars ($10,000). Any amount of tax credit not deductible in the taxable year of certification may not be carried over to the following year. The credit may not be applied until all other credits available to the taxpayer for that taxable year are applied.

History of Section. P.L. 1986, ch. 411, § 2.

44-30-25. Modification relating to family education accounts.

  1. “Family education account” means an account created by an individual taxpayer for the purpose of providing qualified educational benefits to a qualified beneficiary, but only if the account is created by a written governing instrument as prescribed by the tax administrator that designates the account as a Rhode Island family education account and that meets the following requirements:
    1. The depositary is a qualified depositary.
    2. The assets of the account will not be commingled with other property except in a common trust fund or common investment fund.
    3. The account balance deemed to be distributed to the taxpayer not later than the last day of any taxable year of the taxpayer unless the beneficiary remained qualified with respect to the taxpayer on at least one day during such year.
    4. In the case of an account having a qualified beneficiary described in subdivision (b)(1) of this section, no contributions to the account may be made after the taxpayer has attained age twenty-one (21), and in the case of an account having a qualified beneficiary described in subdivision (b)(2) of this section, no contribution may be made to the account unless the beneficiary is a dependent of the taxpayer.
  2. “Qualified beneficiary” means an individual designated by name or class in the instrument creating the account who is:
    1. The taxpayer; or
    2. A dependent of the taxpayer as defined in 26 U.S.C. § 152. In the case of an individual whose parents are divorced and who is a dependent of one of the parents, the individual shall be treated as the qualified beneficiary of each parent. No person shall be a qualified beneficiary after obtaining a bachelor’s degree, any degree equivalent thereto, or any more advanced degree.
  3. “Qualified depositary” means:
    1. Any national bank, federal savings and loan association, federal savings bank, federal insured credit union, or other institution chartered by the United States of America authorized to accept deposits which has its principal business office in the state of Rhode Island;
    2. Any institution incorporated under the laws of the state of Rhode Island authorized to accept insured deposits; and
    3. Any other person who demonstrates to the satisfaction of the tax administrator that it will administer the account in a manner consistent with the requirements of this section and who submits to the jurisdiction of this state for the purposes of enforcing these requirements.
    1. “Qualified educational benefits” means post-secondary education provided by an educational institution which by virtue of law or charter is a public or other nonprofit educational institution empowered to provide a program of education beyond the high school level and which is accredited by a nationally recognized educational accrediting agency or association and awards an associate’s, a bachelor’s or advanced degree or provides a program of not less than two (2) years’ duration which is acceptable for full credit toward a bachelor’s degree.
    2. For the purposes of this section, the cost to provide qualified educational benefits means applicable tuition and fees, room and board charges not in excess of the median amounts charged by the institution providing the qualified educational benefits to students living in institution-provided housing, and fees, books, supplies, and equipment required for courses of instruction at the institution.
  4. “Qualified withdrawal” means any withdrawal from a family education account:
    1. The amount of which does not exceed the amount of the cost paid during the taxable year to provide qualified educational benefits to one or more qualified beneficiaries; or
    2. Occurring within sixty (60) days after the death of any qualified beneficiary if there is no qualified beneficiary younger than the decedent at the time of his or her death;
    3. To purchase tax exempt bonds issued by the state of Rhode Island having a maturity of not more than twenty (20) years from the date of purchase;
    4. Which transfers the entire balance of a particular family education account from one qualified depository to another; or
    5. Which transfers all or a portion of the balance of a particular family education account from an account in the name of one qualified or unqualified beneficiary to an account in the name of another qualified beneficiary of the same taxpayer.
  5. Income, including gains and losses, on a qualified family education account shall be exempt from taxation under this chapter, but the assets thereof shall be deemed a part of the estate of the taxpayer for purposes of chapter 22 of this title.
    1. Except as provided in this subsection, any amount withdrawn or deemed to be withdrawn from a family education account other than as a qualified withdrawal shall be a modification increasing federal adjusted gross income of the taxpayer in the year of the nonqualified withdrawal, but the amount of the modification shall not exceed the net modifications reducing the taxpayer’s federal adjusted gross income pursuant to this section for prior years plus any modification pursuant to subsection (f) of this section for the year of the nonqualified withdrawal. If any amount shall not be distributed as required by subdivision (a)(3) of this section, the amount required to be distributed shall nevertheless be taken into account as a withdrawal in the year the amount was required to be distributed. If a non-qualified withdrawal shall be made from a family education account at a time when the taxpayer is not a resident of Rhode Island, the portion of the modification deemed to be Rhode Island source income shall be the amount of the modification multiplied by a fraction the numerator of which shall be the number of taxable years during which the taxpayer maintained the account and was a resident of Rhode Island and the denominator of which shall be the number of years the taxpayer maintained the account.
      1. Any portion of a family education account used in a prohibited transaction shall be deemed to be withdrawn on the date the portion is so used. The term “prohibited transaction” means any transaction which would be described in 26 U.S.C. § 4975(c)(1)(A), (B), (C), or (D) if the term “plan” as used in that section included a family education account. For purposes of applying 26 U.S.C. § 4975(c)(1) to this section, the term “disqualified person” as used in that section has the meaning set forth in 26 U.S.C. § 4975(e)(2) disregarding, subparagraphs (A) and (B) of that paragraph.
      2. If any portion of the account shall be invested in any “collectible” as defined in 26 U.S.C. § 408(m)(2), the collectible shall be deemed withdrawn on the first day that any disqualified person shall obtain physical possession of the collectible.
  6. Upon the death of the taxpayer creating a family education account, the account shall not terminate unless otherwise provided by the instrument creating the account and the person entitled to the residue of the family education account, as provided in the instrument creating the account, or if not so provided, as provided in the taxpayer’s will or as otherwise provided by law, shall succeed to the rights and obligations of the taxpayer hereunder, but no person other than a posthumous child of the taxpayer delivered alive within eleven (11) months from the date of death shall become a qualified beneficiary after the date of the taxpayer’s death. Any individual who was a qualified beneficiary with respect to the deceased taxpayer shall continue as a qualified beneficiary until any time that the individual would have ceased to be a qualified beneficiary with respect to the taxpayer if: (1) the taxpayer had continued to live; (2) the taxpayer had continued to provide the individual with the same level of support, adjusted for inflation in the same manner as is described in 26 U.S.C. § 1(f), as the taxpayer provided to the individual in the last taxable year ending before the taxpayer’s date of death; and (3) the individual had continued to have as his or her principal place of abode the taxpayer’s home and had remained a member of the taxpayer’s household; provided, that the individual had the taxpayer’s home as his or her principal place of abode and was a member of the taxpayer’s household at all times during the period beginning on the first day of the taxpayer’s last taxable year ending before the taxpayer’s date of death and ending on the taxpayer’s date of death.
  7. Every taxpayer establishing a family education account shall file the returns and provide statements with respect to that account as the tax administrator may require. Every taxpayer claiming a modification by reason of subsection (f) of this section shall file information as the tax administrator may require. The information shall be filed for each year until all amounts in all family education accounts created by the taxpayer have been withdrawn or distributed.
  8. Amounts contributed to a family education account and income earned on that account shall not be subject to involuntary alienation or assignment by the taxpayer and shall be exempt from levy and attachment with respect to debts of the taxpayer except that this subsection shall not operate to bar any assignment, alienation, attachment or levy:
    1. Arising out of a bankruptcy suit instituted with respect to the taxpayer;
    2. To pay a debt owing to the United States of America;
    3. To pay expenses of providing qualified educational benefits to a qualified beneficiary whom the taxpayer has a legal obligation to support;
    4. To pay child support; or
    5. To pay any other debt to the extent the taxpayer has made contributions while insolvent.

History of Section. P.L. 1988, ch. 427, § 2; P.L. 1989, ch. 220, § 1; P.L. 2005, ch. 410, § 33.

44-30-25.1. Scituate — Modification relating to medical savings accounts.

  1. As used in this section:
    1. “Account administrator” means any of the following:
      1. A state chartered bank, savings and loan association, credit union, or trust company authorized to act as fiduciary in this state; or a national banking association or federal savings and loan association or credit union authorized to act as fiduciary in this state;
      2. An insurance company authorized to do business in this state.
      3. Mentally or physically incapacitated to the extent that he or she is not self-sufficient.
    2. “Account holder” means a resident individual of the town of Scituate who establishes a medical savings account.
    3. “Deductible” means the total deductible for an employee or account holder and all the dependents of that employee or account holder for a calendar year.
    4. “Dependent” means the spouse of the employee or account holder or a child of the employee or account holder if the child is any of the following:
    5. “Eligible medical expense” means an expense paid by the taxpayer for medical care described in § 213(d) of the Internal Revenue Code, 26 U.S.C. § 213(d).
    6. “Employee” means an individual employed by the town of Scituate for whose benefit or for the benefit of whose dependents a medical savings account is established.
    7. “Employer” means the town of Scituate.
    8. “ERISA” means the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.
    9. “Higher deductible” means an annual deductible in the applicable amount (as adjusted) set forth in § 220(c)(2)(A) of the Internal Revenue Code, 26 U.S.C. § 220(c)(2)(A).
    10. “Medical savings account” or “account” means: (i) an account established in this state pursuant to a medical savings account program to pay the eligible medical expenses of an employee or account holder and the dependents of the employee or account holder, or (ii) an account as defined in § 220(d) of the Internal Revenue Code, 26 U.S.C. § 220(d).
    11. “Medical savings account program” or “program” means one of the following programs:
      1. The purchase by an employer of a qualified higher deductible health plan for the benefit of an employee or an employee and his or her dependents; and
      2. The contribution on behalf of an employee into a medical savings account by his or her employer of all or part of the higher deductible of the plan purchased pursuant to subparagraph (A) of this paragraph. The employee may contribute into the account in addition to a contribution by the employer all or part of the difference between the employer’s contribution and the amount of the higher deductible.
    12. “Qualified higher deductible health plan” means a health coverage policy, certificate, or contract or health plan that provides for payments for covered benefits that exceed the higher deductible and that is purchased or established by an account holder or by an employer for the benefit of an account holder or employee for whom the account holder or employer makes deposits into a medical savings account.
    1. For tax years beginning after December 31, 2002, both of the following apply:
      1. An employer, except as otherwise provided by statute, contract, or a collective bargaining agreement, may offer a medical savings account program to the employer’s employees and their dependents; and
      2. A resident individual of the town of Scituate may establish a medical savings account program for himself or herself and his or her dependents.
    2. Before making any contributions, an employer that offers a medical savings account program shall inform all employees in writing of the state and federal tax status of contributions made pursuant to this section.
    3. Upon agreement between an employer and an employee, an employee may have his or her employer contribute either to the employee’s medical savings account or continue to make contributions under the employer’s existing health insurance policy program.
    1. An account administrator shall administer the medical savings account from which the payment of claims is made and has a fiduciary duty (including the duty to prudently invest uncommitted funds on deposit in medical savings accounts) to the person for whose benefit the account administrator administers an account.
    2. Not more than thirty (30) days after an account administrator begins to administer an account, the account administrator shall notify, in writing, each employee and account holder on whose behalf the account administrator administers an account of the date of the last business day of the account administrator’s business year.
    3. The employee or account holder shall utilize the funds held in a medical savings account solely for the purpose of paying the eligible medical expenses of the employee or account holder or his or her dependents or to purchase a health coverage policy, certificate or contract. Funds held in a medical savings account shall not be used to pay medical expenses of the employee or account holder or his or her dependents that are otherwise reimbursable, including, but not limited to, medical expenses payable pursuant to an automobile insurance policy, worker’s compensation insurance policy or self insured plan, or another health coverage policy, certificate or contract.
    4. The employee or account holder may submit documentation of medical expenses paid by the employee or account holder in the tax year to the account administrator, and the account administrator shall reimburse the employee or account holder from the employee’s or account holder’s account for eligible medical expenses. Other methods for payment of eligible medical expenses, including the use of a swipe card or checkbook, shall also be allowed.
    5. If an employer makes contributions to a medical savings account program on a periodic installment basis, the employer may advance to an employee, interest free, the amount necessary to cover medical expenses incurred that exceed the amount in the employee’s medical savings account at the time the expense is incurred if the employee agrees to repay the advance from future installments or when he or she ceases to be an employee of the employer.
    1. The portion of any contribution to a medical savings account, to the extent it is deemed taxable income under the Internal Revenue Code, shall be a modification decreasing federal adjusted gross income of the participant for the purpose of determining his or her Rhode Island income tax liability in the year of the contribution. Provided, the modification shall not exceed an amount that would otherwise be allowed based on the maximum contribution under § 220 of the Internal Revenue Code, 26 U.S.C. § 220. Income, including gains and losses, on a medical savings account shall be exempt from taxation under this chapter.
    2. An employee or account holder may withdraw money from his or her medical savings account for any purpose other than a purpose described in subdivision (c)(3) of this section without incurring the penalty under paragraph (3)(ii) of this subsection only when the withdrawal is made on the last business day of the account administrator’s business year; provided, the money withdrawn on that date shall not be eligible for the modification or the exemption provided under subdivision (1) of this subsection and the amount of any such withdrawal shall, to the extent that any earlier contribution(s) or income was claimed as a modification decreasing federal adjusted gross income for Rhode Island purposes shall be a modification increasing federal adjusted gross income of the account holder or employee for the purpose of determining his or her Rhode Island income tax liability in the year of the withdrawal or withdrawals.
    3. Subject to subdivision (4) of this subsection, if an employee or account holder withdraws money from a medical savings account: (i) for any purpose other than a purpose described in subdivision (c)(3) of this section at any time other than the last business day of the account administrator, or (ii) in an amount that exceeds any applicable limit for medical savings accounts pursuant to § 220 of the Internal Revenue Code, 26 U.S.C. § 220, the following shall apply:
      1. The money withdrawn shall not be eligible for the modification or the exemption provided under subdivision (1) of this subsection and the amount of any such withdrawal shall, to the extent that any earlier contribution(s) or income was claimed as a modification decreasing federal adjusted gross income for Rhode Island purposes shall be a modification increasing federal adjusted gross income of the account holder or employee for the purpose of determining his or her Rhode Island income tax liability in the year of the withdrawal(s); and
      2. The account administrator shall withhold from the amount of the withdrawal and on behalf of the account holder or employee, shall pay a penalty to the Rhode Island division of taxation equal to ten percent (10%) of the amount of the withdrawal.
    4. The amount of a disbursement of any assets of a medical savings account pursuant to a filing for protection under title 11 of the United States Code, 11 U.S.C. §§ 101 to 1330, by an employee, account holder, or person for whose benefit the account was established is not considered a withdrawal for purposes of this section.
    5. Upon the death of the account holder or employee, the account administrator shall distribute the principal and accumulated interest of the medical savings account to the estate of the account holder or employee.
    6. If an employee is no longer employed by the town of Scituate and the employee, not more than sixty (60) days after his or her final day of employment, transfers the account to a new account administrator or requests in writing to the town’s account administrator that the account remain with that administrator and that account administrator agrees to retain the account, the money in the medical savings account may be utilized for the benefit of the employee or the employee and his or her dependents subject to this section. Not more than thirty (30) days after the expiration of the sixty (60) days, if an account administrator has not accepted the former employee’s account, the employer shall mail a check to the former employee at the employee’s last known address equal to the amount in the account on that day. If an employee becomes employed with a different employer that participates in a medical savings account program, the employee may transfer his or her medical savings account to that new employer’s account administrator. If an account holder becomes an employer that participates in the medical savings account program, the account holder may transfer his or her account to the employer’s account administrator.
    7. Amounts in a medical savings account at the end of a year may be used to pay eligible medical expenses in future years, and any such amounts shall not reduce the amount that must be contributed by an employer.
    8. After an account holder or employee reaches fifty-nine and one-half (59 1/2) years of age, withdrawals shall not be subject to the ten percent (10%) penalty.
    9. An account holder whose account consists solely of his or her own funds and no funds from an employer, shall be entitled to a tax credit of two hundred dollars ($200) in each year the account holder makes the maximum contribution to his or her account.

(i) Under twenty-three (23) years of age and enrolled as a full-time student at an accredited college or university or under nineteen (19) years of age;

(ii) Legally entitled to the provision of proper or necessary subsistence, education, medical care, or other care necessary for his or her health, guidance or well-being and not otherwise emancipated, self-supporting, married, or a member of the Armed Forces of the United States; and

(i) A program established by an employer that previously provided a health coverage policy, certificate or contract or self insured health plan that includes all of the following:

(ii) A program established by an employer that did not previously provide a health coverage policy, certificate or contract or self insured health plan that includes the following:

(A) The purchase by an employer of a qualified higher deductible health plan for the benefit of an employee or an employee and his or her dependents; and

(B) The contribution on behalf of an employee into a medical savings account by his or her employer of all or part of the higher deductible of the plan purchased pursuant to subparagraph (A) of this paragraph. The employee may contribute to the account in addition to a contribution by the employer all or part of the difference between the employer’s contribution and the amount of the higher deductible.

(iii) A program established by an account holder that includes all of the following:

(A) The purchase by the account holder of a qualified higher deductible health plan for the benefit of the account holder or the account holder and his or her dependents; and

(B) A contribution by the account holder into a medical savings account of an amount not more than the amount of the higher deductible.

History of Section. P.L. 2002, ch. 215, § 2.

44-30-26. Tax credit for surviving spouse.

An individual who qualifies and files as a “surviving spouse” under the Internal Revenue Code, applicable for the subject tax year, and who was domiciled in the state of Rhode Island for the entire tax year and who is sixty-five (65) years of age or older and has an adjusted gross income of less than twenty-five thousand dollars ($25,000) shall be entitled to a two percent (2%) tax credit based on adjusted gross income, up to a maximum of five hundred dollars ($500). This credit is not refundable, and is only available for the year in which it is claimed.

History of Section. P.L. 1993, ch. 176, § 1.

44-30-27. Farm to school income tax credit.

Upon presentation of written certification by a local education agency, an individual or entity domiciled in the state for the entire tax year, shall be entitled to an income tax credit for the purchase of produce grown in the state which shall be furnished or used in connection with that individual’s or entity’s agreement to provide food, services or other products to a local education agency. The income tax credit shall be equal to five percent (5%) of the cost of farm products grown or produced in the state. Any amount of income tax credit not deductible in the taxable year of certification may not be carried over to the following year. The credit may not be applied until all other credits available to the taxpayer for that taxable year are applied.

History of Section. P.L. 2007, ch. 73, art. 43, § 1.

Part III Nonresidents

44-30-31. Nonresident husband and wife.

  1. If the federal income tax liability of husband or wife, both of whom are nonresidents, is determined on a separate federal return, their Rhode Island tax shall be separately determined.
  2. If the federal income tax liability of husband and wife, both of whom are nonresidents, is determined on a joint federal return, their tax shall be determined on their joint Rhode Island income.
  3. If either husband or wife is a resident and the other is a nonresident, separate taxes shall be determined on their separate Rhode Island incomes on any forms that may be required by the tax administrator, unless both elect to determine their joint Rhode Island income as if both were residents. If separate returns are filed, Rhode Island personal income tax shall be determined as if they had filed separate federal income tax returns.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

Collateral References.

Domicil for state tax purposes of wife living apart from husband. 82 A.L.R.3d 1274.

Protection of out-of-state sellers from state income tax by Public Law 86-272 (15 U.S.C.S. §§ 381 to 384). 182 A.L.R. Fed. 291.

44-30-32. Rhode Island income of a nonresident individual.

  1. General.  The Rhode Island income of a nonresident individual shall be the sum of the following:
    1. The net amount of items of income and deduction entering into his or her federal adjusted gross income derived from or connected with Rhode Island sources, including:
      1. His or her distributive share of partnership income and deductions, determined under § 44-30-34 ; and
      2. His or her share of estate or trust income and deductions, determined under § 44-30-36 ; and
    2. The portion of the modifications described in subsections (b) and (c) of § 44-30-12 which relate to income derived from Rhode Island sources, including any modifications attributable to the individual as a partner.
    3. The portion of the modifications described in § 44-30-12 (b) and (c) which relate to the tuition savings plan program referred to in § 16-57-6.1 .
  2. Income and deductions from Rhode Island sources.
    1. Items of income and deduction derived from or connected with Rhode Island sources shall be those items attributable to:
      1. The ownership or disposition of any interest in real or tangible personal property in this state; or
      2. A business, trade, profession, or occupation carried on in this state;
      3. Gambling winnings from the state lottery and gambling winnings from pari-mutuel betting events conducted or operated by a licensee within this state.
    2. Income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property, shall constitute income derived from Rhode Island sources only to the extent that the intangible personal property is employed in a business, trade, profession, or occupation carried on in this state.
    3. Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income and deductions derived from or connected with Rhode Island sources, under regulations of the tax administrator, but otherwise shall be determined in the same manner as the corresponding federal deductions.
  3. Income and deductions partly from Rhode Island sources.  If a business, trade, profession, or occupation is carried on partly within and partly without this state, the items of income and deduction derived from or connected with Rhode Island sources shall be determined by apportionment and allocation under regulations to be promulgated by the tax administrator.
  4. Military pay.  Compensation paid by the United States for service in the armed forces of the United States, performed by an individual not domiciled in this state, shall not constitute income derived from Rhode Island sources.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1972, ch. 155, art. 1, § 1; P.L. 1989, ch. 126, art. 21, § 3; P.L. 2001, ch. 364, § 3; P.L. 2002, ch. 65, art. 9, § 1.

Compiler’s Notes.

P.L. 2001, ch. 364, § 4 provides that the amendment to this section shall take effect upon passage [July 13, 2001] and shall be effective for taxable years beginning on or after January 1, 2002.

Collateral References.

Decision to take foreign income taxes as federal credit under § 901 of the Internal Revenue Code (26 USC § 901) as precluding their deduction for state income tax purposes. 77 A.L.R.4th 823.

44-30-33. Apportionment.

  1. The federal tax liability of a nonresident individual which is attributable to Rhode Island income shall be that proportion which Rhode Island income bears to federal adjusted gross income after the modifications in subsection (b) or (c) in § 44-30-12 . For the purpose of this apportionment, a nonresident individual may elect to treat his or her federal adjusted gross income as his or her Rhode Island income unless the amount of the modifications increasing federal adjusted gross income under § 44-30-12 would exceed one hundred dollars ($100).
  2. For tax years beginning on or after January 1, 2001, the Rhode Island income tax liability of a nonresident individual which is attributable to Rhode Island income shall be that proportion which Rhode Island income bears to federal adjusted gross income after the modifications in § 44-30-12(b) or (c). For the purpose of this apportionment, a nonresident individual may elect to treat his or her federal adjusted gross income as his or her Rhode Island income unless the amount of the modifications increasing federal adjusted gross income under § 44-30-12 would exceed one hundred dollars ($100).

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2001, ch. 77, art. 7, § 2.

44-30-34. Nonresident partners.

  1. Portion derived from Rhode Island sources.  In determining Rhode Island income of a nonresident partner of any partnership, there shall be included only the portion derived from or connected with Rhode Island sources of the partner’s distributive share of items of partnership income and deduction entering into his or her federal adjusted gross income, as such portion shall be determined under regulations of the tax administrator consistent with the applicable rules of § 44-30-32 .
  2. Special rules as to Rhode Island sources.  In determining the sources of a nonresident partner’s income, no effect shall be given to a provision in the partnership agreement which:
    1. Characterizes payments to the partner as being for services or for the use of capital; or
    2. Allocates to the partner, as income from sources outside Rhode Island, a greater proportion of his or her distributive share of partnership income than the ratio of partnership income from sources outside Rhode Island to partnership income from all sources, except as authorized in subsection (d) of this section; or
    3. Allocates to the partner a greater proportion of a partnership item of deduction connected with Rhode Island sources than his or her proportionate share, for federal income tax purposes, of partnership deductions generally, except as authorized in subsection (d) of this section.
  3. Partner’s modifications.  Any modification described in subsection (b) or (c) of § 44-30-12 which relates to an item of partnership income or deduction, shall be made in accordance with the partner’s distributive share for federal income tax purposes of the item to which the modification relates, but limited to the portion of the item derived from or connected with Rhode Island sources.
  4. Alternate methods.  The tax administrator may, on application, authorize the use of any other methods of determining a nonresident’s portion of partnership items derived from or connected with Rhode Island sources, and the modifications related thereto, that may be appropriate and equitable, on any terms and conditions that the tax administrator may require.
  5. Application of rules for resident partners to nonresident partners.
    1. A partner’s distributive share of items shall be determined under § 44-30-15(a) .
    2. The character of partnership items for a nonresident partner shall be determined under § 44-30-15(b) .
    3. The effect of a special provision in a partnership agreement having the principal purpose of avoidance or evasion of Rhode Island personal income tax shall be determined under § 44-30-15(c) .

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-35. Rhode Island income of a nonresident estate or trust.

The Rhode Island income of a nonresident estate or trust shall be determined as follows:

  1. Items in distributable net income.  There shall be determined its share of income and deduction from Rhode Island sources under § 44-30-36 , relating to items entering into the definition of “distributable net income”.
  2. Items not in distributable net income.  There shall be added or subtracted, as the case may be, the amount derived from or connected with Rhode Island sources of any income and deduction recognized for federal income tax purposes but excluded from the definition of “federal distributable net income” of the estate or trust. The source of the income and deduction shall be determined under regulations of the tax administrator in keeping with the applicable rules of § 40-30-32 as if the estate or trust were a nonresident individual.
  3. Exemption.  There shall be subtracted the amount of its federal exemption.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-36. Share of a nonresident estate, trust, or beneficiary in income from Rhode Island sources.

  1. General.  The share of a nonresident estate or trust under § 44-30-35(1) and the share of a nonresident beneficiary of any estate or trust under § 44-30-32 (a) in estate or trust income and deduction from Rhode Island sources shall be determined as follows:
    1. Items of distributable net income from Rhode Island sources.  There shall be determined the items of income and deduction, derived from or connected with Rhode Island sources, which enter into the definition of “federal distributable net income” of the estate or trust for the taxable year, including the items from another estate or trust of which the first estate or trust is a beneficiary. The determination of source shall be made under regulations of the tax administrator in keeping with the applicable rules of § 44-30-32 as if the estate or trust were a nonresident individual.
    2. Addition or subtraction of modifications.  There shall be added to or subtracted from, as the case may be, the modifications described in § 44-30-12(b) and (c)(excluding subdivisions (b)(4), (c)(3) and (c)(4) of that section) to the extent relating to items of income and deduction, derived from or connected with Rhode Island sources, which enter into the definition of “federal distributable net income”, including the items from another estate or trust of which the first estate or trust is a beneficiary. No modification shall be made under this subsection that has the effect of duplicating an item already reflected in the definition of “federal distributable net income”.
    3. Allocation among estate or trust and beneficiaries.
      1. The amounts determined under subdivisions (1) and (2) of this subsection shall be allocated among the estate or trust and its beneficiaries, including, solely for the purpose of this allocation, resident beneficiaries, in proportion to their respective shares of federal distributable net income.
      2. The amounts so allocated shall have the same character as for federal income tax purposes. Where an item entering into the computation of the amounts is not characterized for federal income tax purposes, it shall have the same character as if realized directly from the source from which realized by the estate or trust, or incurred in the same manner as incurred by the estate or trust.
  2. Alternate methods of determining shares.
    1. If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary, including, solely for the purpose of this allocation, resident beneficiaries, in the net amount determined under subdivisions (a)(1) and (a)(2) of this section shall be in proportion to his share of the estate of trust income for that year, under local law or the governing instrument, which is required to be distributed currently and any other amounts of the income distributed in that year. Any balance of the net amount shall be allocated to the estate or trust.
    2. The tax administrator may by regulation authorize the use of any other methods of determining the respective shares of the beneficiaries and of the estate or trust in its income derived from Rhode Island sources, and the modification related thereto that may be appropriate and equitable, on any terms and conditions that the tax administrator may require.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2001, ch. 364, § 3; P.L. 2002, ch. 65, art. 9, § 1.

Applicability.

P.L. 2001, ch. 364, § 4 provides that the amendment to this section shall take effect upon passage [July 13, 2001] and shall be effective for taxable years beginning on or after January 1, 2002.

44-30-37. Credit to trust beneficiary receiving accumulation distribution.

A nonresident beneficiary of a trust whose Rhode Island income includes all or part of an accumulation distribution by the trust, as defined in 26 U.S.C. § 665, shall be allowed a credit against the tax otherwise due under this chapter, computed in the same manner and subject to the same limitation as provided by § 44-30-19 with respect to a resident beneficiary.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

Part IV Returns, Declarations, and Payment of Tax

44-30-51. Returns and liabilities.

  1. General.  On or before the fifteenth day of the fourth month following the close of a taxable year, a Rhode Island personal income tax return shall be made and filed by or for:
    1. Every resident individual required to file a federal income tax return for the taxable year, or having Rhode Island income for the taxable year, determined under § 44-30-12 , in excess of the sum of his federal personal exemptions;
    2. Every resident estate or trust required to file a federal income tax return for the taxable year, or having any Rhode Island income for the taxable year, determined under § 44-30-16 ;
    3. Every nonresident individual having Rhode Island income for the taxable year, determined under § 44-30-32 ; and
    4. Every nonresident estate or trust having items of income derived from Rhode Island sources, determined in accordance with the applicable rules of § 44-30-32 as in the case of a nonresident individual, in excess of its federal exemption.
  2. Husband and wife.
    1. If the federal income tax liability of husband or wife is determined on a separate federal return, their Rhode Island income tax liabilities and returns shall be separate.
    2. If the federal income tax liabilities of husband and wife, other than a husband and wife described in subdivision (4) of this subsection, are determined on a joint federal return, they shall file a joint Rhode Island income tax return, and their tax liabilities shall be joint and several.
    3. If neither husband nor wife is required to file a federal return but either is required nevertheless to file a Rhode Island return, their Rhode Island returns and liabilities may at their election be either joint or separate.
    4. If either husband or wife is a resident and the other is a nonresident, they shall file separate Rhode Island income tax returns on any forms that may be required by the tax administrator in which event their tax liabilities shall be separate, unless both elect to determine their joint Rhode Island income as if both were residents, in which event their tax liabilities shall be joint and several.
  3. Decedents.  The return for any deceased individual shall be made and filed by his or her executor, administrator, or other person charged with his or her property. A final return of a decedent shall be due when it would have been due if the decedent had not died.
  4. Individuals under a disability.  The return for an individual who is unable to make a return by reason of minority or other disability shall be made and filed by his or her guardian, conservator, fiduciary, or other person charged with the care of his or her person or property (other than a receiver in possession of only a part of his or her property), or by his or her duly authorized agent.
  5. Estates and trusts.  The return for an estate or trust shall be made and filed by the fiduciary.
  6. Joint fiduciaries.  If two (2) or more fiduciaries are acting jointly, the return may be made by any one of them.
  7. Tax a debt.  Any Rhode Island personal income tax and any increase, interest or penalty thereon shall, from the time it is due and payable, be a debt of the person liable to pay the same to the state.
  8. Cross reference.  See § 44-30-58 for information returns by partnerships, employers, and other persons.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1972, ch. 155, art. 1, § 1.

NOTES TO DECISIONS

Disciplinary Proceedings.

Attorney publicly censured for failure to file state personal-income-tax returns. In re Almonte, 678 A.2d 457, 1996 R.I. LEXIS 198 (R.I. 1996).

Collateral References.

Right of surviving spouse to tax refund resulting from joint income tax return. 67 A.L.R.3d 1038.

44-30-52. Time and place for filing returns and paying tax.

A person required to make and file a Rhode Island personal income tax return shall, without assessment, notice, or demand, pay any tax due thereon to the tax administrator on or before the date fixed for filing the return, determined without regard to any extension of time for filing the return. The tax administrator shall prescribe the place for filing any return, declaration, statement, or other document and for payment of the tax.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-53. Signing of returns and other documents.

  1. General.  Any return, declaration, statement, or other document required to be made pursuant to the Rhode Island personal income tax law shall be signed in accordance with regulations or instructions prescribed by the tax administrator. The fact that an individual’s name is signed to a return, declaration, statement, or other document, shall be prima facie evidence for all purposes that the return, declaration, statement or other document was actually signed by the individual.
  2. Partnerships.  Any return, statement, or other document, required of a partnership shall be signed by one or more partners. The fact that a partner’s name is signed to a return, statement, or other document, shall be prima facie evidence for all purposes that the partner is authorized to sign on behalf of the partnership.
  3. Certifications.  The making or filing of any return, declaration, statement, or other document or copy thereof required to be made or filed pursuant to the Rhode Island personal income tax law, including a copy of a federal return, shall constitute a certification by the person making or filing the return, declaration, statement, or other document or copy thereof that the statements contained therein are true and that any copy filed is a true copy.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-54. Change of resident status during year.

  1. General.  Subject to regulations of the tax administrator, if an individual changes his or her status during his or her taxable year from resident to nonresident, or from nonresident to resident, the individual shall file one return as a resident for the portion of the year during which the individual is a resident, and one return as a nonresident for the portion of the year during which the individual is a nonresident.
  2. Rhode Island income as resident and nonresident.  The Rhode Island income for the portion of the year during which the individual is a resident shall be determined, except as provided in subsection (c) of this section, under part II of this chapter as if his or her taxable year for federal income tax purposes were limited to the period of his or her resident status. The Rhode Island income for the remaining portion of his or her taxable year during which the individual is a nonresident shall be determined, except as provided in subsection (c) of this section, under part III of this chapter as if his or her taxable year for federal income tax purposes were limited to the period of his or her nonresident status.
  3. Special accruals.
    1. If an individual changes his or her status from resident to nonresident, the individual shall, regardless of his or her method of accounting, accrue for the portion of the taxable year prior to the change of status any items of income or deduction accruing prior to the change of status, if not otherwise properly includible, whether or not because of an election to report on an installment basis, or allowable for Rhode Island income tax purposes for that portion of the taxable year or for a prior taxable year. The amounts of the accrued items shall be determined with the applicable modifications described in § 44-30-12 as if the accrued items were includible or allowable for federal income tax purposes.
    2. If an individual changes his or her status from nonresident to resident, the individual shall, regardless of his or her method of accounting, accrue for the portion of the taxable year prior to the change of status any items of income or deduction accruing prior to the change of status, other than derived from or connected with Rhode Island sources, if not otherwise properly includible (whether or not because of an election to report on an installment basis) or allowable for federal income tax purposes for that portion of the taxable year or a prior taxable year. The amounts of the accrued items shall be determined with the applicable modifications described in § 44-30-12 as if the accrued items were includible or allowable for federal income tax purposes.
    3. No item of income or deduction, which is accrued under this subsection, shall be taken into account in determining Rhode Island income or Rhode Island deductions for any subsequent taxable period.
    4. The accruals under this subsection shall not be required if the individual files with the tax administrator a bond or other security acceptable to the tax administrator, conditioned upon the inclusion of amounts accruable under this subsection in Rhode Island income for one or more subsequent taxable years as if the individual had not changed his or her resident status.
  4. Minimum Tax.  Where two (2) returns are required under this section, the total of the taxes due thereon shall not be less than would be due if the Rhode Island incomes reportable on the two (2) returns were includible in one return.
  5. Prorations.  Where two (2) returns are required under this section, the federal standard deduction and the federal personal exemptions shall be prorated, under regulations of the tax administrator, between the two (2) returns to reflect the portions of the entire taxable year during which the individual was a resident and a nonresident.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-55. Declarations of estimated tax.

  1. Requirement of filing.  Every resident and nonresident individual and every resident and nonresident estate and trust shall make a declaration of his, her or its estimated Rhode Island personal income tax for each taxable year beginning after December 31, 1999, if his, her or its estimated Rhode Island personal income tax can reasonably be expected to be two hundred and fifty dollars ($250) or more in excess of any credits allowable against his, her or its tax, whether or not the individual, estate or trust is required to file a federal declaration of estimated tax for that year.
  2. Joint declaration of husband and wife.  A husband and wife may make a joint declaration of estimated tax as if they were one taxpayer, in which case the liability with respect to the estimated tax shall be joint and several. No joint declaration may be made if husband and wife are separated under a decree of divorce or of separate maintenance, or if they have different taxable years. If a joint declaration is made but husband and wife determine their Rhode Island personal income taxes separately, the estimated tax for that year may be treated as the estimated tax of either husband or wife, or may be divided between them, as they may elect.
  3. Time for filing.  An individual’s declaration of estimated Rhode Island personal income tax shall be filed on or before the fifteenth day of the fourth month of his or her taxable year, except in the event the individual is not required to file his or her declaration of estimated federal income tax until a later date, in which event the later date shall be the due date for the Rhode Island declaration.
  4. Amended declaration.  An individual may amend a declaration under regulations of the tax administrator.
  5. Return as declaration.  If on or before the fifteenth day of the second month after the close of his or her taxable year an individual files his or her return for the year and pays with the return the full amount of the tax shown to be due on the return, the return shall be considered as his or her declaration if it was not otherwise required to be filed prior to the close of his or her taxable year.
  6. Declaration for individual under a disability.  The declaration of estimated tax for an individual who is unable to make a declaration by reason of minority or other disability shall be made and filed by his or her guardian, conservator, fiduciary, or other person charged with the care of his or her person or property (other than a receiver in possession of only a part of his or her property), or by his or her duly authorized agent.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1987, ch. 175, § 1; P.L. 1989, ch. 126, art. 32, § 1; P.L. 1999, ch. 245, § 1.

44-30-56. Payments of estimated tax.

  1. General.  The estimated Rhode Island personal income tax, in excess of any credits allowable against the tax, shall for each taxable year be paid not later than as follows:
  2. Late declarations.  If a declaration is filed after the due date, including the date fixed by an extension, the installment payable on or before the filing date shall be paid at that time. The remaining installment shall be due on the prescribed date.
  3. Amendments of declaration.  If an amendment of a declaration is filed, any remaining installments shall be ratably increased or decreased (as the case may be) to reflect any resultant increase or decrease in the estimated Rhode Island personal income tax, in excess of any credits allowable against the tax. If an amendment is made after September 15 of the taxable year, any resultant increase shall be paid at the time of filing the amendment.
  4. Fiscal year or short taxable year.  This section shall apply to a taxable year other than a calendar year by the substitution of the months of a fiscal year for the corresponding specified months and shall apply to a taxable year of less than twelve (12) months under regulations of the tax administrator.
  5. The payments of estimated tax shall be a credit against tax for the taxable year as may appear on the tax return.

If due date for filing Then due dates of equal declaration is: installments are: (1) April 15 April 15; June 15; September 15; January 15 of following year. (2) June 15 June 15; September 15; January 15 of following year. (3) September 15 September 15; and January 15 of fol- lowing year. (4) January 15 of following year All to be paid with the declaration.

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History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-57. Extensions of time.

  1. General.  Under any regulations that the tax administrator shall promulgate, the administrator may grant a reasonable extension of time for payment of tax or estimated tax, or any installment, or for filing any return, declaration, statement, or other required document. Except for a taxpayer who is outside the United States, no extension for filing any return, declaration, statement, or other document, shall exceed six (6) months.
  2. Furnishing of security.  If any extension of time is granted for payment of any amount of tax, the tax administrator may by regulation require the taxpayer to furnish a bond or other security in an amount not exceeding twice the amount for which the extension of time for payment is granted.
  3. Cross reference.  See § 44-30-84 for interest provided in case of extension of time for payment.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-58. Requirements concerning returns, notices, records, and statements.

  1. General.  The tax administrator may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income tax returns and determinations. The tax administrator may require any person, by regulation or notice served upon the person, to make any returns, render any statements, or keep any records that the tax administrator may deem sufficient to show whether or not the person is liable for the tax or for collection of the tax.
  2. Partnerships.  Every partnership having any income derived from Rhode Island sources, determined in accordance with the applicable rules of § 44-30-32 as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income and deduction and any other pertinent information that the tax administrator may by regulation or instructions prescribe. Any partnership with nonresident partners having any income derived from Rhode Island sources shall be subject to the provisions of § 44-11-2.2 .
  3. Information at source.  The tax administrator may prescribe regulations and instructions requiring returns of information to be made and filed on or before February 28 of each year as to the payment or crediting in any calendar year of amounts of one hundred dollars ($100) or more to any Rhode Island personal income taxpayer. The returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal, or payment of interest, rents, salaries, wages, premiums, dividends and other corporate distributions, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, or income. A duplicate of the statement as to tax withheld on wages, required to be furnished by an employer to an employee, shall constitute the return of information required to be made under this section with respect to the wages.
  4. Notice of qualification as fiduciary.  Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give notice of his or her qualification as such to the tax administrator as may be required by regulation.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1990, ch. 27, § 1; P.L. 2004, ch. 595, art. 29, § 3.

44-30-59. Report of change in federal taxable income.

  1. Subject to regulations of the tax administrator, if the amount of a taxpayer’s federal taxable income reported on his or her federal income tax return for any taxable year beginning on or after January 1, 1971, is changed or corrected by the United States Internal Revenue Service or other competent authority, or as the result of a renegotiation of a contract or subcontract with the United States, the taxpayer shall report the change or correction in federal taxable income within ninety (90) days after the final determination of the change, correction, or renegotiation, or as otherwise required by the tax administrator, and shall concede the accuracy of the determination or state wherein it is erroneous. Any taxpayer filing an amended federal income tax return shall also file within ninety (90) days thereafter an amended Rhode Island personal income tax return and shall give any information that the tax administrator may require.
  2. In the case of a partnership level audit pursuant to § 44-11-2.2(e)(1) , partners shall, within one hundred and eighty days (180) days after receipt of notification of the final federal adjustments arising from a partnership level audit or an administrative adjustment, make the supplemental return and make payments as required by this subsection (b).

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 2019, ch. 88, art. 5, § 12.

44-30-60. Change of election.

Subject to regulations promulgated by the tax administrator, a taxpayer may change any election expressly authorized by the Rhode Island personal income tax law.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

Part V Withholding of Tax

44-30-71. Requirement of withholding tax from wages.

  1. General.  Every employer maintaining an office or transacting business within this state and making payment of any wages subject to Rhode Island personal income tax to a resident or nonresident individual shall deduct and withhold from the wages for each payroll period a tax computed in such manner as to result, so far as practicable, in withholding from the employee’s wages during each calendar year an amount substantially equivalent to the tax reasonably estimated to be due resulting from the inclusion in the employee’s Rhode Island income of his or her wages received during the calendar year. The method of determining the amount to be withheld shall be prescribed by regulations of the tax administrator, with due regard to the withholding exemptions of the employee.
  2. Withholding exemptions.  For purposes of this section:
    1. An employee shall be entitled to the equivalent of the same number of Rhode Island withholding exemptions as the number of withholding exemptions to which he or she is entitled for federal income tax withholding purposes. An employer may rely upon the number of federal withholding exemptions claimed by the employee.
    2. The amount of the equivalent of each Rhode Island withholding exemption shall be equal to and correspond to those set forth in 26 U.S.C. § 3402(b).
  3. Electronic filing.  Any person required to withhold and remit tax under this section with ten (10) or more employees must make the payments by electronic funds transfer or other electronic means defined by the tax administrator. The tax administrator shall adopt rules necessary to administer a program of electronic funds transfer or other electronic filing system.
    1. In the case of failure of a person required to deposit taxes by electronic funds transfer or other electronic means defined by the tax administrator under the provisions of this section, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax required to have electronically transferred five percent (5%) of the amount or five hundred dollars ($500) per required payment, whichever is less.
    2. The tax administrator is authorized to waive the electronic filing requirement in a given year for persons who can show that filing electronically will cause undue hardship.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1977, ch. 134, § 1; P.L. 2009, ch. 68, art. 16, § 10.

Collateral References.

Reasonableness of compensation paid to officers or employees, so as to warrant deduction thereof in computing employer’s income tax. 10 A.L.R.3d 125.

What constitutes employer-employee relationship for purposes of federal income tax withholding. 51 A.L.R. Fed. 59.

44-30-71.1. Voluntary withholding of tax from military retirement payments.

  1. The tax administrator may enter into agreements with the federal government to allow for the withholding from military retirement payments subject to Rhode Island personal income tax of a resident individual, an amount substantially equivalent to the tax reasonably estimated to be due resulting from the inclusion in the resident’s Rhode Island income of his or her retirement payments received during any calendar year.
  2. The method of determining the amount to be withheld shall be prescribed by regulations of the tax administrator, with due regard to the withholding exemptions of the resident.
  3. The provisions of this section shall apply only to a resident who so elects to have the withholding effected.

History of Section. P.L. 1986, ch. 121, § 1.

44-30-71.2. Withholding of tax from lottery, pari-mutuel betting, video lottery terminal games and casino gaming winnings.

  1. Consistent with federal rules and regulations and procedures related to W-2G withholdings, the director of lotteries shall:
    1. Deduct and withhold from the prize money, of any person winning a prize from the state lottery; and
    2. Require the deduction and withholding from winnings from video lottery terminal games and casino gaming as defined in § 42-61.2-1 a tax computed in such a manner as to result, so far as practicable, in an amount substantially equivalent to the tax reasonably estimated to be due resulting from the inclusion in the individual’s Rhode Island income of his or her prize money received during the calendar year. The method of determining the amount to be withheld shall be prescribed by regulations of the tax administrator, which regulations and amounts shall be based upon the federal rules, regulations and procedures.
  2. Every licensee conducting or operating events upon which pari-mutuel betting is allowed shall deduct and withhold from the winnings of any person a tax computed in such manner as to result, so far as practicable, in an amount substantially equivalent to the tax reasonably estimated to be due resulting from the inclusion in the individual’s Rhode Island income of his or her winnings received during the calendar year. The method of determining the amount to be withheld shall be prescribed by regulations of the tax administrator, which regulations and the amounts shall be based upon the federal rules, regulations and procedures.

History of Section. P.L. 1989, ch. 126, art. 21, § 1; P.L. 2019, ch. 88, art. 5, § 12.

44-30-71.3. Sale of real property by nonresidents — Withholding requirements.

  1. In a sale of real property and associated tangible personal property owned by a nonresident, the buyer shall deduct and withhold on the payments an amount equal to six percent (6%) of the total payment to nonresident individuals, estates, partnerships, or trusts, and seven percent (7%) of the total payment to nonresident corporations. For purposes of this section, a “nonresident corporation” is a corporation that is neither incorporated in this state nor authorized by the secretary of state or board of bank incorporation to do business in this state.
  2. “Total payment” means the net proceeds of the sale actually paid to the nonresident seller, including the fair market value of any property to be transferred to the seller.
  3. Every buyer subject to the withholding, deduction, and payment provisions of this section shall be liable for all amounts withheld, or required to be withheld, and the amount required to be withheld under the provisions of this section shall, until remitted, constitute a lien upon the property of the owner.
  4. The buyer shall remit all monies deducted and withheld pursuant to subsection (a) of this section to the tax administrator within three (3) banking days of the date of closing on forms prescribed by the tax administrator. Interest provisions of § 44-1-7 shall be applicable to this section.
  5. Payments upon which monies were deducted and withheld pursuant to subsection (a) of this section shall be deemed to have been paid to the tax administrator on behalf of the person from whom it was withheld and the person shall be credited with having paid that amount for the taxable year beginning in that calendar year.
  6. The closing attorney, lending institution, and real estate agent or broker in any transaction governed by the provisions of this section is not subject to the withholding, deduction, or payment provisions of this section.
  7. All forms prescribed by the tax administrator that require recording in the land evidence records shall include the name of the sellers and the street address of the property.
  8. Notwithstanding any other provision of this section to the contrary, a lien created by the provisions of this section shall cease to be a lien upon or enforceable against real estate upon the expiration of a period of ten (10) years from and after the date of the sale of real property and associated tangible personal property that gave rise to the lien.

History of Section. P.L. 1991, ch. 44, art. 33, § 1; P.L. 1994, ch. 172, § 1; P.L. 1995, ch. 248, § 1; P.L. 2019, ch. 175, § 1; P.L. 2019, ch. 235, § 1.

Compiler’s Notes.

P.L. 2019, ch. 175, § 1, and P.L. 2019, ch. 235, § 1 enacted identical amendments to this section.

The board of bank incorporation, referred to in subsection (a) of this section, was eliminated by P.L. 2013, ch. 50, and P.L. 2013, ch. 57.

NOTES TO DECISIONS

Practice of Law.

Title insurer and agents did not engage in the unauthorized practice of law by drafting a residency affidavit in a real estate transaction because this document was merely a standardized form into which non-technical information was entered. In re Paplauskas, 228 A.3d 43, 2020 R.I. LEXIS 37 (R.I. 2020).

44-30-71.4. Employee leasing companies — Payroll companies.

  1. Employee leasing company certification.
    1. Every “employee leasing company,” defined in this section as any individual, firm, partnership or corporation engaged in providing workers to employers or firms under a contract or leasing arrangement, shall, as a condition of doing business in this state, be certified by the division of taxation each year, that the company has complied with the withholding provisions of chapter 30 of this title.
    2. Employee leasing companies must apply to the division of taxation during the month of July of each year on forms prescribed by the tax administrator for a certificate executed by the tax administrator certifying that all taxes withheld from employees, or subject to withholding from employees have been remitted to the division of taxation including the withholding provisions of chapter 30 of this title and the contribution, interest, and penalty provisions pursuant to the Employment Security Act, chapters 42 — 44 of title 28, and the Temporary Disability Insurance Act, chapters 39 — 41 of title 28 have been remitted to the department of labor and training. No certificate shall be issued if taxes subject to withholding or contributions have not been withheld and remitted.
    3. No employee leasing firm may conduct business in this state without the certification prescribed in subdivision (2) of this subsection. Any employer or firm that engages any employee leasing company that is not certified by the tax administrator shall be jointly and severally liable for the taxes required to be withheld and remitted under § 44-30-71 or chapters 39 — 44 of title 28.
  2. Payroll companies — Joint liability.   Every payroll company, herein defined as any individual, firm, partnership or corporation engaging in providing payroll services to employers which services include the withholding of tax including the withholding provisions of chapter 30 of this title and the contribution, interest, and penalty provisions pursuant to the Employment Security Act, chapters 42 — 44 of title 28, and the Temporary Disability Insurance Act, chapters 39 — 41 of title 28 from employee wages and which receives moneys from a customer or employer for Rhode Island withholding from the wages of the customer’s employees, and who fails to remit said withholding to the division of taxation or contributions to the department of labor and training on a timely basis, shall be jointly and severally liable with the customer or employer for said withholdings.

History of Section. P.L. 1992, ch. 133, art. 42, § 1; P.L. 2019, ch. 88, art. 5, § 12.

44-30-72. Withholding agreements.

The tax administrator may enter into agreements with the tax departments of other states, which require income tax to be withheld from the payment of wages and salaries, so as to govern the amounts to be withheld from the wages and salaries of residents of those states under provisions of this chapter. The agreements may provide for recognition of anticipated tax credits in determining the amounts to be withheld and, under regulations prescribed by the tax administrator, may relieve employers in this state from withholding income tax on wages and salaries paid to nonresident employees. The agreements authorized by this subsection are subject to the condition that the tax departments of the other states grant similar treatment to residents of this state.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-73. Information statement for employee.

Every employer required to deduct and withhold Rhode Island personal income tax from the wages of an employee, or who would have been required to deduct and withhold tax if the employee had claimed no more than one withholding exemption, shall furnish to the employee in respect of the wages paid by the employer to the employee during the calendar year on or before January 31 of the succeeding year, or, if his or her employment is terminated before the close of the calendar year, within thirty (30) days after the date on which the last payment of the wages is made, a written statement as prescribed by the tax administrator showing the amount of wages paid by the employer to the employee, the amount deducted and withheld as tax, and any other information that the tax administrator shall prescribe.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-74. Credit for tax withheld.

Wages upon which tax is required to be withheld shall be taxable as if no withholding were required, but any amount of Rhode Island personal income tax actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax administrator on behalf of the person from whom withheld, and the person shall be credited with having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable year of less than twelve (12) months, the credit shall be made under regulations of the tax administrator.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-75. Employer’s return and payment of withheld taxes.

Every employer required to deduct and withhold tax under this chapter shall file a withholding tax return on forms prescribed and at the times prescribed by the tax administrator and pay over to the tax administrator or to a depositary designated by the tax administrator the taxes so required to be deducted and withheld.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1991, ch. 6, art. 2, § 1; P.L. 1993, ch. 130, § 1.

44-30-76. Employer’s liability for withheld taxes — Violations — Penalties.

    1. Every employer required to deduct and withhold Rhode Island personal income tax is hereby made liable for the tax. In addition, any amount of Rhode Island personal income tax actually deducted and withheld shall be held to be a special fund in trust for the tax administrator. No employee shall have any right of action against his or her employer in respect to any moneys deducted and withheld from his or her wages and required to be paid over to the tax administrator in compliance or in intended compliance with this law.
    2. For purposes of this section the term “employer” includes an officer or employee of a corporation, including a dissolved corporation, or a member or employee of a partnership, if the officer, employee, or member is under a duty to deduct and withhold Rhode Island personal income tax.
  1. If the tax administrator believes that the payment to the state of the trust fund established under this section will be jeopardized by delay, neglect, or misappropriation, he or she shall thereupon notify the employer that the trust fund shall be segregated, and be kept separate and apart from all other funds and assets of the employer and shall not be commingled with any other funds or assets. The notice shall be given by either hand delivery or by registered mail, return receipt requested. Within four (4) days after the sending of the notice, all the taxes which thereafter either become collectible or are collected shall be deposited daily in any financial institution in the state defined in title 19 and the taxes shall be designated as a special fund in trust for the state and payable to the state by the employer as trustee of the fund. If an employer who has been notified to segregate such trust funds as a result of its failure to remit Rhode Island personal income taxes actually deducted and withheld fails to segregate such trust funds, or after such notice fails or refuses to deduct and withhold personal income tax from its employees, the tax administrator may institute proceedings in the superior court of this state to restrain and enjoin such employer from engaging in business in this state until such time as the employer complies with the notice to segregate trust funds.
  2. Any employer and any officer, agent, servant, or employee of any corporate employer responsible for either the collection or payment of the tax, who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter, shall upon conviction for each offense be fined not more than one thousand dollars ($1,000), or be imprisoned for not exceeding one year, or by both such fine and imprisonment, the fine and the imprisonment to be in addition to any other penalty provided by this chapter.
  3. The provisions of subsections (b) and (c) of this section shall not be exclusive, and shall be in addition to all other remedies which the tax administrator may employ in the enforcement and collection of taxes.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1974, ch. 151, art. 3, § 1; P.L. 1991, ch. 44, art. 32, § 1.

44-30-77. Employer’s failure to withhold.

If an employer fails to deduct and withhold Rhode Island personal income tax as required, and thereafter the employee’s tax against which the tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from the employer, but the employer shall not be relieved from liability for any penalties, interest, or additions to the tax otherwise applicable in respect of the failure to deduct and withhold.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-78. Filing annual reconciliation of tax withheld.

A reconciliation of tax withheld must be filed by the employer with the division of taxation on or before January 31 following the close of the calendar year in accordance with rules and regulations prescribed by the tax administrator.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

Part VI Procedure and Administration

44-30-81. Notice of deficiency.

  1. General.  If upon examination of a taxpayer’s return the tax administrator determines that there is a deficiency, the administrator may mail a notice of deficiency to the taxpayer at his or her last known address in or out of this state. If a husband and wife are jointly liable for tax, a notice of deficiency may be a single joint notice, unless the tax administrator has been notified by either spouse that separate residences have been established, in which event a duplicate original of the joint notice shall be mailed to each spouse at his or her last known address in or out of this state. If a taxpayer has died or is under a legal disability, a notice of deficiency may be mailed to his or her last known address in or out of this state, unless the tax administrator has received notice of the existence of a fiduciary relationship with respect to the taxpayer.
  2. Notice of deficiency as assessment and demand for tax.  After thirty (30) days from the mailing of a notice of deficiency, the notice shall be an assessment and a notice and demand for tax to be paid at the place and time specified in the notice, together with interest, additions to tax, and civil penalties stated in the notice, except only for any tax or other amounts as to which the taxpayer has within the thirty (30) day period filed with the tax administrator an “administrative petition” under § 44-30-89 . If the notice of deficiency is addressed to a person outside of the United States, the period shall be one hundred fifty (150) days.
  3. Restrictions on assessment and levy.  No assessment of a deficiency and no levy or proceeding in court for its collection shall be made, begun, or prosecuted, except as provided in § 44-30-82(b) , until a notice of deficiency has been mailed to the taxpayer, nor until the expiration of the time for filing an administrative petition contesting the notice, nor, if an administrative petition with respect to the taxable year has been filed, until the tax administrator’s decision has become final.
  4. Waiver of restrictions.  The taxpayer may at any time, whether or not a notice of deficiency has been issued, by a signed notice in writing filed with the tax administrator waive in whole or in part the restrictions on deficiency assessments and collection.
  5. “Deficiency” defined.  A “deficiency” means the correct amount of the tax less: (1) the amount shown as the tax upon the taxpayer’s return (whether or not the return was made or the tax computed by the taxpayer), and less (2) the amounts previously assessed (or collected without assessment) as a deficiency, and plus (3) the amount of any rebates. For purposes of this definition, the tax shown on the return and the correct amount of the tax shall both be determined without regard to payments on account of estimated tax or the credit for withholding tax; and a rebate means so much of an abatement, credit, refund, or other repayment made on the ground that the amounts entering into the definition of a “deficiency” showed a balance in the taxpayer’s favor.
  6. Deficiency explanation.  All notices of deficiency shall explain the reasons why there is a deficiency together with a description of all penalties and any fines to be assessed.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1995, ch. 380, § 1; P.L. 1998, ch. 66, § 1.

Law Reviews.

2001 Survey of Rhode Island Law, see 7 Roger Williams U.L. Rev. 403 (2002).

NOTES TO DECISIONS

Notice Invalid.

Notices of deficiency were invalid since they were misleading and imprecise as to the reason for the deficiency, and since they provided for the assessment of a deficiency after only ten days. DeBlois v. Clark, 764 A.2d 727, 2001 R.I. LEXIS 20 (R.I. 2001).

Collateral References.

Construction and application of 26 U.S.C.S. § 6015(b)(1)(C), requiring that spouse not know of omission of gross income from joint tax return to obtain innocent spouse exemption from liability for tax. 161 A.L.R. Fed. 373.

44-30-82. Assessment date.

  1. General.  The amount of tax that a return shows to be due shall be deemed to be assessed upon the filing of the return, including any amended return showing an increase of tax. If a return was properly filed without computation of tax, the tax computed by the tax administrator shall be deemed to be assessed upon the date on which payment is due. If a notice of deficiency has been mailed, the amount of the deficiency shall be deemed to be assessed at the time provided in § 44-30-81(b) if no administrative petition is filed, or if an administrative petition is filed, then upon the date when a decision of the tax administrator establishing the amount of the deficiency becomes final. Any amount not previously assessed and which is paid as a tax or in respect of a tax shall be deemed to be assessed upon the receipt of the payment, notwithstanding any provisions otherwise restricting assessment.
  2. Failure to file return.  If a taxpayer fails to file any required Rhode Island personal income tax return, the tax administrator is authorized to estimate the taxpayer’s Rhode Island taxable income and tax thereon from any available information, and notwithstanding the restrictions of § 44-30-81(c) the tax, additions to tax, civil penalties, and interest shall be deemed to be assessed on the date of mailing to the taxpayer of notice of the assessment.
  3. Other assessment powers.  The tax administrator may prescribe by regulations the manner or time for the assessment of tax, interest, additions to tax, and assessable penalties if not otherwise provided for.
  4. Estimated income tax.  No unpaid amount of estimated tax under § 44-30-56 shall be assessed.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-83. Limitations on assessment.

  1. General.  Except as otherwise provided in this section the amount of the Rhode Island personal income tax shall be assessed within three (3) years after the return was filed, whether or not the return was filed on or after the prescribed date. For this purpose a tax return filed before the due date shall be considered as filed on the due date; and a return of withholding tax for any period ending with or within a calendar year filed before April 15 of the succeeding calendar year shall be considered filed on April 15 of the succeeding calendar year.
  2. Exceptions.
    1. Assessment at any time. The tax may be assessed at any time if:
      1. No return is filed;
      2. A false or fraudulent return is filed with intent to evade tax; or
      3. The taxpayer fails to file a report, pursuant to § 44-30-59 , of a change, correction, or amended return, increasing his or her federal taxable income as reported on his or her federal income tax return or to report a change or correction that is treated in the same manner as if it were a deficiency for federal income tax purposes.
    2. Extension by agreement. Where, before the expiration of the time prescribed in this section for the assessment of tax, or before the time as extended pursuant to this section, both the tax administrator and the taxpayer have consented in writing to its assessment after that time, the tax may be assessed at any time prior to the expiration of the period agreed upon.
    3. Report of changed or corrected federal income. If the taxpayer shall, pursuant to § 44-30-59 , file an amended return, or report a change or correction increasing his or her federal taxable income or report a change or correction that is treated in the same manner as if it were a deficiency for federal income tax purposes, an assessment may be made at any time prior to two (2) years after the report or amended return was filed. This assessment of Rhode Island personal income tax shall not exceed the amount of the increase attributable to the federal change, correction, or items amended on the taxpayer’s amended federal income tax return. The provisions of this paragraph shall not affect the time within which or the amount for which an assessment may otherwise be made.
    4. Deficiency attributable to net operating loss carryback. If a taxpayer’s deficiency is attributable to an excessive net operating loss carryback allowance, it may be assessed at any time that a deficiency for the taxable year of the loss may be assessed.
    5. Recovery of erroneous refund. An erroneous refund shall be considered to create an underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous refund may be made at any time within three (3) years thereafter, or at any time if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.
    6. Armed forces relief. For purposes of this tax, the date appearing in 26 U.S.C. § 692(a) shall be January 1, 1971.
  3. Omission of income on return.  Notwithstanding the foregoing provisions of this section, the tax may be assessed at any time within six (6) years after the return was filed if an individual omits from his or her Rhode Island income an amount properly includible therein which is in excess of twenty-five percent (25%) of the amount of Rhode Island income stated in the return. For this purpose there shall not be taken into account any amount that is omitted in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the item.
  4. Suspension of limitation.  The running of the period of limitations on assessment or collection of tax or other amount (or of a transferee’s liability) shall, after the mailing of a notice of deficiency, be suspended for the period during which the tax administrator is prohibited under § 44-30-81(c) from making the assessment or from collecting by levy, and for sixty (60) days thereafter.
  5. Limitations exclusive.  No period of limitations specified in any other law shall apply to the assessment or collection of Rhode Island personal income tax. Under no circumstances shall the tax administrator issue any notice of a deficiency determination for Rhode Island personal income tax due or payable more than ten (10) years after the date upon which the return was filed or due to be filed, nor shall the tax administrator commence any collection action for any personal income tax due and payable unless the collection action is commenced within ten (10) years after a notice of deficiency determination became a final collectible assessment; provided however, that the tax administrator can renew a statutory lien that was initially filed within the ten-year (10) period for collection actions. Both of the aforementioned ten-year (10) periods are tolled for any period of time the taxpayer is in federal bankruptcy or state receivership proceedings. “Collection action” refers to any activity undertaken by the division of taxation to collect on any state tax liabilities that are final, due, and payable under Rhode Island law. “Collection action” may include, but is not limited to, any civil action involving a liability owed under chapter 30 of title 44. This section excludes any liabilities that are deemed trust funds as defined in § 44-30-76 , as amended.
  6. The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation periods set forth in this section.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 2005, ch. 410, § 33; P.L. 2019, ch. 192, § 3; P.L. 2019, ch. 215, § 3.

Compiler’s Notes.

P.L. 2019, ch. 192, § 3, and P.L. 2019, ch. 215, § 3 enacted identical amendments to this section.

Applicability.

P.L. 2019, ch. 192, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

P.L. 2019, ch. 215, § 5 provides: “This act shall take effect on July 1, 2019 and shall apply only to state tax liabilities that become final, due and payable after July 1, 2019.”

Collateral References.

Suspension of running of period of limitation, under 26 U.S.C.S. § 6503, for federal tax assessment or collection. 160 A.L.R. Fed. 1.

44-30-84. Interest on underpayment.

  1. General.
    1. If any amount of Rhode Island personal income tax, including any amount of the tax withheld by an employer, is not paid on or before the due date, interest on the amount at the annual rate provided by § 44-1-7 shall be paid for the period from the due date to the date paid, whether or not any extension of time for payment was granted. The interest shall not be paid if its amount is less than two dollars ($2.00).
    2. Interest prescribed under this section may be waived by the tax administrator in the event the underpayment results from the state’s closing of banks and credit unions in which the taxpayer’s monies are deposited and the taxpayer has no other funds from which to pay his or her tax.
  2. Estimated tax.  If an individual fails to file a declaration of estimated Rhode Island personal income tax as required by § 44-30-55 , or to pay any installment of the tax as required by § 44-30-56 , the individual shall pay interest at the annual rate provided by § 44-1-7 for the period the failure continues, until the fifteenth day of the fourth month following the close of the taxable year. The interest in respect of any unpaid installment shall be computed on the amount by which his or her actual payments and credits in respect of the tax are less than eighty percent (80%) of the installment at the time it is due. Notwithstanding the foregoing, no interest shall be payable if one of the exceptions specified in 26 U.S.C. § 6654(e)(1) or (2) would apply if the exceptions referred to the corresponding Rhode Island tax amounts and returns.
  3. Payment prior to notice of deficiency.  If, prior to the mailing to the taxpayer of notice of deficiency under § 44-30-81 , the tax administrator mails to the taxpayer a notice of proposed increase of tax and within thirty (30) days after the date of the notice of the proposed increase the taxpayer pays all amounts shown on the notice to be due to the tax administrator, no interest under this section on the amount so paid shall be imposed for the period after the date of the notice of proposed increase.
  4. Payment within ten (10) days after notice and demand.  If notice and demand is made for payment of any amount, and the amount is paid within ten (10) days after the effective date of the notice and demand under § 44-30-81(b) , interest under this section on the amount so paid shall not be imposed for the period after the date of the notice and demand.
  5. Suspension of interest on deficiencies.  If a waiver of restrictions on assessment of a deficiency has been filed by the taxpayer, and if notice and demand by the tax administrator for payment of the deficiency is not made within thirty (30) days after the filing of the waiver, interest shall thereupon cease to accrue until the date of notice and demand.
  6. Interest treated as tax.  Interest under this section shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as the tax, except that interest under subsection (b) of this section may be assessed without regard to the restrictions of § 44-30-81 .
  7. No interest on interest.  No interest shall be imposed on any interest provided in this section.
  8. Interest on civil penalties and additions to tax.  Interest shall be imposed under subsection (a) of this section in respect of any assessable civil penalty or addition to tax only if the assessable penalty or addition to tax is not paid within fifteen (15) days from the effective date of notice and demand therefor under § 44-30-81(b) , and in that case interest shall be imposed only for the period from the effective date of the notice and demand to the date of payment.
  9. Tax reduced by carryback.  If the amount of tax for any taxable year is reduced by reason of a carryback of a net operating loss, the reduction in tax shall not affect the computation of interest under this section for the period ending with the last day of the taxable year in which the net operating loss arises.
  10. Limitation on assessment or collection.  Interest prescribed under this section may be assessed or collected at any time during the period within which the tax or other amount to which the interest relates may be assessed or collected.
  11. Interest on erroneous refund.  Any portion of tax or other amount which has been erroneously refunded, and which is recoverable by the tax administrator, shall bear interest at the annual rate provided by § 44-1-7 from the date of the payment of the refund.
  12. Timely deposits for withheld tax.  If an entity fails to remit withheld tax at the times prescribed by the tax administrator, there may be interest assessed at the annual rate provided by § 44-1-7 for the period the failure continues, until the thirty-first day of the first month following the close of the taxable year. The interest with respect to any failed remittances shall be computed as prescribed by the tax administrator.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1974, ch. 78, § 1; P.L. 1981, ch. 293, § 2; P.L. 1992, ch. 388, § 10; P.L. 1994, ch. 369, § 1; P.L. 2019, ch. 88, art. 5, § 12; P.L. 2020, ch. 79, art. 2, § 25.

44-30-85. Additions to tax and civil penalties.

  1. Failure to file tax returns or to pay tax.  In the case of failure:
    1. To file the Rhode Island personal income tax return or the employer’s withheld tax return on or before the prescribed date, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to five percent (5%) of the tax required to be reported if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate. For this purpose, the amount of tax required to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for payment and by the amount of any credit against the tax which may properly be claimed upon the return;
    2. To pay the amount shown as tax on the personal income tax return or the employer’s withheld tax return on or before the prescribed date for payment of the tax (determined with regard to any extension of time for payment) unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on the return five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate; or
    3. To pay any amount in respect of any tax required to be shown on a return which is not so shown, including an assessment made as a result of mathematical error, within ten (10) days of the date of the notice and demand therefor, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in the notice and demand five-tenths percent (0.5%) of the amount of the tax if the failure is for not more than one month, with an additional five-tenths percent (0.5%) for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate.
  2. Negligence.  If any part of a deficiency is due to negligence or intentional disregard of the Rhode Island personal income tax law or rules or regulations under this section (but without intent to defraud), five percent (5%) of that part of the deficiency shall be added to the tax.
  3. Fraud.  If any part of a deficiency is due to fraud, fifty percent (50%) of that part of the deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts imposed by subsections (a) and (b) of this section.
  4. Determination of deficiency.  For purposes of subsections (b) and (c) of this section, the amount shown as the tax by the taxpayer upon his or her return shall be taken into account in determining the amount of the deficiency only if the return was filed on or before the last day prescribed for the filing of the return, determined with regard to any extension of time for the filing.
  5. Failure to collect and pay over tax.  Any person required to collect, truthfully account for, and pay over the Rhode Island personal income tax who willfully fails to collect the tax or truthfully account for and pay over the tax or willfully attempts in any manner to evade or defeat the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a civil penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
  6. Failure to file certain information returns.  In case of each failure to file an information statement as required under authority of § 44-30-58(c) in respect of payments to another person, unless it is shown that the failure is due to reasonable cause and not to willful neglect, the person failing to file the required statement shall, upon notice and demand by the tax administrator made in the same manner as for tax, pay a civil penalty of one dollar ($1.00) for each statement not so filed, but the total amount imposed on the delinquent person for all the failures during any calendar year shall not exceed one thousand dollars ($1,000).
  7. Additions and penalties treated as tax.  The additions to the tax and civil penalties provided by this section shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as taxes, except that any additional amount under subsection (a) of this section, not attributable to a deficiency, may be assessed without regard to the restrictions of § 44-30-81 .
  8. Bad checks.  If any check or money order in payment of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered the check, upon notice and demand by the tax administrator or his or her delegate, in the same manner as tax, an amount equal to one percent (1%) of the amount of the check, except that if the amount of the check is less than five hundred dollars ($500), the penalty under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered the check in good faith and with reasonable cause to believe that it would be duly paid.
  9. “Person” defined.  As used in this section, the term “person” includes an officer or employee of a corporation, including a dissolved corporation, or a member or employee of a partnership, who as an officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 2009, ch. 68, art. 16, § 7.

Collateral References.

Construction and application of 26 USCS § 6701 imposing civil penalties on persons aiding and abetting understatement of tax liability. 114 A.L.R. Fed. 377.

What constitutes “reasonable cause” under state statutes imposing penalty on taxpayer for failure to file timely tax return unless such failure was due to “reasonable cause”. 29 A.L.R.4th 413.

44-30-85.1. Electronic filing of withholding tax returns and penalties.

  1. Beginning on January 1, 2020, every employer required to deduct and withhold tax under this chapter, who had an average tax amount of two hundred dollars ($200) or more per month for the previous calendar year, shall file a return and remit said payments by electronic funds transfer or other electronic means as defined by the tax administrator. The tax administrator shall adopt any rules necessary to administer a program of electronic funds transfer or other electronic filing system.
  2. Beginning on January 1, 2020, if any person fails to pay said taxes by electronic funds transfer or other electronic means defined by the tax administrator as required hereunder, there shall be added to the amount of tax the lesser of five percent (5%) of the withheld tax payment amount that was not filed electronically or five hundred dollars ($500), whichever is less, unless there was reasonable cause for the failure and such failure was not due to negligence or willful neglect.
  3. Notwithstanding the provisions of § 44-30-85.1(2) , beginning on January 1, 2020, if any person fails to file a return by electronic means defined by the tax administrator as required hereunder, there shall be added to the amount of tax equal to fifty dollars ($50), unless there was reasonable cause for the failure and such failure was not due to negligence or willful neglect.

History of Section. P.L. 2019, ch. 88, art. 5, § 13.

44-30-86. Overpayment.

  1. General.  The tax administrator within the applicable period of limitations may credit an overpayment against any liability of the taxpayer in respect of the Rhode Island personal income tax, and the balance shall be refunded by the general treasurer. A payment for a year of no liability shall be considered an overpayment. Any refund under this section shall be made only upon a certificate of the tax administrator approved by the director of administration. In no case shall the filing of a protest constitute a condition to a later credit or refund of Rhode Island personal income tax.
  2. Excessive withholding.  If the amount allowable as a credit for tax withheld from the taxpayer exceeds his or her tax to which the credit relates, the excess shall be considered an overpayment and shall be adjusted or refunded in any manner and time that the tax administrator may prescribe.
  3. Credits against estimated tax.  The tax administrator may promulgate regulations providing for the crediting against the Rhode Island personal income tax for any taxable year of the amount determined by the taxpayer or the tax administrator to be an overpayment of the income tax for a preceding taxable year. If any overpayment of the tax is so claimed as a credit against estimated tax for the succeeding taxable year, the amount shall be considered as a payment of the tax for the succeeding taxable year, whether or not claimed as a credit in the declaration of estimated tax for the succeeding taxable year, and no claim for credit or refund of the overpayment shall be allowed for the taxable year for which the overpayment arises.
  4. Assessment and collection after limitation period.  If any amount of tax is assessed or collected after the expiration of the period of limitation properly applicable thereto, the amount shall be considered an overpayment.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

Collateral References.

Validity and applicability of statutory time limit concerning taxpayer’s claim for state tax refund. 1 A.L.R.6th 1.

44-30-87. Limitations on credit or refund.

  1. General.  Claim for credit or refund of an overpayment of tax shall be filed by the taxpayer within three (3) years from the time the return was filed or two (2) years from the time the tax was paid, whichever of these periods expires the later, or if no return was filed by the taxpayer, within two (2) years from the time the tax was paid. If the claim is filed within the three (3) year period, the amount of the credit or refund shall not exceed the portion of the tax paid within the three (3) year period. If the claim is not filed within the three (3) year period, but is filed within the two (2) year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the two (2) years immediately preceding the filing of the claim. Except as otherwise provided in this section, if no claim is filed, the amount of a credit or refund shall not exceed the amount which would be allowable if a claim has been filed on the date the credit or refund is allowed.
  2. Extension of time by agreement.  If an agreement under § 44-30-83(b)(2) extending the period for assessment of tax is made within the period prescribed in subsection (a) of this section for the filing of a claim for credit or refund, the period for filing a claim for credit or refund, or for making credit or refund if no claim is filed, shall not expire prior to six (6) months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension of it thereof. The amount of the credit or refund shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim or the making of the credit or refund, as the case may be, plus the portion of the tax paid within the period which would be applicable under subsection (a) of this section if a claim had been filed on the date the agreement was executed.
  3. Notice of change or correction of federal income.  If a taxpayer is required by § 44-30-59 to file a report of a change or correction or amended return decreasing the federal taxable income reported on his or her federal income tax return, or to report a change or correction which is treated in the same manner as if it were an overpayment for federal income tax purposes, claim for credit or refund of an overpayment of tax shall be filed by the taxpayer within two (2) years from the time the report of the change or correction or the amended return was required to be filed. If a report or amended return required by § 44-30-59 is not filed within the ninety (90) day period specified in that section, interest on any resulting refund or credit shall cease to accrue on the ninetieth day. The amount of the credit or refund shall not exceed the amount of the reduction in Rhode Island personal income tax attributable to the federal change, correction, or items amended on the taxpayer’s amended federal income tax return. This subsection shall not affect the time within which or the amount for which a claim for credit or refund may otherwise be filed.
  4. Overpayment attributable to net operating loss carryback.  If an overpayment is attributable to the application to the taxpayer of a net operating loss carryback, a claim for credit or refund shall be filed within three (3) years from the time the return was due for the taxable year of the loss.
  5. Failure to file claim within prescribed period.  No credit or refund shall be allowed or made, except as provided in subsection (f) of this section, after the expiration of the applicable period of limitation unless a claim for credit or refund is filed by the taxpayer within that period or unless the tax administrator determines under subsection (f) of this section that the taxpayer has made an overpayment. Any later credit shall be void and any later refund erroneous. No period of limitations specified in any other law shall apply to the recovery by a taxpayer of moneys paid in respect of Rhode Island personal income tax.
  6. Effect of filing administrative petition.  If a notice of deficiency for a taxable year has been mailed to the taxpayer under § 44-30-81 and if the taxpayer files a timely petition with the tax administrator, the tax administrator may determine that the taxpayer has made an overpayment for that year, whether or not a deficiency is also determined for that year, and no separate claim for credit or refund for that year shall be filed and no separate credit or refund for that year shall be allowed or made, except:
    1. As to overpayment determined by a decision of the tax administrator which has become final;
    2. As to any amount collected in excess of an amount computed in accordance with the decision of the tax administrator which has become final;
    3. As to any amount collected after the period of limitation upon the making of levy for collection has expired; and
    4. As to any amount claimed as a result of a change or correction described in subsection (c) of this section.
  7. Limit on amount of credit or refund.  The amount of overpayment determined under subsection (f) of this section shall, when the decision of the tax administrator has become final, be credited or refunded in accordance with § 44-30-86(a) and shall not exceed the amount of tax which the tax administrator determines as part of his or her decision was paid:
    1. After the mailing of the notice of deficiency; or
    2. Within the period which would be applicable under subsection (a), (b), or (c) of this section, if on the date of the mailing of the notice of deficiency a claim had been filed, whether or not filed, stating the grounds upon which the tax administrator finds that there is an overpayment.
  8. Early return.  For purposes of this section, any return filed before the last day prescribed for the filing of the return is considered as filed on that last day, determined without regard to any extension of time granted the taxpayer.
  9. Prepaid income tax.  For purposes of this section, any income tax withheld from the taxpayer during any calendar year and any amount paid as estimated income tax for a taxable year is deemed to have been paid by the taxpayer on the fifteenth day of the fourth month following the close of his or her taxable year with respect to which the amount constitutes credit or payment.
  10. Return and payment of withholding tax.  Notwithstanding subsection (h) of this section, for purposes of this section with respect to any withholding tax:
    1. If a return for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, the return is considered filed on April 15 of the succeeding calendar year; and
    2. If a tax with respect to remuneration paid during any period ending with or within a calendar year is paid before April 15 of the succeeding calendar year, the tax is considered paid on April 15 of the succeeding calendar year.
  11. Cross reference.  See § 44-30-86(c) , barring refund of overpayment credited against tax of a succeeding year.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

Collateral References.

Construction and operation of statutory time limit for filing claim for state tax refund. 14 A.L.R.6th 119.

44-30-87.1. Net operating loss — Limitation.

A net operating loss deduction shall be allowed which shall be the same as the net operating loss deduction allowed under § 172 of the Internal Revenue Code, 26 U.S.C. § 172, except that: (1) any net operating loss included in determining the deduction shall be adjusted to reflect the modifications increasing and decreasing adjusted gross income required by §§ 44-30-12 and 44-30-32 ; (2) the deduction shall not include any net operating loss sustained during any taxable year beginning in which the taxpayer was not subject to the tax imposed by this chapter; and (3) the deduction shall not exceed the deduction for the taxable year allowable under § 172 of the Internal Revenue Code, 26 U.S.C. § 172; provided, notwithstanding any other provision of law, the deduction for a taxable year may not be carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the number of succeeding taxable years allowed under § 172 of the Internal Revenue Code, 26 U.S.C. § 172.

History of Section. P.L. 2002, ch. 65, art. 16, § 6.

44-30-88. Interest on overpayment.

  1. General.  Interest shall be allowed and paid as follows at the annual rate provided by § 44-1-7 upon any overpayment in respect of Rhode Island personal income tax:
    1. From the date of the overpayment to a date, to be determined by the tax administrator, preceding the date of a refund check by not more than thirty (30) days, whether or not the refund check is accepted by the taxpayer after tender of the check to the taxpayer. The acceptance of the check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon;
    2. From the date of the overpayment to the due date of an amount against which a credit is taken. No interest shall be allowed or paid if the amount is less than two dollars ($2.00).
  2. Date of payment.  The provisions of § 44-30-87(h) and (i) applicable in determining the date of payment of tax for purposes of determining the period of limitation on credit or refund, shall be applicable in determining the date of payment for purposes of this section.
  3. Income tax refund within ninety (90) days of due date of tax.  If any overpayment of Rhode Island personal income tax is refunded within ninety (90) days after the last prescribed date, or permitted by extension of time, for filing the return of the tax, or within ninety (90) days after the return is in fact filed, no interest is allowed under this section on the overpayment.
  4. Refund of tax caused by carryback of loss.  For purposes of this section, if any overpayment of Rhode Island personal income tax results from a carryback of a net operating loss, the overpayment is deemed not to have been made prior to the close of the taxable year in which such net operating loss arises.
  5. Cross reference.  See § 44-30-87(c) , terminating interest after failure to file notice of federal change under § 44-30-59 .

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1992, ch. 388, § 10.

Collateral References.

Effect of delay in receipt or negotiation of refund check in determining right to interest under § 6611 of the Internal Revenue Code (26 USCA § 6611). 145 A.L.R. Fed. 437.

44-30-89. Administrative petition.

  1. Petition for redetermination of a deficiency.  Within thirty (30) days, or one hundred fifty (150) days if the notice is addressed to a person outside of the United States, after the mailing of the notice of deficiency under § 44-30-81 , the taxpayer may file an administrative petition with the tax administrator for a redetermination of the deficiency. The petition may also assert a claim for refund for the same taxable year or years, subject to the limitations of § 44-30-87(g) .
  2. Petition for refund.  A taxpayer may file a petition to the tax administrator for the amounts asserted in a claim for refund if:
    1. The taxpayer has filed a timely claim for refund with the tax administrator;
    2. The taxpayer has not previously filed a petition with the tax administrator for redetermination of a deficiency for the taxable year (except where the claim for refund relates to a report of change or correction or amended return required to be filed under § 44-30-59 ); and
    3. Either: (i) six (6) months have expired since the claim was filed, or (ii) the tax administrator has mailed to the taxpayer a notice of disallowance of the claim in whole or in part. No petition under this subsection shall be filed more than two (2) years after the date of mailing of a notice of disallowance. The foregoing two (2) year period may be extended by written agreement between the taxpayer and the tax administrator.
  3. Procedural rules.  The form of a petition to the tax administrator, and further proceedings before the administrator in any case initiated by the filing of an administrative petition, shall be governed by rules to be established by the tax administrator. No administrative petition shall be denied in whole or in part without an opportunity for a hearing having been provided the taxpayer by the tax administrator or by a hearing officer designated by the tax administrator to decide the case. At any hearing, the taxpayer may present any evidence that may be relevant, and the tax administrator or the hearing officer shall redetermine the correct amount of the tax.
  4. Assertion of deficiency after filing petition.
    1. Petition for redetermination of deficiency.  If a taxpayer files with the tax administrator a petition for redetermination of a deficiency, the tax administrator shall have power to determine a greater deficiency than asserted in the notice of deficiency and to determine if any addition to tax, or civil penalty, as provided in § 44-30-85 , should be assessed, if claim therefor is asserted at or before the hearing under rules of the tax administrator.
    2. Petition for refund.  If the taxpayer files with the tax administrator a petition for credit or refund for a taxable year, the tax administrator may:
      1. Determine a deficiency for that year as to any amount of deficiency asserted at or before the hearing under rules of the tax administrator and within the period in which a notice of deficiency would be timely under § 44-30-83 ; or
      2. Set off or deny so much of the amount for which credit or refund is sought, notwithstanding the expiration of any period of limitations as the tax administrator could otherwise have set off or denied for the same taxable year, provided the tax administrator has asserted the same at or before the hearing.
  5. Burden of proof.  In any case before the tax administrator the burden of proof shall be upon the petitioner except as to the following issues:
    1. Whether the petitioner has been guilty of fraud with intent to evade tax;
    2. Whether the petitioner is liable as the transferee of property of a taxpayer, but not to show that the taxpayer was liable for the tax; and
    3. Whether the petitioner is liable for any increase in a deficiency where the increase is asserted initially after a notice of deficiency was mailed and petition under this section filed, unless the increase in deficiency is the result of an amended return, change, or correction of federal taxable income, required to be reported under § 44-30-59 , and of which the tax administrator had no notice at the time the notice of deficiency was mailed.
  6. Related federal determination.  Consideration may be given to a federal determination relating to issues raised in a case before the tax administrator.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1993, ch. 459, § 10.

44-30-90. Review of tax administrator’s decision.

  1. General.  Any taxpayer aggrieved by the decision of the tax administrator or his or her designated hearing officer as to his or her Rhode Island personal income tax may within thirty (30) days after notice of the decision is sent to the taxpayer by certified or registered mail, directed to his or her last known address, petition the sixth division of the district court pursuant to chapter 8 of title 8 setting forth the reasons why the decision is alleged to be erroneous and praying relief therefrom. Upon the filing of any complaint, the clerk of the court shall issue a citation, substantially in the form provided in § 44-5-26 to summon the tax administrator to answer the complaint, and the court shall proceed to hear the complaint and to determine the correct amount of the liability as in any other action for money, but the burden of proof shall be as specified in § 8-8-28 .
  2. Judicial review sole remedy of taxpayer.  The review of a decision of the tax administrator provided by this section shall be the exclusive remedy available to any taxpayer for the judicial determination of the liability of the taxpayer for Rhode Island personal income tax.
  3. Date of finality of tax administrator’s decision.  A decision of the tax administrator shall become final upon the expiration of the time allowed for petitioning the district court if no timely petition is filed, or upon the final expiration of the time for further judicial review of the case.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1976, ch. 140, § 32; P.L. 1982, ch. 388, § 26; P.L. 1984, ch. 183, § 12.

44-30-91. Mailing rules — Holidays.

  1. Timely mailing.  If any claim, statement, notice, petition, or other document, other than a return or a declaration of estimated tax, required to be filed within a prescribed period or on or before a prescribed date under authority of any provision of the Rhode Island personal income tax law is, after that period or date, delivered by United States registered or certified mail to the tax administrator, office, officer, or person with which or with whom the document is required to be filed, the date on which the document is dated by the post office shall be deemed to be the date of delivery. This subsection shall apply only if the date falls within the prescribed period or on or before the prescribed date for the filing of the document, determined with regard to any extension granted for the filing, and only if the document was, within the prescribed time, deposited in the mail in the United States postage prepaid and properly addressed. If any document is sent by United States registered or certified mail, the registration or certification shall be prima facie evidence that the document was delivered to the tax administrator, office, officer, or person to which or to whom addressed.
  2. Last day a Saturday, Sunday, or legal holiday.  When the last day prescribed under authority of the Rhode Island personal income tax law, including any extension of time, for performing any act falls on Saturday, Sunday, or a Rhode Island legal holiday, the performance of the act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday or Rhode Island legal holiday.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-92. Collection, levy, and lien.

  1. Collection procedures.  The tax administrator shall receive and collect the Rhode Island personal income tax in the same manner and with the same powers as are prescribed for, and given to collectors of taxes by chapters 1, 7, 8, and 9 of this title. The administrator may establish the manner of time for the collection of any tax amount due if not otherwise specified. The administrator shall, upon request, give a receipt for any sum collected as Rhode Island personal income tax. The administrator may authorize banks or trust companies doing business in the state as depositaries to receive any part of the tax in any manner, at any times, and under any conditions that the administrator may prescribe; and the administrator shall prescribe the manner, times, and conditions under which the receipt of the tax by the banks and trust companies is to be treated as payment of the tax.
  2. Notice and demand for tax.  The tax administrator shall, except as provided in § 44-30-81(b) , as soon as practicable after the making of an assessment of a tax, give notice to each person liable for any unpaid tax, stating the amount and demanding payment thereof. The notice may be left at the dwelling or usual place of business of the person or shall be sent by mail to the person’s last known address. If any tax is assessed prior to the last date (including any date fixed by extension) prescribed for payment of the tax, payment of the tax shall not be demanded until after the date.
  3. Collection by writ of execution.  If any tax or penalty imposed by this chapter is not paid within thirty (30) days after assessment is made and notice and demand for it therefor is given, the tax administrator in addition to any other powers provided by law may within three (3) years thereafter petition the sixth division of the district court for a writ of execution, setting forth the nonpayment of the tax or penalty. The court shall thereupon appoint a time for a hearing and shall cause a reasonable notice thereof to be given to the adverse party, and at the time and place of the return of the notice shall proceed summarily to hear the parties. If upon the hearing it appears that the tax or penalty is unpaid, the court shall immediately issue an execution for the collection of the tax or penalty, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon such property of the taxpayer as may be taken on execution. The officer charged with the service of the execution shall serve the execution as commanded, and shall sell the property seized thereon as property is sold when taken on executions in actions at law, or the court shall take any other action that it may deem proper to enforce the payment of the tax by the appointment of a receiver of the property of the taxpayer or otherwise. A party aggrieved by a final order of the court may seek review thereof in the supreme court by writ of certiorari in accordance with the procedures contained in § 42-35-16 .
  4. Lien on real estate.  The provisions of § 44-19-21 shall apply to Rhode Island personal income tax assessed under this chapter.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1976, ch. 140, § 32.

Collateral References.

Special bank deposits as subject of attachment or garnishment to satisfy depositor’s general obligations. 8 A.L.R.4th 998.

44-30-93. Transferees.

  1. General.  The amount of liability of a transferee of property of a taxpayer for any Rhode Island personal income tax shall be assessed, paid, and collected in the same manner and subject to the same provisions and limitations as in the case of the tax to which the liability relates, except that the period of limitations for assessment against the transferee shall be extended by one year for each successive transfer, in order, from the original taxpayer to the transferee involved, but not by more than three (3) years in the aggregate. The term “transferee” includes donee, heir, legatee, devisee, and distributee.
  2. Exceptions.
    1. If before the expiration of the period of limitations for assessment of the amount of liability of the transferee, a claim has been filed by the tax administrator in any court proceeding against the original taxpayer or the last preceding transferee based upon the liability of the original taxpayer, then the period of limitation for the assessment shall in no event expire prior to one year after the court proceeding terminates.
    2. If before the expiration of the time prescribed in subsection (a) of this section for the assessment of the amount of liability, the tax administrator and the transferee have both consented, in writing, to its assessment after that time, the amount may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. For the purpose of determining the period of limitation on credit or refund to the transferee of overpayments of tax made by the transferee or overpayments of tax made by the transferor of which the transferee is legally entitled to credit or refund, the agreement and any extension thereof shall be deemed an agreement and extension thereof referred to in § 44-30-87(b) . If the agreement is executed after the expiration of the period of limitation for assessment against the original taxpayer, then in applying the limitations under § 44-30-87(b) on the amount of the credit or refund, the periods specified in § 44-30-87(a) shall be increased by the period from the date of the expiration to the date of the agreement.
  3. Deceased transferor.  If any person is deceased, the period of limitation for assessment against the person shall be the period that would be in effect if the person had lived.
  4. Evidence.  The tax administrator shall make available evidence in his or her possession to the transferee so as to enable the transferee to determine the liability of the original taxpayer and of any preceding transferees.

History of Section. P.L. 1971, ch. 8, art. 1, § 1.

44-30-94. Criminal penalties.

  1. Any individual or other person shall be guilty of a felony and upon conviction shall be fined not more than ten thousand dollars ($10,000), or imprisoned not more than one year, or both:
    1. For any willful attempt in any manner (including the willful delivery, disclosure, or filing of any false or fraudulent return, account, document, or statement) to evade the Rhode Island personal income tax;
    2. For any willful failure to file within the time required any return or document required to be filed in respect of Rhode Island personal income tax; or
    3. For any willful failure to collect, truthfully account for, or pay over any amount required to be withheld by an employer from an employee in respect of Rhode Island personal income tax.
  2. Any individual or other person who derives income, directly or indirectly, from violations of the Rhode Island Controlled Substance Act, chapter 28 of title 21, and fails to report this income as enumerated below shall be guilty of a felony and upon conviction shall be fined not more than twenty-five thousand dollars ($25,000), or imprisoned not more than twenty (20) years, or both:
    1. For any willful attempt in any manner, including the willful delivery, disclosure, or filing of any false or fraudulent return, account, document, or statement, to evade the Rhode Island personal income tax;
    2. For any willful failure to file within the time required any return or document required to be filed in respect of Rhode Island personal income tax;
    3. For any willful failure to collect, truthfully account for, or pay over any amount required to be withheld by an employer from an employee in respect of Rhode Island personal income tax.
  3. In addition to the criminal penalties provided in this section, any individual who, pursuant to the provisions of subsection (b) of this section, fails to report income derived from any violation of the Rhode Island Uniform Controlled Substance Act, chapter 28 of title 21, shall be liable for all taxes, penalties, and interest as provided in this chapter. The individual shall be proceeded against by the tax administrator and twenty percent (20%) of any sums recovered by the tax administrator, including interest and penalties, shall be forwarded to the state treasurer who shall deposit the sums according to the provisions established in § 21-28-5.04 and use the funds in accordance with the forfeiture provisions of that section.
  4. Notwithstanding the provisions of § 12-12-17 , no person shall be convicted of a violation of the provisions of this subsection unless an indictment is found or an information is filed against the person within seven (7) years from the time of committing the violation. The tax administrator and the attorney general shall cooperate in accordance with existing law.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1985, ch. 254, § 1; P.L. 1986, ch. 103, § 10.

Collateral References.

Reliance on advice of attorney, accountant, or tax expert as defense in criminal prosecution for attempt to evade federal income tax under § 7201 of the Internal Revenue Code of 1954 (26 USCS § 7201). 3 A.L.R. Fed. 665.

Test of “willfulness” in prosecution for willful failure to pay tax, file tax return, etc., under § 7203 of the Internal Revenue Code of 1954 (26 USCS § 7203). 22 A.L.R.3d 1173.

44-30-95. General powers of tax administrator.

  1. General.  The tax administrator shall administer and enforce the Rhode Island personal income tax and is authorized to make any rules and regulations, and to require any facts and information to be reported, that he or she may deem necessary to enforce the tax. The provisions of chapter 1 of this title relating to the tax administrator shall be applicable to the Rhode Island personal income tax.
  2. Examination of books and witnesses.  The tax administrator, for the purpose of ascertaining the correctness of any return, or for the purpose of making an estimate of Rhode Island income of any person where information has been obtained, shall have the power to examine or to cause to have examined, by any agent or representative designated by the tax administrator for that purpose, any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person rendering the return or any officer or employee of the person, or the attendance of any other person having knowledge in the premises, and may take testimony and require proof material for its information, with power to administer oaths to the person or persons.
  3. Secrecy requirement.  It shall be unlawful for any state official or employee to divulge or to make known to any person in any manner whatever not provided by law the amount or source of income, profits, losses, expenditures, or any particular of them set forth or disclosed in any return, or to permit any return or copy of the return or any book containing any abstract or particulars thereof to be seen or examined by any person except as provided by law. It shall be unlawful for any person to print or publish in any manner whatever not provided by law any return or any part thereof or source of income, profits, losses, or expenditures appearing in any return. Any offense against the foregoing provision shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment not exceeding one year, or both, at the discretion of the court. If the offender is an officer or employee of the state of Rhode Island, the offender may be dismissed from office or discharged from employment.
  4. Interstate and federal agreements.  The governor or the tax administrator may enter into agreements with tax officials of other states and the federal government to provide for the exchange of information and to apportion or otherwise equitably determine taxes for the purposes of carrying out the provisions of § 44-30-18 and otherwise avoiding multiple taxation.
  5. Income tax claims of other states.   The courts of this state shall recognize and enforce liabilities for personal income taxes lawfully imposed by any other state which extends a like comity to this state, and the duly authorized officer of any other state may sue for the collection of a tax in the courts of this state. A certificate by the secretary of state of the other state that an officer suing for the collection of a tax is duly authorized to collect the tax shall be conclusive proof of that authority. For the purposes of this section, the word “taxes” shall include additions to tax, interest, and penalties, and liability for taxes, additions to tax, interest and penalties shall be recognized and enforced by the courts of this state to the same extent that the laws of the other state permit the enforcement in its courts of liability for taxes, additions to tax, interest, and penalties due this state under this part.
  6. Small tax balances.   The tax administrator is authorized to abate the unpaid portion of the assessment of any tax, or any liability in respect thereof, if the administrator determines under uniform rules prescribed by him or her that the administration and collection costs involved would not warrant collection of the amount due.
  7. Limited disclosure of information — Retirement board.   The tax administrator shall disclose to the retirement board of the state of Rhode Island information needed by the board to implement the provisions of §§ 16-16-19 , 16-16-24 , 36-10-17 , 36-10-36 , 45-21-24 , and 45-21-54 . The content and nature of the information to be disclosed shall be determined and approved by the tax administrator and shall be kept confidential by the board.
  8. Limited disclosure of information — Jury Commissioner.   The tax administrator shall disclose to the jury commissioners of the State of Rhode Island information needed by him or her to implement provisions of § 9-9-1(d) .
  9. Limited disclosure of information — Unclaimed Property Administrator.   The tax administrator shall disclose to the unclaimed property administrator of the state of Rhode Island, who is the administrator as defined in § 33-21.1-1 , information needed by the unclaimed property administrator to implement the provisions of § 33-21.1-24 . The content and nature of the information to be disclosed shall be determined and approved by the tax administrator, but shall be the minimum necessary to implement § 33-21.1-24 and shall be kept confidential by the unclaimed property administrator. The unclaimed property administrator and their employees or agents shall be subject to the same state and federal tax confidentiality laws restricting the acquisition, use, storage, dissemination or publication of confidential taxpayer data that apply to Rhode Island division of taxation officers, agents and employees. Such provisions, include, but are not limited to, §§ 44-1-14 , 44-11-21 , 44-14-23 , 44-19-30 , 44-30-95 , and 44-44-22 ; 26 U.S.C. § 6103, and 26 U.S.C. § 7213. It is the unclaimed property administrator’s responsibility to ensure that their employees and agents are aware of these obligations.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1; P.L. 1990, ch. 248, § 1; P.L. 2003, ch. 430, § 3; P.L. 2017, ch. 189, § 3; P.L. 2017, ch. 319, § 3.

Compiler’s Notes.

P.L. 2017, ch. 189, § 3, and P.L. 2017, ch. 319, § 3 enacted identical amendments to this section.

44-30-95.1. Rules and regulations.

The tax administrator is authorized to make any rules and regulations with relation to the matters contained in § 44-30-6 , § 44-30-16(b) , and § 44-30-51(a)(3) that may be required to prevent the avoidance of income tax and prevent the imposition of income tax in cases where it is not legally payable under the provisions of those sections.

History of Section. P.L. 1972, ch. 155, art. 1, § 2.

44-30-96. Severability.

If any provision of this chapter or the application thereof shall for any reason be judged invalid, that judgment shall not affect, impair, or invalidate the remainder of the law, but shall be confined in its effect to the provision or application directly involved in the controversy giving rise to the judgment.

History of Section. P.L. 1971, ch. 8, art. 1, § 1; P.L. 1971, ch. 204, art. 3, § 1.

44-30-97. Repealed.

History of Section. P.L. 1993, ch. 245, § 1; P.L. 1993, ch. 461, § 1; Repealed by P.L. 2004, ch. 595, art. 17, § 10, effective July 30, 2004, and applicable to tax years beginning on or after January 1, 2005.

Compiler’s Notes.

Former § 44-30-97 concerned providing for a tax credit for residential lead abatement. For present comparable provisions, see chapter 30.3 of this title.

44-30-98. Repealed.

History of Section. P.L. 2003, ch. 376, art. 7, § 5; P.L. 2005, ch. 117, art. 16, § 9; P.L. 2006, ch. 246, art. 30, § 6; Repealed by P.L. 2007, ch. 73, art. 7, § 6, effective July 1, 2007.

Compiler’s Notes.

Former § 44-30-98 concerned refundable earned income credit.

44-30-99. Personal income tax law.

The division of taxation shall prepare and submit to the general assembly by October 1, 2006, a Rhode Island personal income tax law which includes tax rates, income brackets, and personal exemptions that are indexed to an inflation factor that relies as little as practical upon references to the United States Internal Revenue Code. The report shall be accompanied with necessary recommended legislation necessary to implement the law. The report and legislation shall be transmitted to the chairperson of the house finance committee and the chairperson of the senate finance committee with copies to the house fiscal advisor and senate fiscal advisor.

History of Section. P.L. 2006, ch. 246, art. 30, § 2.

44-30-100. Lookup table to report use tax on personal income tax return.

  1. When reporting the amount of use tax obligation on the Rhode Island personal income return, the taxpayer shall list either the actual amount (from books, records, and other sources), or an amount using a lookup table established by the tax administrator.
  2. Establishment of lookup table.
    1. The tax administrator shall create the lookup table with reference to a taxpayer’s federal adjusted gross income (AGI) as listed on the Rhode Island personal income tax return before modifications, adjustments, or other changes. To determine the amount of use tax from the lookup table, the taxpayer shall multiply 0.0008 by the amount of the taxpayer’s federal AGI as listed on the Rhode Island personal income tax return before modifications, adjustments, or other changes.
    2. The AGI income ranges within the lookup table shall be adjusted by the tax administrator by December 31 of each calendar year by the percentage, if any, by which the Consumer Price Index for All Urban Consumers (CPI-U) as of the close of the 12-month period ending on August 31 of that year, exceeds the CPI-U as of the close of the 12-month period ending on August 31 of the immediately preceding year. For purposes of the annual calculation, the tax administrator shall be free to substitute an inflation index which is substantially similar to the CPI-U.
    3. If a taxpayer uses the lookup table, the taxpayer shall list on the return not only the result from the lookup table, but also the actual amount of each single purchase whose purchase price equals or exceeds one thousand dollars ($1,000).
    4. Instructions for the personal income tax form shall indicate that the use of the lookup table as described in this section is, for the taxpayer, a “safe harbor” alternative to listing the actual amount of the taxpayer’s use tax obligation.
  3. When completing and filing a Rhode Island personal income tax return, the taxpayer shall check a box attesting to the amount of use tax listed on the return. The tax administrator shall direct computer software providers to require the taxpayer or the taxpayer’s preparer to proactively check the box; software providers shall not program an automatically checked attestation box.
  4. The tax administrator shall make clear on personal income tax forms and instructions that use tax is typically due on internet, mail-order, and catalog out-of-state purchases.

History of Section. P.L. 2014, ch. 145, art. 12, § 2.

44-30-101. Requirements concerning qualifying health insurance coverage.

  1. Definitions.  For purposes of this section:
    1. “Applicable individual” has the same meaning as set forth in 26 U.S.C. § 5000A(d).
    2. “Minimum essential coverage” has the same meaning as set forth in 26 U.S. C. § 5000A(f).
    3. “Shared responsibility payment penalty” means the penalty imposed pursuant to subsection (c) of this section.
    4. “Taxpayer” means any resident individual, as defined in § 44-30-5 .
  2. Requirement to maintain minimum essential coverage.  Every applicable individual must maintain minimum essential coverage for each month beginning after December 31, 2019.
  3. Shared responsibility payment penalty imposed for failing to maintain minimum essential coverage.  As of January 1, 2020, every applicable individual required to file a personal income tax return pursuant to § 44-30-51 , shall indicate on the return, in a manner to be prescribed by the tax administrator, whether and for what period of time during the relevant tax year the individual and his or her spouse and dependents who are applicable individuals were covered by minimum essential coverage. If a return submitted pursuant to this subsection fails to indicate that coverage was in force or indicates that any applicable individuals did not have coverage in force, a shared responsibility payment penalty shall hereby be assessed as a tax on the return.
  4. Shared responsibility payment penalty calculation.  Except as provided in subsection (e), the shared responsibility payment penalty imposed shall be equal to a taxpayer’s federal shared responsibility payment for the taxable year under section 5000A of the Internal Revenue Code of 1986, as amended, and as in effect on the 15th day of December 2017.
  5. Exceptions.
    1. Penalty cap.  The amount of the shared responsibility payment penalty imposed under this section shall be determined, if applicable, using the statewide average premium for bronze-level plans offered through the Rhode Island health benefits exchange rather than the national average premium for bronze-level plans.
    2. Hardship exemption determinations.  Determinations as to hardship exemptions shall be made by the exchange under § 42-157-11 .
    3. Religious conscience exemption determinations.  Determinations as to religious conscience exemptions shall be made by the exchange under § 42-157-11 .
    4. Taxpayers with gross income below state filing threshold.  No penalty shall be imposed under this section with respect to any applicable individual for any month during a calendar year if the taxpayer’s household income for the taxable year as described in section 1412(b)(1)(B) of the Patient Protection and Affordable Care Act is less than the amount of gross income requiring the taxpayer to file a return as set forth in § 44-30-51 .
    5. Out of state residents.  No penalty shall be imposed by this section with respect to any applicable individual for any month during which the individual is a bona fide resident of another state.
  6. Health insurance market integrity fund.  The tax administrator is authorized to withhold from any state tax refund due to the taxpayer an amount equal to the calculated shared responsibility payment penalty and shall place those amounts in the health insurance market integrity fund created pursuant to § 42-157.1-5 .
  7. Deficiency.  If, upon examination of a taxpayer’s return, the tax administrator determines there is a deficiency because any refund due to the taxpayer is insufficient to satisfy the shared responsibility penalty or because there was no refund due, the tax administrator may notify the taxpayer of the deficiency in accordance with § 44-30-81 and interest shall accrue on the deficiency as set forth in § 44-30-84 . All monies collected on the deficiency shall be placed in the health insurance market integrity fund created pursuant to § 42-157.1-5 .
  8. Application of federal law.  The shared responsibility payment penalty shall be assessed and collected as set forth in this chapter and, where applicable, consistent with regulations promulgated by the federal government, the exchange, and/or the tax administrator. Any federal regulation implementing section 5000A of the Internal Revenue Code of 1986, as amended, and in effect on the 15th day of December 2017, shall apply as though incorporated into the Rhode Island code of regulations. Federal guidance interpreting these federal regulations shall similarly apply. Except as provided in subsections (j) and (k) of this section, all references to federal law shall be construed as references to federal law as in effect on December 15, 2017, including applicable regulations and administrative guidance that were in effect as of that date.
  9. Unavailability of federal premium tax credits.  For any taxable year in which federal premium tax credits available pursuant to 26 U.S.C. section 36B become unavailable due to the federal government repealing that section or failing to fund the premium tax credits, the shared responsibility payment penalty under this section shall not be enforced.
  10. Imposition of federal shared responsibility payment.  For any taxable year in which a federal penalty under section 5000A of the Internal Revenue Code of 1986 is imposed on a taxpayer in an amount comparable to the shared responsibility payment penalty assessed under this section, the state penalty shall not be enforced.
  11. Agency coordination.  Where applicable, the tax administrator shall implement this section in consultation with the office of the health insurance commissioner, the office of management and budget, the executive office of health and human services, and the Rhode Island health benefits exchange.

History of Section. P.L. 2019, ch. 88, art. 11, § 5.

44-30-102. Reporting requirement for applicable entities providing minimum essential coverage.

  1. Findings.
    1. Ensuring the health of insurance markets is a responsibility reserved for states under the McCarran-Ferguson Act and other federal law.
    2. There is substantial evidence that being uninsured causes health problems and unnecessary deaths.
    3. The shared responsibility payment penalty imposed by § 44-30-101(c) is necessary to protect the health and welfare of the state’s residents.
    4. The reporting requirement provided for in this section is necessary for the successful implementation of the shared responsibility payment penalty imposed by § 44-30-101(c) . This requirement provides the only widespread source of third-party reporting to help taxpayers and the tax administrator verify whether an applicable individual maintains minimum essential coverage. There is compelling evidence that third-party reporting is crucial for ensuring compliance with tax provisions.
    5. The shared responsibility payment penalty imposed by § 44-30-101(c), and therefore the reporting requirement in this section, is necessary to ensure a stable and well-functioning health insurance market. There is compelling evidence that, without an effective shared responsibility payment penalty in place for those who go without coverage, there would be substantial instability in health insurance markets, including higher prices and the possibility of areas without any insurance available.
    6. The shared responsibility payment penalty imposed by § 44-30-101(c), and therefore the reporting requirement in this section, is also necessary to foster economic stability and growth in the state.
    7. The reporting requirement in this section has been narrowly tailored to support compliance with the shared responsibility payment penalty imposed by § 44-30-101(c), while imposing only an incidental burden on reporting entities. In particular, the information that must be reported is limited to the information that must already be reported under a similar federal reporting requirement under section 6055 of the Internal Revenue Code of 1986. In addition, this section provides that its reporting requirement may be satisfied by providing the same information that is currently reported under such federal requirement.
  2. Definitions.  For purposes of this section:
    1. “Applicable entity” means:
      1. An employer or other sponsor of an employment-based health plan that offers employment-based minimum essential coverage to any resident of Rhode Island.
      2. The Rhode Island Medicaid single state agency providing Medicaid or Children’s Health Insurance Program (CHIP) coverage.
      3. Carriers licensed or otherwise authorized by the Rhode Island office of the health insurance commissioner to offer health coverage providing coverage that is not described in subsection (b)(1)(i) or (b)(1)(ii) of this section.
    2. “Minimum essential coverage” has the meaning given the term by § 44-30-101(a)(2) .
  3. For purposes of administering the shared responsibility payment penalty to individuals who do not maintain minimum essential coverage under § 44-30-101(b) , every applicable entity that provides minimum essential coverage to an individual during a calendar year shall, at such time as the tax administrator may prescribe, file a form in a manner prescribed by the tax administrator.
  4. Form and manner of return.
    1. A return, in the form as the tax administrator may prescribe, contains the following information:
      1. The name, address, and Taxpayer Identification Number (TIN) of the primary insured and the name and TIN of each other individual obtaining coverage under the policy;
      2. The dates during which the individual was covered under minimum essential coverage during the calendar year; and
      3. Such other information as the tax administrator may require.
    2. Sufficiency of information submitted for federal reporting.  Notwithstanding the requirements of subsection (d)(1) of this section, a return shall not fail to be a return described in this section if it includes the information contained in a return described in section 6055 of the Internal Revenue Code of 1986, as that section is in effect and interpreted on the 15th day of December 2017.
  5. Statements to be furnished to individuals with respect to whom information is reported.
    1. Any applicable entity providing a return under the requirements of this section shall also provide to each individual whose name is included in the return a written statement containing the name, address, and contact information of the person required to provide the return to the tax administrator and the information included in the return with respect to the individuals listed thereupon. The written statement must be provided on or before January 31 of the year following the calendar year for which the return was required to be made or by a date as may be determined by the tax administrator.
    2. Sufficiency of federal statement.  Notwithstanding the requirements of subsection (e)(1), the requirements of this subsection (e) may be satisfied by a written statement provided to an individual under section 6055 of the Internal Revenue Code of 1986, as that section is in effect and interpreted on the 15th day of December 2017.
  6. Reporting responsibility.
    1. Coverage provided by governmental units.  In the case of coverage provided by an applicable entity that is any governmental unit or any agency or instrumentality thereof, the officer or employee who enters into the agreement to provide the coverage (or the person appropriately designated for purposes of this section) shall be responsible for the returns and statements required by this section.
    2. Delegation.  An applicable entity may contract with third-party service providers, including insurance carriers, to provide the returns and statements required by this section.

History of Section. P.L. 2019, ch. 88, art. 11, § 5.

Chapter 30.1 Setoff of Refund of Personal Income Tax

44-30.1-1. Definitions.

  1. “Benefit overpayments and interest owed” means any amount in excess of five hundred dollars ($500) determined to be recoverable under the provisions of chapters 39 — 44 of title 28.
  2. “Cash assistance benefit overpayments” means any amount of cash assistance benefits which constitutes an overpayment of benefits under the provisions of the Rhode Island Works Program as previously established by chapter 5.2 of title 40, and/or the predecessor family assistance programs, formerly known as the Family Independence Program, as previously established by chapter 5.1 of title 40, and the Aid to Families With Dependent Children program, as previously established by § 40-6-4 , which overpayment amount has been established by court order, by administrative hearing conducted by the department of human services, or by written agreement between the department of human services and the individual.
  3. “Claimant agency” means either:
    1. The department of human services, with respect (1) to past-due support which has been assigned to the department of human services by public assistance and medical assistance recipients or by the department of children, youth and families, (2) past-due support which it is attempting to collect on behalf of any individual not eligible as a public assistance recipient, and (3) cash assistance benefit overpayments or medical assistance benefit overpayments, as defined herein; or
      1. The Rhode Island division of higher education assistance, with respect to obligations owed to that agency or to the state of Rhode Island by reason of default or failure to pay student loans, health professions contract advances or scholarships or grant over-awards, or
      2. The Rhode Island division of higher education assistance, acting as agent for the United States Department of Education or other student loan guarantee agencies in other states which have negotiated a reciprocal arrangement with the Rhode Island division of higher education assistance for the setoff of refunds of personal income taxes against defaulted loan obligations.
    2. The Rhode Island court administrative office, with respect to court costs, fines, and restitution owed; or
    3. The department of labor and training with respect to benefit overpayments and interest owed in excess of five hundred dollars ($500).
  4. “Court costs owed” means any fines, fees, and/or court costs which have been assessed pursuant to a criminal disposition by a judge of the district, family and superior courts, including, but not limited to, those amounts assessed pursuant to chapters 20 and 25 of title 12 and those amounts assessed pursuant to title 31, including also those fines, fees, and/or court costs assessed by the traffic tribunal or municipal court associated with motor vehicle violations which have not been paid and which have been declared delinquent by the administrative judge of the court making the assessment.
  5. “Debtor” means:
    1. Any individual who owes past-due support which has been assigned to the department of human services by public assistance and medical assistance recipients or by the department of children, youth and families, or owes past due support to any individual not eligible as a public assistance recipient;
    2. Any individual who has obligations owed to the Rhode Island division of higher education assistance or the state of Rhode Island, the United States Department of Education or other states and agencies that have negotiated reciprocal agreements with the Rhode Island division of higher education assistance;
    3. Any individual who owes fines, fees, and/or court costs to the superior, family, district courts and the traffic tribunal and municipal court associated with motor vehicle violations;
    4. Any individual who owes restitution to any victim of any offense which has been ordered by a judge of the district, family and superior courts pursuant to a disposition in a criminal case and which has been made payable through the administrative office of state courts pursuant to § 12-19-34 except that obligations discharged in bankruptcy shall not be included;
    5. Any individual who owes any sum in excess of five hundred dollars ($500) for benefit overpayments and interest to the department of labor and training determined to be recoverable under the provisions of chapters 39-44 of title 28.
    6. Any individual who owes any sum of cash assistance benefit overpayments to the department of human services.
    7. Any individual who has obligations owed to the Rhode Island Student Loan Authority (RISLA), or other states and agencies that have negotiated reciprocal agreements with RISLA.
  6. “Division” means the department of revenue, division of taxation.
  7. “Fines owed” means any fines, fees, and/or court costs which have been ordered paid as a penalty in a criminal case by a judge of the district, family and superior courts and those fines, fees, and/or court costs ordered paid by the traffic tribunal or municipal court for motor vehicle violations as described in § 31-41.1-4 which have not been paid and which have been declared delinquent by the administrative judge of the court making the assessment.
  8. “Medical assistance benefit overpayment” means any amount of medical assistance benefits which constitutes an overpayment of medical assistance benefits. The department is authorized to promulgate rules and regulations to provide for notice and hearing prior to the income tax intercept by the department for income tax intercept for medical assistance benefits overpaid to the recipient. The amount of overpayment of benefits may include the overpayment of benefits due to the fact that the Medicaid recipient failed to pay the cost share obligation lawfully imposed in accordance with Rhode Island law.
  9. “Medical assistance cost share arrearage” means any amount due and owing to the department of human services as a result of a Medicaid recipient’s failure to pay their cost share obligation, including any amount due for a cost sharing obligation or medical assistance premium obligation, imposed in accordance with Title 40, Chapter 8.4 of the Rhode Island General Laws.
  10. “Obligation owed” means the total amount owed by any individual on:
    1. Any guaranteed student loan or parent loan for undergraduate students for which the Rhode Island division of higher education assistance has had to pay the guarantee, or for which the Rhode Island division of higher education assistance is acting as agent on behalf of the United States Department of Education or other state cooperating agencies which have had to pay a guarantee,
    2. Any contract fee advanced by either the Rhode Island division of higher education assistance or the state of Rhode Island on behalf of any individual participating in a health professions educational program for which payment has not been made according to the terms of the contract, and
    3. Any amount of scholarship or grant funds which constitutes an over-award, whether due to error or to the submission of false information, and for which repayment has been demanded by the agency, but which has not been paid.
    4. Any education loan held by the Rhode Island Student Loan Authority (RISLA) not guaranteed by the Rhode Island division of higher education assistance or other guarantor.
  11. “Past-due support” means the amount of court-ordered child support or maintenance, child medical support or a spousal support order for a custodial parent having custody of a minor child, which is overdue or otherwise in arrears, regardless of whether there is an outstanding judgment for that amount, and whether the order for the support or maintenance has been established by a court or by an administrative process authorized under the laws of any state.
  12. “Refund” means the Rhode Island income tax refund which the division of taxation determines to be due to a taxpayer.
  13. “Restitution owed” means any amount which has been ordered paid pursuant to a criminal case disposition by a judge of the district, family and superior courts pursuant to chapter 19 of title 12, which has not been paid and which has been declared delinquent by the administrative judge of the court making the assessment.

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1984, ch. 83, § 1; P.L. 1985, ch. 299, § 1; P.L. 1986, ch. 126, § 1; P.L. 1986, ch. 136, § 1; P.L. 1988, ch. 84, § 36; P.L. 1988, ch. 208, § 1; P.L. 1994, ch. 237, § 4; P.L. 1999, ch. 170, § 2; P.L. 2004, ch. 595, art. 20, §§ 1, 2; P.L. 2008, ch. 98, § 47; P.L. 2008, ch. 145, § 47; P.L. 2009, ch. 68, art. 16, § 6; P.L. 2009, ch. 318, § 1; P.L. 2015, ch. 141, art. 7, § 21.

Compiler’s Notes.

Section 2 of P.L. 1996, ch. 100, art. 12, provides that any reference in any general or special law to child support enforcement, collections and establishment duties of the department of human services, Rhode Island child support services and bureau of family support shall be construed to refer to the division of taxation within the department of administration, any reference to the director of the department of human services, with reference to the child support enforcement and collection of revenues, shall be construed to refer to the tax administrator within the department of administration, and any revenue collection duties conferred upon the department of human services or the director of the department of human services shall be construed to refer to the department of administration division of taxation or the tax administrator; provided, however, that the tax administrator may delegate in writing to the director of the department of human services such duties and responsibilities as he or she may deem appropriate.

Comparative Legislation.

Setoff of refunds:

Conn. Gen. Stat. § 12-732.

Mass. Ann. Laws ch. 62D, § 1 et seq.; ch. 62C, § 36.

44-30.1-2. Remedy additional.

The collection remedy authorized by this chapter is in addition to and not in substitution for any other remedy available by law.

History of Section. P.L. 1982, ch. 111, § 1.

44-30.1-3. Collection of debts by setoff.

Within a time frame established by the division of taxation, the claimant agency shall supply the information necessary relative to each debtor owing the state money, and further, shall certify the amount of debt or debts owed to the state by each debtor. Upon receiving notice from the claimant agency that a named debtor owes past-due support, delinquent court costs, fines, or restitution or benefit overpayments and interest owed, has obligations owed as described in § 44-30.1-1(g) , cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the division of taxation shall determine whether any amount, as a refund of taxes paid, is payable to the debtor, regardless of whether the debtor filed an income tax return as a married or unmarried individual. If the division of taxation determines that any refund is payable, the division of taxation shall set off the past-due support, delinquent court costs, fines or restitution or benefit overpayments and interest owed, the obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, against the debtor’s refund and shall reduce the debtor’s refund by the amount so determined. The division of taxation shall transfer the amount of past-due support, delinquent court costs, fines or restitution, or benefit overpayments and interest owed, obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, set off against the debtor’s refund to the claimant agency or in the case of the United States Department of Education or other out-of-state agencies, to the Rhode Island division of higher education assistance as its agent , and in the case of education loans held by the Rhode Island Student Loan Authority (RISLA) for itself or as agent for another out-of-state education loan agency and which education loans are not guaranteed by the Rhode Island division of higher education assistance or another guarantor, to RISLA. The pendency of judicial proceedings to contest the setoff shall not stay nor delay the setoff and transfer of refunds to the claimant agency. If the amount of the debtor’s refund exceeds the amount of the past-due support, delinquent court costs, fines, or restitution or benefit overpayments and interest owed, obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the division of taxation shall refund the excess amount to the debtor. If in any instance with regard to the debtor the division of taxation has received notice from more than one claimant agency, the claim by the bureau of child support shall receive first priority, the obligations owed shall have second priority, and the delinquent court costs, fines or restitution shall have third priority, the benefit overpayments and interest owed the fourth priority and the cash assistance benefit overpayments the fifth priority, and medical assistance benefit overpayments, or medical assistance cost share arrearages the sixth priority.

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1984, ch. 83, § 1; P.L. 1984, ch. 241, § 1; P.L. 1986, ch. 126, § 1; P.L. 1988, ch. 208, § 2; P.L. 1999, ch. 170, § 2; P.L. 2004, ch. 595, art. 20, § 1; P.L. 2009, ch. 68, art. 16, § 6; P.L. 2009, ch. 318, § 1; P.L. 2015, ch. 141, art. 7, § 21.

Compiler’s Notes.

Section 2 of P.L. 1996, ch. 100, art. 12, provides that any reference in any general or special law to child support enforcement, collections and establishment duties of the department of human services, Rhode Island child support services and bureau of family support shall be construed to refer to the division of taxation within the department of administration, any reference to the director of the department of human services, with reference to the child support enforcement and collection of revenues, shall be construed to refer to the tax administrator within the department of administration, and any revenue collection duties conferred upon the department of human services or the director of the department of human services shall be construed to refer to the department of administration division of taxation or the tax administrator; provided, however, that the tax administrator may delegate in writing to the director of the department of human services such duties and responsibilities as he or she may deem appropriate.

Cross References.

Rules and regulations for offset of child support, § 40-6-21 .

44-30.1-4. Procedures for setoff and notification of a debtor.

  1. The division of taxation shall prescribe the time or times at which the claimant agency must submit notices of past-due support, the manner in which the notices must be submitted, and the necessary information that must be contained in or accompany the notices. The division of taxation shall, from time to time, determine the minimum amount of claim to which the setoff procedure may be applied.
  2. Prior to submitting information relating to a debtor for purposes of setoff of the debtor’s income tax refund, the claimant agency shall provide written notice to each debtor, the amount of past-due support, delinquent court costs, fines or restitution, or benefit overpayments and interest owed, other obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the intention to set off the amount owed against the refund, the debtor’s right to an administrative hearing to contest the setoff upon written request made within thirty (30) days of the mailing of the notice to the debtor, the debtor’s right to judicial review of the administrative hearing decision, the general nature of the potential defenses available to the debtor, and, in general terms, the rights of non-obligated spouses with respect to income tax refunds in the event a joint return is filed.
  3. At the time of the transfer of funds to a claimant agency as provided in this chapter, the division of taxation shall notify the debtor whose refund is sought to be set off that the transfer has been made. The notice shall state the name of the debtor, the amount of the past-due support being claimed, the transfer of funds to the claimant agency, the amount of the refund in excess of the amount claimed, if any. In the case of a joint refund, the notice shall also state the name of a taxpayer-spouse named in the return, if any, against whom no past-due support, delinquent court costs, fines or restitution, or benefit overpayments and interest owed, obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages is claimed, the opportunity to request that the refund be divided between the spouses by filing an amended income tax return in conformance with § 44-30-11 showing each spouse’s share of the tax and the contribution to the overpayment of tax resulting in the refund.
  4. Upon receipt of funds transferred from the division of taxation, the claimant agency deposits and holds the funds in an escrow account until final determination of setoff. Upon final determination of the amount of the claim to be set off by: (1) default for failure to apply for a hearing pursuant to subsection (b) of this section, or (2) decision of the hearing officer pursuant to § 44-30.1-5 , the claimant agency shall remove the account of the claim payment from the escrow account, and credit the amount to the debtor’s obligation. The pendency of judicial proceedings pursuant to § 42-35-15 to review the administrative decision shall not stay nor delay the setoff, transfer, and disbursement of the tax refund in question.
  5. With respect to setoff for past-due support, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the division of taxation shall provide the debtor’s address and social security number to the department of human services.
  6. With respect to setoff for past-due support, the department of human services must inform a non-public assistance custodial parent in advance if it will first apply any setoff amount to be received from the division of taxation to satisfy past-due support assigned to it.

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1984, ch. 241, § 1; P.L. 1986, ch. 136, § 1; P.L. 1988, ch. 208, § 3; P.L. 1999, ch. 170, § 2; P.L. 2004, ch. 595, art. 20, § 1; P.L. 2009, ch. 68, art. 16, § 6.

Compiler’s Notes.

Section 2 of P.L. 1996, ch. 100, art. 12, provides that any reference in any general or special law to child support enforcement, collections and establishment duties of the department of human services, Rhode Island child support services and bureau of family support shall be construed to refer to the division of taxation within the department of administration, any reference to the director of the department of human services, with reference to the child support enforcement and collection of revenues, shall be construed to refer to the tax administrator within the department of administration, and any revenue collection duties conferred upon the department of human services or the director of the department of human services shall be construed to refer to the department of administration division of taxation or the tax administrator; provided, however, that the tax administrator may delegate in writing to the director of the department of human services such duties and responsibilities as he or she may deem appropriate.

Cross References.

Rules and regulations for offset of child support, § 40-6-21 .

44-30.1-5. Hearing procedures.

  1. If the claimant agency receives written application pursuant to § 44-30.1-4(b) contesting the setoff or the delinquent court costs, fines or restitution or the past-due support or benefit overpayments and interest owed or the obligation owed upon which the setoff is based, it shall grant a hearing to the applicant in accordance with chapter 35 of title 42, “Administrative Procedure.”
  2. Appeals from the administrative decisions made by the claimant agency shall be in accordance with chapter 35 of title 42, “Administrative Procedures.” Appeals contesting the setoff of past due support shall be to the family court of Providence County.
  3. In those cases where the Rhode Island division of higher education assistance acts as agent for the United States Department of Education or other out-of-state agencies, the Rhode Island division of higher education assistance must obtain appropriate documentation of the obligation owed such as promissory notes, evidence of guarantees paid and any other items that may be necessary to conduct a fair hearing. The Rhode Island division of higher education assistance as agent for other states shall negotiate appropriate reciprocal agreements with those states for purposes of transferring funds and setting charges for cost of services.
  4. In those cases where the Rhode Island Student Loan Authority (RISLA) is the claimant either for itself or as agent for another out-of-state education loan agency, RISLA must obtain appropriate documentation of the obligation owed such as promissory notes, and any other items that may be necessary to conduct a fair hearing. RISLA as agent for other states or agencies shall negotiate appropriate reciprocal agreements with those states and agencies for purposes of transferring funds and setting charges for cost of services.

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1984, ch. 83, § 1; P.L. 1984, ch. 167, § 2; P.L. 1986, ch. 126, § 1; P.L. 1988, ch. 208, § 4; P.L. 1999, ch. 170, § 2; P.L. 2009, ch. 318, § 1; P.L. 2015, ch. 141, art. 7, § 21.

44-30.1-6. Priority.

  1. The division of taxation has priority over the claimant agency for collection of tax liabilities. After this priority, the department of human services has priority, to the extent necessary for the enforcement of child support orders issued by any court of competent jurisdiction, over any other claimant agency.
  2. The department of labor and training has priority, to the extent necessary for the collection of benefit overpayments and interest owed over any other claimant agency.

[See § 12-1-15 .]

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1995, ch. 370, art. 29, § 9; P.L. 1995, ch. 374, § 9; P.L. 1999, ch. 170, § 2.

44-30.1-7. Rules and regulations.

The division of taxation is authorized to prescribe forms and promulgate rules and regulations that it deems necessary in order to effectuate the intent and provisions of this chapter.

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2.

44-30.1-8. Confidentiality exemption — Nondisclosure.

The division of taxation may provide to a claimant agency the information necessary to accomplish and effectuate the intent of this chapter. The information obtained by a claimant agency from the division of taxation in accordance with the provisions of this article retains its confidentiality and is only used by a claimant agency in pursuit of its past-due support, obligation owed, or cash assistance benefit overpayments collection duties and practices; and any employee or prior employee of any claimant agency who unlawfully discloses that information for any other purpose, except as specifically authorized by law, is subject to the penalties specified by § 44-30-95(c) .

History of Section. P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 2004, ch. 595, art. 20, § 1.

44-30.1-9. Severability.

If any provision of this chapter or the application of this chapter is for any reason judged invalid, that judgment does not affect, impair or invalidate the remainder of the law, but is confined in its effect to the provision or application directly involved in the controversy giving rise to the judgment.

History of Section. P.L. 1982, ch. 111, § 1.

44-30.1-10. Purpose.

The purpose of this chapter is to establish a policy that the claimant agencies and the division of taxation cooperate in identifying debtors who owe money to the state through its various claimant agencies and who qualify for a refund from the division of taxation. It is also the intent of this chapter that procedures are established for setting off against the refund the sum of any debt owed to the state. Furthermore, it is the legislative intent of this chapter to be liberally construed as to effectuate these purposes as far as legally and practically possible.

History of Section. P.L. 1983, ch. 102, § 1.

Chapter 30.2 Reciprocity Agreements — Setoff of Refund of Personal Income Tax

44-30.2-1. Reciprocity board.

There is established a reciprocity board, referred to as “the board”. The board shall be composed of three (3) members, consisting of the tax administrator, division of taxation, within the department of revenue, the director of the department of human services, and an assistant attorney general designated by the attorney general, ex officio. A majority of the members of the board shall constitute a quorum and the action of the majority of the members in attendance at any meeting is the action of the board. Whenever a member of the board is absent from a meeting of the board, the member may designate one of the member’s assistants or employees to attend in the member’s behalf. That assistant or employee is entitled to participate in the discussions and proceedings of the board, but he or she is not entitled to vote.

History of Section. P.L. 1984, ch. 145, § 1; P.L. 2008, ch. 98, § 48; P.L. 2008, ch. 145, § 48.

Cross References.

Setoff of refund of personal income tax, § 44-30.1-1 et seq.

Comparative Legislation.

Reciprocity agreements:

Mass. Ann. Laws ch. 62D, § 10A.

44-30.2-2. Entry into reciprocal agreements — Scope of agreements.

The governor is authorized, with the advice of the board, to enter into reciprocal agreements, on behalf of the state, with the appropriate authorities of any state in the United States of America, or of the District of Columbia, with respect to the setoff of refunds of the personal income tax established or to be established by the laws and regulations of this state and by the laws and regulations of any other state or the District of Columbia permitting a similar setoff of refunds of income or other taxes. The purpose of the reciprocal agreements is to facilitate the interstate filing of certified debt claims for setoff against income or other tax refunds, and the interstate transfer of debt payment funds after setoff. It is the duty of the board to study and advise the governor in respect to all matters affecting any reciprocal agreements.

History of Section. P.L. 1984, ch. 145, § 1.

44-30.2-3. Agreements subject to statutes — Discretion of governor.

All agreements entered into by the governor with respect to any subject as to which provision is expressly made by statute shall conform to the provisions of the statute. As to any other subject of reciprocity appropriate to the powers vested in the governor by this chapter, the governor has full authority, with the advice of the board, to agree to those terms and conditions as in his or her judgment are best calculated to promote the interests of the state.

History of Section. P.L. 1984, ch. 145, § 1.

44-30.2-4. Severability.

If any provision of this chapter or the application of this chapter is for any reason judged invalid, that judgment does not affect, impair, or invalidate the remainder of the law, but is confined in its effect to the provision or application directly involved in the controversy giving rise to the judgment.

History of Section. P.L. 1984, ch. 145, § 1.

Chapter 30.3 Residential Lead Abatement Income Tax Credit

44-30.3-1. Residential lead abatement tax relief — Limitation.

  1. Appropriations from the general fund for property tax relief provided by this chapter are in the amount of two hundred and fifty thousand dollars ($250,000) for the year commencing on July 1, 2004, and for each subsequent fiscal year.
  2. A claimant shall be entitled to tax relief for residential lead removal or lead hazard reduction when he or she: (1) obtains a housing resources commission regulated certificate of conformance for mitigation, pursuant to chapter 24.6 of title 23; or (2) obtains a department of health regulated lead safe certificate for abatement, pursuant to chapter 24.6 of title 23. The lead paint tax relief shall only apply to residential premises. Residential premises shall include single-family homes, individual condominiums, and individual units in either apartment buildings or multi-family homes.
  3. The tax relief shall be equal to the amount actually paid for the required lead abatement or lead hazard mitigation up to a maximum of one thousand five hundred dollars ($1,500) per dwelling unit for mitigation and up to five thousand dollars ($5,000) per dwelling unit for abatement, as specified under subsection (b) above. In the event that: (1) multiple owners of the dwelling unit; or (2) owner(s) along with the renter(s)/lessee(s) of the dwelling unit have jointly incurred costs and paid for the lead abatement/lead hazard mitigation, each individual must apply for relief as a separate claimant, and must include all required proof of payment and certifications, based on their respective contributions to the cost of lead abatement/lead hazard mitigation.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-2. Residential lead abatement tax relief — Income eligibility.

Claims shall be paid based on the following requirements:

  1. A claimant whose household income was equal to or less than thirty-five thousand two-hundred dollars ($35,200) during the year for which the claim was filed will have their claim paid prior to the payment of other claims in accordance with the requirements of this chapter.
  2. A claimant who rents or leases a dwelling unit to individuals whose household income was equal to or less than thirty-five thousand two-hundred dollars ($35,200) during the year for which the claim was filed shall not be paid until the total amount of all claims has been paid under subsection (a).
  3. All other claimants, without regard to income or property ownership, shall not be paid until the total amount of all claims has been paid under subsections (a) and (b).
  4. If insufficient funds exist annually to pay the full amount of all claims, the tax administrator shall make payments to each claimant proportionately for those claims made pursuant to subsection (c). No payment shall exceed one hundred percent (100%) of the amount of the claim.
  5. On July 1st of each year, the maximum amount of allowable income for claimants set forth in subsections (a) and (b) shall be increased by a percentage equal to the percentage of the cost of living adjustment provided for social security recipients.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-3. Definitions.

As used in this chapter:

  1. “Claimant” means a property owner or lessee, who has filed a claim under this chapter and was domiciled in this state for the entire calendar year for which he or she files a claim for relief under this chapter. In the case of a claim for rented or leased residential premises, the claimant shall have rented property during the preceding year for which he or she files for relief under this chapter. Claimant does not mean or include any person claimed as a dependent by any taxpayer under the Internal Revenue Code. When two (2) individuals of a household are able to meet the qualifications for a claimant, they may determine between themselves as to who the claimant is. If they are unable to agree, the matter is referred to the tax administrator and his or her decision is final. If a property is owned by two (2) or more individuals, and more than one individual is able to qualify as a claimant, and some or all of the qualified individuals are not related, the individuals may determine among themselves as to who the claimant is. If they are unable to agree, the matter is referred to the tax administrator, and his or her decision is final.
  2. “Household” means one or more persons occupying a dwelling unit and living as a single nonprofit housekeeping unit. “Household” does not include bona fide lessees, tenants, or roomers and boarders on contract.
  3. “Household income” means all income received by all persons of a household in a calendar year while members of the household.
  4. “Income” means the sum of federal adjusted gross income as defined in the Internal Revenue Code of the United States, 26 U.S.C. § 1 et seq., and all nontaxable income including, but not limited to, the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief (not including relief granted under this chapter), the gross amount of any pension or annuity (including Railroad Retirement Act (see 45 U.S.C. § 231 et seq.)) benefits, all payments received under the federal Social Security Act, 42 U.S.C. § 301 et seq., state unemployment insurance laws, and veterans’ disability pensions (see 38 U.S.C. § 301 et seq.), nontaxable interest received from the federal government or any of its instrumentalities, workers’ compensation, and the gross amount of “loss of time” insurance. It does not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private agency.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-4. Claim is personal.

The right to file a claim under this chapter is personal to the claimant and shall not survive his or her death, but the right may be exercised on behalf of a claimant by his or her legal guardian or attorney-in-fact. If a claimant dies after having filed a timely claim, the amount of the claim is disbursed to another member of the household as determined by the tax administrator. If the claimant was the only member of his or her household, the claim may be paid to his or her executor or administrator, but if neither is appointed and qualified within two (2) years of the filing of the claim, the amount of the claim escheats to the state.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-5. Claim as income tax credit or rebate from state funds.

Subject to limitations provided in this chapter, a claimant may claim in any year as a credit against Rhode Island personal income taxes due on his or her income. If the allowable amount of the claim exceeds the income taxes due on the claimant’s income, or if there are no Rhode Island personal income taxes due on the claimant’s income, the amount of the claim not used as an offset against income taxes is treated as an overpayment of personal income taxes and refunded to the claimant from balances retained by the general treasurer for general purposes. No interest is allowed on any payment made to a claimant pursuant to this chapter.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-6. Filing date.

No claim shall be paid or allowed, unless the claim is actually filed with and in the possession of the division of taxation on or before April 15 of the year in which the credit is applied or a rebate granted on taxes accrued in the proceeding calendar year.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-7. Satisfaction of outstanding liabilities.

The amount of any claim payable under this chapter may be applied by the division of taxation against any outstanding liability on the books of the division or against any debt owed to a “claimant agency,” as defined in § 44-30.1-1 , subject to the collection by setoff of a personal income tax refund pursuant to chapter 30.1 of this title. The application of debt or setoff is effective against the claimant or against anyone who was a member of the claimant’s household in the year to which the claim relates.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-8. Administration.

The tax administrator shall make available suitable forms with instructions for claimants, including a form which may be included with or as part of the individual income tax blank. The claim shall be in a form that the tax administrator prescribes. The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter, which rules and regulations, when reasonably designed to carry out the intent and purpose of this chapter, are prima facie evidence of their proper interpretation.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-9. Proof of claim.

Every claimant under this chapter shall supply to the division of taxation in support of his or her claim, written proof of lead hazard reduction or mitigation costs paid, name and address of owner or managing agent of property rented, and written certification that the required lead removal or lead hazard reduction for the dwelling unit has been completed, in accordance with § 44-30.3-1 .

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-10. One abatement claim per dwelling unit.

Only one abatement claim may be filed for any dwelling unit. If a mitigation claim, as defined in § 44-30.3-1(b) , has previously been filed for the same dwelling unit, the amount of the abatement claim will be reduced by the amount of the mitigation claim already paid for the dwelling unit, even if the dwelling unit has been transferred to another owner or lessee.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-11. Three dwelling units per claimant.

Each claimant may only claim relief for mitigation or abatement efforts for three (3) separate dwelling units.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-12. Denial of claim.

If it is determined that a claim is excessive and was filed with fraudulent intent, the claim is disallowed in full, and, if the claim has been paid or a credit has been allowed against income taxes otherwise payable, the credit is cancelled and the amount paid may be recovered by assessment and the assessment shall bear interest from the date of payment or credit of the claim, until refunded or paid, at the rate of one percent (1%) per month. The claimant in that case, and any person who assisted in the preparation or filing of the excessive claim or supplied information upon which the excessive claim was prepared, with fraudulent intent, is guilty of a misdemeanor. If it determined that a claim is excessive and was negligently prepared, ten percent (10%) of the corrected claim shall be disallowed, and if the claim had been paid or credited against income taxes otherwise payable, the credit shall be reduced or canceled, and the proper portion of any amount paid shall be similarly recovered by assessment, and the assessment shall bear interest at an annual rate provided by § 44-1-7 , as amended, from the date of payment until refunded or paid.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-13. Appeals.

Any person aggrieved by the decision of the tax administrator denying, in whole or in part, relief claimed under this chapter, except when the denial is based upon late filing of claim for relief may appeal the decision of the tax administrator to the sixth (6th) division of the district court by filing a petition within thirty (30) days after the denial.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-14. Extension of time for filing claims.

In case of sickness, absence, or other disability, or if, in his or her judgment, good cause exists, the tax administrator may extend for a period not to exceed six (6) months the time for filing a claim.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

44-30.3-15. Severability.

If any provision of this chapter, or its application to any person or circumstances, is held unconstitutional or otherwise invalid, the remaining provisions of this chapter and the application of the provisions to other persons or circumstances, other than those to which it is held invalid, shall not be affected by the invalidity.

History of Section. P.L. 2004, ch. 595, art. 17, § 11.

Chapter 31 Investment Tax Credit

44-31-1. Investment tax credit.

  1. A taxpayer shall be allowed a credit, to be computed as provided in this chapter, against the tax imposed by chapters 11, 14, 17, and 30 of this title. The amount of the credit shall be two percent (2%) of the cost or other basis for federal income tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings, described in subsection (b) of this section, acquired, constructed, reconstructed, or erected after December 31, 1973. Provided, that the amount of the credit shall be four percent (4%) of the: (i) cost or other basis for federal income tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings, described in subdivision (b)(1) of this section, acquired, constructed, reconstructed or erected after December 31, 1993; and (ii) qualified amounts for leased assets of tangible personal property and other tangible property described in subdivision (b)(1) of this section, acquired, constructed, reconstructed, or erected after January 1, 1998, and the amount of the credit shall be ten percent (10%) of the cost or other basis for federal income tax purposes, and the qualified amounts for leased assets, of tangible personal property and other tangible property described in subdivision (b)(3) of this section, acquired, constructed, reconstructed, or erected after January 1, 1998, and with respect to buildings and structural components which are acquired, constructed, reconstructed or erected after July 1, 2001, as described in subdivision (b)(3) of this section.
    1. A credit shall be allowed under this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which are depreciable pursuant to 26 U.S.C. § 167, have a useful life of four (4) years or more, are acquired by purchase as defined in 26 U.S.C. § 179(d) or are acquired by lease as prescribed in paragraph (3)(iv) of this subsection, have a situs in this state and are principally used by the taxpayer in the production of goods by manufacturing, process, or assembling. The credit shall be allowable in the year the property is first placed in service by the taxpayer, which is the year in which, under the taxpayer’s depreciation practice, the period for depreciation with respect to the property begins, or the year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function, whichever is earlier. For purposes of this paragraph, “manufacturing” means the process of working raw materials into wares suitable for use or which gives new shapes, new quality or new combinations to matter that already has gone through some artificial process by the use of machinery, tools, appliances, and other similar equipment. Property used in the production of goods includes machinery, equipment, or other tangible property which is principally used in the repair and service of other machinery, equipment, or other tangible property used principally in the production of goods and includes all facilities used in the production operation, including storage of material to be used in production and of the products that are produced.
    2. Within the meaning of subdivision (1) of this subsection, the term “manufacturing” means the activities of a “manufacturer” as defined in § 44-3-3(20)(iii) and (iv).
      1. A credit shall be allowed under this section with respect to tangible personal property and other tangible property, (excluding motor vehicles, furniture, buildings and structural components of buildings, except as provided in this section), which are depreciable pursuant to 26 U.S.C. § 167, have a useful life of four (4) years or more, are acquired by purchase as defined in 26 U.S.C. § 179(d) or acquired by lease as prescribed in paragraph (iv) of this subdivision, have a situs in this state and to the extent the property is used by a qualified taxpayer, as that term is defined in paragraph (v) of this subdivision, in any of the businesses described in major groups 20 through 39, 50 and 51, 60 through 67, 73, 76, 80 through 82, 87 and 89 in the standard industrial classification manual prepared by the technical committee on industrial classification, office of the statistical standards, executive office of the president, United States Bureau of the Budget, as revised from time to time (“SIC Code”) and/or any of the businesses described in the three (3) digit SIC Code 781.
      2. A credit shall be allowed under this section with respect to buildings and structural components that are acquired, constructed, reconstructed, or erected after July 1, 2001, which are depreciable pursuant to 26 U.S.C. § 167, have a useful life of four (4) years or more, are acquired by purchase as defined in 26 U.S.C. § 179(d) or acquired by lease for a term of twenty (20) years or more, excluding renewal periods, have a situs in this state and to the extent the property is used by a high performance manufacturer. The term “high performance manufacturer” means a taxpayer: (A) engaged in any of the businesses described in the major groups 28, 30, 34, to 36, and 38 of the SIC Codes, (B) that pays its full-time equivalent employees a median annual wage above the average annual wage paid by all taxpayers in the state which share the same two-digit SIC Code, unless the high performance manufacturer is the only high performance manufacturer in the state conducting business in that two-digit SIC Code, in which case this requirement shall not apply, and (C)(I) whose expenses for training or retraining its employees exceeds two percent (2%) of its total payroll costs, or (II) that pays its full-time equivalent employees a median annual wage equal to or greater than one hundred twenty-five percent (125%) of the average annual wage paid in this state by employers to employees, or (III) that pays its full-time equivalent employees classified as production workers by the Rhode Island department of labor and training an average annual wage above the average annual wage paid to the production workers of all taxpayers in the state which share the same two-digit SIC Code.
      3. To the extent allowable, the credit allowed under this section is allowed for computers, software and telecommunications hardware used by a taxpayer even if the property has a useful life of less than four (4) years;
      4. The credit for property acquired by lease is based on the fair market value of the property at the inception of the lease times the portion of the depreciable life of the property represented by the term of the lease, excluding renewal options. The credit described in this subdivision for high performance manufacturers that lease buildings and their structural components for a term of twenty (20) years or more, excluding renewal periods, shall be calculated in the same manner as for property acquired by purchase; and
      5. For purposes of this subsection, a “qualified taxpayer” means a taxpayer in any of the businesses described in major groups 20 through 39, 50 and 51, 60 through 67, 73, 76, 80 through 82, 87 and 89 of the SIC Code, and/or any of the businesses described in the three (3) digit SIC Code 781, and which meet the following criteria:
        1. The median annual wage paid to a qualified taxpayer’s full-time equivalent employees must be above the average annual wage paid by all taxpayers in the state which share the same two-digit SIC Code, unless that qualified taxpayer is the only qualified taxpayer in the state conducting business in that two-digit SIC Code, in which case this requirement does not apply; and
        2. With respect to major groups 50 and 51, 60 through 67, 73, 76, 80 through 82, 87 and 89 and/or the three (3) digit SIC Code 781(except for those qualified taxpayers whose businesses are described in any of the four (4) digit SIC Codes 7371, 7372 and 7373) only:
          1. More than one-half (1/2) of its gross revenues are a result of sales to customers outside of the state; or
          2. More than one-half (1/2) of its gross revenues are a result of sales to the federal government; or
          3. More than one-half (1/2) of its gross revenues are a result of a combination of sales described in items (I) and (II) of this subparagraph.
    3. For purposes of this section, “sales to customers outside the state” means sales to individuals, businesses and other entities, as well as divisions and/or branches of businesses and other entities, residing or located outside of the state. The requirement of subparagraph (v)(A) of this subdivision does not apply to any qualified taxpayer: (i) whose expenses for training or retraining its employees exceeds two percent (2%) of these qualified taxpayer’s total payroll costs; or (ii) whose median annual wage paid to its full-time equivalent employees is equal to or greater than one hundred twenty-five percent (125%) of the average annual wage paid in this state by employers to employees; or (iii), with respect to major groups 20 through 39 only, the average annual wage paid to these qualified taxpayer’s full-time equivalent employees, classified as production workers by the Rhode Island department of labor and training, is above the average annual wage paid to the production workers of all these taxpayers in the state which share the same two-digit SIC Code. At the election of a taxpayer, which is made at any time and in any manner that may be determined by the tax administrator, the taxpayer’s ability in a particular fiscal year to qualify as a qualified taxpayer may be based on the expenses and gross receipts of the taxpayer for either the prior fiscal year or the immediately proceeding fiscal year rather than on the expenses and gross receipts for that fiscal year. For purposes of this chapter, the director of the Rhode Island human resource investment council shall certify as to legitimate training and retraining expenses in accordance with the guidelines established in chapter 64.6 of title 42, and any rules and regulations promulgated under this chapter. For purposes of this subsection, a “full-time equivalent employee” means an employee who works a minimum of thirty (30) hours per week within the state or two (2) part-time employees who together work a minimum of thirty (30) hours per week within the state. For purposes of this subsection, the director of the Rhode Island department of labor and training, upon receipt of an application from a qualified taxpayer, shall certify whether this qualified taxpayer meets the requirement in subparagraph (v)(A) of this subdivision or is exempt from this requirement because the median annual wage it pays its full-time equivalent employees is equal to or greater than one hundred twenty-five (125%) percent of the average annual wage paid in this state by employers to employees or, with respect to major groups 20 through 39 only, the average annual wage paid to this qualified taxpayer’s full-time equivalent employees, classified as production workers by the Rhode Island department of labor and training, is above the average annual wage paid to the production workers of all these taxpayers in the state which share the same two-digit SIC Code. The director of the Rhode Island department of labor and training shall promulgate rules and regulations as required for the implementation of this requirement.
    4. To the extent otherwise allowable, the credit provided by paragraphs (3)(i) and (ii) of this subsection are also allowed for the property having a situs in Rhode Island and used, however acquired, by a property and casualty insurance company.
  2. Subject to the provisions of subdivision (b)(3) of this section, a taxpayer is not allowed a credit under subsection (a) of this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which it leases to any other person or corporation and is not allowed a credit under subsection (a) of this section with respect to buildings and structural components of buildings it leases from any other person or corporation. For the purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use the property is considered a lease, unless a contract or agreement is treated for federal income tax purposes as an installment purchase rather than a lease.
  3. The credit allowed under this section for any taxable year does not reduce the tax due for the year by more than fifty percent (50%) of the tax liability that would be payable, and further in the case of corporations, to less than the minimum tax as prescribed in § 44-11-2(e) ; provided, that in the case of the credit allowed to high performance manufacturers under subdivision (b)(3) of this section, the fifty percent (50%) limitation shall not apply. If the amount of credit allowable under this section for any taxable year is less than the amount of credit available to the taxpayer, any amount of credit not deductible in the taxable year may be carried over to the following year or years (not to exceed seven (7) years) and may be deducted from the taxpayer’s tax for the year or years.
  4. At the option of the taxpayer, air or water pollution control facilities which qualify for elective amortization deduction may be treated as property principally used by the taxpayer in the production of goods by manufacturing, processing, or assembling; provided, that if the property qualifies under subsection (b) of this section, in which event, an amortization deduction is not allowed.
  5. With respect to property which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in subsection (a) of this section, which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. If this property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve (12) consecutive years, it is not necessary to add back the credit as provided in this subsection. A credit allowed to a qualified taxpayer is not recaptured merely because the taxpayer subsequently fails to retain the classification as a qualified taxpayer. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio, which the months of qualified use bear to the months of useful life. For purposes of this subsection, “useful life of property” is the same as the taxpayer (or in the case of property acquired by lease, the owner of the property) uses for depreciation purposes when computing his or her federal income tax liability. Comparable rules are used in the case of property acquired by lease to determine the amount of credit, if any, that will be recaptured if the lease terminates prematurely or if the property covered by the lease otherwise fails to be in qualified use.
  6. The credit allowed under this section is only allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

History of Section. P.L. 1974, ch. 200, art. 4, § 1; P.L. 1975, ch. 188, art. 2, § 1; P.L. 1984, ch. 206, art. 4, § 1; P.L. 1984 (S.S.), ch. 450, § 2; P.L. 1993, ch. 138, art. 58, § 1; P.L. 1997, ch. 30, art. 14, § 1; P.L. 1997, ch. 57, § 1; P.L. 1999, ch. 221, § 1; P.L. 2000, ch. 224, § 1; P.L. 2000, ch. 269, § 1; P.L. 2001, ch. 111, § 1; P.L. 2002, ch. 265, § 2.

Law Reviews.

Survey Section: Taxation, see Roger Williams Univ. L. Rev. 599 (1998).

Collateral References.

What are a “building and its structural components” not qualifying for investment tax credit under §§ 38 and 48(a)(1)(B) of Internal Revenue Code (29 USCS §§ 38 and 48(a)(1)(B)). 39 A.L.R. Fed. 307.

44-31-1.1. Biotechnology investment tax credit.

  1. Any company primarily engaged in commercial biological research and development or manufacturing and sale of biotechnology products or active pharmaceutical ingredients which pays its employees that work a minimum of thirty (30) hours per week within the state a median annual wage equal or greater than one hundred and twenty-five percent (125%) of the average annual wage paid by all employers in the state to employees that work a minimum of thirty (30) hours per week within the state, and provides benefits typical to the biotechnology industry, shall be allowed a credit of ten percent (10%) of the cost or other basis for federal tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings acquired, constructed, reconstructed, or leased with situs in Rhode Island and principally used in the production of biotechnology products after December 31, 2001.
    1. “Biotechnology products” means those products that are applicable to the prevention, treatment, or cure of a disease or condition of human beings, and that are produced using living organisms, or materials derived from living organisms, or cellular, sub cellular, or molecular component of living organisms.
    2. “Principally” means the company’s sales of biotechnology products or costs related to the development of biotechnology products constitute at least fifty percent of its overall receipts or its overall costs respectively.
    3. “Tangible personal property” and “other tangible property” includes buildings and structural components of buildings acquired, constructed, reconstructed, or leased with situs in Rhode Island and principally used in the production of biotechnology products after December 31, 2001 that:
      1. is depreciable pursuant to 26 USC. Section 167,
      2. has a useful life of four (4) years or more, and
      3. is acquired by purchase as defined in 26 U.S.C. § 179(d), or
      4. is acquired by lease based on the fair market value of the property at the inception of the lease times the portion of the depreciable life of the property represented by the term of the lease, excluding renewal options, for a term of twenty (20) years; and
      5. does not include vehicles or furniture.
    4. “Wages” means all remuneration paid for personal services, including commissions and bonuses and the cash value of all remuneration paid in any medium other than cash and all other remuneration which is defined as taxable wages by the Internal Revenue Service, as certified by the department of labor and training.
  2. If the amount of credit allowable for any taxable year is less than the amount of credit available to the taxpayer, any amount of credit not used in the taxable year will be available the following year or years not to exceed fifteen (15) years and may be deducted from the taxpayer’s tax for the year or years.
    1. The credit may be extended beyond seven (7) years only in a year in which:
      1. The company maintains an average quarterly number of employees for each calendar year that is nine and one half percent (9.5%) greater than average quarter number of employees in the fourth year of the initial credit. Employees are defined as those that work a minimum of thirty (30) hours per week within the state with benefits typical to the biotechnology industry;
      2. The company’s average quarterly median wage is not less than the company’s average of its quarterly median wage for the three (3) previous calendar years;
      3. The company pays its employees a median annual wage equal or greater than one hundred and twenty-five percent (125%) of the average annual wage paid by all employers in the state. Employees are defined as those that work a minimum of thirty (30) hours per week within the state with benefits typical to the biotechnology industry; and
      4. The department of labor and training certifies to the tax administrator that the criteria in (A) — (C) have been met.
    2. Unused credits after the seventh year are forfeited permanently if any of these wage and employment criteria are unmet after the seventh year.
    3. The company may determine the order in which the credits generated in different tax years are utilized, provided that credits available for more than seven (7) years may not reduce current year liability by more than seventy-five percent (75%); and provided further that in no event, can liability be reduced below the minimum tax prescribed in § 44-11-2 .

History of Section. P.L. 2006, ch. 31, § 2; P.L. 2006, ch. 32, § 2; P.L. 2006, ch. 409, § 2; P.L. 2006, ch. 505, § 2.

Applicability.

P.L. 2006, ch. 31, § 2, provides that this section takes effect upon passage [May 24, 2006] and applies to taxable years beginning on or after December 31, 2000.

P.L. 2006, ch. 32, § 3, provides that this section takes effect upon passage [May 24, 2006] and applies to taxable years beginning on or after December 31, 2000.

P.L. 2006, ch. 409, § 2, provides that this section takes effect upon passage [July 7, 2006] and applies to taxable years beginning on or after December 31, 2000.

P.L. 2006, ch. 505, § 3, provides that this section takes effect upon passage [July 7, 2006] and applies to taxable years beginning on or after December 31, 2000.

44-31-2. Specialized investment tax credit.

  1. A certified building owner, as provided in chapter 64.7 of title 42, may be allowed a specialized investment tax credit against the tax imposed by chapters 11, 14, 17 and 30 of this title.
  2. The taxpayer may claim credit for the rehabilitation and reconstruction costs of a certified building, which has been substantially rehabilitated. Once substantial rehabilitation is established by the taxpayer, the taxpayer may claim credit for all rehabilitation and reconstruction costs incurred with respect to the certified building within five (5) years from the date of final designation of the certified building by the council pursuant to § 42-64.7-6.
  3. The credit shall be ten percent (10%) of the rehabilitation and reconstruction costs of the certified building. The credit shall be allowable in the year the substantially rehabilitated certified building is first placed into service, which is the year in which, under the taxpayer’s depreciation practice, the period for depreciation with respect to such property begins, or the year in which the property is placed in a condition or state of readiness and availability for its specifically assigned function, whichever is earlier.
  4. The credit shall not offset any tax liability in taxable years other than the year or years in which the taxpayer qualifies for the credit. The credit shall not reduce the tax below the minimum. Amounts of unused credit for this taxpayer may be carried over and offset against this taxpayer’s tax for a period not to exceed the following seven (7) taxable years.
  5. In the case of a corporation, this credit is only allowed against the tax of that of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

History of Section. P.L. 1996, ch. 247, § 2; P.L. 1998, ch. 400, § 1; P.L. 1999, ch. 373, § 1.

Chapter 31.1 Film Production Tax Credit [Repealed.]

44-31.1-1. Repealed.

History of Section. P.L. 2002, ch. 265, § 1; Repealed by P.L. 2005, ch. 95, § 2, and by P.L. 2005, ch. 118, § 2, effective July 1, 2005.

Compiler’s Notes.

Former § 44-31.1-1 concerned a film production tax credit.

Applicability.

P.L. 2005, ch. 95, § 2, and P.L. 2005, ch. 118, § 2 provide that these acts shall take effect upon passage and shall apply to any production certified by the Rhode Island Film Office to be in existence on or after January 1, 2005.

Chapter 31.2 Motion Picture Production Tax Credits

44-31.2-1. Findings and purpose.

  1. The general assembly finds and declares that the state of Rhode Island with its natural beauty, historical and architectural heritage of the state, its majestic natural resources including Narragansett Bay and the independence and diversity of its citizens and neighborhoods would provide a variety of excellent settings from which the motion picture industry might choose a location for filming a motion picture or television program, and together with those natural settings, the availability of labor, materials, climate, and hospitality of its people have been instrumental in the filming of several successful motion pictures.
  2. It is recognized that the motion picture industry brings with it a much needed infusion of capital into areas of the state which may be economically depressed and the multiplier effect of the infusion of capital resulting from the filming of a motion picture or television program serves to stimulate economic activity beyond that immediately apparent on the film set.
  3. Since a significant portion of the cost of a motion picture or television production will not be eligible for existing tax incentives due to the fact that portions of the production are carried out in another state, it is the purpose of this chapter to provide a financial incentive to the film industry in order that the state might compete with other states for filming locations.
  4. The primary objective of this chapter is to encourage development in Rhode Island of a strong capital base for motion picture film, videotape, and television program productions, in order to achieve a more independent, self-supporting industry. This objective is divided into immediate and long-term objectives as follows:
    1. Immediate objectives are to:
      1. Attract private investment for the production of motion pictures, videotape productions, and television programs which contain substantial Rhode Island content as defined herein.
      2. Develop a tax infrastructure which encourages private investment. This infrastructure will provide for state participation in the form of tax credits to encourage investment in state- certified productions.
      3. Develop a tax infrastructure utilizing tax credits which encourage investments in multiple state-certified production projects.
    2. Long-term objectives are to:

(i) Encourage increased employment opportunities within this sector and increased competition with other states in fully developing economic development options within the film and video industry.

(ii) Encourage new education curricula in order to provide a labor force trained in all aspects of film production.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1.

44-31.2-2. Definitions.

For the purposes of this chapter:

  1. “Accountant’s certification” as provided in this chapter means a certified audit by a Rhode Island certified public accountant licensed in accordance with chapter 3.1 of title 5.
  2. “Application year” means within the calendar year the motion picture production company files an application for the tax credit.
  3. “Base investment” means the actual investment made and expended by a state-certified production in the state as production-related costs.
  4. “Documentary production” means a non-fiction production intended for educational or commercial distribution that may require out-of-state principal photography.
  5. “Domiciled in Rhode Island” means a corporation incorporated in Rhode Island or a partnership, limited-liability company, or other business entity formed under the laws of the state of Rhode Island for the purpose of producing motion pictures as defined in this section, or an individual who is a domiciled resident of the state of Rhode Island as defined in chapter 30 of this title.
  6. “Final production budget” means and includes the total pre-production, production, and post-production out-of-pocket costs incurred and paid in connection with the making of the motion picture. The final production budget excludes costs associated with the promotion or marketing of the motion picture.
  7. “Motion picture” means a feature-length film, documentary production, video, television series, or commercial made in Rhode Island, in whole or in part, for theatrical or television viewing or as a television pilot or for educational distribution. The term “motion picture” shall not include the production of television coverage of news or athletic events, or reality television show(s), nor shall it apply to any film, video, television series, or commercial or a production for which records are required under 18 U.S.C. § 2257 to be maintained with respect to any performer in such production or reporting of books, films, or other works or materials with respect to sexually explicit conduct.
  8. “Motion picture production company” means a corporation, partnership, limited-liability company, or other business entity engaged in the business of producing one or more motion pictures as defined in this section. Motion picture production company shall not mean or include:
    1. Any company owned, affiliated, or controlled, in whole or in part, by any company or person who or that is in default:
      1. On taxes owed to the state; or
      2. On a loan made by the state in the application year; or
      3. On a loan guaranteed by the state in the application year; or
    2. Any company that or person who has discharged an obligation to pay or repay public funds or monies by:
      1. Filing a petition under any federal or state bankruptcy or insolvency law;
      2. Having a petition filed under any federal or state bankruptcy or insolvency law against such company or person;
      3. Consenting to, or acquiescing or joining in, a petition named in (i) or (ii);
      4. Consenting to, or acquiescing or joining in, the appointment of a custodian, receiver, trustee, or examiner for the company’s or person’s property; or
      5. Making an assignment for the benefit of creditors or admitting in writing or in any legal proceeding its insolvency or inability to pay debts as they become due.
  9. “Primary locations” means the locations that: (1) At least fifty-one percent (51%) of the motion picture principal photography days are filmed; or (2) At least fifty-one percent (51%) of the motion picture’s final production budget is spent and employs at least five (5) individuals during the production in this state; or (3) For documentary productions, the location of at least fifty-one percent (51%) of the total productions days, which shall include pre-production and post-production locations.
  10. “Rhode Island film and television office” means an office within the Rhode Island Council on the Arts that has been established in order to promote and encourage the locating of film and television productions within the state of Rhode Island. The office is also referred to within as the “film office.”
  11. “State-certified production” means a motion picture production approved by the Rhode Island film office and produced by a motion picture production company domiciled in Rhode Island, whether or not the company owns or controls the copyright and distribution rights in the motion picture; provided, that the company has either:
    1. Signed a viable distribution plan; or
    2. Is producing the motion picture for:
      1. A major motion picture distributor;
      2. A major theatrical exhibitor;
      3. Television network; or
      4. Cable television programmer.
  12. “State-certified production cost” means any pre-production, production, and post-production cost that a motion picture production company incurs and pays to the extent it occurs within the state of Rhode Island. Without limiting the generality of the foregoing, “state-certified production costs” include: set construction and operation; wardrobes, make-up, accessories, and related services; costs associated with photography and sound synchronization, lighting, and related services and materials; editing and related services, including, but not limited to: film processing, transfers of film to tape or digital format, sound mixing, computer graphics services, special effects services, and animation services, salary, wages, and other compensation, including related benefits, of persons employed, either directly or indirectly, in the production of a film including writer, motion picture director, producer (provided the work is performed in the state of Rhode Island); rental of facilities and equipment used in Rhode Island; leasing of vehicles; costs of food and lodging; music, if performed, composed, or recorded by a Rhode Island musician, or released or published by a person domiciled in Rhode Island; travel expenses incurred to bring persons employed, either directly or indirectly, in the production of the motion picture, to Rhode Island (but not expenses of such persons departing from Rhode Island); and legal (but not the expense of a completion bond or insurance and accounting fees and expenses related to the production’s activities in Rhode Island), provided such services are provided by Rhode Island licensed attorneys or accountants.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2; P.L. 2012, ch. 241, art. 21, § 10; P.L. 2017, ch. 223, § 1; P.L. 2017, ch. 327, § 1; P.L. 2018, ch. 47, art. 3, § 12; P.L. 2018, ch. 47, art. 12, § 16; P.L. 2019, ch. 308, art. 2, § 14.

Compiler’s Notes.

P.L. 2017, ch. 223, § 1, and P.L. 2017, ch. 327, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-3, 44-31.2-4. Repealed.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; Repealed by P.L. 2006, ch. 19, § 3, and by P.L. 2006, ch. 20, § 3, effective April 14, 2006.

Compiler’s Notes.

Former §§ 44-31.2-3 and 44-31.2-4 concerned investor tax credit and applicability of the credit.

44-31.2-5. Motion picture production company tax credit.

  1. A motion picture production company shall be allowed a credit to be computed as provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title. The amount of the credit shall be thirty percent (30%) of the state-certified production costs incurred directly attributable to activity within the state, provided:
    1. That the primary locations are within the state of Rhode Island and the total production budget as defined herein is a minimum of one hundred thousand dollars ($100,000); or
    2. The motion picture production incurs and pays a minimum of ten million dollars ($10,000,000) in state-certified production costs within a twelve-month (12) period.
  2. For the purposes of this section: “total production budget” means and includes the motion picture production company’s pre-production, production, and post-production costs incurred for the production activities of the motion picture production company in Rhode Island in connection with the production of a state-certified production. The budget shall not include costs associated with the promotion or marketing of the film, video, or television product.
  3. Notwithstanding subsection (a) of this section, the credit shall not exceed seven million dollars ($7,000,000) and shall be allowed against the tax for the taxable period in which the credit is earned and can be carried forward for not more than three (3) succeeding tax years. Pursuant to rules promulgated by the tax administrator, the administrator may issue a waiver of the seven million dollars ($7,000,000) tax credit cap for any feature-length film or television series up to the remaining funds available pursuant to section (e) of this section.
  4. Credits allowed to a motion picture production company, which is a subchapter S corporation, partnership, or a limited-liability company that is taxed as a partnership, shall be passed through respectively to persons designated as partners, members, or owners on a pro rata basis or pursuant to an executed agreement among such persons designated as subchapter S corporation shareholders, partners, or members documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity.
  5. No more than fifteen million dollars ($15,000,000) in total may be issued for any tax year beginning after December 31, 2007, for motion picture tax credits pursuant to this chapter and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title. After December 31, 2019, no more than twenty million dollars ($20,000,000) in total may be issued for any tax year for motion picture tax credits pursuant to this chapter and/or musical and theater production tax credits pursuant to chapter 31.3 of this title. Said credits shall be equally available to motion picture productions and musical and theatrical productions. No specific amount shall be set aside for either type of production.
  6. Exclusively for tax year 2022, the total amount of motion picture tax credits issued pursuant to this section and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title shall not exceed thirty million dollars ($30,000,000).

The credit shall be earned in the taxable year in which production in Rhode Island is completed, as determined by the film office in final certification pursuant to § 44-31.2-6(c) .

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2; P.L. 2008, ch. 100, art. 32, § 5; P.L. 2012, ch. 241, art. 21, § 10; P.L. 2018, ch. 47, art. 12, § 16; P.L. 2019, ch. 88, art. 12, § 6; P.L. 2020, ch. 5, § 1; P.L. 2020, ch. 6, § 1; P.L. 2021, ch. 162, art. 9, § 15, effective July 6, 2021.

Compiler’s Notes.

P.L. 2020, ch. 5, § 1, and P.L. 2020, ch. 6, § 1 enacted identical amendments to this section.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-6. Certification and administration.

  1. Initial certification of a production.  The applicant shall properly prepare, sign, and submit to the film office an application for initial certification of the Rhode Island production. The application shall include such information and data as the film office deems necessary for the proper evaluation and administration of the application, including, but not limited to, any information about the motion picture production company, and a specific Rhode Island motion picture. The film office shall review the completed application and determine whether it meets the requisite criteria and qualifications for the initial certification for the production. If the initial certification is granted, the film office shall issue a notice of initial certification of the motion picture production to the motion picture production company and to the tax administrator. The notice shall state that, after appropriate review, the initial application meets the appropriate criteria for conditional eligibility. The notice of initial certification will provide a unique identification number for the production and is only a statement of conditional eligibility for the production and, as such, does not grant or convey any Rhode Island tax benefits.
  2. Final certification of a production.  Upon completion of the Rhode Island production activities, the applicant shall request a certificate of good standing from the Rhode Island division of taxation. The certificates shall verify to the film office the motion picture production company’s compliance with the requirements of § 44-31.2-2(11) . The applicant shall properly prepare, sign, and submit to the film office an application for final certification of the production and which must include the certificate of good standing from the division of taxation. In addition, the application shall contain such information and data as the film office determines is necessary for the proper evaluation and administration, including, but not limited to, any information about the motion picture production company, its investors, and information about the production previously granted initial certification. The final application shall also contain a cost report and an “accountant’s certification.” The film office and tax administrator may rely without independent investigation, upon the accountant’s certification, in the form of an opinion, confirming the accuracy of the information included in the cost report. Upon review of a duly completed and filed application, the film office will make a determination pertaining to the final certification of the production. Within ninety (90) days after the division of taxation’s receipt of the motion picture production company final certification and cost report, the division of taxation shall issue a certification of the amount of credit for which the motion picture production company qualifies under § 44-31.2-5 . To claim the tax credit, the division of taxation’s certification as to the amount of the tax credit shall be attached to all state tax returns on which the credit is claimed.
  3. Final certification and credits.  Upon determination that the motion picture production company qualifies for final certification, the film office shall issue a letter to the production company indicating “certificate of completion of a state-certified production.” A motion picture production company is prohibited from using state funds, state loans, or state guaranteed loans to qualify for the motion picture tax credit. All documents that are issued by the film office pursuant to this section shall reference the identification number that was issued to the production as part of its initial certification.
  4. The director of the Rhode Island council on the arts, in consultation as needed with the tax administrator, shall promulgate such rules and regulations as are necessary to carry out the intent and purposes of this chapter in accordance with the general guidelines provided herein for the certification of the production and the resultant production credit.
  5. The tax administrator of the division of taxation, in consultation with the director of the Rhode Island film and television office, shall promulgate the rules and regulations as are necessary to carry out the intent and purposes of this chapter in accordance with the general guidelines for the tax credit provided herein.
  6. Any motion picture production company applying for the credit shall be required to reimburse the division of taxation for any audits required in relation to granting the credit.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2; P.L. 2012, ch. 241, art. 21, § 10; P.L. 2018, ch. 47, art. 3, § 12.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-6.1. Impact analysis and periodic reporting.

  1. The film office shall not certify or approve any application under § 44-31.2-6 of this chapter until it has first prepared and publicly released an analysis of the impact the proposed investment will or may have on the state. The analysis shall be supported by appropriate data and documentation and shall consider, but not be limited to, the following factors:
    1. The impact on the industry or industries in which the applicant will be involved;
    2. State fiscal matters, including the state budget (revenues and expenses);
    3. The financial exposure of the taxpayers of the state under the plans for the proposed investment and negative foreseeable contingencies that may arise therefrom;
    4. The approximate number of full-time, part-time, temporary, seasonal and/or permanent jobs projected to be created, construction and non-construction;
    5. Identification of geographic sources of the staffing for identified jobs;
    6. The projected duration of the identified construction jobs;
    7. The approximate wage rates for each category of the identified jobs;
    8. The types of fringe benefits to be provided with the identified jobs, including healthcare insurance and any retirement benefits;
    9. The projected fiscal impact on increased personal income taxes to the state of Rhode Island; and
    10. The description of any plan or process intended to stimulate hiring from the host community, training of employees or potential employees, and outreach to minority job applicants and minority businesses.
  2. The film office shall monitor every impact analysis it completes through the duration of any approved tax credit. Such monitoring shall include annual reports made available to the public on the:
    1. Actual versus projected impact for all considered factors; and
    2. Verification of all commitments made in consideration of state incentives or aid.
  3. Upon its preparation and release of the analysis required by subsection (b) of this section, the film office shall provide copies of that analysis to the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, the department of labor and training and the division of taxation. Any such analysis shall be available to the public for inspection by any person and shall by published by the tax administrator on the tax division website. Annually thereafter, through and including the second tax year after any taxpayer has applied for and received a tax credit pursuant to this chapter, the department of labor and training shall certify to the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, the corporation and the division of taxation that: (i) the actual number of new full-time jobs with benefits created by the state-certified production, not including construction jobs, is on target to meet or exceed the estimated number of new jobs identified in the analysis above, and (ii) the actual number of existing full-time jobs with benefits has not declined. For purposes of this section, “full-time jobs with benefits” means jobs that require working a minimum of thirty (30) hours per week within the state, with a median wage that exceeds by five percent (5%) the median annual wage for full-time jobs in Rhode Island and within the taxpayer’s industry, with a benefit package that includes healthcare insurance plus other benefits typical of companies within the motion picture industry. The department of labor and training shall also certify annually to the house and senate fiscal committee chairs, the house and senate fiscal advisors, and the division of taxation that jobs created by the state-certified production are “new jobs” in the state of Rhode Island, meaning that the employees of the motion picture production company are in addition to, and without a reduction of, those employees of the motion picture production company currently employed in Rhode Island, are not relocated from another facility of the motion picture production company in Rhode Island or are employees assumed by the motion picture production company as the result of a merger or acquisition of a company already located in Rhode Island. The certifications made by the department of labor and training shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  4. The film office, with the assistance of the motion picture production company, the department of labor and training, the department of human services and the division of taxation shall provide annually an analysis of whether any of the employees of the motion picture production company has received RIte Care or RIte Share benefits and the impact such benefits or assistance may have on the state budget. This analysis shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website. Notwithstanding any other provision of law or rule or regulation, the division of taxation, the department of labor and training and the department of human services are authorized to present, review and discuss project-specific tax or employment information or data with the film office, the chairpersons of the house and senate finance committees, and/or the house and senate fiscal advisors for the purpose of verification and compliance with this tax credit reporting requirement.
  5. Any agreements or contracts entered into by the film office and the motion picture production company shall be sent to the division of taxation and be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  6. By August 15th of each year the motion picture production company shall report the source and amount of any bonds, grants, loans, loan guarantees, matching funds or tax credits received from any state governmental entity, state agency or public agency as defined in § 37-2-7 received during the previous state fiscal year. This annual report shall be sent to the division of taxation and be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  7. By August 15 of each year the division of taxation shall report the name, address, and amount of tax credit received for each motion picture production company during the previous state fiscal year to the film office, the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, the department of labor and training and the division of taxation. This report shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  8. On or before September 1, 2011, and every September 1 thereafter, the project lessee shall file an annual report with the tax administrator. Said report shall contain each full-time equivalent, part-time or seasonal employee’s name, social security number, date of hire, and hourly wage as of the immediately preceding July 1 and such other information deemed necessary by the tax administrator. The report shall be filed on a form and in a manner prescribed by the tax administrator.

History of Section. P.L. 2008, ch. 165, § 6; P.L. 2008, ch. 173, § 6; P.L. 2011, ch. 151, art. 19, § 8.

44-31.2-7. Information requests.

  1. The director of the film office and his or her agents, for the purpose of ascertaining the propriety or correctness of any materials pertaining to the certification of any motion picture production or to credits claimed under the provisions of this chapter, may examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, and may require the attendance of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter which the director or his or her agent deems pertinent or material in administration and application of this chapter and, where not inconsistent with other legal provisions, the director may request information from the tax administrator.
  2. The tax administrator and his or her agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions of this chapter, may examine any books, papers, records, or memoranda bearing upon matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter which the tax administrator or his or her agent deems pertinent or material in determining the eligibility for credits claimed and may request information from the film office, and the film office shall provide the information in all cases to the tax administrator.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-8. Hearings and appeals.

  1. From an action of the film office.  For matters pertaining exclusively to application, production, and certification of motion picture productions, any person aggrieved by a denial action of the film office under this chapter shall notify the director of the film office in writing, within thirty (30) days from the date of mailing of the notice of denial action by the film office and request a hearing relative to the denial or action. The director of the film office shall, as soon as is practicable, fix a time and place of hearing, and shall render a final decision. Appeals from a final decision of the director of the film office under this chapter are to the sixth (6th) division district court pursuant to chapter 35 of title 42 of the general laws.
  2. From denial of tax credit.  Any person aggrieved by the tax administrator’s denial of a tax credit or tax benefit in this section shall notify the tax administrator in writing within thirty (30) days from the date of mailing of the notice of denial of the tax credit and request a hearing relative to the denial of the tax credit. The tax administrator shall, as soon as is practicable, fix a time and place for a hearing, and shall render a final decision. Appeals from a final decision of the tax administrator under this chapter are to the sixth (6th) division district court pursuant to chapter 8 of title 8 of the general laws. The taxpayer’s right to appeal is expressly made conditional upon prepayment of all taxes, interest, and penalties, unless the taxpayer files a timely motion for exemption from prepayment with the district court in accordance with the requirements imposed pursuant to § 8-8-26 of the general laws.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-9. Transferability of the credit.

  1. Any motion picture production company tax credit certificate issued in accordance with § 44-31.2-5 , which has been issued to a motion picture production company or passed through in accordance with subsection 44-31.2-5(d) , and to the extent not previously claimed against the tax of the motion picture production company or of the owner of the certificate if the certificate was issued in accordance with subsection 44-31.2-5(d) , may be transferred or sold by such company to another Rhode Island taxpayer, subject to the following conditions:
    1. A single transfer or sale may involve one or more transferees, assignees or purchasers. A transfer or sale of the credits may involve multiple transfers to one or more transferees, assignees or purchasers.
    2. Transferors and sellers shall submit to the Rhode Island Film Office, and to the tax administrator in writing, a notification of any transfer or sale of tax credits within thirty (30) days after the transfer or sale of such tax credits. The notification shall include the transferor’s tax credit balance prior to transfer, the credit certificate number, the name of the state-certified production, the transferor’s remaining tax credit balance after transfer, all tax identification numbers for both transferor and transferee, the date of transfer, the amount transferred, a copy of the credit certificate, and any other information required by the Rhode Island office of film and television or the division of taxation. The notification submitted to the division of taxation shall include a processing fee of up to two hundred dollars ($200) per transferee which shall be deposited as general revenues.
    3. Failure to comply with this section will result in the disallowance of the tax credit until the taxpayers are in full compliance.
    4. The transfer or sale of this credit does not extend the time in which the credit can be used. The carry forward period for credit that is transferred or sold begins on the date on which the credit was originally granted by the film office.
    5. To the extent that the transferor did not have rights to claim or use the credit at the time of the transfer, the division of taxation shall either disallow the credit claimed by the transferee or recapture the credit from the transferee through any collection method authorized by Rhode Island general law. The transferee’s recourse is against the transferor.
    6. The film office shall assess and collect an administrative fee of two hundred dollars ($200) per transfer, assignment or sale for issuing multiple motion picture production company tax credit certificates or for reissuing certificates.
  2. The transferee, assignee or purchaser shall apply such credits in the same manner as the motion picture production company originally awarded the credit.
  3. For purposes of this chapter, any assignment or sales proceeds received by the motion picture production company for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this title.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-10. Disclaimer and severability.

  1. The state of Rhode Island reserves the right to refuse the use of Rhode Island’s name in credits of any motion picture filmed or produced in the state.
  2. If any clause, sentence, paragraph, or part of this chapter is for any reason judged invalid by any court of competent jurisdiction, the judgment does not affect, impair, or invalidate the remainder of this chapter but is confined in its operation to the clause, sentence, paragraph, or part of this chapter directly involved in the controversy in which the judgment has been rendered.

History of Section. P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2.

Applicability.

P.L. 2006, ch. 19, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

P.L. 2006, ch. 20, § 4, provides that this section takes effect upon passage [April 14, 2006] and applies to any production that filed written notice with the Rhode Island film office as of or subsequent to January 1, 2005.

44-31.2-11. Sunset.

No credits shall be issued on or after July 1, 2027, unless the production has received initial certification under § 44-31.2-6(a) prior to July 1, 2027.

History of Section. P.L. 2012, ch. 241, art. 21, § 11; P.L. 2016, ch. 142, art. 13, § 17; P.L. 2017, ch. 223, § 1; P.L. 2017, ch. 327, § 1; P.L. 2019, ch. 88, art. 12, § 6.

Compiler’s Notes.

P.L. 2017, ch. 223, § 1, and P.L. 2017, ch. 327, § 1 enacted identical amendments to this section.

Chapter 31.3 Musical and Theatrical Production Tax Credits

44-31.3-1. Declaration of purpose.

The general assembly finds and declares that it is Rhode Island’s priority to reduce the state’s unemployment rate by stimulating new industries that have large employment growth potential by providing tax incentives and other means necessary and therefore recognizes that such incentives should be created for the arts and entertainment industry. The purpose of this chapter is to create economic incentives for the purpose of stimulating the local economy and reducing unemployment in Rhode Island.

History of Section. P.L. 2012, ch. 241, art. 21, § 12.

44-31.3-2. Musical and theatrical production tax credits.

  1. Definitions.  As used in this chapter:
    1. “Accredited theater production” means a for-profit live stage presentation in a qualified production facility, as defined in this chapter that is either: (i) A pre-Broadway production, or (ii) A post-Broadway production.
    2. “Accredited theater production certificate” means a certificate issued by the film office certifying that the production is an accredited theater production that meets the guidelines of this chapter.
    3. “Advertising and public relations expenditure” means costs incurred within the state by the accredited theater productions for goods or services related to the national marketing, public relations, creation and placement of print, electronic, television, billboards and other forms of advertising to promote the accredited theater production.
    4. “Payroll” means all salaries, wages, fees, and other compensation including related benefits for services performed and costs incurred within Rhode Island.
    5. “Pre-Broadway production” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility having a presentation scheduled for Broadway’s theater district in New York City within (12) months after its Rhode Island presentation.
    6. “Post-Broadway production” means a live stage production that, in its original or adaptive version, is performed in a qualified production facility and opens its U.S. tour in Rhode Island after a presentation scheduled for Broadway’s theater district in New York City.
    7. “Production and performance expenditures” means a contemporaneous exchange of cash or cash equivalent for goods or services related to development, production, performance, or operating expenditures incurred in this state for a qualified theater production including, but not limited to, expenditures for design, construction and operation, including sets, special and visual effects, costumes, wardrobes, make-up, accessories; costs associated with sound, lighting, staging, payroll, transportation expenditures, advertising and public relations expenditures, facility expenses, rentals, per diems, accommodations and other related costs.
    8. “Qualified production facility” means a facility located in the state of Rhode Island in which live theatrical productions are, or are intended to be, exclusively presented that contains at least one stage, a seating capacity of one thousand (1,000) or more seats, and dressing rooms, storage areas, and other ancillary amenities necessary for the accredited theater production.
    9. “Resident” or “Rhode Island resident” means, for the purpose of determination of eligibility for the tax incentives provided by this chapter, an individual who is domiciled in the state of Rhode Island or who is not domiciled in this state but maintains a permanent place of abode in this state and is in this state for an aggregate of more than one hundred eighty-three (183) days of the taxable year, unless the individual is in the armed forces of the United States.
    10. “Rhode Island film and television office” means the office within the department of administration that has been established in order to promote and encourage the locating of film and television productions within the state of Rhode Island. The office is also referred to as the “film office.”
      1. “Transportation expenditures” means expenditures for the packaging, crating, and transportation both to the state for use in a qualified theater production of sets, costumes, or other tangible property constructed or manufactured out of state, and/or from the state after use in a qualified theater production of sets, costumes, or other tangible property constructed or manufactured in this state and the transportation of the cast and crew to and from the state. Such term shall include the packaging, crating, and transporting of property and equipment used for special and visual effects, sound, lighting and staging, costumes, wardrobes, make-up, and related accessories and materials, as well as any other performance or production-related property and equipment.
      2. Transportation expenditures shall not include any costs to transport property and equipment to be used only for filming and not in a qualified theater production, any indirect costs, and expenditures that are later reimbursed by a third party; or any amounts that are paid to persons or entities as a result of their participation in profits from the exploitation of the production.
  2. Tax credit.
    1. Any person, firm, partnership, trust, estate, or other entity that receives an accredited theater production certificate shall be allowed a tax credit equal to thirty percent (30%) of the total production and performance expenditures and transportation expenditures for the accredited theater production and to be computed as provided in this chapter against a tax imposed by chapters 11, 12, 13, 14, 17, and 30 of this title. Said credit shall not exceed five million dollars ($5,000,000) and shall be limited to certified production costs directly attributable to activities in the state and transportation expenditures defined above. The total production budget shall be a minimum of one hundred thousand dollars ($100,000).
    2. No more than fifteen million dollars ($15,000,000) in total may be issued for any tax year for motion picture tax credits pursuant to chapter 31.2 of this title and/or musical and theatrical production tax credits pursuant to this chapter. Said credits shall be equally available to motion picture productions and musical and theatrical productions. No specific amount shall be set aside for either type of production.
    3. The tax credit shall be allowed against the tax for the taxable period in which the credit is earned and can be carried forward for not more than three (3) succeeding tax years.
    4. Credits allowed to a company that is a subchapter S corporation, partnership, or a limited-liability company that is taxed as a partnership, shall be passed through respectively to persons designated as partners, members, or owners on a pro rata basis or pursuant to an executed agreement among such persons designated as subchapter S corporation shareholders, partners, or members documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity.
    5. If the company has not claimed the tax credits in whole or part, taxpayers eligible for the tax credits may assign, transfer, or convey the tax credits, in whole or in part, by sale or otherwise, to any individual or entity and the assignee of the tax credits that has not claimed the tax credits in whole or part may assign, transfer, or convey the tax credits, in whole or in part, by sale or otherwise, to any individual or entity. The assignee of the tax credits may use acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed pursuant to chapter 11, 12, 13 (other than the tax imposed under § 44-13-13 ), 14, 17, or 30 of this title. The assignee may apply the tax credit against taxes imposed on the assignee for not more than three (3) succeeding tax years. The assignor shall perfect the transfer by notifying the state of Rhode Island division of taxation, in writing, within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the division of taxation to administer and carry out the provisions of this section.
    6. For purposes of this chapter, any assignment or sales proceeds received by the assignor for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this title.
    7. In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.
  3. Certification and administration.
    1. The applicant shall properly prepare, sign, and submit to the film office an application for initial certification of the theater production. The application shall include the information and data as the film office deems reasonably necessary for the proper evaluation and administration of the application, including, but not limited to, any information about the theater production company and a specific Rhode Island live theater or musical production. The film office shall review the completed application and determine whether it meets the requisite criteria and qualifications for the initial certification for the production. If the initial certification is granted, the film office shall issue a notice of initial certification of the accredited theater production to the theater production company and to the tax administrator. The notice shall state that, after appropriate review, the initial application meets the appropriate criteria for conditional eligibility. The notice of initial certification will provide a unique identification number for the production and is only a statement of conditional eligibility for the production and, as such, does not grant or convey any Rhode Island tax benefits.
    2. Upon completion of an accredited theater production, the applicant shall properly prepare, sign, and submit to the film office an application for final certification of the accredited theater production. The final application shall also contain a cost report and an “accountant’s certification.” The film office and tax administrator may rely without independent investigation, upon the accountant’s certification, in the form of an opinion, confirming the accuracy of the information included in the cost report. Upon review of a duly completed and filed application and upon no later than thirty (30) days of submission thereof, the division of taxation will make a determination pertaining to the final certification of the accredited theater production and the resultant tax credits.
    3. Upon determination that the company qualifies for final certification and the resultant tax credits, the tax administrator of the division of taxation shall issue to the company: (i) An accredited theater production certificate; and (ii) A tax credit certificate in an amount in accordance with subsection (b) of this section. A musical and theatrical production company is prohibited from using state funds, state loans, or state guaranteed loans to qualify for the motion picture tax credit. All documents that are issued by the film office pursuant to this section shall reference the identification number that was issued to the production as part of its initial certification.
    4. The director of the department of administration, in consultation as needed with the tax administrator, shall promulgate rules and regulations as are necessary to carry out the intent and purposes of this chapter in accordance with the general guidelines provided herein for the certification of the production and the resultant production credit.
    5. If information comes to the attention of the film office that is materially inconsistent with representations made in an application, the film office may deny the requested certification. In the event that tax credits or a portion of tax credits are subject to recapture for ineligible costs and the tax credits have been transferred, assigned, and/or allocated, the state will pursue its recapture remedies and rights against the applicant of the theater production tax credits. No redress shall be sought against assignees, sellers, transferees, or allocates of the credits.
  4. Information requests.
    1. The director of the film office, and his or her agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions of this chapter, may examine any books, paper, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter that the director, or his or her agent, deems pertinent or material in administration and application of this chapter and where not inconsistent with other legal provisions, the director may request information from the tax administrator.
    2. The tax administrator, and his or her agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions of this chapter, may examine any books, paper, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter the tax administrator or his or her agent deems pertinent or material in determining the eligibility for credits claimed and may request information from the film office, and the film office shall provide the information in all cases to the tax administrator.
  5. The film office shall comply with the impact analysis and periodic reporting provisions of § 44-31.2-6.1 .

History of Section. P.L. 2012, ch. 241, art. 21, § 12; P.L. 2014, ch. 505, § 1; P.L. 2014, ch. 539, § 1; P.L. 2019, ch. 41, § 1; P.L. 2019, ch. 54, § 1; P.L. 2020, ch. 79, art. 2, § 26.

Compiler’s Notes.

P.L. 2014, ch. 505, § 1, and P.L. 2014, ch. 539, § 1 enacted identical amendments to this section.

P.L. 2019, ch. 41, § 1, and P.L. 2019, ch. 54, § 1 enacted identical amendments to this section.

44-31.3-3. Hearings and appeals.

  1. From an action of the film office.  For matters pertaining exclusively to application, production, and certification of musical and theatrical productions, any person aggrieved by a denial action of the film office under this chapter shall notify the director of the film office in writing, within thirty (30) days from the date of mailing of the notice of denial action by the film office and request a hearing relative to the denial or action. The director of the film office shall, as soon as is practicable, fix a time and place of hearing, and shall render a final decision. Appeals from a final decision of the director of the film office under this chapter are to the sixth (6th) division district court pursuant to chapter 35 of title 42.
  2. From denial of tax credit.  Any person aggrieved by the tax administrator’s denial of a tax credit or tax benefit in this section shall notify the tax administrator in writing within thirty (30) days from the date of mailing of the notice of denial of the tax credit and request a hearing relative to the denial of the tax credit. The tax administrator shall, as soon as is practicable, fix a time and place for a hearing, and shall render a final decision. Appeals from a final decision of the tax administrator under this chapter are to the sixth (6th) division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal is expressly made conditional upon prepayment of all taxes, interest, and penalties, unless the taxpayer files a timely motion for exemption from prepayment with the district court in accordance with the requirements imposed pursuant to § 8-8-26 .

History of Section. P.L. 2012, ch. 241, art. 21, § 12.

44-31.3-4. Sunset.

No credits shall be issued on or after July 1, 2024, unless the production has received initial certification under § 44-31.3-2(c) prior to July 1, 2024.

History of Section. P.L. 2012, ch. 241, art. 21, § 12; P.L. 2019, ch. 41, § 1; P.L. 2019, ch. 54, § 1.

Compiler’s Notes.

P.L. 2019, ch. 41, § 1, and P.L. 2019, ch. 54, § 1 enacted identical amendments to this section.

Chapter 32 Elective Deduction for Research and Development Facilities

44-32-1. Elective deduction against allocated entire net income.

  1. General.  Except as provided in subsection (c) of this section, at the election of a taxpayer who is subject to the income tax imposed by chapters 11 or 30 of this title, there shall be deducted from the portion of its entire net income allocated within the state the items prescribed in subsection (b) of this section, in lieu of depreciation or investment tax credit.
  2. One-year write-off of new research and development facilities.
    1. Expenditures paid or incurred during the taxable year for the construction, reconstruction, erection or acquisition of any new, not used, property as described in subsection (c) of this section, which is used or to be used for purposes of research and development in the experimental or laboratory sense. The purposes are not deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising, promotion, or research in connection with literary, historical, or similar projects. The deduction shall be allowed only on condition that the entire net income for the taxable year and all succeeding taxable years is computed without the deduction of any expenditures and without any deduction for depreciation of the property, except to the extent that its basis may be attributable to factors other than the expenditures, (expenditures and depreciation deducted for federal income tax purposes shall be added to the entire net income allocated to Rhode Island), or in case a deduction is allowable pursuant to this subdivision for only a part of the expenditures, on condition that any deduction allowed for federal income tax purposes on account of the expenditures or on account of depreciation of the property is proportionately reduced in computing the entire net income for the taxable year and all succeeding taxable years. Concerning property that is used or to be used for research and development only in part, or during only part of its useful life, a proportionate part of the expenditures shall be deductible. If all or part of the expenditures concerning any property has been deducted as provided in this section, and the property is used for purposes other than research and development to a greater extent than originally reported, the taxpayer shall report the use in its report for the first taxable year during which it occurs, and the tax administrator may recompute the tax for the year or years for which the deduction was allowed, and may assess any additional tax resulting from the recomputation as a current tax, within three (3) years of the reporting of the change to the tax administrator. Any change in use of the property in whole or in part from that, which originally qualified the property for the deduction, requires a recomputation. The tax administrator has the authority to promulgate regulations to prevent the avoidance of tax liability.
    2. The deduction shall be allowed only where an election for amortization of air or water pollution control facilities has not been exercised in respect to the same property.
    3. The tax as a result of recomputation of a prior year’s deduction is due as an additional tax for the year the property ceases to qualify.
  3. Property covered by deductions.  The deductions shall be allowed only with respect to tangible property which is new, not used, is depreciable pursuant to 26 U.S.C. § 167, was acquired by purchase as defined in 26 U.S.C. § 179(d), has a situs in this state, and is used in the taxpayer’s trade or business. For the taxable years beginning on or after July 1, 1974, a taxpayer is not allowed a deduction under this section with respect to tangible property leased by it to any other person or corporation or leased from any other person or corporation. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use the property is considered a lease, unless the contract or agreement is treated for federal income tax purposes as an installment purchase rather than a lease. With respect to property that the taxpayer uses itself for purposes other than leasing for part of a taxable year and leases for a part of a taxable year, the taxpayer shall be allowed a deduction under this section in proportion to the part of the year it uses the property.
  4. Entire net income.  “Entire net income”, as used in this section, means net income allocated to this state.
  5. Carry-over of excess deductions.  If the deductions allowable for any taxable year pursuant to this section exceed the portion of the taxpayer’s entire net income allocated to this state for that year, the excess may be carried over to the following taxable year or years, not to exceed three (3) years, and may be deducted from the portion of the taxpayer’s entire net income allocated to this state for that year or years.
  6. Gain or loss on sale or disposition of property.  In any taxable year when property is sold or disposed of before the end of its useful life, with respect to which a deduction has been allowed pursuant to subsection (b) of this section, the gain or loss on this entering into the computation of federal taxable income is disregarded in computing the entire net income, and there is added to or subtracted from the portion of the entire net income allocated within the state the gain or loss upon the sale or other disposition. In computing the gain or loss, the basis of the property sold or disposed of is adjusted to reflect the deduction allowed with respect to the property pursuant to subsection (b) of this section; provided, that no loss is recognized for the purpose of this subsection with respect to a sale or other disposition of property to a person whose acquisition of this property is not a purchase as defined in 26 U.S.C. § 179(d).
  7. Investment credit not allowed on research and development property.  No investment credit under chapter 31 of this title shall be allowed on the research and development property for which accelerated write-off is adopted under this section.
  8. Consolidated returns.  The research and development deduction shall only be allowed against the entire net income of the corporation included in a consolidated return and shall not be allowed against the entire net income of other corporations that may join in the filing of a consolidated state tax return.

History of Section. P.L. 1974, ch. 200, art. 5, § 1; P.L. 1975, ch. 188, art. 3, § 1.

44-32-2. Credit for research and development property acquired, constructed, or reconstructed or erected after July 1, 1994.

  1. A taxpayer shall be allowed a credit against the tax imposed by chapters 11, 17, or 30 of this title. The amount of the credit shall be ten percent (10%) of the cost or other basis for federal income tax purposes of tangible personal property, and other tangible property, including buildings and structural components of buildings, described in subsection (b) of this section; acquired, constructed or reconstructed, or erected after July 1, 1994.
  2. A credit shall be allowed under this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings which are: depreciable pursuant to 26 U.S.C. § 167 or recovery property with respect to which a deduction is allowable under 26 U.S.C. § 168, have a useful life of three (3) years or more, are acquired by purchase as defined in 26 U.S.C. § 179(d), have a situs in this state and are used principally for purposes of research and development in the experimental or laboratory sense which shall also include property used by property and casualty insurance companies for research and development into methods and ways of preventing or reducing losses from fire and other perils. The credit shall be allowable in the year the property is first placed in service by the taxpayer, which is the year in which, under the taxpayer’s depreciation practice, the period for depreciation with respect to the property begins, or the year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function, whichever is earlier. These purposes shall not be deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising, promotions, or research in connection with literary, historical or similar projects.
  3. A taxpayer shall not be allowed a credit under this section with respect to any property described in subsections (a) and (b) of this section, if a deduction is taken for the property under § 44-32-1 .
  4. A taxpayer shall not be allowed a credit under this section with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which it leases to any other person or corporation. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use the property is considered a lease.
  5. The credit allowed under this section for any taxable year does not reduce the tax due for that year, in the case of corporations, to less than the minimum fixed by § 44-11-2(e) . If the amount of credit allowable under this section for any taxable year is less than the amount of credit available to the taxpayer, any amount of credit not credited in that taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer’s tax for the following year or years. For purposes of chapter 30 of this title, if the credit allowed under this section for any taxable year exceeds the taxpayer’s tax for that year, the amount of credit not credited in that taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer’s tax for the following year or years.
    1. With respect to property which is depreciable pursuant to 26 U.S.C. § 167 and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit is that portion of the credit provided for in this section which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. If the property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve (12) consecutive years, it is not necessary to add back the credit as provided in this subdivision. The amount of credit allowed for actual use is determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For purposes of this subdivision, “useful life of property” is the same as the taxpayer uses for depreciation purposes when computing his federal income tax liability.
    2. Except with respect to that property to which subdivision (3) of this subsection applies, with respect to three (3) year property, as defined in 26 U.S.C. § 168(c), which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this section which represents the ratio which the months of qualified use bear to thirty-six (36). If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of thirty-six (36) months, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. The amount of credit allowed for actual use is determined by multiplying the original credit by the ratio that the months of qualified use bear to thirty-six (36).
    3. With respect to any recovery property to which 26 U.S.C. § 168 applies, which is a building or a structural component of a building and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit is that portion of the credit provided for in this section which represents the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under 26 U.S.C. § 168. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of the period over which the taxpayer chooses to deduct the property under 26 U.S.C. § 168, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. If the property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve (12) consecutive years, it is not necessary to add back the credit as provided in this subdivision. The amount of credit allowed for actual use is determined by multiplying the original credit by the ratio that the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under 26 U.S.C. § 168.
  6. No deduction for research and development facilities under § 44-32-1 shall be allowed for research and development property for which the credit is allowed under this section.
  7. No investment tax credit under § 44-31-1 shall be allowed for research and development property for which the credit is allowed under this section.
  8. The investment tax credit allowed by § 44-31-1 shall be taken into account before the credit allowed under this section.
  9. The credit allowed under this section only allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated return.
  10. In the event that the taxpayer is a partnership, joint venture or small business corporation, the credit shall be divided in the same manner as income.

History of Section. P.L. 1994, ch. 147, § 2; P.L. 1995, ch. 323, § 34; P.L. 1997, ch. 30, art. 15, § 1; P.L. 1997, ch. 58, § 1; P.L. 1999, ch. 221, § 2.

44-32-3. Credit for qualified research expenses.

  1. A taxpayer shall be allowed a credit against the tax imposed by chapters 11, 17 or 30 of this title. The amount of the credit shall be five percent (5%)(and in the case of amounts paid or accrued after January 1, 1998, twenty-two and one-half percent (22.5%) for the first twenty-five thousand dollars ($25,000) worth of credit and sixteen and nine-tenths percent (16.9%) for the amount of credit above twenty-five thousand dollars ($25,000)) of the excess, if any, of:
    1. The qualified research expenses for the taxable year, over
    2. The base period research expenses.
    1. “Qualified research expenses” and “base period research expenses” have the same meaning as defined in 26 U.S.C. § 41; provided, that the expenses have been incurred in this state after July 1, 1994.
    2. Notwithstanding the provisions of subdivision (1) of this subsection, “qualified research expenses” also includes amounts expended for research by property and casualty insurance companies into methods and ways of preventing or reducing losses from fire and other perils.
  2. The credit allowed under this section for any taxable year shall not reduce the tax due for that year by more than fifty percent (50%) of the tax liability that would be payable, and in the case of corporations, to less than the minimum fixed by § 44-11-2(e) . If the amount of credit allowable under this section for any taxable year is less than the amount of credit available to the taxpayer any amount of credit not credited in that taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer’s tax for that year or years. For purposes of chapter 30 of this title, if the credit allowed under this section for any taxable year exceeds the taxpayer’s tax for that year, the amount of credit not credited in that taxable year may be carried over to the following year or years, up to a maximum of seven (7) years, and may be credited against the taxpayer’s tax for that year or years. For purposes of determining the order in which carry-overs are taken into consideration, the credit allowed by § 44-32-2 is taken into account before the credit allowed under this section.
  3. The investment tax credit allowed by § 44-31-1 shall be taken into account before the credit allowed under this section.
  4. The credit allowed under this section shall only be allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated return.
  5. In the event the taxpayer is a partnership, joint venture or small business corporation, the credit is divided in the same manner as income.

History of Section. P.L. 1994, ch. 147, § 2; P.L. 1997, ch. 30, art. 15, § 1; P.L. 1997, ch. 58, § 1; P.L. 1999, ch. 221, § 2.

Chapter 33 Property Tax Relief

44-33-1. Short title.

This chapter may be cited as the “Property Tax Relief Act”.

History of Section. P.L. 1977, ch. 237, § 1.

Comparative Legislation.

Property tax relief:

Conn. Gen. Stat. § 12-170d et seq.

Mass. Ann. Laws ch. 59, § 5.

44-33-2. Purpose.

The purpose of this chapter is to provide relief, through a system of tax credits and refunds and appropriations from the general fund, to elderly and/or disabled persons who own or rent their homes.

History of Section. P.L. 1977, ch. 237, § 1; P.L. 1988, ch. 605, § 1.

Collateral References.

Validity of statute or ordinance giving property tax exemption or favorable property tax rate to older persons. 45 A.L.R.3d 1147.

44-33-2.1. Repealed.

History of Section. P.L. 1997, ch. 30, art. 30, § 2; P.L. 1998, ch. 31, art. 24, § 1; P.L. 2005, ch. 117, art. 4, § 1; Repealed by P.L. 2006, ch. 246, art. 30, § 4, effective June 30, 2005.

Compiler’s Notes.

Former § 44-33-2.1 concerned property tax relief.

44-33-3. Definitions.

As used in this chapter:

  1. “Claimant” means a homeowner or renter, sixty-five (65) years of age or older, and/or disabled, who has filed a claim under this chapter and was domiciled in this state for the entire calendar year for which he or she files a claim for relief under this chapter. In the case of claim for rent constituting property taxes accrued, the claimant shall have rented property during the preceding year for which he or she files for relief under this chapter. Claimant shall not mean or include any person claimed as a dependent by any taxpayer under the Internal Revenue Code of the United States, 26 U.S.C. § 1 et seq. When two (2) individuals of a household are able to meet the qualifications for a claimant, they may determine between themselves as to who the claimant is. If they are unable to agree, the matter is referred to the tax administrator and his or her decision is final. If a homestead is occupied by two (2) or more individuals, and more than one individual is able to qualify as a claimant, and some or all of the qualified individuals are not related, the individuals may determine among themselves as to who the claimant is. If they are unable to agree, the matter is referred to the tax administrator, and his or her decision is final.
  2. “Disabled” means those persons who are receiving a social security disability benefit.
  3. “Gross rent” means rental paid in cash or its equivalent solely for the right of occupancy of a homestead, exclusive of charges for any utilities, services, furniture, furnishings, or personal property appliances furnished by the landlord as a part of the rental agreement. If the landlord and tenant have not dealt with each other at arm’s length, and the tax administrator is satisfied that the gross rent charged was excessive, he or she may adjust the gross rent to a reasonable amount for purposes of this chapter. “Gross rent” includes the rental of space paid to a landlord for parking of a mobile home, or docking or mooring a houseboat, exclusive of any charges for utilities, services, furniture, furnishings, or personal appliances furnished by the landlord as a part of the rental. Twenty percent (20%) of the annual gross rental plus the space rental fees paid during the year are the annual “property taxes accrued.”
  4. “Homestead” means the dwelling, whether owned or rented, and so much of the land surrounding it, not exceeding one acre, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of the multi-dwelling or multi-purpose building and a part of the land upon which it is built (“owned” includes a vendee in possession under a land contract and one or more joint tenants or tenants in common). It does not include personal property such as furniture, furnishings, or appliances, but a mobile home or a houseboat may be a homestead.
  5. “Household” means one or more persons occupying a dwelling unit and living as a single nonprofit housekeeping unit. “Household” shall not include bona fide lessees, tenants, or roomers, and boarders on contract.
  6. “Household income” means all income received by all persons of a household in a calendar year while members of the household.
  7. “Income” means the sum of federal adjusted gross income as defined in the Internal Revenue Code of the United States, 26 U.S.C. § 1 et seq., and all non-taxable income including, but not limited to, the amount of capital gains excluded from adjusted gross income, alimony, support money, non-taxable strike benefits, cash public assistance and relief (not including relief granted under this chapter), the gross amount of any pension or annuity (including Railroad Retirement Act (see 45 U.S.C. § 231 et seq.) benefits, all payments received under the federal Social Security Act, 42 U.S.C. § 301 et seq., state unemployment insurance laws, and veterans’ disability pensions (see 38 U.S.C. § 301 et seq.), non-taxable interest received from the federal government or any of its instrumentalities, workers’ compensation, and the gross amount of “loss of time” insurance. It shall not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private agency. For the purpose of this chapter, the calculation of “income” shall not include any deductions for rental losses, business losses, capital losses, exclusion for foreign income, and any losses received from pass-through entities.
  8. “Property taxes accrued” means property taxes (exclusive of special assessments, delinquent interest, and charges for service) levied on a claimant’s homestead in this state in 1977 or any calendar year thereafter. If a homestead is owned by two (2) or more persons or entities as joint tenants or tenants in common, and one or more persons or entities are not a member of claimant’s household, “property taxes accrued” is that part of property taxes levied on the homestead which reflects the ownership percentage of the claimant and his or her household. For purposes of this subdivision, property taxes are “levied” when the tax roll is certified by the city or town assessor. When a homestead is sold during the calendar year of the levy, the “property taxes accrued” for the seller and buyer is the amount of the tax levy prorated to each in the closing agreement pertaining to the sale of the homestead or, if not provided for in the closing agreement, the tax levy is prorated between seller and buyer based upon the delivery date of the deed of conveyance. When a household owns and occupies two (2) or more homesteads in the same calendar year, “property taxes accrued” is the sum of the prorated taxes attributable to the household for each of the homesteads. If the household owns and occupies the homestead for the part of the calendar year and rents a household for part of the calendar year, it may include both the proration of taxes on the homestead owned and “rent constituting property taxes accrued” with respect to the months the homestead is rented, in computing the amount of the claim. All prorations are made on the basis of the gross tax levy after all exemptions. If a homestead is an integral part of a larger unit such as a farm, or a multi-purpose or multi-dwelling building, property taxes accrued is that percentage of the total property taxes accrued as the value of the homestead is of the total value. For the purposes of this subdivision, “unit” refers to the parcel of property covered by a single tax statement of which the homestead is a part.
  9. “Rent constituting property taxes accrued” means twenty percent (20%) of the gross rent actually paid in cash or its equivalent in any calendar year by a claimant and his or her household solely for the right of occupancy of their Rhode Island homestead in the calendar year, and which rent constitutes the basis, in the succeeding calendar year, of a claim for relief under this chapter by the claimant, but shall not include any part of the rent paid for occupancy of premises which are legally exempt from the payment of property taxes.

History of Section. P.L. 1977, ch. 237, § 1; P.L. 1988, ch. 605, § 1; P.L. 1997, ch. 30, art. 30, § 3; P.L. 2010, ch. 19, § 3; P.L. 2010, ch. 20, § 3; P.L. 2014, ch. 145, art. 12, § 4.

Compiler’s Notes.

P.L. 2010, ch. 19, § 3, and P.L. 2010, ch. 20, § 3, enacted identical amendments to this section.

Effective Dates.

P.L. 2010, ch. 19, § 4, provides that the amendment to this section by that act takes effect on January 1, 2011.

P.L. 2010, ch. 20, § 4, provides that the amendment to this section by that act takes effect on January 1, 2011.

Applicability.

P.L. 2014, ch. 145, art. 12, § 22, provides that the amendments to this section by that act take effect upon passage [June 19, 2014] and shall apply to tax years beginning January 1, 2014.

Cross References.

The Rhode Island provisions relating to employment security may be found at chapters 42 to 44 of title 28.

44-33-4. Claim is personal.

The right to file a claim under this chapter is personal to the claimant and shall not survive his or her death, but the right may be exercised on behalf of a claimant by his or her legal guardian or attorney-in-fact. If a claimant dies after having filed a timely claim, the amount of the claim is disbursed to another member of the household as determined by the tax administrator. If the claimant was the only member of his or her household, the claim may be paid to his or her executor or administrator, but if neither is appointed and qualified within two (2) years of the filing of the claim, the amount of the claim shall escheat to the state.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-5. Claim as income tax credit or rebate from state funds.

Subject to limitations provided in this chapter, a claimant may claim in any year as a credit against Rhode Island personal income taxes due on his or her income, property taxes accrued, or rent constituting property taxes accrued in the preceding calendar year. If the allowable amount of the claim exceeds the income taxes due on the claimant’s income, or if there are no Rhode Island personal income taxes due on the claimant’s income, the amount of the claim not used as an offset against income taxes is treated as an overpayment of personal income taxes and refunded to the claimant from balances retained by the general treasurer for general purposes. No interest is allowed on any payment made to a claimant pursuant to this chapter.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-6. Filing date.

No claim with respect to property taxes accrued or with respect to rent constituting property taxes accrued shall be paid or allowed, unless the claim is actually filed with and in the possession of the division of taxation on or before April 15 of the year in which the credit is applied or a rebate granted on the property taxes accrued the preceding calendar year.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-7. Satisfaction of outstanding liabilities.

The amount of any claim payable under this chapter may be applied by the division of taxation against any outstanding liability on the books of the division or against any debt owed to a “claimant agency,” as defined in § 44-30.1-1 , subject to the collection by setoff of a personal income tax refund pursuant to chapter 30.1 of this title. The application of debt or setoff shall be effective against the claimant or against anyone who was a member of the claimant’s household in the year to which the claim relates.

History of Section. P.L. 1977, ch. 237, § 1; P.L. 2001, ch. 153, § 1.

44-33-8. One claim per household.

Only one claimant per household per year shall be entitled to relief under this chapter.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-9. Computation of credit.

The amount of any claim made pursuant to this chapter shall be determined as follows:

  1. For any taxable year, a claimant is entitled to a credit against his or her tax liability equal to the amount by which the property taxes accrued or rent constituting property taxes accrued upon the claimant’s homestead for the taxable year exceeds a certain percentage of the claimant’s total household income for that taxable year, which percentage is based upon income level and household size. The credit shall be computed in accordance with the following table:
  2. The maximum amount of the credit granted under this chapter will be as follows:

Income Range 1 Person 2 or More Persons less than $6000 3% 3% $6001-9000 4% 4% $9001-12000 5% 5% $12001-15000 6% 5% $15001-30000 6% 6%

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Year Credit Maximum Commencing July 1977 $ 55.00 Commencing July 1978 $150.00 Commencing July 1979 $175.00 Commencing July 1980 $200.00 Commencing on July 1997 $250.00 and subsequent years Commencing on July 2006 $300.00

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Commencing July 2007 and subsequent years, the credit shall be increased, at a minimum, to the maximum amount to the nearest five dollars ($5.00) increment within the allocation of five one-hundredths of one percent (0.05%) of net terminal income derived from video lottery games up to a maximum of five million dollars ($5,000,000) until a maximum credit of five hundred dollars ($500) is obtained pursuant to the provisions of § 42-61-15 . In no event shall the exemption in any fiscal year be less than the prior fiscal year.

History of Section. P.L. 1977, ch. 237, § 1; P.L. 1978, ch. 139, § 1; P.L. 1979, ch. 280, § 1; P.L. 1980, ch. 332, § 1; P.L. 1982, ch. 393, § 1; P.L. 1987, ch. 436, § 1; P.L. 1988, ch. 59, § 1; P.L. 1997, ch. 30, art. 30, § 1; P.L. 1998, ch. 31, art. 24, § 1; P.L. 1999, ch. 139, § 1; P.L. 2006, ch. 246, art. 30, § 5; P.L. 2006, ch. 330, § 1; P.L. 2006, ch. 442, § 1.

44-33-10. Administration.

The tax administrator shall make available suitable forms with instructions for claimants, including a form, which may be included with or as part of the individual income tax blank. The claim shall be in a form that the tax administrator prescribes. The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter, which rules and regulations, when reasonably designed to carry out the intent and purpose of this chapter, shall be prima facie evidence of their proper interpretation.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-11. Proof of claim.

Every claimant under this chapter shall supply to the division of taxation in support of his or her claim, reasonable proof of rent paid, name and address of owner or managing agent of property rented, property taxes accrued, changes of homestead, household membership, household income, size and nature of property claimed as the homestead and a statement that the property taxes accrued and used for purposes of this chapter have been or will be paid by the claimant and that there are no delinquent property taxes on the homestead.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-12. Audits of claim.

If on audit of any claim filed under this chapter the tax administrator determines the amount to have been incorrectly computed he or she shall redetermine the claim and notify the claimant of the redetermination and his or her reasons for it. The redetermination shall be final unless request for an administrative hearing is filed within ninety (90) days of the date of mailing the notice.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-13. Denial of claim.

If it is determined that a claim is excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and, if the claim has been paid or a credit has been allowed against income taxes otherwise payable, the credit shall be cancelled and the amount paid may be recovered by assessment, and the assessment shall bear interest from the date of payment or credit of the claim, until refunded or paid, at the rate of one percent (1%) per month. The claimant in that case, and any person who assisted in the preparation or filing of the excessive claim or supplied information upon which the excessive claim was prepared, with fraudulent intent, is guilty of a misdemeanor. If it is determined that a claim is excessive and was negligently prepared, ten percent (10%) of the corrected claim shall be disallowed, and if the claim has been paid or credited against income taxes otherwise payable, the credit shall be reduced or canceled, and the proper portion of any amount paid shall be similarly recovered by assessment, and the assessment shall bear interest at annual rate provided by § 44-1-7 from the date of payment until refunded or paid.

History of Section. P.L. 1977, ch. 237, § 1; P.L. 1992, ch. 388, § 11.

44-33-14. Rental determination.

If a homestead is rented by a person from another person under circumstances determined by the tax administrator to be not at arm’s length, he or she may determine rent constituting property taxes accrued as at arms length, and, for purposes of this chapter, the determination shall be final.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-15. Appeals.

Any person aggrieved by the decision of the tax administrator denying in whole or in part relief claimed under this chapter, except when the denial is based upon late filing of claim for relief or is based upon a redetermination of rent constituting property taxes accrued as not at arms length, may appeal the decision of the tax administrator to the sixth division of the district court by filing a petition within thirty (30) days after the denial.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-16. Public assistance funds excluded.

A claim for relief under this chapter filed by a recipient of public assistance funds shall exclude all taxes or rent paid from the monies during the period for which the claim is filed.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-17. Disallowance of certain claims.

A claim shall be disallowed, if the division finds that the claimant received title to his or her homestead primarily for the purpose of receiving benefits under this chapter.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-18. Extension of time for filing claims.

In case of sickness, absence, or other disability, or if, in his or her judgment, good cause exists, the tax administrator may extend for a period not to exceed six (6) months the time for filing claim.

History of Section. P.L. 1977, ch. 237, § 1.

44-33-19. Severability.

If any part of this chapter is for any reason declared void, the invalidity shall not affect the validity of the remaining portions of this chapter.

History of Section. P.L. 1977, ch. 237, § 1.

Chapter 33.1 Historic Homeownership Assistance Act

44-33.1-1. Declaration of purpose.

The general assembly finds and declares that preservation of Rhode Island’s historic residences enhances an understanding of the state’s heritage, improves property values, fosters civic beauty, and promotes public education, pleasure, and welfare. The purpose of this chapter is to encourage maintenance and rehabilitation of residential properties that have historic merit by providing income tax credit for the maintenance or rehabilitation of historic residences.

History of Section. P.L. 1989, ch. 376, § 1.

44-33.1-2. Definitions.

As used in this chapter:

  1. “Certified maintenance or rehabilitation” means any maintenance or rehabilitation of a historic residence consistent with the historic character of that historic residence as determined in accordance with guidelines promulgated by the commission.
  2. “Commission” means the state historical preservation commission created pursuant to § 42-45-2 .
  3. “First user” means the first person to occupy a historic residence following the completion of a certified maintenance or rehabilitation. In order to be eligible, the first user must be the owner of the historic residence at the time the tax credit is claimed.
  4. “Historic residence” means a historic residential structure that is not of a character subject to federal depreciation allowance pursuant to 26 U.S.C. § 167 or § 168 and is:
    1. Listed individually in the state register of historic places; or
    2. Located in a district listed in the state register of historic places and certified by the commission as contributing to the historic character of that district; or
    3. Located in a local historic district zone as designated by a city or town under § 45-24.1-1 and certified by the commission as contributing to the historic character of that historic district zone; or
    4. Designated by a city or town as an individual structure subject to regulation by a historic district commission under § 45-24.1-1 .

History of Section. P.L. 1989, ch. 376, § 1; P.L. 2000, ch. 139, § 1; P.L. 2000, ch. 248, § 1.

44-33.1-3. Income tax credit — Certification — Guidelines.

  1. Any taxpayer who files a state income tax return and owns a historic residence may claim an income tax credit of up to twenty percent (20%) of certified maintenance or rehabilitation costs.
  2. An owner shall make a preliminary application for certification of maintenance or rehabilitation costs for the tax credit to the commission. By applying for certification, the owner consents that the commission may have access to the historic residence for inspection at reasonable times to ensure that the maintenance or rehabilitation complies with guidelines as established by the commission.
  3. The commission shall establish a minimum dollar amount above which an owner must spend in order to qualify for the income tax credit.
  4. Upon completion of the maintenance or rehabilitation, the owner shall notify the commission, at which time the commission shall determine whether the maintenance or rehabilitation did or did not comply with the commission guidelines established under this chapter. At that time, the owner will provide the commission with documentation of the work performed and certify the costs incurred in the maintenance or rehabilitation.
  5. If the commission approves the maintenance or rehabilitation, the commission shall certify to the owner, in writing, that the maintenance or rehabilitation complied with the guidelines and the total amount of the tax credit based upon the owner’s certification of costs. This certification form shall be filed by the owner with the owner’s state income tax return when requesting the income tax credit.

History of Section. P.L. 1989, ch. 376, § 1; P.L. 2000, ch. 139, § 1; P.L. 2000, ch. 248, § 1.

44-33.1-4. Allocation of income tax credit.

  1. The income tax credit provided for in this chapter shall be taken in the year the certified maintenance or rehabilitation work is completed; provided, that first users shall take the tax credit during the calendar year in which the property is purchased. Unused portions of the income tax credit may be carried forward to succeeding years by the owner who received the income tax credit.
  2. The maximum income tax credit provided for in this chapter which may be taken in a single tax year shall be five hundred dollars ($500) in the years 1989 — 1994 and one thousand dollars ($1,000) beginning in the years 1995 — 2000 and two thousand dollars ($2,000) beginning in 2001 and thereafter.
  3. The income tax credit may be claimed by the owner of the eligible historic residence. Alternatively, the income tax credit may be claimed by the first user of the maintained or rehabilitated historic residence; provided, that the first user is the owner-occupant of the historic residence. If the taxpayer ceases to be the owner of the eligible historic residence, or if the property ceases to be an eligible historic residence, any unused income tax credit is forfeited.
  4. In the event that there is multiple ownership of the historic residence, the credit will only be allowed to the owner(s) for whom the property is actually a residence. If the property for which the credit is claimed is the residence of some or all of the owners, the credit will be allowed only to those owners who actually incurred the costs for maintenance or rehabilitation. In the event that multiple owners who are also residents all incurred costs for the same project, the credit will be divided proportionally among those owners based on each owner’s share of the actual costs.
  5. In the event that a historic residence contains a non-depreciable owner-occupied residential unit and not more than two (2) depreciable units also owned by the building’s owner-occupant, the full value of the credit will be allowed for maintenance and rehabilitation costs incurred on the entire building. In the event that a historic building contains both non-depreciable owner-occupied residential units and three (3) or more rental units, that portion of maintenance or rehabilitation costs reasonably associated with owner occupied units, which are historic residences as defined in this chapter, may be used to claim a residential historic preservation tax credit.

History of Section. P.L. 1989, ch. 376, § 1; P.L. 1990, ch. 277, § 1; P.L. 2000, ch. 139, § 1; P.L. 2000, ch. 248, § 1.

44-33.1-5. Form of application and certification.

The commission shall promulgate all application and certification forms and guidelines for certified maintenance and rehabilitation. The commissioner is authorized to establish a schedule of fees for the review of income tax credit applications. The department of revenue, division of taxation, shall approve the certification form used in filing for state income tax credit and shall develop state income tax forms to calculate and claim income tax credit.

History of Section. P.L. 1989, ch. 376, § 1; P.L. 2008, ch. 98, § 49; P.L. 2008, ch. 145, § 49.

Chapter 33.2 Historic Structures — Tax Credit

44-33.2-1. Declaration of purpose.

The general assembly finds and declares that Rhode Island’s historic structures have experienced high vacancy rates and physical deterioration. Without adding economic incentive, these structures are not viable for the redevelopment and reuse by modern commercial, residential or manufacturing enterprises and will continue their physical deterioration. The redevelopment and reuse of these historic structures are of critical importance to the economic measures and will assist in stimulating the reuse and redevelopment of historic structures and will improve property values, foster civic beauty, and promote public education, pleasure, and welfare. The purpose of this chapter is to create economic incentives for the purpose of stimulating the redevelopment and reuse of Rhode Island’s historic structures.

History of Section. P.L. 2001, ch. 134, § 1.

44-33.2-2. Definitions.

As used in this chapter:

  1. “Certified historic structure” means a property which is located in the state of Rhode Island and is:
    1. Listed individually on the National Register of Historic Places; or
    2. Listed individually in the state register of historic places; or
    3. Located in a registered historic district and certified by either the commission or Secretary of the Interior as being of historic significance to the district.
  2. “Certified rehabilitation” means any rehabilitation of a certified historic structure consistent with the historic character of such property or the district in which the property is located as determined by the commission guidelines.
  3. “Commission” means the Rhode Island historical preservation and heritage commission created pursuant to § 42-45-2 .
  4. “Exempt from real property tax” means, with respect to any certified historic structure, that the structure is exempt from taxation pursuant to § 44-3-3 .
  5. “Holding period” means twenty-four (24) months after the commission issues a certificate of completed work to the owner. In the case of a rehabilitation which may reasonably be expected to be completed in phases as described in subdivision (10) of this section, “holding period” shall be extended to include a period of time beginning on the date of issuance of a certificate of completed work for the first phase or phases for which a certificate of completed work is issued and continuing until the expiration of twenty-four (24) months after the certificate of completed work issued for the last phase.
  6. “Placed in service” means that substantial rehabilitation work has been completed which would allow for occupancy of the entire structure or some identifiable portion of the structure, or the owner has commenced depreciation of the qualified rehabilitation expenditures, whichever occurs first.
  7. “Principal residence” means the principal residence of the owner within the meaning of § 121 of the Internal Revenue Code [26 U.S.C. § 121] or any successor provision.
  8. “Qualified rehabilitation expenditures” means any amounts expended in the rehabilitation of a certified historic structure properly capitalized to the building and either: (i) depreciable under the Internal Revenue Code, 26 U.S.C. § 1 et seq., or (ii) made with respect to property (other than the principal residence of the owner) held for sale by the owner. Fees pursuant to § 44-33.2-4(d) are not qualified rehabilitation expenditures. Notwithstanding the foregoing, except in the case of a nonprofit corporation, there will be deducted from qualified rehabilitation expenditures for the purposes of calculating the tax credit any funds made available to the person (including any entity specified in § 44-33.2-3(a) ) incurring the qualified rehabilitation expenditures in the form of a direct grant from a federal, state or local governmental entity or agency or instrumentality of government.
  9. “Registered historic district” means any district listed in the National Register of Historic Places, or the state register of historic places.
  10. “Substantial rehabilitation” means, with respect to a certified historic structure, that the qualified rehabilitation expenses of the building during the twenty-four (24) month period selected by the taxpayer ending with or within the taxable year exceed fifty percent (50%) of the adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation, which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the above definition shall be applied by substituting “sixty (60) month period” for “twenty-four (24) month period”.

History of Section. P.L. 2001, ch. 134, § 1; P.L. 2002, ch. 125, § 2; P.L. 2008, ch. 6, § 1; P.L. 2008, ch. 7, § 1.

44-33.2-3. Tax credit.

  1. Any person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of a property officially recorded as having applied to be certified as a certified historic structure by the Rhode Island historical preservation and heritage commission through its historic tax credit application process prior to January 1, 2008, and verified by the division of taxation, provided the rehabilitation meets standards consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation as certified by the commission, shall be entitled to a credit against the taxes imposed on such person or entity pursuant to chapter 11, 12, 13, 14, 17 or 30 of this title. For certified historical structures or some identifiable portion of a structure placed in service prior to January 1, 2008 the credit shall be an amount equal to thirty percent (30%) of the qualified rehabilitation expenditures. For certified historical structures or some identifiable portion of a structure placed in service after December 31, 2007, the credit shall not exceed twenty-five percent (25%), twenty-six percent (26%), or twenty-seven percent (27%) of the qualified rehabilitation expenditures as contracted between the division of taxation and the person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007.
  2. Notwithstanding any provisions of the general laws or regulations adopted thereunder to the contrary, including, but not limited to, the provisions of chapter 2 of title 37, the division of taxation is hereby expressly authorized and empowered to enter into contracts with persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or non-profit) or other business entities that incur qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007, for the following purposes, all of which shall be set forth in more particular detail as follows:
    1. Upon payment of the fees as set forth in this section, the division of taxation shall, on behalf of the state of Rhode Island, guaranty through a contract with persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or non-profit) or other business entities that will incur qualified rehabilitation expenditures for the substantial rehabilitation of a certified historic structure or some identifiable portion of a structure to be placed in service after December 31, 2007, the delivery of one hundred percent (100%) of the tax credit in an amount which is the lesser of: (i) the amount of the tax credit identified in the contract with the division of taxation on or before May 15, 2008 in consideration of any processing fees; or (ii) the actual qualified rehabilitation expenditures multiplied by the tax credit percentage selected by the taxpayer on or before May 15, 2008 and any processing fees. The tax credit and fee shall not exceed the following combinations which shall be selected by any person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity that will incur qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007:
      1. For an amount of credit not exceeding twenty-five percent (25%) of the qualified rehabilitation expenditures, the fee shall be an amount equal to three percent (3%) of the qualified rehabilitation expenditures.
      2. For an amount of credit not exceeding twenty-six percent (26%) of the qualified rehabilitation expenditures, the fee shall be an amount equal to four percent (4%) of the qualified rehabilitation expenditures.
      3. For an amount of credit not exceeding twenty-seven percent (27%) of the qualified rehabilitation expenditures, the fee shall be an amount equal to five percent (5%) of the qualified rehabilitation expenditures.
      4. As referred to in subsection 44-33.2-4(d) , two and one quarter percent (2.25%) of the qualified rehabilitation expenditures shall be paid by May 15, 2008 with the remaining percent to be paid by March 5, 2009. Payments made after March 5, 2009 shall accrue interest as set forth in § 44-1-7 .
      5. The division of taxation and the Rhode Island historical preservation and heritage commission shall reconcile tax credits and fees with the persons, firms, partnerships, trusts, estates, limited liability companies, corporation (whether for profit or non-profit) or other business entities contracted with as part of the final project certification. In the event that the processing fee paid is greater than the amount of actual qualified rehabilitation expenditures multiplied by the percentage chosen pursuant to subsection 44-33.2-3(b) , the persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or non-profit) or other business entities that incur qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007, shall be refunded such difference, without interest.
      6. Any contract executed pursuant to this chapter by a person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007, shall be assignable to: (i) an affiliate thereof without any consent from the division of taxation or (ii) a person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007, with such assignment to be approved by the division of taxation, which approval shall not be unreasonably withheld. For purposes of this subsection, “affiliate” shall be defined as any entity controlling, controlled by or under common control with such person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity.
  3. Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in which such certified historic structure or an identifiable portion of the structure is placed in service provided that the substantial rehabilitation test is met for such year.
  4. If the amount of the tax credit exceeds the taxpayer’s total tax liability for the year in which the substantially rehabilitated property is placed in service, the amount that exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for the succeeding ten (10) years, or until the full credit is used, whichever occurs first for the tax credits. Credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the persons designated as partners, members or owners respectively pro rata or pursuant to an executed agreement among such persons designated as partners, members or owners documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity.
    1. If the taxpayer has not claimed the tax credits in whole or part, taxpayers eligible for the tax credits may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity, including, but not limited to, condominium owners in the event the certified historic structure is converted into condominiums. The assignee of the tax credits may use acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed pursuant to chapter 11, 12, 13, (other than the tax imposed under § 44-13-13 ), 14, 17 or 30 of this title. The assignee may apply the tax credit against taxes imposed on the assignee until the end of the tenth (10th) calendar year after the year in which the substantially rehabilitated property is placed in service or until the full credit assigned is used, whichever occurs first. Fiscal year assignees may claim the credit until the expiration of the fiscal year that ends within the tenth (10th) year after the year in which the substantially rehabilitated property is placed in service. The assignor shall perfect the transfer by notifying the state of Rhode Island division of taxation, in writing, within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the division of taxation to administer and carry out the provisions of this section.
    2. For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this title. If a tax credit is subsequently recaptured under subsection (e) of this section, revoked or adjusted, the seller’s tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total amount of the sales proceeds, without proration, as a modification under chapter 30 of this title. In the event that the seller is not a natural person, the seller’s tax calculation under chapters 11, 12, 13 (other than with respect to the tax imposed under § 44-13-13 ), 14, 17, or 30 of this title, as applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the total amount of the sales proceeds without proration.
  5. Substantial rehabilitation of property that is exempt from real property tax shall be ineligible for the tax credits authorized under this chapter. In the event a certified historic structure undergoes a substantial rehabilitation pursuant to this chapter and within twenty-four (24) months after issuance of a certificate of completed work the property becomes exempt from real property tax, the taxpayer’s tax for the year shall be increased by the total amount of credit actually used against the tax.
  6. In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

History of Section. P.L. 2001, ch. 134, § 1; P.L. 2002, ch. 125, § 2; P.L. 2008, ch. 6, § 1; P.L. 2008, ch. 7, § 1.

44-33.2-4. Administration.

  1. To claim the tax credit authorized in this chapter, taxpayers shall apply: (i) to the commission prior to the certified historic structure being placed in service for a certification that the certified historic structure’s rehabilitation will be consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation; and (ii) after completion of the rehabilitation work to the certified historic structure: (A) to the commission for a certification that the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation, and (B) to the division of taxation for a certification as to the amount of tax credit for which the rehabilitation qualifies. The commission and the division of taxation shall be entitled to rely on the facts represented in the application without independent investigation and, with respect to the amount of tax credit for which the rehabilitation qualifies, upon the certification of a certified public accountant licensed in the state of Rhode Island. The applications shall be developed by the commission and the division of taxation and may be amended from time to time.
  2. Within ninety (90) days after the commission’s and the division of taxation’s receipt of the taxpayer’s application requesting certification for the completed rehabilitation work, (i) the commission shall issue the taxpayer a written determination either denying or certifying the rehabilitation, and (ii) the division of taxation shall issue a certification of the amount of credit for which the rehabilitation qualifies. To claim the tax credit, the commission’s and the division of taxation’s certification as to the amount of the tax credit shall be attached to all state tax returns on which the credit is claimed.
  3. No taxpayer may benefit from the provisions of this chapter unless the owner of the certified historic structure grants a restrictive covenant to the commission, agreeing that during the holding period no alterations to the certified historic structure will be made without the commission’s approval and in a manner inconsistent with the standards of the Secretary of the United States Department of the Interior.
  4. The division of taxation shall charge a fee equal to two and one quarter percent (2.25%) of the qualified rehabilitation expenditures of structures placed in service after July 31, 2005 and prior to January 1, 2008. The fee shall have been paid by May 15, 2008 for certified historical structures or some identifiable portion of a structure to qualify for the thirty percent (30%) tax credits under subsection 44-33.2-3(a) . For certified historical structures or some identifiable portion of a structure placed in service after December 31, 2007, the division of taxation shall charge a fee equal to three percent (3%), four percent (4%), or five percent (5%) of the qualified rehabilitation expenditures as contracted between the division of taxation and the person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or non-profit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure to be placed in service after December 31, 2007; provided further that two and one quarter percent (2.25%) of the qualified rehabilitation expenditures shall be paid by May 15, 2008 with the remaining percent to be paid by March 5, 2009. Payments made after March 5, 2009 shall accrue interest as set forth in § 44-1-7 .
  5. If information comes to the attention of the commission or the division of taxation at any time up to and including the last day of the holding period that is materially inconsistent with representations made in an application, the commission or the division of taxation may deny the requested certification, revoke a certification previously given or terminate the contract, with any processing fees paid to be forfeited.
  6. The general assembly hereby finds that the state’s fiscal budgetary crisis is of such a nature to cause immediate peril to the public health, safety or welfare that any regulations promulgated by the division of taxation or the Rhode Island historical preservation and heritage commission in furtherance of this chapter must be promulgated as emergency regulations pursuant to subsection 42-35-3(b).

History of Section. P.L. 2001, ch. 134, § 1; P.L. 2002, ch. 125, § 2; P.L. 2005, ch. 117, art. 27, § 1; P.L. 2008, ch. 6, § 1; P.L. 2008, ch. 7, § 1.

Compiler’s Notes.

Section 42-35-3 , referred to in this section, was amended by P.L. 2016, ch. 203, § 2, and P.L. 2016, ch. 206, § 2, effective June 29, 2016. Comparable provisions are now found in chapter 35 of title 42.

44-33.2-4.1. Historic preservation tax credit trust fund.

All processing fees collected pursuant to this chapter after June 30, 2008 shall be deposited in a historic preservation tax credit restricted receipt account within the historic preservation tax credit trust fund, which shall be used, to the extent resources are available, to refund or reimburse historic tax credit processing fees paid by developers as certified by the division of taxation.

History of Section. P.L. 2008, ch. 6, § 2; P.L. 2008, ch. 7, § 2; P.L. 2008, ch. 100, art. 30, § 2; P.L. 2012, ch. 241, art. 13, § 1.

44-33.2-5. Information requests.

The tax administrator and his or her agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions of this chapter, may examine any books, paper, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter which the tax administrator or his or her agent deems pertinent or material in determining the eligibility for credits claimed and may request information from the commission, and the commission shall provide the information in all cases, to the extent not otherwise prohibited by statute.

History of Section. P.L. 2001, ch. 134, § 1; P.L. 2002, ch. 125, § 2.

44-33.2-6. Election.

Taxpayers who elect and qualify to claim tax credits for the substantial rehabilitation of a certified historic structure pursuant to this chapter are ineligible for any tax credits that may also be available to the taxpayer for the substantial rehabilitation of that particular certified historic structure under the provisions of chapters 33.1 of this title, 64.7 of title 42, and/or 31 of this title.

History of Section. P.L. 2001, ch. 134, § 1; P.L. 2002, ch. 125, § 2.

Chapter 33.3 Newport Senior Resident Property Tax Services Credit Program

44-33.3-1. Program established.

A senior resident property tax service credit program is hereby established, commencing on July 1, 2004, to allow qualified senior residents, as determined by the provisions of this act, to receive limited real estate tax credits in exchange for services provided to the city of Newport municipal government, as described in this act.

History of Section. P.L. 2004, ch. 572, § 1.

44-33.3-2. Age and income limits.

Taxpayers qualifying for a senior resident property tax service credit must be sixty-five (65) years of age or older by July 1st, 2004 to earn property tax credit relief under this program. The taxpayers must reside at the property as a full-time resident or residents, and have a gross annual income from all sources at or below the moderate income level for Newport County for the previous calendar year as published by the U.S. Department of Housing and Urban Development for a two-person household for jointly held property, or in the case of a single person, at or below the published level as aforementioned for a one-person household.

History of Section. P.L. 2004, ch. 572, § 1; P.L. 2006, ch. 278, § 1; P.L. 2006, ch. 545, § 1.

44-33.3-3. Ownership.

  1. The taxpayer or taxpayers applying for the senior resident property tax service credit program must be the owner of the respective real estate to which the credit will apply.
  2. If the property is held in trust, the beneficiary or beneficiaries of the trust must be the taxpayer or taxpayers applying for the senior resident property tax service credit program.

History of Section. P.L. 2004, ch. 572, § 1; P.L. 2010, ch. 239, § 45.

44-33.3-4. Maximum abatement and hourly rate.

The maximum credit taxpayers may earn is five hundred ($500) dollars per fiscal year. Credit for service will be at the state of Rhode Island hourly minimum wage at the time the service is performed.

History of Section. P.L. 2004, ch. 572, § 1.

44-33.3-5. Personal exemptions and deferrals.

Taxpayers may earn tax credits under the service credit program in addition to any property tax exemptions for which they may be eligible under any provision of the general or public law, or city of Newport ordinances.

History of Section. P.L. 2004, ch. 572, § 1.

44-33.3-6. Adoption of local program rules.

The Newport city manager may establish rules and procedures for the senior property tax service credit program. These rules and procedures will assure coordination of the assignment of program participants to the various municipal departments where they will perform their services.

History of Section. P.L. 2004, ch. 572, § 1.

44-33.3-7. Certification of service.

The board, officer or department supervising the senior taxpayer’s service must certify to the assessor the hours of service performed by the taxpayer before the actual tax for the fiscal year is committed. The certification must state the amount actually earned as of that time. Services performed after that date shall be credited toward the next fiscal year’s actual tax bill to the extent they are consistent with the program rules established by the Newport city manager. A copy of the certification must also be provided to the senior program participant prior to the actual tax bill being issued.

History of Section. P.L. 2004, ch. 572, § 1.

44-33.3-8. Status of volunteers.

Senior taxpayers performing services in return for property tax reductions shall be considered employees for the purposes of municipal tort liability. The city of Newport will be liable for damages for injuries to third-parties and for indemnification of the seniors to the same extent as they are in the case of injuries caused by regular municipal employees.

History of Section. P.L. 2004, ch. 572, § 1.

44-33.3-9. Taxation on services prohibited.

In no instance shall the amount by which a person’s property tax liability is reduced in exchange for the provision of services provided herein, be considered income, wages or employment for the purposes of taxation, for the purposes of withholding taxes, for the purposes of unemployment insurance, for the purposes of workers’ compensation, or any other applicable provisions of the Rhode Island general laws.

History of Section. P.L. 2004, ch. 572, § 1.

Chapter 33.4 Cumberland Senior Resident Property Tax Services Credit Program

44-33.4-1. Program established.

A senior resident property tax service credit program is hereby established, commencing on July 1, 2006, to allow qualified senior residents, as determined by the provisions of this act, to receive limited real estate tax credits in exchange for services provided to the town of Cumberland municipal government, as described in this act.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-2. Age and income limits.

Taxpayers qualifying for a senior resident property tax service must be sixty-five (65) years of age or older by July 1, 2006 to earn property tax credit relief under this program. The taxpayers must reside at the property as a full-time resident or residents, and have a gross annual income from all sources at or below the low income level for Providence County for the previous calendar year as published by the U.S. Department of Housing and Urban Development for a two (2) person household for jointly held property, or in the case of a single person, at or below the published level as aforementioned for a one-person household.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-3. Ownership.

The taxpayer or taxpayers applying for the senior resident property tax service credit program must be the owner of the respective real estate to which the credit will apply. If the property is held in trust, the beneficiary or beneficiaries of the trust must be the taxpayer or taxpayers applying for the senior resident property tax service credit program.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-4. Maximum abatement and hourly rate.

The maximum credit taxpayers may earn is five hundred dollars ($500) per fiscal year. Credit for service will be at the state of Rhode Island hourly minimum wage at the time the service is performed.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-5. Personal exemptions and deferrals.

Taxpayers may earn tax credits under the service credit program in addition to any property tax exemptions for which they may be eligible under any provision of the general or public law, or town of Cumberland ordinances.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-6. Adoption of local program rules.

The Cumberland mayor may establish rules and procedures for the senior property tax service credit program. These rules and procedures will assure coordination of the assignment of program participants to the various municipal departments where they will perform their services.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-7. Certification of service.

The board, officer or department supervising the senior taxpayer’s service must certify to the assessor the hours of service performed by the taxpayer and must be received by the tax assessor by March 31st of each year.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-8. Status of volunteers.

Senior taxpayers performing services for the town of Cumberland government in return for property tax reductions shall be considered employees for the purposes of municipal tort liability. The town of Cumberland may be liable for damages for injuries to third-parties and for indemnification of the seniors only to the same extent as they are in the case of injuries caused by regular municipal employees.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

44-33.4-9. Taxation on services prohibited.

In no instance shall the amount by which a person’s property tax liability is reduced in exchange for the provision of services provided herein, be considered income, wages or employment for the purposes of taxation, for the purposes of withholding taxes, for the purposes of unemployment insurance, for the purposes of workers’ compensation, or any other applicable provisions of the Rhode Island general laws.

History of Section. P.L. 2006, ch. 348, § 1; P.L. 2006, ch. 430, § 1.

Chapter 33.5 Bristol Senior Resident Property Tax Services Credit Program

44-33.5-1. Program established.

A senior resident property tax service credit program is established, beginning July 1, 2008, to allow qualified senior residents, as determined by the provisions of this section, to receive limited real estate tax credits in exchange for services provided to the town of Bristol municipal government, as described in this chapter.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-2. Age and income limits.

Taxpayers qualifying for a senior resident property tax service credit must be sixty-five (65) years of age or over by July 1, 2008 to earn property tax credit relief under this program, reside at the property as a full-time resident or residents, and have a gross annual income from all sources at or below the moderate-income level for Bristol County for the previous calendar year as published by the U.S. Department of Housing and Urban Development for a two-person household for jointly held property or in the case of a single person, at or below the published level as aforementioned for a one-person household.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-3. Ownership.

The taxpayer or taxpayers applying for the senior resident property tax service credit program must be the owner of or have a life estate interest in the respective real estate to which the credit will apply. If the property is held in trust, the beneficiary or beneficiaries of the trust must be the taxpayer or taxpayers applying for the senior resident property tax service credit program.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-4. Maximum abatement and hourly rate.

The maximum credit taxpayers may earn is five hundred dollars ($500) per fiscal year. Credit for service will be at the state of Rhode Island hourly minimum wage at the time the service is performed.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-5. Personal exemptions and deferrals.

Taxpayers may earn tax credits under the service credit program in addition to any property tax exemptions for which they may be eligible under any provisions of the general or public law, or town of Bristol ordinances.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-6. Adoption of local program rules.

The Bristol town administrator may establish rules and procedures for the senior property tax service credit program. Theses rules and procedures will assure coordination of the assignment of program participants to the various municipal departments where they will perform their services.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-7. Certification of service.

The board, officer or department supervising the senior taxpayer’s service must certify to the assessor the hour of service performed by the taxpayer before the actual tax for the fiscal year is committed. The certification must state the amount actually earned as of that time. Services performed after that date shall be credited toward the next fiscal year’s actual tax bill to the extent they are consistent with the program rules established by the town administrator. A copy of the certification must also be provided to the senior program participant prior to the actual tax bill being issued.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-8. Status of volunteers.

Senior taxpayers performing services in return for property tax reductions shall be considered employees for the purposes of municipal tort liability. The town of Bristol will be liable for damages for injuries to third parties and for indemnification of the seniors to the same extent as they are in the case of injuries caused by regular municipal employees.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

44-33.5-9. Taxation on services prohibited.

In no instance shall the amount by which a person’s property tax liability is reduced in exchange for the provision of services provided herein, be considered income, wages or employment for the purposes of taxation, for the purposes of withholding taxes, for the purposes of unemployment insurance, for the purposes of workers’ compensation, or any other applicable provisions of the Rhode Island general laws.

History of Section. P.L. 2008, ch. 285, § 1; P.L. 2008, ch. 361, § 1.

Chapter 33.6 Historic Preservation Tax Credits 2013

44-33.6-1. Declaration of purpose.

The general assembly finds and declares that Rhode Island’s historic structures continue to experience high vacancy rates and physical deterioration, particularly in Rhode Island’s central business districts. Without adding economic incentive, these structures are not viable for the redevelopment and reuse by modern commercial, residential or manufacturing enterprises and will continue their physical deterioration. The redevelopment and reuse of these historic structures are of critical importance to the economic measures and will assist in stimulating the reuse and redevelopment of historic structures and will improve property values, foster civic beauty, create employment opportunities, enhance commerce, and promote public education, pleasure, and welfare. Furthermore, during this unprecedented economic climate, many in the building and construction trades, and related service industries, have been severely impacted. The redevelopment and reuse of these historic structures will serve as a vital catalyst in the recovery of these trades and services, in addition to stimulating various other related economic benefits and business activities. The purpose of this chapter is to create economic incentives for the purpose of stimulating the redevelopment and reuse of Rhode Island’s historic structures, as well as to generate the positive economic and employment activities that will result from such redevelopment and reuse.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-2. Definitions.

As used in this chapter:

  1. “Certified historic structure” means a property which is located in the state of Rhode Island and is:
    1. Listed individually on the national register of historic places; or
    2. Listed individually in the state register of historic places; or
    3. Located in a registered historic district and certified by either the commission or Secretary of the Interior as being of historic significance to the district.
  2. “Certified rehabilitation” means any rehabilitation of a certified historic structure consistent with the historic character of such property or the district in which the property is located as determined by the commission guidelines.
  3. “Substantial construction” means that: (i) the owner of a certified historic structure has entered into a contract with the division of taxation and paid the processing fee; (ii) the commission has certified that the certified historic structure’s rehabilitation will be consistent with the standards set forth in this chapter; and (iii) the owner has expended ten percent (10%) of its qualified rehabilitation expenditures, estimated in the contract entered into with the division of taxation for the project or its first phase of a phased project.
  4. “Commission” means the Rhode Island historical preservation and heritage commission created pursuant to § 42-45-2 .
  5. “Exempt from real property tax” means, with respect to any certified historic structure, that the structure is exempt from taxation pursuant to § 44-3-3 .
  6. “Hard construction costs” means the direct contractor costs for labor, material, equipment, and services associated with an approved project, contractors overhead and profit, and other direct construction costs.
  7. “Holding period” means twenty-four (24) months after the commission issues a certificate of completed work to the owner. In the case of a rehabilitation which may reasonably be expected to be completed in phases as described in subdivision (15) of this section, “holding period” shall be extended to include a period of time beginning on the date of issuance of a certificate of completed work for the first phase or phases for which a certificate of completed work is issued and continuing until the expiration of twenty-four (24) months after the certificate of completed work issued for the last phase.
  8. “Part 2 application” means the Historic Preservation Certification Application Part 2–Description of Rehabilitation.
  9. “Placed in service” means that substantial rehabilitation work has been completed which would allow for occupancy of the entire structure or some identifiable portion of the structure, as established in the Part 2 application.
  10. “Principal residence” means the principal residence of the owner within the meaning of section 121 of the Internal Revenue Code [26 U.S.C. § 121] or any successor provision.
  11. “Qualified rehabilitation expenditures” means any amounts expended in the rehabilitation of a certified historic structure properly capitalized to the building and either:
    1. Depreciable under the Internal Revenue Code, 26 U.S.C. § 1 et seq., or
    2. Made with respect to property (other than the principal residence of the owner) held for sale by the owner. Fees paid pursuant to this chapter are not qualified rehabilitation expenditures. Notwithstanding the foregoing, except in the case of a nonprofit corporation, there will be deducted from qualified rehabilitation expenditures for the purposes of calculating the tax credit any funds made available to the person (including any entity specified in section 44-33.5-3(a)) incurring the qualified rehabilitation expenditures in the form of a direct grant from a federal, state or local governmental entity or agency or instrumentality of government.
  12. “Registered historic district” means any district listed in the national register of historic places or the state register of historic places.
  13. “Remain idle” means that substantial work has ceased at the subject project; work crews have been reduced by more than twenty-five percent (25%) for reasons unrelated to scheduled completion of work in accordance with the project schedule, reasonably unanticipated physical conditions, or force majeure; or the project schedule that was originally submitted by the taxpayer to the commission has been extended by more than twelve (12) months for reasons other than reasonably unanticipated physical conditions or an event of force majeure (by way of example, and not in limitation, any delays, work stoppage, or work force reduction caused by issues with project funding, finances, disputes, or violation of laws shall be deemed to cause a project to remain idle).
  14. “Scattered site development” means a development project for which the developer seeks unified financing to rehabilitate dwelling units in two (2) or more buildings located in an area that is defined by a neighborhood revitalization plan and is not more than one mile in diameter.
  15. “Social club” means a corporation or other entity and/or its affiliate that offers its facilities primarily to members for social or recreational purposes and the majority source of its revenue is from funds and/or dues paid by its members and/or an entity defined as a social club pursuant to the Internal Revenue Code section 501(c)(7).
  16. “Substantial rehabilitation” means, with respect to a certified historic structure, that the qualified rehabilitation expenses of the building during the twenty-four (24) month period selected by the taxpayer ending with or within the taxable year exceed the adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation, which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the above definition shall be applied by substituting “sixty (60) month period” for “twenty-four (24) month period.”
  17. “Trade or business” means an activity that is carried on for the production of income from the sale or manufacture of goods or performance of services, excluding residential rental activity.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-3. Tax credit.

  1. Subject to the maximum credit provisions set forth in subsections (c) and (d) below, any person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of a certified historic structure, provided the rehabilitation meets standards consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation as certified by the commission and said person, firm, partnership, trust, estate, limited liability company, corporation or other business entity is not a social club as defined in § 44-33.6-2(15) of this chapter, shall be entitled to a credit against the taxes imposed on such person or entity pursuant to chapter 11, 12, 13, 14, 17 or 30 of this title in an amount equal to the following:
    1. Twenty percent (20%) of the qualified rehabilitation expenditures; or
    2. Twenty-five percent (25%) of the qualified rehabilitation expenditures provided that either:
      1. At least twenty-five percent (25%) of the total rentable area of the certified historic structure will be made available for a trade or business; or
      2. The entire rentable area located on the first floor of the certified historic structure will be made available for a trade or business.
  2. Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in which such certified historic structure or an identifiable portion of the structure is placed in service provided that the substantial rehabilitation test is met for such year.
  3. Maximum project credit.  The credit allowed pursuant to this chapter shall not exceed five million dollars ($5,000,000) for any certified rehabilitation project under this chapter. No building to be completed in phases or in multiple projects shall exceed the maximum project credit of five million dollars ($5,000,000) for all phases or projects involved in the rehabilitation of such building.
  4. Maximum aggregate credits.  The aggregate credits authorized to be reserved pursuant to this chapter shall not exceed sums estimated to be available in the historic preservation tax credit trust fund pursuant to this chapter.
  5. Subject to the exception provided in subsection (g) of this section, if the amount of the tax credit exceeds the taxpayer’s total tax liability for the year in which the substantially rehabilitated property is placed in service, the amount that exceeds the taxpayer’s tax liability may be carried forward for credit against the taxes imposed for the succeeding ten (10) years, or until the full credit is used, whichever occurs first for the tax credits. Credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the persons designated as partners, members or owners respectively pro rata or pursuant to an executed agreement among such persons designated as partners, members or owners documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity. Credits may be allocated to partners, members or owners that are exempt from taxation under section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. Code and these partners, members or owners must be treated as taxpayers for purposes of this section.
  6. If the taxpayer has not claimed the tax credits in whole or part, taxpayers eligible for the tax credits may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity, including, but not limited to, condominium owners in the event the certified historic structure is converted into condominiums and assignees of the credits that have not claimed the tax credits in whole or part may assign, transfer or convey the credits, in whole or in part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use acquired credits to offset up to one hundred percent (100%) of the tax liabilities otherwise imposed pursuant to chapter 11, 12, 13, (other than the tax imposed under § 44-13-13 ), 14, 17 or 30 of this title. The assignee may apply the tax credit against taxes imposed on the assignee until the end of the tenth calendar year after the year in which the substantially rehabilitated property is placed in service or until the full credit assigned is used, whichever occurs first. Fiscal year assignees may claim the credit until the expiration of the fiscal year that ends within the tenth year after the year in which the substantially rehabilitated property is placed in service. The assignor shall perfect the transfer by notifying the state of Rhode Island division of taxation, in writing, within thirty (30) calendar days following the effective date of the transfer and shall provide any information as may be required by the division of taxation to administer and carry out the provisions of this section.
  7. Credits allowed to partners, members or owners that are exempt from taxation under section 501(c)(3), section (c)(4) or section 501(c)(6) of the U.S. Code, and only said credits, shall be fully refundable.
  8. Substantial rehabilitation of property that either:
    1. Is exempt from real property tax;
    2. Is a social club; or
    3. Consists of a single family home or a property that contains less than three (3) residential apartments or condominiums shall be ineligible for the tax credits authorized under this chapter; provided, however, a scattered site development with five (5) or more residential units in the aggregate (which may include single family homes) shall be eligible for tax credit. In the event a certified historic structure undergoes a substantial rehabilitation pursuant to this chapter and within twenty-four (24) months after issuance of a certificate of completed work the property becomes exempt from real property tax, the taxpayer’s tax for the year shall be increased by the total amount of credit actually used against the tax.
  9. In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this title. If a tax credit is subsequently recaptured under this chapter, revoked or adjusted, the seller’s tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total amount of the sales proceeds, without proration, as a modification under chapter 30 of this title. In the event that the seller is not a natural person, the seller’s tax calculation under chapters 11, 12, 13 (other than with respect to the tax imposed under § 44-13-13 ), 14, 17, or 30 of this title, as applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the total amount of the sales proceeds without proration.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-4. Administration.

  1. To claim the tax credit authorized in this chapter, taxpayers shall apply:
    1. To the commission prior to the certified historic structure being placed in service for a certification that the certified historic structure’s rehabilitation will be consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation;
    2. To the commission after completion of the rehabilitation work of the certified historic structure for a certification that the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation; and
    3. To the division of taxation after completion of the rehabilitation work of the certified historic structure for a certification as to the amount of tax credit for which the rehabilitation qualifies. The commission and the division of taxation may rely on the facts represented in the application without independent investigation and, with respect to the amount of tax credit for which the rehabilitation qualifies, upon the certification of a certified public accountant licensed in the state of Rhode Island. The applications shall be developed by the commission and the division of taxation and may be amended from time to time.
  2. Within thirty (30) days after the commission’s and division of taxation’s receipt of the taxpayer’s application requesting certification for the completed rehabilitation work:
    1. The commission shall issue the taxpayer a written determination either denying or certifying the rehabilitation; and
    2. Division of taxation shall issue a certification of the amount of credit for which the rehabilitation qualifies. To claim the tax credit, the division of taxation’s certification as to the amount of the tax credit shall be attached to all state tax returns on which the credit is claimed.
  3. No taxpayer may benefit from the provisions of this chapter unless the owner of the certified historic structure grants a restrictive covenant to the commission, agreeing that during the holding period no material alterations to the certified historic structure will be made without the commission’s prior approval and agreeing that such shall be done in a manner consistent with the standards of the Secretary of the United States Department of the Interior; and, in the event the owner applies for the twenty-five percent (25%) tax credit, that either:
    1. At least twenty-five percent (25%) of the total rentable area of the certified historic structure will be made available for a trade or business; or
    2. The entire rentable area located on the first floor of the certified historic structure will be made available for a trade or business, in either case, for a period of sixty (60) months after the placed in service date of the certified historic structure or identifiable portion thereof.
  4. The division of taxation shall charge a fee equal to three percent (3%) of qualified rehabilitation expenditures. The fee shall be payable upon submission of the Part 2 application. The fee shall be non-refundable.
  5. Notwithstanding any provisions of the general laws or regulations adopted thereunder to the contrary, including, but not limited to, the provisions of chapter 2 of title 37, the division of taxation is hereby expressly authorized and empowered to enter into contracts with persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or nonprofit) or other business entities that incur qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure. Upon payment of the portion of the fee set forth in subdivision (d) above, the division of taxation and the applicant shall enter into a contract for tax credits consistent with the terms and provisions of this chapter.
  6. Upon satisfaction of the requirements set forth herein and the payment of the fees as set forth in subdivision (d) above, the division of taxation shall, on behalf of the State of Rhode Island, guarantee the delivery of one hundred percent (100%) of the tax credit and use of one hundred percent (100%) of the tax credit in the tax year a certified historic structure is placed in service through a contract with persons, firms, partnerships, trusts, estates, limited liability companies, corporations (whether for profit or nonprofit) or other business entities that will incur qualified rehabilitation expenditures for the substantial rehabilitation of a certified historic structure or some identifiable portion of a structure.
  7. Any contract executed pursuant to this chapter by a person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity shall be assignable to:
    1. An affiliate thereof without any consent from the division of taxation;
    2. A banking institution as defined by § 44-14-2(2) or credit union as defined in § 44-15-1.1(1) without any consent from the division of taxation; or
    3. A person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity that incurs qualified rehabilitation expenditures for the substantial rehabilitation of certified historic structures or some identifiable portion of a structure, with such assignment to be approved by the division of taxation, which approval shall not be unreasonably withheld or conditioned. For purposes of this subsection, “affiliate” shall be defined as any entity controlling, controlled by or under common control with such person, firm, partnership, trust, estate, limited liability company, corporation (whether for profit or nonprofit) or other business entity.
  8. If information comes to the attention of the commission or division of taxation at any time up to and including the last day of the holding period that is materially inconsistent with representations made in an application, the commission may deny the requested certification or revoke a certification previously given, and in either instance all fees paid by the applicant shall be deemed forfeited. In the event that tax credits or a portion of tax credits are subject to recapture for ineligible costs and such tax credits have been transferred, assigned and/or allocated, the state will pursue its recapture remedies and rights against the applicant of the tax credits, and all fees paid by the applicant shall be deemed forfeited. No redress shall be sought against assignees, transferees or allocates of such credits provided they acquired the tax credits by way of an arms-length transaction, for value, and without notice of violation, fraud or misrepresentation.
  9. The commission, in consultation with the division of taxation, shall promulgate such rules and regulations as are necessary to carry out the intent and purpose of this chapter.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-5. Information requests.

The tax division and its agents, for the purpose of ascertaining the correctness of any credit claimed under the provisions of this chapter, may examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, report, or other statement, and may require the attendance of the person executing the return, report, or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine the person under oath respecting any matter which the tax administrator or his or her agent deems pertinent or material in determining the eligibility for credits claimed and may request information from the commission, and the commission shall provide the information in all cases, to the extent not otherwise prohibited by statute.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-6. Election — Limitations.

Taxpayers who elect and qualify to claim tax credits for the substantial rehabilitation of a certified historic structure pursuant to this chapter are ineligible for any tax credits that may also be available to the taxpayer for the substantial rehabilitation of that particular certified historic structure under the provisions of chapters 33.1 of this title, 64.7 of title 42, and/or 31 of this title. Neither taxpayers nor assignees may apply any tax credits issued in accordance with this section until fiscal year 2014.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-7. Timing and reapplication.

  1. Taxpayers shall have twelve (12) months from the approval of Part 2 application to commence substantial construction activities related to the subject substantial rehabilitation. Upon commencing substantial construction activities, the taxpayer shall submit an affidavit of commencement of substantial construction to the commission, together with evidence of the requirements having been satisfied. Furthermore, after commencement of substantial construction activities, no project shall remain idle prior to completion for a period of time exceeding six (6) months. In the event that a taxpayer does not commence substantial construction activities within twelve (12) months from the approval of Part 2 application, or in the event that a project remains idle prior to completion for a period of time exceeding six (6) months, the subject taxpayer shall forfeit all fees paid prior to such date and its then-current contract for tax credits shall be deemed null and void, and shall terminate without need for further action or documentation. Upon any such forfeiture and termination, a taxpayer may re-apply for tax credits pursuant to this chapter; however, notwithstanding anything contained herein to the contrary, one hundred percent (100%) of the fees required shall be paid upon reapplication and the fees shall be non-refundable. Additionally, any taxpayer reapplying for tax credits pursuant to this section shall be required to submit evidence with its application establishing the reason for delay in commencement or the project sitting idle, as the case may be, and provide evidence, reasonably satisfactory to the commission, that the condition or event causing same has been resolved. All taxpayers shall submit a reasonably detailed project timeline to the commission together with the Part 2 application. The provisions of this section shall be further detailed and incorporated into the form of contract for tax credits used in connection with this chapter.
  2. Notwithstanding any other provision of law to the contrary, projects that have been approved for historic preservation tax credits and have been funded through the cultural arts and the economy grant program, as enacted in P.L. 2014, ch. 145, and whose contract for tax credits would expire on December 31, 2019, are not subject to the provisions of this section and shall remain in full force and effect until December 31, 2022.

History of Section. P.L. 2013, ch. 144, art. 22, § 2; P.L. 2019, ch. 291, § 1; P.L. 2019, ch. 88, art. 5, § 14.

Compiler’s Notes.

This section was amended by two acts (P.L. 2019, ch. 291, § 1; P.L. 2019, ch. 88, art. 5, § 14) as passed by the 2019 General Assembly. Both acts enacted a new subsection (b) with similar language, and the section is set out as amended by both acts.

44-33.6-8. Historic tax credit apprenticeship requirements.

  1. Notwithstanding any laws to the contrary, any credit allowed under this chapter for hard construction costs valued at ten million dollars ($10,000,000) or more shall include a requirement that any contractor and subcontractor working on the project shall have an apprenticeship program as defined herein for all apprenticeable crafts that will be employed on the project at the time of bid. The provisions of this section shall only apply to contractors and subcontractors with five (5) or more employees. For purposes of this section, an apprenticeship program is one that is registered with and approved by the United States department of labor in conformance with 29 C.F.R. part 29 and 29 C.F.R. part 30.
  2. The department of labor and training must provide information and technical assistance to affected governmental, quasi-governmental agencies, and any contractors awarded projects relative to their obligations under this statute.
  3. The department of labor and training may also impose a penalty of up to five hundred dollars ($500) for each calendar day of noncompliance with this section, as determined by the director of labor and training. Mere errors and/or omissions shall not be grounds for imposing a penalty under this subsection.
  4. Any penalties assessed under this statute shall be paid to the general fund.
  5. To the extent that any of the provisions contained in this section conflict with the requirements for federal aid contracts, federal law and regulations shall control.

History of Section. P.L. 2013, ch. 144, art. 22, § 2; P.L. 2021, ch. 395, § 15, effective July 14, 2021.

44-33.6-9. Reporting requirements.

  1. Each taxpayer requesting certification of a completed rehabilitation shall report to the commission and the division of taxation the following information:
    1. The number of total jobs created;
    2. The number of Rhode Island businesses retained for work;
    3. The total amount of qualified rehabilitation expenditures;
    4. The total cost of materials or products purchased from Rhode Island businesses;
    5. Such other information deemed necessary by the tax administrator.
  2. Any agreements or contracts entered into under this chapter by the division, the commission, or the commerce corporation and the taxpayer shall be sent to the division of taxation and be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  3. By August 15th of each year the division of taxation shall report the name, address, and amount of tax credit received for each credit recipient during the previous state fiscal year to the governor, the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, and the department of labor and training. This report shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  4. By September 1st of each year the division of taxation shall report in the aggregate the information required under subsection (a) of this section. This report shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.
  5. By September 1, 2018, and biennially thereafter the division of taxation shall report in the aggregate the total number of approved projects, project costs, and associated amount of approved tax credits.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-10. Historic preservation tax credit trust fund.

All processing fees collected pursuant to this chapter after July 1, 2013, shall be deposited in a historic preservation tax credit restricted receipt account within the historic preservation tax credit trust fund, which shall be used, to the extent resources are available, to refund or reimburse the state for any credits certified by the division of taxation.

History of Section. P.L. 2013, ch. 144, art. 22, § 2.

44-33.6-11. Sunset.

No credits shall be authorized to be reserved pursuant to this chapter on or after June 30, 2022, or upon the exhaustion of the maximum aggregate credits, whichever comes first.

History of Section. P.L. 2013, ch. 144, art. 22, § 2; P.L. 2016, ch. 142, art. 13, § 18; P.L. 2017, ch. 302, art. 2, § 2; P.L. 2019, ch. 291, § 1; P.L. 2020, ch. 15, § 22; P.L. 2021, ch. 162, art. 9, § 16, effective July 6, 2021.

Chapter 34 Excise on Motor Vehicles and Trailers

44-34-1. Motor vehicle and trailer excise tax.

There is created an excise tax on motor vehicles for the state of Rhode Island. The cities and towns are authorized to administer and collect the excise on registered motor vehicles and trailers in lieu of property tax.

History of Section. P.L. 1978, ch. 341, § 3; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

Comparative Legislation.

Excise tax on registered motor vehicles:

Mass. Ann. Laws ch. 60A, § 1 et seq.

NOTES TO DECISIONS

Enforcement.

This section must be read not only to grant a city or town the capacity to collect motor vehicle taxes, but also to grant them a cause of action for the collection of unpaid excise taxes. Additionally, there is nothing in the statute to restrict its application to Rhode Island residents only. Pepin v. Donovan, 581 A.2d 717, 1990 R.I. LEXIS 157 (R.I. 1990).

Property Tax.

Notwithstanding that the motor vehicle and trailer excise tax does impinge upon the privilege of vehicle registration, based upon its method of application it is not an excise tax, but a property tax. Cohen v. Harrington, 722 A.2d 1191, 1999 R.I. LEXIS 4 (R.I. 1999).

Regardless of the nomenclature used by the legislature, it is the nature of the tax itself that determines whether a tax is an excise tax or a property tax. Cohen v. Harrington, 722 A.2d 1191, 1999 R.I. LEXIS 4 (R.I. 1999).

The motor vehicle and trailer excise tax is incidental to the ownership of the motor vehicle, as demonstrated by the fact that it is based on the value of the vehicle, and not on the extent or manner in which the vehicle is used, and registration is not revoked immediately upon nonpayment of the tax, since the tax is not specifically for the privilege of registering the vehicle. Cohen v. Harrington, 722 A.2d 1191, 1999 R.I. LEXIS 4 (R.I. 1999).

Since the tax set forth in § 44-34-1 is a property tax and not an excise tax, the constitutional protections of due process and equal protection are inapplicable. Cohen v. Harrington, 722 A.2d 1191, 1999 R.I. LEXIS 4 (R.I. 1999).

44-34-2. Assessment — Valuation — Proration — Abatement and cancellation — Exemptions from tax.

  1. Except as provided in this section, the tax assessors of each city and town shall assess and levy in each calendar year on every vehicle and trailer registered under chapter 3 of title 31, for the privilege of the registration, an excise measured by its value, as subsequently defined and determined. For the purpose of this excise, the uniform value of each vehicle shall be determined in accordance with the regulations of the vehicle value commission. Any vehicle that is more than fifteen (15) years old, whether or not the vehicle is an antique motor car as defined in § 31-1-3(a) , shall be deemed to possess an average retail value of five hundred dollars ($500). The assessor may waive the excise tax on any vehicle where the annual levy would be less than five dollars ($5.00). The state shall not provide reimbursement for any waiver.
  2. Vehicle and trailer excises shall be prorated over the calendar year prior to the year in which the excises are levied and billed, that year being referred to as the calendar year of proration.
  3. The excise levy on every vehicle and trailer registered under chapter 3 of title 31 shall be based on the ratio that the number of days the vehicle or trailer is registered is to the number of days in the calendar year of proration.
  4. If during the calendar year of proration, the owner of a vehicle or trailer subject to the excise moves permanently with his or her vehicle to another state and cancels his or her registration in this state and returns the registration plates, the vehicle shall be exempt from excise for the ensuing year.
  5. “Year of manufacture” as used in this section means the year used by the manufacturer of the vehicle or trailer in connection with the designation by the manufacturer of the model of the vehicle or trailer. Where the presumptive price of a vehicle or trailer is not readily obtainable, or special equipment is installed on the vehicle or trailer, the tax assessor shall prescribe the retail price to be used or the manner in which the retail price shall be determined. In making the determination of the presumptive price, the tax assessor shall determine the retail price of the vehicle and then apply the percentage corresponding with the appropriate fiscal year as specified in § 44-34-11(c)(1)(iii) .
  6. Nothing in this section shall be construed to prevent any city or town council from granting an abatement, in whole or in part, when there is an error in the assessment of a tax, and the tax assessors have certified to the fact, in writing, to the city or town council to cancel taxes stating the nature of the error, the valuation of the vehicle or trailer, the amount of the assessed tax, and the name of the person to whom the vehicle or trailer was taxed.
  7. The city or town council may cancel, in whole or in part, an excise tax assessed to a person who has died leaving no estate, or a person who has moved from the state, and the tax collector or person acting in the capacity of tax collector certifies to the city or town council the facts of the case.
  8. The excise imposed by this section shall not apply to vehicles or trailers owned by the state of Rhode Island or any of its political subdivisions, or to vehicles or trailers owned by a corporation, association, or other organization whose tangible personal property is exempt under §§ 44-3-3(a)(1) — (a)(15), or to vehicles assessed and taxed under § 44-13-13 , or those owned by the United States government. Farm vehicles shall be exempt to the extent prescribed in § 44-5-42 .

History of Section. P.L. 1978, ch. 341, § 3; P.L. 1982, ch. 121, § 1; P.L. 1982, ch. 255, § 1; P.L. 1984, ch. 339, § 1; P.L. 1984, ch. 381, art. I, § 1; P.L. 1986, ch. 415, § 1; P.L. 1987, ch. 65, § 1; P.L. 1988, ch. 654, § 2; P.L. 1998, ch. 31, art. 28, § 2; P.L. 2000, ch. 55, art. 19, § 2; P.L. 2004, ch. 6, § 23; P.L. 2005, ch. 117, art. 17, § 1; P.L. 2017, ch. 302, art. 11, § 2.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-3. Assessment roll — Rate — Payment — Penalty upon non-payment.

  1. The assessor, on the basis of a list of uniform values for motor vehicles prepared by the Rhode Island vehicle value commission pursuant to § 44-34-8 , shall make a list containing the value of every vehicle and trailer in the city or town which is subject to the provisions of § 44-34-2 , the values to be at the average retail price as determined under § 44-34-2 or at a uniform percentage of these, not to exceed one hundred percent (100%), to be determined by the assessors in each city or town; provided, that every vehicle and trailer in the city of Pawtucket shall be assessed in accordance with §§ 44-5-20.1 and 44-5-20.2 ; provided, further, that motor vehicles owned, leased, or utilized by rental companies, as those terms are defined in § 31-34.1-1 , shall not be valued for excise tax purposes at an amount greater than the National Automobile Dealers Association average retail value for new vehicles for the year and vehicle model in question.
  2. The excise tax levy shall be applied to the excise assessment roll at the rate established by the assessors for all other property except manufacturer’s machinery and equipment in accordance with § 44-5-22 and the resulting tax roll shall be certified by the assessors to the city or town clerk, treasurer, or tax collector, as the case may be, not later than June 15 next succeeding. Prior to the resulting tax roll being certified to the Pawtucket city clerk, the excise levy shall be applied to the excise assessment roll in accordance with the property tax classification described in §§ 44-5-20.3 and 44-5-20.5 . In the city of Woonsocket, the excise tax levy shall be applied to the excise assessment roll at a rate that will produce no more than nineteen percent (19%) of the total tax levy as prescribed in § 44-5-11.6 . In the town of Lincoln, the excise tax levy shall be applied to the excise assessment roll at a rate that produces an amount equal to no more than seventeen percent (17%) of the total real estate tax levy.
  3. If any vehicle or trailer liable to taxation in any city or town has been omitted from the tax roll, the tax assessment shall assess the vehicle or trailer on a supplemental excise assessment roll and shall certify the assessment to the tax collector after June 15, but not later than December 31 next succeeding.
  4. As soon after this as possible, the tax collector shall cause excise bills to be sent by first class mail to all persons, corporations, partnerships, joint stock companies, or associations that have registered vehicles or trailers during the calendar year of proration. The bills shall be paid in accordance with § 44-5-7 at the same time and on the same schedule as property tax bills. Failure to pay the excise at the appropriated time shall bring about a penalty of eighteen percent (18%) per annum, or, in the case of the city of Cranston, a penalty of twelve percent (12%) per annum which applies on the date of the delinquency or, for any city or town fiscal year commencing between January 1, 1980, and December 31, 1980, after approval by the proper local authority, at the same rate of interest as that which is applied to delinquent property taxes in the taxing jurisdiction.
  5. Failure by the tax collector to send, or by the taxpayer to receive, a bill shall not excuse the nonpayment of the tax or affect its validity or any proceedings for the collection.
  6. This section does not apply to any and all entities which are exempt from the excise as prescribed in § 44-34-2 .

History of Section. P.L. 1978, ch. 341, § 3; P.L. 1979, ch. 379, § 1; P.L. 1980, ch. 107, § 1; P.L. 1982, ch. 143, § 3; P.L. 1982, ch. 343, § 3; P.L. 1984, ch. 11, § 3; P.L. 1984, ch. 381, art. I, § 1; P.L. 1985, ch. 224, § 1; P.L. 1994, ch. 23, § 1; P.L. 1997, ch. 302, § 1; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

Cross References.

Denial of registration for failure to pay taxes, § 31-3-6 .

44-34-4. Vehicle and trailer tax situs — Apportionment for interstate fleets.

  1. Tax situs of each vehicle or trailer shall be in the town or city of permanent abode of the owner at the end of the calendar year of proration if an individual, or at the principal place of business in this state, if a partnership, corporation, joint stock company, or association, except that if a vehicle or trailer is customarily kept in some other town or city, then tax situs will be in that municipality.
  2. Rented or leased vehicles shall have tax situs in the town or city where they are customarily kept by the renter or lessee if the rental or leasing contracts shall be long term. For the purpose of this chapter, long-term contracts are for six (6) months or more. If vehicles are rented or leased for less than six (6) months or on a transient basis, then tax situs for the vehicles shall be the town or city where the leasing company or agency stores the vehicles when they are not being rented or leased.
  3. In the case of fleets of vehicles and trailers engaged in interstate commerce the following rules of just apportionment shall apply:
    1. If the fleet owner has a terminal where a number of its vehicles are parked, then the average number of vehicles so parked in proportion to its total fleet value shall determine the excise;
    2. If the fleet owner does not have vehicles parked in this state but has a pickup and drop-off station, then the number of miles traveled by its fleet in this state in proportion to the total number of miles traveled by its fleet shall be the percentage of the total value of its fleet used to determine the excise.
  4. Tax situs for a fleet shall be the town or city where the terminal or station is located.
  5. In the case of more than one pickup and drop-off station of a fleet owner located in the state, the communities in which the stations are situated shall share equally the excise levied against the fleet owner.
  6. The tax assessor may require an owner to disclose any or all information necessary to determine tax situs and value of the vehicles and trailers that are subject to excise.
  7. If the owner fails to supply the requested information, then the tax assessor shall assess the vehicles and trailers at what he or she deems to be their value, and the owner, if overtaxed, shall have no remedy for this assessment.

History of Section. P.L. 1978, ch. 341, § 3; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

NOTES TO DECISIONS

Relocation.

Bankrupt trucking company was estopped from asserting that it had relocated its truck from one town to another and, therefore, was not subject to the first town’s taxation where the company had never filed a notice indicating the change of the trucks’ situs nor attempted to use the remedy provided by § 44-5-26 . Law v. Law Trucking Co., 488 A.2d 1225, 1985 R.I. LEXIS 463 (R.I. 1985).

44-34-4.1. Exemptions for buses, trucks and trailers in interstate commerce.

  1. Notwithstanding any provision of the general laws to the contrary, the operation of a truck, or trailer by a trucking company in interstate commerce shall not be subject to the provisions of the excise tax imposed by this chapter, on the condition that the truck and/or trailer is utilized exclusively in interstate commerce.
  2. Notwithstanding any provision of the law or regulation to the contrary, the operation of a bus by a bus company in interstate commerce shall not be subject to the provisions of the excise tax imposed by this chapter, on the condition that the bus is used eighty percent (80%) or more of the time in interstate commerce and provided that the bus company shall provide a properly executed affidavit attesting to the fact that the bus is used no less than eighty percent (80%) of the time in interstate commerce.

History of Section. P.L. 1992, ch. 133, art. 51, § 3; P.L. 2005, ch. 117, art. 17, § 1; P.L. 2012, ch. 302, § 2; P.L. 2012, ch. 351, § 2.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

P.L. 2012, ch. 302, § 2, and P.L. 2012, ch. 351, § 2 enacted identical amendments to this section.

44-34-5. Veterans’ and other property tax exemptions.

  1. Those veterans, gold star parents, and blind persons who qualify for property tax exemption under §§ 30-22-1 30-22-4 and §§ 44-3-4 , 44-3-5 , and 44-3-12 shall have the exemption applied to their real estate and tangible personal property, other than registered vehicles or trailers, in the communities where they reside as prescribed in those sections. However, if there is not sufficient property to exhaust the exemption, the balance of the exemption shall be applied to the excise tax on his or her motor vehicle or trailer.
  2. The amount of exemption shall not exceed the amount of excise levied on those vehicles owned by the person.

History of Section. P.L. 1978, ch. 341, § 3; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-6. Fire districts.

The provisions of this chapter shall apply in all respects in the case of taxes assessed upon motor vehicles by any fire district. Effective with the year 2000 tax roll based upon values of December 31, 1999, the authority of fire districts as authorized by general or public law to levy excise taxes on motor vehicles is eliminated and each district shall be reimbursed for one hundred percent (100%) of current year lost revenues through fiscal year 2010 based upon what the levy net of personal exemptions would otherwise have been. That reimbursement shall be based upon submission of information to the department of revenue on the dates specified in § 44-34.1-2 , and reimbursements shall be paid on the dates specified in that section. Future year reimbursements through fiscal year 2010 shall be based upon the year 2000 tax roll and values of December 31, 1999, and indexed by applying the annual change in the December Consumer Price Index — All Urban Consumers (CPI-U). For fiscal year 2011 and thereafter the state shall not reimburse fire districts pursuant to this chapter. Provided, for fiscal year 2011, and thereafter, the authority of fire districts to levy excise taxes shall be deemed restored. The year 2010 tax roll shall be based upon values of December 31, 2009, with corresponding adjustments made for each subsequent year based on the valuation of vehicles as of December 31 of the year preceding the tax year.

History of Section. P.L. 1978, ch. 341, § 3; P.L. 2000, ch. 55, art. 19, § 2; P.L. 2005, ch. 117, art. 17, § 1; P.L. 2008, ch. 98, § 50; P.L. 2008, ch. 145, § 50; P.L. 2010, ch. 23, art. 23, § 3; P.L. 2010, ch. 120, § 4.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

This section was amended by two acts (P.L. 2010, ch. 23, art, 23, § 3; P.L. 2010, ch. 120, § 4) passed by the 2010 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by both acts.

44-34-7. Severability.

If any provision of this chapter is held invalid, the remainder of this chapter and the application of its provisions shall not be affected by this invalidity.

History of Section. P.L. 1978, ch. 341, § 3; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-8. Appeal procedure.

    1. Any taxpayer aggrieved by a valuation may appeal that valuation to the tax assessor within forty-five (45) days of notice of valuation. When the valuation of the vehicle has been made by the assessor, the assessor shall render a decision within ten (10) days of the filing of the appeal. When the valuation of the vehicle has been made by the Rhode Island vehicle valuation commission, the assessor shall forward the appeal on the form provided by the commission to the Rhode Island vehicle valuation commission within ten (10) days. The commission shall transmit its decision to the tax assessor within twenty (20) days of the receipt of the appeal.
    2. The tax assessor shall notify the aggrieved taxpayer, in writing, of the commission decision within ten (10) days of the receipt of the commission decision.
  1. Within thirty (30) days of the notification of the decision of the tax assessor or the commission, an aggrieved taxpayer may appeal the decision to the district court for the judicial division within which the city or town is located.
  2. A party aggrieved by a final order of the district court may seek review of this order in the state supreme court by writ of certiorari. The petition for a writ of certiorari shall state the errors claimed. Upon the filing of the petition with the clerk of the supreme court, the supreme court may, if it sees fit, issue its writ of certiorari to the district court to certify to the supreme court the record of the proceeding under review, or so much of this as was submitted to the district court by the parties, together with any additional record of the proceedings in the district court.

History of Section. P.L. 1984, ch. 334, § 1; P.L. 1986, ch. 415, § 1; P.L. 2005, ch. 117, art. 17, § 1; P.L. 2014, ch. 186, § 1; P.L. 2014, ch. 208, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

P.L. 2014, ch. 186, § 1, and P.L. 2014, ch. 208, § 1 enacted identical amendments to this section.

44-34-9. Valuation of motor vehicles.

For the purpose of the imposition of an excise tax upon motor vehicles, the tax assessor shall determine the value of each motor vehicle in accordance with the following procedures:

  1. Each vehicle and trailer of the same make, type, model, and year of manufacture in this state shall be deemed to have one uniform statewide value to be utilized in each city and town, except in those instances where no uniform value is established pursuant to the rules of the vehicle value commission § 44-34-11 or where a value is established by the assessor pursuant to § 44-34-2 .
  2. The uniform value of each type of vehicle and trailer shall be determined by the Rhode Island vehicle value commission or in accordance with the rules of the vehicle value commission.
  3. The value of each vehicle or trailer or each type vehicle or trailer not established by the Rhode Island vehicle value commission shall be determined by the assessor of the city or town in which the vehicle or trailer is registered. In making the determination, a uniform flat value for the vehicles in the municipality may be utilized by the assessor.

History of Section. P.L. 1984, ch. 381, art. I, § 2; P.L. 1986, ch. 415, § 1; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-10 — 44-34-10.2. Repealed.

History of Section. P.L. 1984, ch. 381, art. I, § 2; Repealed by P.L. 1986, ch. 415, § 2.

Compiler’s Notes.

Former §§ 44-34-10 44-34-10 .2 concerned appeals. Section 3 of P.L. 1986, ch. 415 provides that the repeal of these sections by that Act shall take effect upon passage (June 24, 1986) and shall be retroactive to December 30, 1985.

44-34-11. Rhode Island vehicle value commission.

  1. There is hereby authorized, created, and established the “Rhode Island vehicle value commission” whose function it is to establish presumptive values of vehicles and trailers subject to the excise tax.
  2. The commission shall consist of the following seven (7) members as follows:
    1. The director of the department of revenue or his/her designee from the department of revenue;
    2. Five (5) local tax officials named by the governor, at least one of whom shall be from a city or town under ten thousand (10,000) population and at least one of whom is from a city or town over fifty thousand (50,000) population. In making these appointments, the governor shall give due consideration to the recommendations submitted by the President of the Rhode Island League of Cities and Towns and each appointment shall be subject to the advice and consent of the senate; and
    3. One motor vehicle dealer appointed by the governor upon giving due consideration to the recommendation of the director of revenue and subject to the advice and consent of the senate.
    4. All members shall serve for a term of three (3) years.
    5. Current legislative appointees shall cease to be members of the commission upon the effective date of this act. Non-legislative appointees to the commission may serve out their terms whereupon their successors shall be appointed in accordance with this act. No one shall be eligible for appointment to the commission unless he or she is a resident of this state.
    6. Public members of the commission shall be removable by the governor pursuant to § 36-1-7 for cause only, and removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be unlawful.
    7. The governor shall appoint a chairperson from the commission’s members. The commission shall elect from among its members other officers as it may deem appropriate.
  3. The commission shall annually determine the presumptive values of vehicles and trailers subject to the excise tax in the following manner:
    1. Not earlier than September 30 and not later than December 31 of each year, the commission shall by rule adopt a methodology for determining the presumptive value of vehicles and trailers subject to the excise tax that shall give consideration to the following factors:
      1. The average retail price of similar vehicles of the same make, model, type, and year of manufacture as reported by motor vehicle dealers or by official used car guides, such as that of the National Automobile Dealers Association for New England. Where regional guides are not available, the commission shall use other publications deemed appropriate; and
      2. Other information concerning the average retail prices for make, model, type, and year of manufacture of motor vehicles as the director and the Rhode Island vehicle value commission may deem appropriate to determine fair values.
      3. Notwithstanding the foregoing, the presumptive value of vehicles and trailers subject to the excise tax shall not exceed the following percentage of clean retail value for those vehicles reported by the National Automobile Dealers Association Official Used Car Guide New England Edition:
        1. Manufacturer’s suggested retail price (MSRP) for new model year vehicles as reported by the National Automobile Dealers Association Guides; or
        2. Average retail value for those vehicles reported by the National Automobile Dealers Association Official Used Car Guide National Edition and Motorcycle/Snowmobile/ATV/Personal Watercraft Appraisal Guide; or
        3. Used retail value for those vehicles reported in the National Association of Automobile Dealers Recreational Vehicle Appraisal Guide; or
        4. Low value for those vehicles reported in the National Automobile Dealers Association Classic, Collectible, Exotic and Muscle Car Appraisal Guide & Directory.
    2. On or before February 1 of each year, it shall adopt a list of values for vehicles and trailers of the same make, model, type, and year of manufacture as of the preceding December 31 in accordance with the methodology adopted between September 30 and December 31; the list shall be subject to a public hearing at least five (5) business days prior to the date of its adoption.
    3. Nothing in this section shall be deemed to require the commission to determine the presumptive value of vehicles and trailers that are unique, to which special equipment has been added or to which special modifications have been made, or for which adequate information is not available from the sources referenced in subdivision (1) of this subsection; provided, that the commission may consider those factors in its lists or regulations.
    4. The commission shall annually provide the list of presumptive values of vehicles and trailers to each tax assessor on or before February 15 of each year.
  4. The commission shall adopt rules governing its organization and the conduct of its business; prior to the adoption of the rules, the chair shall have the power to call meetings, and a simple majority of the members of the commission, as provided for in subsection (b) of this section, is necessary for a quorum, which quorum by majority vote shall have the power to conduct business in the name of the commission. The commission may adopt rules and elect from among its members such other officers as it deems necessary.
  5. The commission shall have the power to contract for professional services that it deems necessary for the development of the methodology for determining presumptive values; for calculating presumptive values according to the methodology; and for preparing the list of presumptive values in a form and format that is generally usable by cities and towns in their preparation of tax bills. The commission shall also have the power to incur reasonable expenses in the conduct of its business as required by this chapter and to authorize payments for the expenses.
  6. Commission members shall receive no compensation for the performance of their duties but may be reimbursed for their reasonable expenses incurred in carrying out such duties.
  7. The commission shall respond to petitions of appeal by local boards of review in accordance with the provisions of § 44-34-9 .
  8. The commission shall establish, by rule, procedures for adopting an annual budget and for administering its finances. After July 1, 1986, one-half (1/2) of the cost of the commission’s operations shall be borne by the state and one-half (1/2) shall be borne by cities and towns within the state, with the city and town share distributed among cities and towns on a per capita basis.
  9. Within ninety (90) days after the end of each fiscal year, the commission shall approve and submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state of its activities during that fiscal year. The report shall provide: an operating statement summarizing meetings or hearings held, meeting minutes if requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies conducted, policies and plans developed, approved, or modified, and programs administered or initiated; a consolidated financial statement of all funds received and expended including the source of the funds, a listing of any staff supported by these funds, and a summary of any clerical, administrative or technical support received; a summary of performance during the previous fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the authority of the commission; a summary of any training courses held pursuant to this subsection, a briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations for improvements. The report shall be posted electronically on the general assembly and the secretary of state’s websites as prescribed in § 42-20-8.2 . The director of the department of revenue shall be responsible for the enforcement of this provision.

FISCAL YEAR PERCENTAGE 2018 95% 2019 90% 2020 85% 2021 80% 2022 75% 2023 70%

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In the event that no such clean retail value is reported, the presumptive value shall not exceed the above percentages of the following:

History of Section. P.L. 1984, ch. 381, art. I, § 2; P.L. 1985, ch. 181, art. 61, § 21; P.L. 1998, ch. 31, art. 28, § 2; P.L. 2001, ch. 180, § 138; P.L. 2005, ch. 117, art. 21, §§ 1, 36; P.L. 2005, ch. 241, § 3; P.L. 2005, ch. 319, § 3; P.L. 2007, ch. 319, § 1; P.L. 2007, ch. 446, § 1; P.L. 2017, ch. 302, art. 11, § 2.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-12. Cooperation of state agencies.

The department of revenue shall provide space and secretarial and clerical services to the Rhode Island vehicle value commission without charge to the commission. The department of transportation, and the department of revenue shall provide, consistent with law, information that is in their possession, which the commission determines to be useful or necessary in the conduct of its responsibilities.

History of Section. P.L. 1984, ch. 381, art. I, § 2; P.L. 1986, ch. 198, § 50; P.L. 2005, ch. 117, art. 17, § 1; P.L. 2006, ch. 246, art. 38, § 14; P.L. 2008, ch. 98, § 50; P.L. 2008, ch. 145, § 50.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-13. Tax exemption on vehicles adapted for persons who are disabled.

  1. The city or town councils of the various cities and towns may, by ordinance, exempt from taxation up to fifty percent (50%) of the value of any motor vehicle that is necessary to transport a family member with a disability or where the vehicle has been specially adapted to meet the specific needs of the person with a disability. This exemption shall apply to not more than one motor vehicle owned and registered for personal, noncommercial use. After the assessors have allowed an exemption under this section, no further evidence of the existence of the facts required by this section shall be required in any subsequent year in the city or town in which the exemption has been allowed.
  2. For the purpose of this section:
    1. “Special adaptations” includes, but is not limited to: wheelchair lifts; wheelchair carriers; wheelchair ramps; wheelchair securements; hand controls; steering devices; extensions, relocations, and crossovers of operator controls; power assisted controls; raised tops or dropped floors; raised entry doors; or alternative signaling devices to auditory signals.
    2. “Specially adapted motor vehicle” means a motor vehicle with special adaptations; provided, that the cost of the special adaptations meets or exceeds seven percent (7%) of the value of the motor vehicle; provided, further, that the town of Johnston may, by ordinance, provide for an exemption when the cost of special adaptations is not less than two percent (2%).

History of Section. P.L. 1992, ch. 369, § 1; P.L. 1998, ch. 109, § 2; P.L. 1999, ch. 83, § 125; P.L. 1999, ch. 130, § 125; P.L. 2002, ch. 388, § 1; P.L. 2005, ch. 117, art. 17, § 1.

Compiler’s Notes.

P.L. 2005, ch. 117, art. 17, § 1, provides for the repeal of P.L. 1998, ch. 31, art. 28, § 4, which provided for the sunset of this chapter on July 1, 2005.

44-34-14. Exemption for certain vehicles in the town of Warren.

The town of Warren may by ordinance exempt from the tax imposed by this chapter in an amount not to exceed one hundred dollars ($100) motor vehicles registered in Warren primarily fueled by:

  1. Gas produced from biomass, with “biomass” meaning any organic material other than oil, natural gas and coal (including lignite) or any product thereof;
  2. Liquid, gaseous or solid synthetic fuels, produced from coal;
  3. Coke or coke gas; or
  4. Electric motor drawing current from rechargeable batteries, fuel cells or other portable sources of electrical current.

History of Section. P.L. 2006, ch. 342, § 1; P.L. 2006, ch. 481, § 1.

Chapter 34.1 Motor Vehicle and Trailer Excise Tax Elimination Act of 1998

44-34.1-1. Excise tax phase-out.

    1. Notwithstanding the provisions of chapter 34 of this title or any other provisions to the contrary, the motor vehicle and trailer excise tax established by § 44-34-1 may be phased out. The phase-out shall apply to all motor vehicles and trailers, including leased vehicles.
    2. Lessors of vehicles that pay excise taxes directly to municipalities shall provide lessees, at the time of entering into the lease agreement, an estimate of annual excise taxes payable throughout the term of the lease. In the event the actual excise tax is less than the estimated excise tax, the lessor shall annually rebate to the lessee the difference between the actual excise tax and the estimated excise tax.
  1. Pursuant to the provisions of this section, all motor vehicles shall be assessed a value by the vehicle value commission. That value shall be assessed according to the provisions of § 44-34-11(c)(1) and in accordance with the terms as defined in subsection (d) of this section; provided, however, that the maximum taxable value percentage applicable to model year values as of December 31, 1997, shall continue to be applicable in future year valuations aged by one year in each succeeding year.
    1. The motor vehicle excise tax phase-out shall commence with the excise tax bills mailed to taxpayers for the fiscal year 2000. The phase-out, beyond fiscal year 2003, shall be subject to annual review and appropriation by the general assembly. The tax assessors of the various cities and towns and fire districts shall reduce the average retail value of each vehicle assessed by using the prorated exemptions from the following table:
      1. For fiscal year 2011 through fiscal year 2017, the exemption shall be five hundred dollars ($500). Cities and towns may provide an additional exemption; provided, however, any such additional exemption shall not be subject to reimbursement.
      2. For fiscal year 2018, cities, towns, and fire districts shall provide an exemption equal to the greater of one thousand dollars ($1,000) or the exemption in effect in fiscal year 2017.
      3. For fiscal year 2019, cities, towns, and fire districts shall provide an exemption equal to the greater of two thousand dollars ($2,000) or the exemption in effect in fiscal year 2017.
      4. For fiscal year 2020, cities, towns, and fire districts shall provide an exemption equal to the greater of three thousand dollars ($3,000) or the exemption in effect in fiscal year 2017.
      5. For fiscal year 2021, cities, towns, and fire districts shall provide an exemption equal to the greater of four thousand dollars ($4,000) or the exemption in effect in fiscal year 2017.
      6. For fiscal year 2022, cities, towns, and fire districts shall provide an exemption equal to the greater of five thousand dollars ($5,000) or the exemption in effect in fiscal year 2017.
      7. For fiscal year 2023, cities, towns, and fire districts shall provide an exemption equal to the greater of six thousand dollars ($6,000) or the exemption in effect in fiscal year 2017.
      8. For fiscal year 2024 and thereafter, no tax shall be levied.
    2. The excise tax phase-out shall provide levels of assessed value reductions until the tax is eliminated or reduced as provided in this chapter.
    3. Current exemptions shall remain in effect as provided in this chapter.
    4. The excise tax rates and ratios of assessment shall be maintained at a level identical to the level in effect for fiscal year 1998 for each city, town, and fire district; provided, in the town of Johnston, the excise tax rate and ratios of assessment shall be maintained at a level identical to the level in effect for fiscal year 1999 levels and the levy of a city, town, or fire district shall be limited to the lesser of the maximum taxable value or net assessed value for purposes of collecting the tax in any given year. Provided, however, for fiscal year 2011 through fiscal year 2017, the rates and ratios of assessment may be less than but not more than the rates described in this subsection (4).
    5. For fiscal year 2018 and thereafter, the excise tax rate applied by a city, town, or fire district, shall not exceed the rate in effect in fiscal year 2017 and shall not exceed the rate set forth below:
    6. In no event shall a taxpayer be billed more than the prior year for a vehicle owned up to the same number of days unless an increased bill is the result of no longer being eligible for a local tax exemption.
  2. Definitions.
    1. “Maximum taxable value” means the value of vehicles as prescribed by § 44-34-11 reduced by the percentage of assessed value applicable to model year values as determined by the Rhode Island vehicle value commission as of December 31, 1997, for the vehicles valued by the commission as of December 31, 1997. For all vehicle value types not valued by the Rhode Island vehicle value commission as of December 31, 1997, the maximum taxable value shall be the latest value determined by a local assessor from an appropriate pricing guide, multiplied by the ratio of assessment used by that city, town, or fire district for a particular model year as of December 31, 1997. The maximum taxable value shall be determined in such a manner as to incorporate the application of the percentage corresponding with the appropriate fiscal year as specified in § 44-34-11(c)(1)(iii) .
    2. “Net assessed value” means the motor vehicle values as determined in accordance with § 44-34-11 less all personal exemptions allowed by cities, towns, fire districts, and the state of Rhode Island exemption value as provided for in subsection (c)(1) of this section.
  3. If any provision of this chapter shall be held invalid by any court of competent jurisdiction, the remainder of this chapter and the applications of the provisions hereof shall not be effected thereby.

Local Fiscal Year State fiscal year Exempt from value Local Exemption Reimbursement fiscal year 1999 0 $1,500 fiscal year 2000 $1,500 $2,500 fiscal year 2001 $2,500 $3,500 fiscal year 2002 $3,500 $4,500 fiscal years 2003, 2004 and 2005 $4,500 $4,500 for fiscal year 2006 $5,000 $5,000 and for fiscal year 2007 $6,000 $6,000

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for fiscal years 2008, 2009 and 2010 the exemption and the state fiscal year reimbursement shall be increased, at a minimum, to the maximum amount to the nearest two hundred and fifty dollar ($250) increment within the allocation of one and twenty-two hundredths percent (l.22%) of net terminal income derived from video lottery games pursuant to the provisions of § 42-61-15 , and in no event shall the exemption in any fiscal year be less than the prior fiscal year.

Fiscal Year Tax Rate (Per $1,000 of Value) 2018 $60.00 2019 $50.00 2020 $35.00 2021 $35.00 2022 $30.00 2023 $20.00

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History of Section. P.L. 1998, ch. 31, art. 28, § 3; P.L. 1999, ch. 112, § 2; P.L. 1999, ch. 303, § 2; P.L. 2000, ch. 55, art. 19, § 7; P.L. 2000, ch. 74, § 1; P.L. 2002, ch. 65, art. 3, § 1; P.L. 2005, ch. 117, art. 17, § 3; P.L. 2006, ch. 246, art. 29, § 1; P.L. 2006, ch. 301, § 2; P.L. 2006, ch. 571, § 1; P.L. 2010, ch. 23, art. 23, § 2; P.L. 2010, ch. 120, § 3; P.L. 2011, ch. 363, § 2; P.L. 2017, ch. 302, art. 11, § 3.

Compiler’s Notes.

This section was amended by two acts ( P.L. 2010, ch. 23, art, 23, § 2; P.L. 2010, ch. 120, § 3) passed by the 2010 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by both acts.

Applicability.

P.L. 2006, ch. 301, § 3, provides that the amendment to this section by that act takes effect upon passage [July 4, 2006] and applies retroactively to June 29, 2000.

NOTES TO DECISIONS

Applicability.

Since R.I. Gen. Laws § 44-5-11.8(a)(5) , prior to its 2006 amendment, indicated that, notwithstanding the language of § 44-5-11.8(a)(2) , the tax rates for motor vehicles were governed by former R.I. Gen. Laws § 44-34.1-1 , the 50% limit on tax rates found in former § 44-5-11.8(a)(2) did not apply to motor vehicle tax rates. Planned Env'ts Mgmt. Corp. v. Robert, 966 A.2d 117, 2009 R.I. LEXIS 28 (R.I. 2009).

44-34.1-2. City, town and fire district reimbursement.

  1. In fiscal years 2000 and thereafter, cities, towns, and fire districts shall receive reimbursements, as set forth in this section, from state general revenues equal to the amount of lost tax revenue due to the phase out or reduction of the excise tax. Cities, towns, and fire districts shall receive advance reimbursements through state fiscal year 2002. In the event the tax is phased out, cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue pursuant to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels for each city, town, and fire district, except that the town of Johnston’s base tax rate must be fixed at a fiscal year 1999 level. Provided, however, for fiscal year 2011 and thereafter, the base tax rate may be less than but not more than the rates described in this subsection (a).
    1. The director of administration shall determine the amount of general revenues to be distributed to each city, town, and fire district for the fiscal years 1999 and thereafter so that every city, town, and fire district is held harmless from tax loss resulting from this chapter, assuming that tax rates are indexed to inflation through fiscal year 2003.
    2. The director of administration shall index the tax rates for inflation by applying the annual change in the December Consumer Price Index — All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics of the United States Department of Labor, to the indexed tax rate used for the prior fiscal year calculation; provided, that for state reimbursements in fiscal years 2004 and thereafter, the indexed tax rate shall not be subject to further CPI-U adjustments. The director shall apply the following principles in determining reimbursements:
      1. Exemptions granted by cities, towns, and fire districts in the fiscal year 1998 must be applied to assessed values prior to applying the exemptions in § 44-34.1-1(c)(1) . Cities, towns, and fire districts will not be reimbursed for these exemptions.
      2. City, town, and fire districts shall be reimbursed by the state for revenue losses attributable to the exemptions provided for in § 44-34.1-1 and the inflation indexing of tax rates through fiscal 2003. Reimbursement for revenue losses shall be calculated based upon the difference between the maximum taxable value less personal exemptions and the net assessed value.
      3. Inflation reimbursements shall be the difference between:
        1. The levy calculated at the tax rate used by each city, town, and fire district for fiscal year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions contained in § 44-34.1-1(c)(1) ; provided, that for the town of Johnston, the tax rate used for fiscal year 1999 must be used for the calculation; and
        2. The levy calculated by applying the appropriate cumulative inflation adjustment through state fiscal 2003 to the tax rate used by each city, town, and fire district for fiscal year 1998; provided, that for the town of Johnston the tax rate used for fiscal year 1999 shall be used for the calculation after adjustments for personal exemptions but prior to adjustments for exemptions contained in § 44-34.1-1 .
    3. For fiscal year 2018 and thereafter, each city, town, and fire district shall tax motor vehicles and trailers pursuant to chapter 34 of title 44 using the same motor vehicle and trailer excise tax calculation methodology that was employed for fiscal year 2017, where motor vehicle and trailer excise tax calculation methodology refers to the application of specific tax practices and the order of operations in the determination of the tax levied on any given motor vehicle and/or trailer.
    4. Each city, town, and fire district shall report to the department of revenue, as part of the submission of the certified tax levy pursuant to § 44-5-22 , the motor vehicle and trailer excise tax calculation methodology that was employed for fiscal year 2017. For fiscal year 2018 and thereafter, the department of revenue is authorized to confirm that each city, town, or fire district has used the same motor vehicle and trailer excise tax methodology as was used in fiscal year 2017 and the department of revenue shall have the final determination as to whether each city, town, or fire district has in fact complied with this requirement. Should the department of revenue determine that a city, town, or fire district has failed to cooperate or comply with the requirement in this section, the city, town, or fire district’s reimbursement for the items noted in subsections (c)(13)(i) through (c)(13)(iv) of this section shall be withheld until such time as the department of revenue deems the city, town, or fire district to be in compliance.
    5. For purposes of reimbursement for the items noted in subsections (c)(13)(i) through (c)(13)(iv) of this section, the FY 2018 baseline from which the reimbursement amount shall be calculated is defined as the motor vehicle and trailer excise tax levy that would be generated by applying the fiscal year 2017 motor vehicle and trailer excise tax calculation methodology to the assessed value of motor vehicles and trailers as of fiscal year 2018. The amount of reimbursement that each city, town, or fire district receives shall be the difference between the FY 2018 baseline and the certified motor vehicle and trailer excise tax levy as submitted by each city, town, and fire district as confirmed by the department of revenue. The department of revenue shall determine the reimbursement amount for each city, town, and fire district.
    6. For fiscal year 2020 and thereafter, the department of revenue shall assess the feasibility of standardizing the motor vehicle and trailer excise tax calculation methodology across all cities, towns, and fire departments. Based on this assessment, the department of revenue may make recommendations for changes to the motor vehicle and trailer excise tax calculation methodology.
    1. Funds shall be distributed to the cities, towns, and fire districts as follows:
      1. On October 20, 1998, and each October 20 thereafter through October 20, 2001, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.
      2. On February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.
      3. On June 20, 1999, and each June 20 thereafter through June 20, 2002, fifty percent (50%) of the amount calculated by the director of administration to be the difference for the upcoming fiscal year.
      4. On August 1, 2002, and each August 1 thereafter, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.
      5. On November 1, 2002, and each November 1 thereafter, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.
      6. On February 1, 2003, and each February 1 thereafter, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.
      7. On May 1, 2003, and each May 1 thereafter, except May 1, 2010, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.
      8. On June 15, 2010, twenty-five percent (25%) of the amount calculated by the director of administration to be the difference for the current fiscal year.
    2. Each city, town, or fire district shall submit final certified and reconciled motor vehicle levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the previous fiscal year shall be included or deducted from the payment due November 1.
    3. On any of the payment dates specified in paragraphs (1)(i) through (vii) of this subsection, the director is authorized to deduct previously made over-payments or add supplemental payments as may be required to bring the reimbursements into full compliance with the requirements of this chapter.
    4. For the city of East Providence, the payment schedule is twenty-five percent (25%) on February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent (25%) on June 20, 1999, and each June 20 thereafter through June 20, 2002, which includes final reconciliation of the previous year’s payment, and fifty percent (50%) on October 20, 1999, and each October 20 thereafter through October 20, 2002. For local fiscal years 2003 and thereafter, the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%) on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation of the previous year’s payment, and twenty-five percent (25%) on each August 1; provided, the May and August payments shall be subject to submission of final certified and reconciled motor vehicle levy information.
    5. When the tax is phased out, funds distributed to the cities, towns, and fire districts for the following fiscal year shall be calculated as the funds distributed in the fiscal year of the phase-out. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities, towns, and fire districts on August 1, in the fiscal year of the phase-out, twenty-five percent (25%) on the following November 1, twenty-five percent (25%) on the following February 1, and twenty-five percent (25%) on the following May 1. The funds shall be distributed to each city, town, and fire district in the same proportion as distributed in the fiscal year of the phase-out.
    6. When the tax is phased out to August 1, of the following fiscal year the director of revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to the amount of funds distributed to the cities, towns, and fire districts under this chapter during the fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year following the phase-out received by each city, town, and fire district, calculated to the nearest one-hundredth of one percent (0.01%). The director of the department of revenue shall transmit those calculations to the governor, the speaker of the house, the president of the senate, the chairperson of the house finance committee, the chairperson of the senate finance committee, the house fiscal advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales tax in the proportions calculated by the director of revenue as that received in the fiscal year following the phase-out.
    7. When the tax is phased out, twenty-five percent (25%) of the funds shall be distributed to the cities, towns, and fire districts on August 1 of the following fiscal year, and every August 1 thereafter; twenty-five percent (25%) shall be distributed on the following November 1, and every November 1 thereafter; twenty-five percent (25%) shall be distributed on the following February 1, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on the following May 1, and every May 1 thereafter.
    8. For the city of East Providence, in the event the tax is phased out, twenty-five percent (25%) shall be distributed on November 1 of the following fiscal year, and every November 1 thereafter, twenty-five percent (25%) shall be distributed on the following February 1, and every February 1 thereafter; twenty-five percent (25%) shall be distributed on the following May 1, and every May 1 thereafter; and twenty-five percent (25%) of the funds shall be distributed on the following August 1, and every August 1 thereafter.
    9. As provided for in § 44-34-6 , the authority of fire districts to tax motor vehicles is eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall be based on the provisions of § 44-34-6 . All references to fire districts in this chapter do not apply to the year 2001 tax roll and thereafter.
    10. For reimbursements payable in the year ending June 30, 2008, and thereafter, the director of administration shall discount the calculated value of the exemption to ninety-eight percent (98%) in order to establish a collection rate that is comparable to the collection rate achieved by municipalities in the levy of the motor vehicle excise tax.
    11. For reimbursements payable in the year ending June 30, 2010, the director of administration shall reimburse cities and towns eighty-eight percent (88%) of the reimbursements payable pursuant to subsection (c)(10) above.
    12. For fiscal year 2011 through to June 30, 2017, the state shall reimburse cities and towns, for the exemption pursuant to subsection (c)(10) above, ratably reduced to the appropriation.
    13. For fiscal year 2018 and thereafter, each city, town, and fire district shall receive a reimbursement equal to the amount received in fiscal year 2017 plus an amount equal to the reduction from the FY 2018 baseline, as defined in subsection (b)(5) of this section, resulting from changes in:
    14. In the event any city, town, or fire district sent out or sends out tax bills for fiscal year 2018, which do not conform with the requirements of this act, the city, town, or fire district shall ensure that the tax bills for fiscal year 2018 are adjusted or an abatement is issued to conform to the requirements of this act.

Beginning on January 1, 2021, the director of the department of revenue shall file an annual report for the consideration of the general assembly with the president of the senate, speaker of the house, chairperson of the senate committee on finance and chairperson of the house committee on finance, containing recommendations and findings as to the feasibility of the motor vehicle excise tax phase-out in each year until the phase-out is complete.

Provided, however, the February and May payments, and June payment in 2010, shall be subject to submission of final certified and reconciled motor vehicle levy information.

(i) The assessment percentage set forth in § 44-34-11(c)(1)(iii) ;

(ii) The excise tax rate set forth in § 44-34.1-1(c)(5) ;

(iii) Exemptions set forth in § 44-34.1-1(c)(1) ; and

(iv) Exemptions for vehicles more than fifteen (15) years old as set forth in § 44-34-2 .

History of Section. P.L. 1998, ch. 31, art. 28, § 3; P.L. 1999, ch. 112, § 2; P.L. 1999, ch. 303, § 2; P.L. 2000, ch. 55, art. 19, § 7; P.L. 2000, ch. 74, § 1; P.L. 2002, ch. 65, art. 3, § 1; P.L. 2003, ch. 376, art. 13, § 1; P.L. 2004, ch. 595, art. 11, § 1; P.L. 2005, ch. 117, art. 17, § 3; P.L. 2006, ch. 246, art. 29, § 1; P.L. 2006, ch. 571, § 1; P.L. 2008, ch. 9, art. 17, § 2; P.L. 2010, ch. 8, § 1; P.L. 2010, ch. 23, art. 23, § 1; P.L. 2010, ch. 120, § 3; P.L. 2017, ch. 302, art. 11, § 3; P.L. 2017, ch. 307, § 1.

Compiler’s Notes.

This section was amended by three acts (P.L. 2010, ch. 8, § 1; P.L. 2010, ch. 23, art, 23, § 1; P.L. 2010, ch. 120, § 3) passed by the 2010 General Assembly. Since the changes are not in conflict with each other, this section is set out as amended by all three acts.

This section was amended by two acts (P.L. 2017, ch. 302, art. 11, § 3; P.L. 2017, ch. 307, § 1) as passed by the 2017 General Assembly. Since the changes are not in conflict with each other, the section is set out as amended by both acts.

44-34.1-3. Permanent oversight commission.

  1. There is created a permanent oversight commission on inventory taxes and automobile excise taxes. The commission shall consist of the following members:
    1. Chairperson of house finance committee, or designee;
    2. Chairperson of senate finance committee, or designee;
    3. Chairperson of the Rhode Island vehicle value commission;
    4. Three (3) members of the Rhode Island Assessors Association;
    5. Director of department of revenue, or designee;
    6. Chief of the division of property valuation and municipal finance, or designee;
    7. The president of the Rhode Island League of Cities and Towns, or designee;
    8. The administrator of the Rhode Island division of motor vehicles, or designee;
    9. The mayor of the city of Providence, or designee.
  2. The purpose of the commission shall be to study and evaluate the phase-out of the automobile excise tax and to establish procedures when necessary to facilitate the phase-out of the tax by July 1, 2005.
  3. The commission, at its first meeting, shall elect a chairperson from its membership.
  4. The commission shall meet no less than two (2) times per year at the call of the chairperson or upon the request of at least three (3) of its members.
  5. The members shall receive no compensation for their services. All departments and agencies of the state shall furnish advice and information, documentary or otherwise, to the commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of the commission.

History of Section. P.L. 1998, ch. 31, art. 28, § 3; P.L. 2006, ch. 246, art. 38, § 15; P.L. 2008, ch. 98, § 51; P.L. 2008, ch. 145, § 51.

44-34.1-4. Severability.

If any provision of this chapter or application of this chapter to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 1998, ch. 31, art. 28, § 3.

Chapter 35 Property Tax and Fiscal Disclosure — Municipal Budgets

44-35-1. Short title.

This chapter may be cited as the “Property Tax and Fiscal Disclosure Law”.

History of Section. P.L. 1979, ch. 298, § 1.

Comparative Legislation.

Duty and manner of assessing taxes:

Conn. Gen. Stat. § 12-122 et seq.

Mass. Ann. Laws ch. 59, § 20 et seq.

44-35-2. Purpose.

The purpose of this chapter is to:

  1. Establish a procedure under which towns and cities may levy property taxes;
  2. Provide for full disclosure of the effect of rate and base changes on property tax revenues;
  3. Establish a procedure for public hearings on proposed budgets;
  4. Require municipalities to adopt a balanced budget; and
  5. Provide for fiscal oversight of municipalities incurring an operating deficit or an accumulated deficit in the preceding fiscal year.

History of Section. P.L. 1979, ch. 298, § 1; P.L. 1981, ch. 297, § 1.

44-35-3. Definitions.

  1. “Adjusted current property tax rate” means the estimated property tax rate that would be necessary in the next fiscal year to raise the maximum levy authorized by § 44-5-2 of the general laws.
  2. “Chief elected official” means the highest locally elected official in each town or city.
  3. “Proposed property tax rate” means the estimated property tax rate that is proposed by a town or city to support its operating budget for the town’s or city’s next fiscal year.

History of Section. P.L. 1979, ch. 298, § 1; P.L. 1985, ch. 182, § 9; P.L. 2006, ch. 253, § 2.

44-35-4. Preparation of the “proposed property tax rate” and “adjusted current property tax rate”.

The director of the department of revenue shall prepare and adopt by rule standards and procedures for town and cities to follow when preparing the “proposed property tax rate” and “adjusted current property tax rate.” The director has the authority to waive the rule for any town or city, which the director deems to have established an acceptable method of preparation of the “proposed property tax rate” and “adjusted current property tax rate.”

History of Section. P.L. 1979, ch. 298, § 1; P.L. 1985, ch. 181, art. 61, § 22; P.L. 2008, ch. 98, § 52; P.L. 2008, ch. 145, § 52.

44-35-5. Full disclosure of property tax increases.

  1. In addition to existing town and city charter provisions and the general and public laws of the state of Rhode Island pertaining to public hearings regarding town and city budget adoptions, each town and city shall provide for a public hearing and for full property tax disclosure procedures as set out in this chapter.
  2. The chief elected official in each town and city shall cause to be published the “proposed property tax rate” and the “adjusted current property tax rate” as defined in § 44-35-3 for the town or city. No property tax levy in excess of that in the current fiscal year shall be levied until a public hearing has been held as outlined in §§ 44-35-6 44-35-8 .

History of Section. P.L. 1979, ch. 298, § 1; P.L. 1999, ch. 354, § 35.

44-35-6. Publication of property tax rates.

At least ten (10) calendar days prior to the hearing for the purpose of adopting the town or city budget, the chief elected official in each town or city shall cause to be published a notice indicating the town’s or city’s intent to consider adopting a property tax levy. This notice shall be published in a newspaper of general circulation in the town or city. However, this notice may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. This notice shall constitute notice of public hearing which may coincide with the hearing on the proposed budget and shall be by and in the following form:

(CITY, TOWN) of (NAME) NOTICE OF PROPOSED PROPERTY TAX RATE CHANGE The (City, Town) proposes to increase (decrease) its property tax levy to in the budget year; the property tax levy this year is , THIS IS A PROPOSED INCREASE (DECREASE) OF %. It has been estimated that the proposed increase (decrease) in property tax revenues will result in a property tax rate of $ (proposed property tax rate) per $1,000 assessed valuation, as compared to the current property tax rate of $ per $1,000 assessed valuation. A property tax rate of $ (adjusted current property tax rate) would be needed in the coming budget year to raise five and one-half percent (5.5%) more, as an adjustment for increased costs, than the property tax revenues being raised in the current budget year. The (City, Town) budget will be considered at (date, time, place). The above property tax estimates have been computed in a manner approved by the Rhode Island Department of Revenue. Chief Elected Official (Town, or City)

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History of Section. P.L. 1979, ch. 298, § 1; P.L. 1985, ch. 182, § 9; P.L. 1986, ch. 198, § 51; P.L. 2006, ch. 253, § 2; P.L. 2008, ch. 98, § 52; P.L. 2008, ch. 145, § 52.

44-35-7. Publication of town and city budget summary.

At least ten (10) calendar days prior to the financial town meeting or, for towns and cities without town meetings, the first hearing on the budget for the purpose of adopting the budget, the chief elected official in each town and city shall cause to be published a budget summary in a newspaper of general circulation in the town or city. The budget summary shall set out proposed expenditures by department or function and receipts by source for the proposed budget year, and comparisons of these with estimated expenditures and receipts for the current budget year.

The published budget summary shall be in the following form:

(CITY, TOWN) of (NAME) REPORT TO TAXPAYERS ON CURRENT AND PROPOSED BUDGET Function or Amounts Proposed Purpose of Actually Budget year Expenditures Budgeted for Operating Current Year Capital Operating Capital Expenditures 1. Education 2. General Financial Admin. 3. Public Works 4. Police Protection 5. Fire Protection 6. Sewerage 7. Other Sanitation 8. Parks and Recreation 9. Interest on General Debt 10. Principal on General Debt 11. All Other (Specify) Revenues 1. Local Property 2. Local Non-Property 3. Federal 4. State 5. All Other (Specify) TOTAL BUDGET Certification: This is to certify that data contained in this report are accurate to the best of my knowledge. Date Signature of Official

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History of Section. P.L. 1979, ch. 298, § 1.

44-35-8. Publication of proposal to amend town and city budget.

At least ten (10) calendar days prior to formal action taken by a town or city to amend its adopted budget when the amendment would result in an accumulated increase in total property tax expenditures of five percent (5%), the chief elected official shall cause to be published in a newspaper of general circulation a notice of a proposal to amend the town or city budget. The notice shall contain a summary of the proposed amendment stating the purpose of the proposed expenditures and the impact the amendment is estimated to have on property taxes. The notice shall be in a form approved by the director of the department of revenue and it shall constitute a notice of public hearing.

History of Section. P.L. 1979, ch. 298, § 1; P.L. 1985, ch. 181, art. 61, § 22; P.L. 2008, ch. 98, § 52; P.L. 2008, ch. 145, § 52.

NOTES TO DECISIONS

Authority to Amend Levy.

If the Legislature intended notice provisions in this section to authorize a municipality to levy additional taxes, it would have used the term levy or assessment in the statute. The absence of these words indicates a contrary intent, and the authority granted to a taxing authority to amend its budgets pursuant to this section does not imply the authority to amend a levy. Cabana v. Littler, 612 A.2d 678, 1992 R.I. LEXIS 170 (R.I. 1992).

44-35-9. Severability.

The invalidity of any section or sections or parts of any section or sections shall not affect the validity of the remainder of this chapter.

History of Section. P.L. 1979, ch. 298, § 6.

44-35-10. Balanced municipal budgets — Additional reporting requirements — Electronic reporting/municipal uniform chart of accounts.

  1. The operating budgets for all cities and towns shall provide for total appropriations that do not exceed total estimated receipts, taking into account any general fund surplus or deficit estimated to be carried over from the current fiscal year. The funding of accumulated deficits shall be consistent with the provisions of § 45-12-22 [repealed].
  2. The chief elected official in each city and town shall provide to the division of municipal finance within thirty (30) days of final action, in the form and format required by the division, the adopted budget survey.
  3. Within thirty (30) days of final action as referenced in subsection (b) each city or town shall provide to the division a five-year (5) forecast, in the form and format required by the division, for major funds as defined by generally accepted accounting principles as established by the governmental accounting standards board (GASB). The forecast shall also reflect any and all underlying assumptions.
  4. The reports required under subsections (b) and (c) shall be submitted in accordance with the requirements outlined under § 45-12-22.2(d) .
  5. Within sixty (60) days of executing changes in healthcare benefits, pension benefits, and OPEB, a municipality shall provide a fiscal impact statement to the division of municipal finance, reflecting the impact on any unfunded liability and annual required contribution (ARC), as well as the impact on the five-year (5) forecast. The fiscal impact statements shall show underlying actuarial assumptions and provide support for underlying assumptions.
  6. A municipality shall join electronic reporting/implement municipal uniform chart of accounts (UCOA), within six (6) months of implementation.

History of Section. P.L. 1981, ch. 297, § 2; P.L. 2011, ch. 151, art. 12, § 13; P.L. 2016, ch. 142, art. 8, § 2.

Compiler’s Notes.

Section 45-12-22 , cited in subsection (a) of this section, was repealed by P.L. 2003, ch. 54, § 1 and P.L. 2003, ch. 66, § 1, effective June 27, 2003.

Chapter 36 Energy Tax Credits for Residential Rental Properties [Repealed.]

44-36-1 — 44-36-7. Repealed.

History of Section. P.L. 1980, ch. 148, § 1; P.L. 1984, ch. 213, § 2; Repealed by P.L. 1995, ch. 323, § 35, effective July 5, 1995.

Compiler’s Notes.

Former §§ 44-36-1 — 44-36-7 concerned energy tax credits for residential rental properties.

Chapter 37 Energy Tax Credits for Industrial and Commercial Properties [Repealed.]

44-37-1 — 44-37-8. Repealed.

History of Section. P.L. 1980, ch. 149, § 1; P.L. 1983, ch. 47, § 1; P.L. 1984, ch. 213, § 3; Repealed by P.L. 1995, ch. 323, § 36, effective July 5, 1995.

Compiler’s Notes.

Former §§ 44-37-1 — 44-37-8 concerned energy tax credits for industrial and commercial properties.

Chapter 38 Energy Conservation Grants for the Elderly

44-38-1. Purpose.

The general assembly finds that elderly persons who own or rent property and who are not required to file either a federal or state income tax return cannot avail themselves of income tax credits or rebates; the general assembly further finds that this situation among elderly persons constitutes a negative incentive, and that to provide an energy conservation grant to elderly persons who make expenditures for home improvements designed to increase the energy efficiency of the dwelling is in the public interest.

History of Section. P.L. 1980, ch. 150, § 1.

44-38-2. Energy conservation grant.

An owner or renter of a residential dwelling where the dwelling is the owner’s or renter’s principal residence, and where the owner is age sixty-five (65) or over and who is not required under provisions of existing tax law to file with the Rhode Island department of revenue, division of taxation, a state income tax return or a federal income tax return with the internal revenue service or who does not receive a tax rebate for energy conservation, is eligible for a one time energy conservation grant of fifty percent (50%) of any sums expended for the purchase and installation of energy conservation items as prescribed in § 44-38-3 for use in the dwelling. The grant shall not exceed two hundred dollars ($200).

History of Section. P.L. 1980, ch. 150, § 1; P.L. 2008, ch. 98, § 53; P.L. 2008, ch. 145, § 53.

44-38-3. Qualified energy-saving items.

Under the provisions of this chapter, the following are those items qualified for grants under the provisions of § 44-38-2 :

  1. Insulation designed to reduce heat loss or heat gain in a home or in a water heater.
  2. Storm or thermal windows or doors for the exterior of the home.
  3. Caulking or weather stripping of exterior doors or windows.
  4. Clock thermostats or other automatic energy-saving set-back thermostats.
  5. Furnace modifications designed to increase fuel efficiency, including replacement burners, modified flue openings, and ignition systems that replace a gas pilot light.

History of Section. P.L. 1980, ch. 150, § 1.

44-38-4. Accounting — Rules and regulations.

  1. Any person applying for an energy conservation grant pursuant to § 44-39-2 [Repealed.] shall file an informational tax return with the division of taxation. The division of taxation shall then reserve an appropriate amount for a period of sixty (60) days. Before the expiration of the sixtieth day, the applicant shall present an itemized receipt for all sums expended (exclusive of the value of the applicant’s own labor) for energy conservation measures as provided in § 44-39-3 [Repealed]. In case of multiple ownership or tenancy, the grant shall be divided according to the interest of eligible owners or renters as they appear.
  2. The tax administrator shall promulgate rules and regulations to effectuate the purposes of this chapter.

History of Section. P.L. 1980, ch. 150, § 1; P.L. 1988, ch. 84, § 37.

44-38-5. Applicability.

The provisions of this chapter shall apply to qualified energy-saving items installed subsequent to December 31, 1979.

History of Section. P.L. 1980, ch. 150, § 1.

44-38-6. Repealed.

History of Section. P.L. 1980, ch. 150, § 1; Repealed by P.L. 1999, ch. 354, § 36, effective July 2, 1999.

Compiler’s Notes.

Former § 44-38-6 concerned appropriation to the department of administration, division of taxation.

Chapter 39 Energy Tax Credits for Renewable Energy Systems [Repealed.]

44-39-1 — 44-39-6. Repealed.

History of Section. P.L. 1980, ch. 283, § 1; P.L. 1983, ch. 47, § 2; P.L. 1984, ch. 213, § 4; Repealed by P.L. 1995, ch. 323, § 37, effective July 5, 1995.

Compiler’s Notes.

Former §§ 44-39-1 — 44-39-6 concerned energy tax credits for renewable energy systems.

Chapter 39.1 Employment Tax Credit

44-39.1-1. Employment tax credit.

An employer who participates in the bonus program in conjunction with chapter 6.3 of title 40 shall be eligible for a tax credit as set forth in § 40-6.3-4 .

History of Section. P.L. 1985, ch. 247, § 2; P.L. 1986, ch. 393, § 1.

44-39.1-2. Credit provisions.

  1. The credit is not refundable but may be applied against the tax liability imposed against a taxpayer pursuant to chapters 11, 13, 14, 15, 17 and 30 of this title.
  2. The credit allowed under this chapter for any taxable year shall not reduce the tax due for that year to less than one hundred dollars ($100). Any amount of credit not deductible in that taxable year may not be carried over to the following year. This credit may not be applied against the tax until all other credits available to this taxpayer for that taxable year have been applied.
  3. In the event that the employer is a partnership, joint venture, or small business corporation, the credit shall be divided in the manner as income.
  4. In the event that the taxpayer is liable for taxes imposed under both chapters 14 and 15 of this title, the taxpayer must elect the tax against which it wishes to claim credit. This election shall be made as part of the taxpayer’s filings in accordance with §§ 44-14-6 and 44-15-5 . The taxpayer may not divide the credit for any year between the two (2) tax liabilities for which it is liable.

History of Section. P.L. 1986, ch. 393, § 2.

44-39.1-3. Certificates.

An employer shall not be allowed a credit under § 44-39.1-2 for any taxable year with respect to the bonus program under chapter 6.3 of title 40 unless the employer obtains a written certificate by the director of human services that the employer has complied with the provisions of chapter 6.3 of title 40 and the rules and regulations promulgated under that chapter.

History of Section. P.L. 1986, ch. 393, § 2.

44-39.1-4. Administration.

The tax administrator shall make available suitable forms with instructions for claiming the credit. The claim shall be in a form that the tax administrator prescribes. The tax administrator shall prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter.

History of Section. P.L. 1986, ch. 393, § 2.

Chapter 39.2 Alternative Fueled Vehicle and Filling Station Tax Credit [Repealed.]

44-39.2-1. Repealed.

History of Section. P.L. 2003, ch. 124, § 1; P.L. 2003, ch. 135, § 1; P.L. 2003, ch. 137, § 1; P.L. 2006, ch. 240, § 1; P.L. 2006, ch. 244, § 1; Repealed by P.L. 1997, ch. 168, § 6, and by the terms of former § 44-39.2-3 , effective January 1, 2003.

Compiler’s Notes.

Former § 44-39.2-1 concerned definitions of alternative fueled vehicles and incremental costs.

Former chapter 39.2 of this title (P.L. 1997, ch. 168, § 5; P.L. 1998, ch. 351, § 1), consisting of §§ 44-39.2-1 44-39.2-3 and relating to alternative-fueled vehicle and filling station tax credit.

44-39.2-2. Repealed.

History of Section. P.L. 2003, ch. 124, § 1; P.L. 2003, ch. 135, § 1; P.L. 2003, ch. 137, § 1; Repealed by P.L. 1997, ch. 168, § 6, and by the terms of former § 44-39.2-3 , effective January 1, 2003.

Compiler’s Notes.

Former § 44-39.2-2 concerned tax credits for businesses.

Former chapter 39.2 of this title (P.L. 1997, ch. 168, § 5; P.L. 1998, ch. 351, § 1), consisting of §§ 44-39.2-1 44-39.2-3 and relating to alternative-fueled vehicle and filling station tax credit.

44-39.2-3. Repealed.

History of Section. P.L. 2003, ch. 124, § 1; P.L. 2003, ch. 135, § 1; P.L. 2003, ch. 137, § 1; Repealed by P.L. 1997, ch. 168, § 6, and by the terms of former § 44-39.2-3 , effective January 1, 2003.

Compiler’s Notes.

Former § 44-39.2-3 concerned the repeal of these provisions.

Former chapter 39.2 of this title (P.L. 1997, ch. 168, § 5; P.L. 1998, ch. 351, § 1), consisting of §§ 44-39.2-1 44-39.2-3 and relating to alternative-fueled vehicle and filling station tax credit.

Chapter 39.3 Exclusion for Qualifying Options

44-39.3-1. Exclusion for qualifying options.

For purposes of determining the federal income tax liability of a taxpayer subject to Rhode Island income tax, the Rhode Island income of the taxpayer under §§ 44-30-12 and 44-30-16 shall be determined by excluding any income, gain, or preference items resulting from the sale, transfer, or exercise of qualified and nonqualified stock options, the stock issued or transferred on the exercise of any option, and warrants issued with respect to options and/or stock, of a qualifying corporation; provided, that the taxpayer was a qualifying taxpayer and the taxpayer’s employer who issued the option was a qualifying corporation at the time the taxpayer acquired a vested interest in the option and exercised the option.

History of Section. P.L. 1997, ch. 312, § 1.

44-39.3-2. Residency.

A qualifying taxpayer is a resident of Rhode Island who has been employed at a location in Rhode Island for at least three (3) consecutive months as a full-time employee of a qualifying corporation in accordance with corporate policy, and the estate, heirs and successors of that individual.

History of Section. P.L. 1997, ch. 312, § 1.

44-39.3-3. Qualifying corporation.

  1. A qualifying corporation is any corporation that:
    1. Annually elects (in a manner that may be determined by the tax administrator) to be a qualifying corporation;
    2. Has at least ten (10) full-time equivalent active employees in this state; and
    3. Is engaged principally in one or more of the business activities described in industry numbers 7371, 7372 and 7373 in the Standard Industrial Classification, Office of the Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as revised from time to time.
  2. For purposes of this section, “full-time equivalent active employee” means any employee who works a minimum of thirty (30) hours per week in this state, or two (2) or more part-time employees whose combined weekly hours equal or exceed thirty (30) hours per week in this state.
  3. The annual election by a corporation to be treated as a qualifying corporation for a fiscal year shall become effective for purposes of this section as of the first day of the fiscal year for which the election is filed and must be filed with the tax administrator on or before the due date prescribed by law (including any extensions) for the filing of the corporation’s tax return with the tax administrator for that fiscal year; provided, that in no event shall an election be effective for fiscal years commencing prior to January 1, 1997, and in no event shall the exclusion available under the provisions of this chapter to be available to options that were issued prior to January 1, 1997.

History of Section. P.L. 1997, ch. 312, § 1.

Chapter 40 Generation Skipping Transfer Tax

44-40-1. Short title.

This chapter may be cited as the “Rhode Island Generation-Skipping Transfer Tax Law”.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-2. Definitions.

Except where the context otherwise requires, the words and phrases defined in this section are used in this chapter in the sense given them in the following definitions:

  1. “Administrator” means the director of the division of taxation.
  2. “Deemed transferor” has the same meaning as defined in 26 U.S.C. § 2601 et seq.
  3. “Federal generation-skipping transfer tax” means the tax imposed by 26 U.S.C. § 2601 et seq.
  4. “Generation-skipping transfer” means every transfer subject to the tax imposed under 26 U.S.C. § 2601 et seq. where the original transferor is a resident of the state of Rhode Island at the date of the original transfer, and the deemed transferor is a resident of Rhode Island at the time of his or her death, and the property transferred is real or personal property in Rhode Island.
  5. “Original transferor” means any grantor, donor, trustor, or testator who by gift, trust, or will makes a transfer of real or personal property that results in a federal generation- skipping transfer tax under applicable provisions of the Internal Revenue Code of the United States, 26 U.S.C. § 1 et seq.

History of Section. P.L. 1981, ch. 264, § 1; P.L. 1991, ch. 44, art. 34, § 1.

44-40-3. Tax imposed — Amount — Property in another state.

  1. A tax is imposed upon every generation-skipping transfer in an amount equal to the amount allowable as a credit for state legacy taxes under 26 U.S.C. § 2604.
  2. If any of the property transferred is real property in another state or personal property having taxable situs in another state which requires the payment of a tax for which credit is received against the federal generation-skipping transfer tax, any tax due pursuant to subsection (a) of this section shall be reduced by an amount which bears the same ratio to the total state tax credit allowable for federal generation-skipping transfer tax purposes as the value of the property taxable in the other state bears to the value of the gross generation-skipping transfer for federal generation-skipping transfer tax purposes.

History of Section. P.L. 1981, ch. 264, § 1; P.L. 1991, ch. 44, art. 34, § 1.

44-40-4. Time for filing — Filing copy of federal return.

Every person required to file a return reporting a generation skipping transfer under applicable federal statute and regulations shall file a return with the administrator on or before the last day prescribed for filing the federal return. There shall be attached to the return filed with the administrator a duplicate copy of the federal return.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-5. Contents of return.

The return shall contain such information and be in such form as the administrator may prescribe and shall state the amount of tax due under the provisions of this chapter. The return shall contain, or be verified by, a written declaration that it is made under penalties of perjury.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-6. Amended return — Filing — Increase or decrease.

If, after the filing of a duplicate return, the federal authorities shall increase or decrease the amount of the federal generation-skipping transfer tax, an amended return shall be filed with the administrator showing all changes made in the original return and the amount of increase or decrease in the federal generation-skipping transfer tax.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-7. Cases not involving false or fraudulent return — Determination — Limitation — Filing.

In a case not involving a false or fraudulent return or failure to file a return, if the administrator determines at any time after the tax is due, but not later than four (4) years after the return is filed, that the tax disclosed in any return required to be filed by this chapter is less than the tax disclosed by the administrator’s examination, a deficiency shall be determined; provided, that in a case where the federal generation-skipping transfer tax has been increased upon audit of the federal return, the determination may be made at any time within one year after the federal generation-skipping transfer tax has become final. For purposes of this section, a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-8. False or fraudulent return — Determination by administrator at any time.

In the case of a false or fraudulent return or failure to file a return, the administrator may determine the tax at any time.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-9. Setting aside or correcting an erroneous determination.

In any case in which a deficiency has been determined in an erroneous amount, the administrator may, within three (3) years after the erroneous determination was made, set aside the determination or issue an amended determination in the correct amount.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-10. Notice of deficiency and penalty — Copies.

The administrator shall give notice of the deficiency determined, together with any penalty for failure to file a return or to show any transfer in the return filed, by personal service or by certified mail to the person filing the return at the address stated in the return, or, if no return is filed, to the person liable for the tax. Copies of the notice of deficiency may in the same manner be given to other persons that the administrator deems advisable.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-11. Claim of erroneous deficiency — Action — Time for bringing.

The person liable for the tax imposed by this chapter may, within three (3) months after receipt of notice of deficiency, apply to the sixth division of the district court, by a complaint against the administrator pursuant to chapter 8 of title 8, for the abatement of the tax or any part of the tax or a deficiency or any part of a deficiency. If the court adjudges that the tax or any part of the tax, or any deficiency or any part of a deficiency, is unfair or excessive or was illegally assessed, it shall order an abatement of the tax or that portion of an abatement, or deficiency or any part of a deficiency, that is unfair or excessive or was illegally assessed, and that order shall be subject to appeal. A party aggrieved by a final order of the court may seek review of the order in the supreme court by writ of certiorari in accordance with the procedures contained in § 8-8-32 .

History of Section. P.L. 1981, ch. 264, § 1; P.L. 1984, ch. 183, § 13.

44-40-12. Person liable.

The person liable for payment of the federal generation-skipping transfer tax shall be liable for the tax imposed by this chapter.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-13. Time of payment.

The tax imposed by this chapter is due upon a taxable distribution or a taxable termination as determined under applicable provisions of the federal generation skipping transfer tax.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-14. Delinquency — Interest on delinquency — Applicability of payments.

The tax becomes delinquent from and after the last day allowed for filing a return for the generation skipping transfer. If the tax is not paid before it becomes delinquent, it bears interest after this and until it is paid at the rate of twelve percent (12%) per annum. Every payment on the tax imposed by this part is applied, first, to any interest due on the tax, and then, if there is any balance, to the tax itself.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-15. Method of payment.

The tax shall be paid to the administrator by remittance payable to the state treasurer.

History of Section. P.L. 1981, ch. 264, § 1.

44-40-16. Collection.

The administrator shall be responsible for the collection of the tax imposed by this chapter and may exercise all the powers granted to him or her in chapter 23 of this title for the collection of taxes.

History of Section. P.L. 1981, ch. 264, § 1.

Chapter 41 Gross Earnings Tax of Petroleum Companies [Repealed.]

44-41-1 — 44-41-12. Repealed.

History of Section. P.L. 1982, ch. 9, art. 6, § 1; P.L. 1982, ch. 344, art. 11, § 1; P.L. 1983, ch. 2, art. 10, § 1; P.L. 1984, ch. 183, § 14; Repealed by P.L. 1984, ch. 183, § 15, effective May 18, 1984, and P.L. 1985, ch. 181, art. 25, § 1, effective January 1, 1986.

Compiler’s Notes.

Former §§ 44-41-1 44-41-1 2 concerned the gross earnings tax of petroleum companies.

Chapter 42 Education Assistance and Development Tax Credit

44-42-1. Short title.

This chapter shall be known as the “Education Assistance and Development Tax Credit Act”.

History of Section. P.L. 1985, ch. 244, § 1.

44-42-2. Tax credit.

A taxpayer shall be allowed a credit against the tax imposed by chapters 11, 13 (except § 44-13-13 ), 14 and 17 of this title. The amount of the credit shall be eight percent (8%) of:

  1. The amount in excess of ten thousand dollars ($10,000) in any taxable year contributed to an institution of higher education for the establishment or maintenance of a faculty chair, department, or program for scientific research or education;
  2. The amount in excess of ten thousand dollars ($10,000) in any taxable year contributed to an institution of higher education for a work fellowship program that is providing training connected with scientific research or education and is established by an institution of higher education for the students of an institution; and
  3. The cost or other basis for federal income tax purposes, determined immediately prior to the contributions, in excess of ten thousand dollars ($10,000) in any taxable year of tangible personal property contributed to an institution of higher education for use in an educational, training, or research program for scientific research or education conducted by an institution in this state, excluding sale discounts and sale-gift or similar arrangements pertaining to the purchase of equipment.

History of Section. P.L. 1985, ch. 244, § 1.

Collateral References.

Payments made to qualified charitable organization in connection with education of taxpayer’s children as constituting deductible charitable contribution under § 170 of Internal Revenue Code of 1954 (26 USCS § 170) or nondeductible expense under § 262 of Internal Revenue Code of 1954 (26 USCS § 262). 33 A.L.R. Fed. 373.

44-42-3. Definitions.

Within the meaning of this chapter:

  1. “Institution of higher education” means an educational organization which is described in 26 U.S.C. § 170(b)(1)(A)(ii) and is an institution of higher education (as defined in 26 U.S.C. § 3304(f)) in Rhode Island and any organization described in 26 U.S.C. § 501(c)(3) which is organized and operated for the exclusive benefit of the institution; and
  2. “Scientific research or education” means research or education in engineering or engineering technologies, the physical and biological sciences, computer science and technologies, mathematics, and electronic and automated medical and industrial equipment and instrument operations.

History of Section. P.L. 1985, ch. 244, § 1; P.L. 1986, ch. 287, art. 13, § 1.

44-42-4. Certification.

A taxpayer shall not be allowed a credit under § 44-42-2 with respect to the contribution of tangible personal property to an institution of higher education unless the taxpayer receives from the institution a written statement representing that the property will be used by the institution in this state in a manner that satisfies the requirements prescribed in this chapter.

History of Section. P.L. 1985, ch. 244, § 1.

44-42-5. Limitation on credit.

The credit allowed under this chapter for any taxable year shall not reduce the tax due for that year to less than one hundred dollars ($100). If the amount of credit allowable under this chapter for any taxable year reduces the tax to one hundred dollars ($100), any amount of credit not deductible in that taxable year may be carried over to the following year or years (not to exceed five (5) years) and may be deducted from the taxpayer’s tax for that year or years.

History of Section. P.L. 1985, ch. 244, § 1.

Chapter 43 Tax Incentives for Capital Investment in Small Businesses

44-43-1. Definitions.

For the purpose of this chapter:

  1. “Average annual gross revenue” means the average of the amounts received or accrued by a qualifying business entity determined on an annualized basis from the sale of goods or services prior to diminution by the cost of those sales or services. The determination is limited to amounts, if any, received or accrued during the four (4) taxable years of the business entity, or a lesser period as may be applicable, immediately preceding the taxable year during which the entity applied to the department for certification as a qualifying business entity.
  2. “Certified venture capital partnership” means any partnership formed under the laws of Rhode Island that:
    1. Has at least three (3) partners each of whom has contributed at least five thousand dollars ($5,000) and who have contributed in the aggregate at least two hundred fifty thousand dollars ($250,000) to the partnership;
    2. Employs a professional manager who is an individual with prior experience managing venture capital funds;
    3. Is organized and operated to invest at least ninety percent (90%) of the amounts contributed to its capital in qualifying activities and is registered or exempt from registration under the securities laws of Rhode Island;
    4. Has bonding of its employees to fully cover all funds received from partners;
    5. Has filed with the department information as may be requested describing its organization, operation, and programs and has received certification and annual recertification from the department pursuant to rules and regulations promulgated by the department, that its organization, operation, and proposed programs comply with the requirements of this chapter; and
    6. Has not violated the requirements prescribed in this chapter, or the conditions and requirements imposed by the department.
  3. “Department” means the Rhode Island economic development corporation.
  4. “Entrepreneur” means any individual in the employ on a full-time basis of a qualifying business entity who owns an interest in the entity equal to at least five percent (5%) in value of the entity.
  5. “Qualifying activities” means to provide capital:
    1. To invest in one or more qualifying business entities whose principal office and the majority of whose assets are located in Rhode Island;
    2. To invest a portion of its funds, as stated in this section, in one or more qualifying business entities whose principal office is located outside of Rhode Island and who have entered into binding commitments to establish, expand, or increase its operations at a regular place of business in Rhode Island; or
    3. To invest a portion of its funds, as stated in this section, in research and experimental expenditures (as defined in 26 U.S.C. § 174) conducted in Rhode Island to assist those qualifying business entities in which the partnership has or would be able to invest. A certified venture capital partnership commencing with its first year of operation, or after there has been a forty percent (40%) change in ownership or the admission of new partners whose contributions have increased the capital of the partnership by at least sixty-five percent (65%), may invest in the aggregate up to the following total portion of its investments made during each year in the types of investments described in subdivisions (6)(ii) and (6)(iii) of this section.
  6. “Qualifying business entity” means any corporation, partnership or other business entity that meets all of the following criteria and the predecessors and successors of any corporation, partnership or other business entity:
    1. Whose average annual gross revenue is less than two million five hundred thousand dollars ($2,500,000);
    2. Which has been in business for less than four (4) years; and
    3. Which will expend an amount which is not less than the amounts allowed as a deduction under § 44-43-2 to establish, expand or increase its operations at a regular place of business in Rhode Island or to purchase the interest of one or more prior owners of the entity if the entity has entered into binding commitments to expend an amount not less than the amount paid to establish, expand or increase the entity’s operations at a regular place of business in Rhode Island; and
    4. Has received certification and annual recertification from the department, pursuant to rules and regulations promulgated by the department, that the preceding requirements have been satisfied.
  7. “Qualifying investment” means that portion, determined based on a taxpayer’s interest in a certified venture capital partnership under 26 U.S.C. § 702(a)(8), of the taxpayer’s investment in the partnership that is invested by the partnership in qualifying activities during the taxpayer’s taxable year.

Year Portion 1 50% 2 40% 3 30% 4 30% 5 30% 6 and subsequent years 20%

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History of Section. P.L. 1987, ch. 559, § 1.

44-43-2. Deduction or modification.

  1. In the year in which a taxpayer first makes a qualifying investment in a certified venture capital partnership or the year in which an entrepreneur first makes an investment in a qualifying entity, the taxpayer or the entrepreneur shall be allowed:
    1. A deduction for purposes of computing net income or net worth in accordance with chapter 11 of this title; or
    2. A deduction from gross earnings for purposes of computing the public service corporation tax in accordance with chapter 13 of this title; or
    3. A deduction for the purposes of computing net income in accordance with chapter 14 of this title; or
    4. A deduction for the purposes of computing gross premiums in accordance with chapter 17 of this title; or
    5. A modification reducing federal adjusted gross income in accordance with chapter 30 of this title.
  2. The deduction or modification shall be in an amount equal to the taxpayer’s qualifying investment in a certified venture capital partnership or an entrepreneur’s investment in a qualifying business entity and shall be measured at the year end of the certified venture capital partnership, the year end of the qualifying business entity, or the year end of the investing taxpayer, whichever comes first.

History of Section. P.L. 1987, ch. 559, § 1.

44-43-3. Wage credit.

  1. There shall be allocated among the entrepreneurs of a qualifying business entity (based on the ratio of each entrepreneur’s interest in the entity to the total interest held by all entrepreneurs) with respect to each entity on an annual basis commencing with the calendar year in which the entity first qualified as a qualifying business entity a credit against the tax imposed by chapter 30 of this title. The credit shall be equal to three percent (3%) of the wages (as defined in 26 U.S.C. § 3121(a)) in excess of fifty thousand dollars ($50,000) paid during each calendar year to employees of the entity; provided, that there shall be excluded from the amount on which the credit is based any wages:
    1. Paid to any owner of the entity;
    2. Paid more than five (5) years after the entity commenced business or five (5) years after the purchase of the business entity by new owners, whichever occurs later; or
    3. Paid to employees who are not principally employed in Rhode Island and whose wages are not subject to withholding pursuant to chapter 30 of this title.
  2. The credit authorized by this section shall cease in the taxable year next following after the taxable year in which the average annual gross revenue of the business entity equals or exceeds one million five hundred thousand dollars ($1,500,000).

History of Section. P.L. 1987, ch. 559, § 1.

44-43-4. Restrictions.

  1. The deduction or modification provided in § 44-43-2 and the credit provided in § 44-43-3 , shall not reduce the taxes prescribed in chapters 11, 13 and 14 of this title to less than one hundred dollars ($100). Amounts of credits, modifications, or deductions shall not reduce the taxes set forth in chapters 17 and 30 of this title to less than zero (0).
  2. The credit provided in § 44-43-3 is not refundable.
  3. Amounts of credits, modifications, or deductions which may not be used due to the application of subsection (a) of this section may not be carried over to the following year.
  4. In the event that the taxpayer entitled to a deduction in accordance with § 44-43-2 is a partnership, joint venture, or small business corporation, the deduction shall be divided in the same manner as income.
  5. The deduction authorized by § 44-43-2(a)(1) shall only be allowed in the computation of net income or net worth of that corporation included in a consolidated return that qualifies for the deduction and may not be used in the computation of net income or net worth of other corporations that may join in the filing of a consolidated tax return.
  6. The credit prescribed in § 44-43-3 may not be applied against the tax for which the entrepreneur is liable until all other credits available to the entrepreneur have been applied.

History of Section. P.L. 1987, ch. 559, § 1.

44-43-5. Exemption.

To the extent that a long-term capital gain was included in the calculations of taxes imposed by chapters 11, 13, 14 or 30 of this title, that long-term capital gain shall be excluded. The long-term capital gain is the long-term capital gain as defined in 26 U.S.C. § 1222(3) which is:

  1. Recognized by a partner in a certified venture capital partnership from the sale or exchange of an interest in the partnership; or
  2. A partner’s distributive share (in a certified venture capital partnership) of any long-term capital gain recognized by the partnership from the sale or exchange of an interest in any entity which at the time the interest was acquired was a qualifying business entity; or
  3. The long-term capital gain recognized by an entrepreneur from the sale or exchange of an interest in an entity, which at the time the interest was acquired was a qualifying business entity.

History of Section. P.L. 1987, ch. 559, § 1.

44-43-6. Recapture.

  1. A taxpayer or entrepreneur which has been allowed a deduction or modification in accordance with § 44-43-2 is required to recapture all the deductions or modifications taken in any taxable year:
    1. In which the taxpayer or entrepreneur sells or exchanges or there is a reduction in his or her interest in a qualifying business entity; or
    2. In which there is a reduction in the taxpayer’s interest in a qualifying investment in a certified venture capital partnership.
  2. Any recapture shall be limited to the proceeds resulting from the reduction in subsection(a) of this section. There shall be no recapture as the result of or following the death of any entrepreneur or taxpayer. There shall be no recapture with respect to any investment held by an entrepreneur or taxpayer for at least five (5) years.

History of Section. P.L. 1987, ch. 559, § 1.

44-43-7. Rules and regulations.

The tax administrator is authorized and empowered to make rules and regulations that he or she may deem necessary for the proper administration and enforcement of this chapter, excepting those matters committed by § 44-43-1(2) and (6) to the supervision of the Rhode Island economic development corporation.

History of Section. P.L. 1987, ch. 559, § 1.

44-43-8. Exclusion for qualifying securities.

  1. For purposes of determining the federal income tax liability of a qualifying taxpayer subject to Rhode Island income tax, the Rhode Island income of the taxpayer under §§ 44-30-12 and 44-30-16 shall be determined by excluding any income, gain, or preference items resulting from the transfer of employer securities from a qualified retirement plan, the sale, transfer, or exercise of stock, warrants, options, bonds, notes, or other interests of any corporation; provided, that at the time of the sale, transfer, or exercise the corporation is a qualifying corporation with respect to the qualifying taxpayer.
  2. A qualifying taxpayer is a current or former employee of a qualifying corporation employed for three (3) consecutive months as a full-time employee in accordance with corporate policy, and the estate, heirs and successors of that individual.
  3. A qualifying corporation is any corporation for which:
    1. Any of the securities issued by the corporation are traded publicly on a recognized exchange;
    2. Its headquarters or principal office in North America is located in the state of Rhode Island;
    3. It has at least one hundred (100) full-time employees in the state of Rhode Island or, if greater, at least fifty percent (50%) of its full-time employees in North America are based in Rhode Island, at the time it elects (in a manner that may be determined by the tax administrator) to be a qualifying corporation;
    4. Either:
      1. The average annual rate of growth in the number of full-time employees of the corporation in Rhode Island over the five (5) fiscal years preceding the year of the election by the corporation has been at least ten percent (10%) per annum or if the period is shorter, the period of time prior to the election by the corporation that its headquarters or principal office has been located in Rhode Island, has been at least ten percent (10%) per annum; or
      2. The amount of the capital stock of the corporation covered by qualified and non-qualified stock options issued by the corporation and the amount of capital stock of the corporation owned by any qualified retirement plan organized for the employees of the corporation equals in the aggregate at least five percent (5%) of the authorized capital stock of the corporation and at least fifty percent (50%) of the non-executive employees of the corporation are the holders of options or are eligible to participate in a qualified retirement plan;
    5. Prior to the end of the fiscal year in which it elects to be a qualifying corporation, it shall own any facility it is occupying in the state;
    6. It shall state at the time it files its election to be a qualifying corporation that it intends to maintain its headquarters or principal office in the state of Rhode Island and that at least fifty percent (50%) of its full-time employees in North America will be based in the state of Rhode Island for at least ten (10) years; and
    7. During the year in which the corporation files its election to be treated as a qualifying corporation and in the four (4) fiscal years following that year, the number of Rhode Island based full-time employees of the corporation has either increased on the average by at least fifteen percent (15%) per annum over or in the aggregate has increased by at least seventy-five percent (75%) the level of Rhode Island based full-time employees on the first day of the fiscal year in which the election is filed. The election by a corporation to be treated as a qualifying corporation shall become effective for purposes of this section as of the first day of the fiscal year during which the election is filed; provided, that in no event shall an election be effective prior to January 1, 1993.
  4. For purposes of this section, if a corporation is a member of an “affiliated group” of corporations (as defined in 26 U.S.C. § 1504(a)), it shall be considered to be the employer of the employees of the other members of that group. In the event a corporation fails to maintain the required average annual rate of growth in Rhode Island based full-time employees during the year in which it files its election or in any of its four (4) succeeding fiscal years, or if it fails to thereafter retain the highest level of Rhode Island based full-time employees required under this section or otherwise fails to satisfy the requirements of this section, the corporation ceases being a qualifying corporation, and no exclusion under this section applies. As a condition to the acceptance of its election to be treated as a qualifying corporation, the corporation must agree that if it should fail to meet the requirements in this section in the future that it will recapture and include in its Rhode Island tax liability an amount equal to one hundred percent (100%) of the investment tax credits it claimed against its Rhode Island business corporation tax liability during the prior ten (10) year period.
  5. The director of the Rhode Island economic development corporation is authorized to promulgate regulations establishing standards for employee recruitment and job training.

History of Section. P.L. 1993, ch. 371, § 1; P.L. 1995, ch. 323, § 38.

Chapter 43.1 Small Business Tax Credit [Repealed.]

44-43.1-1. Repealed.

History of Section. P.L. 1994, ch. 108, § 1; P.L. 1998, ch. 110, § 1; Repealed by P.L. 2004, ch. 595, art. 17, § 3, effective July 30, 2004, and applicable to tax years ending on or after January 1, 2004.

Compiler’s Notes.

Former § 44-43.1-1 concerned providing for a small business tax credit.

Chapter 44 Taxation of Beverage Containers, Hard-To-Dispose Material and Litter Control Participation Permittee

44-44-1. Purpose.

This chapter is enacted to provide funding for the litter reduction and recycling program, created pursuant to chapter 15.1 of title 37, and the hard-to-dispose material — control and recycling program, created pursuant to chapter 15.1 of title 37.

History of Section. P.L. 1984, ch. 251, § 4; P.L. 1989, ch. 514, § 3.

Collateral References.

Reusable soft drink bottles as subject to sales or use taxes. 97 A.L.R.3d 1205.

44-44-2. Definitions.

As used in this chapter:

  1. “Beverage” means all non-alcoholic drinks for human consumption, except milk but including beer and other malt beverages.
  2. “Beverage container” means any sealable bottle, can, jar, or carton which contains a beverage.
  3. “Beverage retailer” means any person who engages in the sale of a beverage container to a consumer within the state of Rhode Island, including any operator of a vending machine.
  4. “Beverage wholesaler” means any person who engages in the sale of beverage containers to beverage retailers in this state, including any brewer, manufacturer, or bottler who engages in those sales.
  5. “Case” means:
    1. Forty-eight (48) beverage containers sold or offered for sale within this state when each beverage container has a liquid capacity of seven (7) fluid ounces or less;
    2. Twenty-four (24) beverage containers sold or offered for sale within this state when each beverage container has a liquid capacity in excess of seven (7) fluid ounces but less than or equal to sixteen and nine tenths (16.9) fluid ounces;
    3. Twelve (12) beverage containers sold or offered for sale within this state when each beverage container has a liquid capacity in excess of sixteen and nine tenths (16.9) fluid ounces but less than thirty-three and nine tenths (33.9) fluid ounces; and
    4. Six (6) beverage containers sold or offered for sale within this state when each beverage container has a liquid capacity of thirty-three and nine tenths (33.9) fluid ounces or more.
  6. A permit issued in accordance with § 44-44-3.1(1) is called a Class A permit.
  7. A permit issued in accordance with § 44-44-3.1(2) is called a Class B permit.
  8. A permit issued in accordance with § 44-44-3.1(3) is called a Class C permit.
  9. A permit issued in accordance with § 44-44-3.1(4) is called a Class D permit.
  10. A permit issued in accordance with § 44-44-3.1(5) is called a Class E permit.
  11. “Consumer” means any person who purchases a beverage in a beverage container for use or consumption with no intent to resell that filled beverage container.
  12. “Gross receipts” means those receipts reported for each location to the tax administrator included in the measure of tax imposed under chapter 18 of this title, as amended. For those persons having multiple locations’ receipts reported to the tax administrator the “gross receipts” to be aggregated shall be determined by each individual sales tax permit number. The term gross receipts shall be computed without deduction for retail sales of items in activities other than those which this state is prohibited from taxing under the constitution of the United States.
  13. “Hard-to-dispose material” is as defined in § 37-15.1-3 .
  14. “Hard-to-dispose material retailer” means any person who engages in the retail sale of hard-to-dispose material (as defined in § 37-15.1-3 ) in this state.
  15. “Hard-to-dispose material wholesaler” means any person, wherever located, who engages in the sale of hard-to-dispose material (as defined in § 37-15.1-3 ) to customers for sale in this state (including manufacturers, refiners, and distributors and retailers), and to other persons as defined above.
  16. “New vehicle” means any mode of transportation for which a certificate of title is required pursuant to title 31 and for which a certificate of title has not been previously issued in this state or any other state or country.
  17. “Organic solvent” is as defined in § 37-15.1-3 .
  18. “Person” means any natural person, corporation, partnership, joint venture, association, proprietorship, firm, or other business entity.
  19. “Prior calendar year” means the period beginning with January 1 and ending with December 31 immediately preceding the permit application due date.
  20. “Qualifying activities” means selling or offering for retail sale food or beverages for immediate consumption and/or packaged for sale on a take out or to go basis regardless of whether or not the items are subsequently actually eaten on or off the vendor’s premises.
  21. “Vending machine” means a self-contained automatic device that dispenses for sale foods, beverages, or confection products.

History of Section. P.L. 1984, ch. 251, § 4; P.L. 1988, ch. 241, § 2; P.L. 1989, ch. 264, § 1; P.L. 1989, ch. 514, § 3; P.L. 1999, ch. 354, § 37; P.L. 2008, ch. 9, art. 6, § 1; P.L. 2012, ch. 241, art. 21, § 9.

44-44-3. Imposition of tax on beverage containers.

There shall be levied and imposed a tax of eight cents ($0.08) on each case of beverage containers sold by a beverage wholesaler to a beverage retailer or consumer within this state. The tax shall be collected by the beverage wholesaler. The tax provided for in this section shall not be levied, imposed, or collected on reusable and refillable beverage containers.

History of Section. P.L. 1984, ch. 251, § 4; P.L. 1988, ch. 241, § 2; P.L. 1998, ch. 86, § 1; P.L. 1998, ch. 377, § 1; P.L. 2019, ch. 88, art. 5, § 15.

44-44-3.1. Permit required.

Commencing August 1, 1988, every person engaging in, or desiring to engage in activities described in § 44-44-2(20) , shall annually file an application with the tax administrator for a litter control participation permit, hereinafter called a “permit”, for each place of business in Rhode Island. In those cases where the only qualifying activity is the operation of vending machines, the person shall either obtain a Class A permit for each vending machine or obtain a permit based on total gross receipts. All applications shall be in a form, including information and bearing signatures that the tax administrator may require. At the time of making an application, the applicant shall pay the tax administrator a permit fee based as follows:

  1. For the applicant whose gross receipts for the prior calendar year measured less than fifty thousand dollars ($50,000), a fee of twenty-five dollars ($25.00);
  2. For the applicant whose gross receipts for the prior calendar year measured at least fifty thousand dollars ($50,000), but less than one hundred thousand dollars ($100,000), a fee of thirty-five dollars ($35.00);
  3. For the applicant whose gross receipts for the calendar year measured at least one hundred thousand dollars ($100,000), but less than four hundred thousand dollars ($400,000), a fee of seventy-five dollars ($75.00);
  4. For the applicant whose gross receipts for the prior calendar year measured at least four hundred thousand dollars ($400,000), but less than one million dollars ($1,000,000), a fee of one hundred dollars ($100); and
  5. For the applicant whose gross receipts for the prior calendar year measured one million dollars ($1,000,000) or more, a fee of one hundred twenty-five dollars ($125) for each one million dollars ($1,000,000) or fraction of this amount. The fee in this subdivision shall not exceed the sum of one thousand dollars ($1,000) for each permit at each place of business in Rhode Island when the “qualifying activities” referred to in this section and defined in § 44-44-2(20) and the sale of food products do not exceed ten percent (10%) of the gross receipts for each permit.

History of Section. P.L. 1988, ch. 241, § 4; P.L. 1989, ch. 264, § 1; P.L. 1990, ch. 389, § 1.

44-44-3.2. Penalty for operation without a permit — Injunctive relief.

  1. Any person who engages (or the officer of a corporation engaged) in activities described in § 44-44-2(20) without the permit required by this chapter shall be guilty of a misdemeanor and shall, for each offense, be fined not more than one thousand dollars ($1,000), or be imprisoned for not more than one year, or punished by both a fine and imprisonment. Each day in which a person is so engaged shall constitute a separate offense.
  2. The superior court of this state shall have jurisdiction of restraining any person from engaging in activities described in § 44-44-2(20) without the proper permit as prescribed in this chapter. The tax administrator may institute proceedings to prevent and restrain violations of this chapter.

History of Section. P.L. 1988, ch. 241, § 4.

44-44-3.3. Partial periods.

    1. Each applicant which did not do business at a particular location during the prior calendar year for the purposes of determining the proper fee in accordance with § 44-44-3.1 may, for application purposes, only apply for a Class A permit for that location.
    2. For purposes of this section, the term “applicant” shall not include any person who purchases an ongoing business and continues to operate the same type of business from the same location without interruption of thirty (30) days or more immediately following the purchase of the business.
  1. Any permittee ceasing business at a location before the annual expiration date of permit shall return the permit to the tax administrator for cancellation.
  2. The fees set forth in § 44-44-3.1 are neither proratable nor refundable for partial periods of operation at a specific location.
  3. A person who purchases an ongoing business and continues to operate the business in the same location in a calendar year for which the prior permit holder has paid the applicable fee may obtain a permit for the remainder of that calendar year upon payment of a twenty-five dollar ($25.00) fee.

History of Section. P.L. 1988, ch. 241, § 4; P.L. 1990, ch. 317, § 1.

44-44-3.4. Issuance of permit — Assignment prohibited — Display.

Upon receipt of the required application and permit fee, the tax administrator shall issue to the applicant a separate permit for each location in Rhode Island. A permit is not assignable and is valid only for the person in whose name it was issued and only for the business location shown in the permit. It shall at all times be conspicuously displayed at the location for which it was issued.

History of Section. P.L. 1988, ch. 241, § 4.

44-44-3.5. Application due date — Weekends and holidays — Mailing.

  1. Each applicant shall apply for a permit prior to engaging in the activities described in § 44-44-2(20) for each location in Rhode Island and, after this, shall annually reapply on or before August 1 of each year.
  2. When the application due date, or any other due date for activity by an applicant or permittee, falls on a Saturday, Sunday, or Rhode Island legal holiday, the application or activity will be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or Rhode Island legal holiday.
  3. When any application, payment or other document required to be filed on or before a prescribed date set forth in this chapter is delivered after the required date by United States Post Office to the tax administrator, office, officer, or person with which or with whom the document is required to be filed, the date on which the document is dated by the post office shall be deemed to be the date of delivery. This subsection shall apply only if the document was, within the prescribed time, deposited in the mail with United States postage prepaid and properly addressed.

History of Section. P.L. 1988, ch. 241, § 4.

44-44-3.6. Exemption.

There shall be exempted from the taxes and fees imposed by this chapter any measure upon which this state is prohibited from taxing under the Constitution of the United States.

History of Section. P.L. 1988, ch. 241, § 4.

44-44-3.7. Imposition of tax on hard-to-dispose material.

  1. There shall be levied and imposed a tax of ten cents ($0.10) per quart (32 oz.) or ten and 6/10 cents ($0.106) per liter on lubricating oils, twenty cents ($0.20) per gallon or five and 28/100th cents ($0.0528) per liter on antifreeze, one half cent ($0.005) per gallon or one hundred thirty two thousandths ($0.00132) per liter on organic solvents, and one dollar ($1.00) per tire as defined above. The tax shall be separately stated and collected upon the sale by the hard-to-dispose material wholesalers to a hard-to-dispose material retailer. In the case of new motor vehicles, a fee of six dollars ($6.00) per vehicle shall be levied and paid to the division of motor vehicles in conjunction with titling of the vehicle. Every hard-to-dispose material retailer selling, using, or otherwise consuming in this state any hard-to-dispose material is liable for the tax imposed by this section. Its liability is not extinguished until the tax has been paid to the state, except that a receipt from a hard-to-dispose material wholesaler engaging in business in this state or from a hard-to-dispose material wholesaler who is authorized by the tax administrator to collect the tax under rules and regulations that he or she may prescribe given to the hard-to-dispose material retailer is sufficient to relieve the hard-to-dispose material retailer from further liability for the tax to which the receipt refers.
  2. In the event that a person purchases hard-to-dispose material for its own use or consumption and not for resale from a hard-to-dispose material wholesaler or retailer not engaged in business in this state or not authorized by the tax administrator to collect the tax, that person shall be liable for the tax imposed by this section.

History of Section. P.L. 1989, ch. 514, § 4; P.L. 1990, ch. 317, § 1; P.L. 2019, ch. 88, art. 5, § 15.

44-44-3.8. Hard-to-dispose material control and recycling oversight commission.

  1. Prior to disbursement of any funds from the hard-to-dispose materials account the rules and regulations of the department concerning the implementation of chapter 15.1 of title 37 must be promulgated in final form. For the purposes of this section only, a rule and/or regulation is in final form when filed in accordance with § 42-35-4 . Nothing contained in this chapter shall prevent a party from seeking appropriate judicial review in accordance with the Administrative Procedures Act, chapter 35 of title 42.
  2. Hard-to-dispose material control and recycling oversight commission.
    1. The hard-to-dispose material and recycling oversight commission is created consisting of the following nine (9) members: three (3) members of the house of representatives, one of whom shall be from the minority party, to be appointed by the speaker of the house; two (2) members of the senate, one of whom shall be from the minority party, to be appointed by the president of the senate; one public member to be appointed by the speaker of the house; one public member to be appointed by the president of the senate; one member from an environmental group to be appointed by the president of the senate; one member who is an industry representative to be appointed by the speaker of the house.
    2. With the exception of the house and senate members, the members of the commission shall serve two (2) year terms, the first term commencing June 1, 1990, and ending June 1, 1992; or until the time their successors are appointed. The house and senate members shall serve at the pleasure of the appointing authority.
    3. The commission shall organize itself at a meeting called by the speaker of the house in June of each even-numbered year, commencing in 1990.
    4. Members of the commission shall receive no compensation.
    5. The commission shall elect a chair from its legislator members, and elect other officers as it deems appropriate.
    6. The commission shall meet at least once per quarter to review tax revenues collected and expenditures of the program, to evaluate effectiveness of the program, and to make recommendations to the governor and legislature regarding the appropriateness of the taxation rates and the timetables required by § 37-15.1-9(7) .
    7. The commission shall have the cooperation of the auditor, general, tax administrator, and the department wherever necessary.
    8. The commission shall submit a report to the general assembly on February 1, 1991, and each February 1 thereafter.

History of Section. P.L. 1990, ch. 514, §§ 5, 6; P.L. 2001, ch. 180, § 139.

44-44-4. Filing of returns and extensions of time for filing returns.

On or before the twenty-fifth day of the month next succeeding the month in which any taxes imposed by this chapter are collected, the beverage wholesaler and/or hard-to-dispose material wholesaler or hard-to-dispose material retailers or person liable for tax pursuant to § 44-44-3.7 , shall pay the taxes to the tax administrator and at the same time shall file a return in a form that the tax administrator may by regulation prescribe. The tax administrator may grant reasonable extensions of time for filing returns under rules and regulations that he or she prescribes. If any taxes are not paid to the tax administrator when due, or if any return is not filed when due, there shall be added to the taxes and made a part of the taxes interest at the rate set forth in § 44-1-7 from the date when the taxes became due until the date of payment.

History of Section. P.L. 1984, ch. 251, § 4; P.L. 1988, ch. 241, § 2; P.L. 1989, ch. 514, § 3; P.L. 1990, ch. 317, § 1.

44-44-4.1. Penalties on delinquent payments.

Any hard-to-dispose material wholesaler or hard-to-dispose material retailer or person who fails to pay any tax to the state or any amount of tax required to be collected and/or paid to the state, except amounts of determinations made by the tax administrator under § 44-44-17 , within the required time shall pay a penalty of ten percent (10%) of the tax or amount of the tax.

History of Section. P.L. 1989, ch. 514, § 4; P.L. 1990, ch. 317, § 1.

44-44-5, 44-44-6. Repealed.

History of Section. P.L. 1984, ch. 251, § 4; Repealed by P.L. 1988, ch. 241, § 3, effective January 1, 1989.

Compiler’s Notes.

Former §§ 44-44-5 and 44-44-6 concerned filing of returns.

44-44-7. Collection powers.

The tax administrator shall have for the collection of the taxes, including interest, imposed by this chapter the powers prescribed for collection of taxes in chapters 1 and 7 — 9 of this title.

History of Section. P.L. 1984, ch. 251, § 4.

44-44-8. Records required — Inspection of records.

Every beverage wholesaler shall keep books, including records, receipts, and other pertinent papers, in a form the tax administrator may require. The records shall be open at all times to the inspection of the tax administrator and his or her agents and, upon summons issued by the tax administrator, shall be produced at the time and place that he or she may designate for inspection by the tax administrator or his or her agents.

History of Section. P.L. 1984, ch. 251, § 4.

44-44-9. Repealed.

History of Section. P.L. 1984, ch. 251, § 4; Repealed by P.L. 1988, ch. 241, § 3, effective January 1, 1989.

Compiler’s Notes.

Former § 44-44-9 concerned rules, regulations and forms.

44-44-10. Deposit of moneys.

All money received by the tax administrator and the division of motor vehicles pursuant to this chapter shall be deposited as general revenues.

History of Section. P.L. 1984, ch. 251, § 4; P.L. 1988, ch. 241, § 2; P.L. 1989, ch. 514, § 3; P.L. 1995, ch. 370, art. 40, § 151.

44-44-11, 44-44-12. Repealed.

History of Section. P.L. 1984, ch. 251, § 4; P.L. 1987, ch. 57, art. 7, § 1; Repealed by P.L. 1988, ch. 241, § 3, effective January 1, 1989.

Compiler’s Notes.

Former §§ 44-44-11 and 44-44-12 concerned hearing on application by beverage wholesaler.

44-44-13. Contingency provision.

The provisions of this chapter shall become null and void, and the tax imposed under this chapter shall terminate, if federal or state legislation is enacted which requires a deposit on beverage containers.

History of Section. P.L. 1984, ch. 251, § 4.

44-44-14, 44-44-15. Repealed.

History of Section. P.L. 1984, ch. 251, § 4; Repealed by P.L. 1988, ch. 241, § 3, effective January 1, 1989.

Compiler’s Notes.

Former §§ 44-44-14 and 44-44-15 concerned termination of authority and severability of provisions.

44-44-16. Rules and regulations — Forms.

The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter; which rules and regulations, when reasonably designed to carry out the intent and purpose of this chapter, shall be prima facie evidence of its proper interpretation. These rules and regulations may from time to time be amended, suspended or revoked, in whole or in part, by the tax administrator. The tax administrator may prescribe, and may furnish, any forms necessary or proper for the administration of this chapter.

History of Section. P.L. 1988, ch. 241, § 4.

44-44-17. Deficiency determination — Determination without return.

If any hard-to-dispose material wholesaler or hard-to-dispose material retailer or person or beverage or litter control participation permittee fails to file a return or application or to keep records described in § 44-44-8 , or if the tax administrator is not satisfied with the amount of taxes or fees paid to him or her, the tax administrator may compute and determine the amount required by this chapter to be paid to him or her upon the basis of the facts contained in the returns or applications which have been filed or upon the basis of any information in the tax administrator’s possession or that may come into his or her possession.

History of Section. P.L. 1988, ch. 241, § 4; P.L. 1989, ch. 514, § 3; P.L. 1990, ch. 317, § 1.

44-44-18. Notice of determination.

The tax administrator shall give written notice of his or her determination to the beverage wholesaler or litter control participation permittee or hard-to-dispose material wholesaler or hard-to-dispose material retailer or person. Except in the case of fraud or failure to make a return, or noncompliance with § 44-44-8 , every notice of determination shall be mailed within three (3) years of the date the taxes first became due. The amount of this determination shall bear interest at the rate prescribed in § 44-1-7 from the date when taxes should have been paid until the date of payment.

History of Section. P.L. 1988, ch. 241, § 4; P.L. 1989, ch. 514, § 3; P.L. 1990, ch. 317, § 1.

44-44-18.1. Pecuniary penalties for deficiencies.

If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to this amount. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade the provisions of this chapter, a penalty of fifty percent (50%) of the amount of the determination shall be added to this amount.

History of Section. P.L. 1989, ch. 514, § 4.

44-44-19. Payment of refunds.

Whenever the tax administrator shall determine that any beverage wholesaler or hard-to-dispose material wholesaler or hard-to-dispose material retailer or person or litter control participation permittee is entitled to a refund of any moneys paid under the provisions of this chapter, or whenever a court of competent jurisdiction orders a refund of any moneys paid, the general treasurer shall, upon certification by the tax administrator, pay the refund from any moneys in the litter control account or hard-to-dispose material account other than those moneys already appropriated for the administration of the taxes and programs entitled by this chapter and § 37-15-13 ; provided, that no refund shall be allowed unless a claim for a refund is filed with the tax administrator within three (3) years from the date the overpayment was made. Every claim for a refund shall be made in writing, shall be in a form, and shall present only information that the tax administrator may, by regulation, require. Within thirty (30) days after disallowing any claim in whole or in part the tax administrator shall give written notice of his or her decision to the beverage wholesaler or hard-to-dispose material wholesaler or hard-to-dispose material retailer or person or litter control participation permittee. A refund of less than ten dollars ($10.00) will not be processed, but may be credited to the following month’s return without interest.

History of Section. P.L. 1988, ch. 241, § 4; P.L. 1989, ch. 514, § 3; P.L. 1990, ch. 317, § 1.

44-44-20. Hearing on application by beverage wholesaler or litter control participation permittee.

Any person aggrieved by any assessment or decision of the tax administrator shall notify the tax administrator and request a hearing, in writing, within thirty (30) days from the date of mailing of the assessment or decision. The tax administrator or a hearing officer designated by the tax administrator shall, as soon as practicable, fix a time and place for the hearing and, after the hearing, determine the correct amount of the tax and interest.

History of Section. P.L. 1988, ch. 241, § 4; P.L. 1993, ch. 459, § 11.

44-44-21. Judicial review.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section shall be expressly made conditional upon prepayment of all taxes, interest and penalties, unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 .

History of Section. P.L. 1988, ch. 241, § 4.

44-44-22. Information confidential.

It shall be unlawful for any state official or employee to divulge or to make known to any person in any manner not provided by law the amount or source of income, profits, losses, expenditures, or any particular of these set forth or disclosed in any return, permit application or other record required under this chapter, or to permit any return, permit application, or other record required by this chapter or copy of a record, or any book containing any abstract or particulars to be seen or examined by any person except as provided by law. Any offense against this provision shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment not exceeding one year, or both, at the discretion of the court.

History of Section. P.L. 1988, ch. 241, § 4.

44-44-23. Severability.

The provisions of this chapter are declared to be severable; and in case any part, section, or provision of this chapter is held void by any court of competent jurisdiction, the remaining parts, sections, and provisions of the chapter shall not be impaired or affected.

History of Section. P.L. 1988, ch. 241, § 4.

Chapter 45 Omnibus Property Tax Relief and Replacement Act

44-45-1. Short title.

This chapter shall be known and may be cited as the “Omnibus Property Tax Relief and Replacement Act”.

History of Section. P.L. 1985, ch. 182, § 1.

44-45-2. Legislative findings.

The general assembly finds and declares that the following conditions confront Rhode Island at this time:

  1. In 1982, the governor’s advisory commission to study the financial operations of state and local governments found that “when the state and local tax system is viewed in its totality, it becomes clear that property tax relief and replacement is needed”.
  2. Rhode Island has a serious over reliance on the property tax, as evidenced by the facts that:
    1. Rhode Islanders paid forty-nine dollars and ninety-two cents ($49.92) per capita in property tax collections in fiscal year 1983, compared to a U.S. average of thirty-four dollars and seventy-one cents ($34.71), ranking this state sixth highest in the nation;
    2. Per one thousand dollars ($1,000) of personal income, property tax collections in Rhode Island equaled five hundred and thirty-seven dollars ($537) that year, compared to a three hundred and eighty-one dollar ($381) U.S. average, placing the state ninth highest nationally; and
    3. Rhode Island’s cities and towns derived fifty-eight and nine-tenths percent (58.9%) of their own-source local general revenue from the property tax in fiscal year 1983, compared to an average of only twenty-eight and eight-tenths percent (28.8%) for all the states.
  3. In 1983-84, Rhode Island ranked only forty-third nationally in terms of state support for public elementary and secondary school, providing only thirty-six percent (36%) of these revenues.
  4. The state educational operations aid formula should be gradually increased until the state and municipalities equally share the cost of providing local education. The general assembly remains committed to that objective and intends to pursue that objective aggressively upon receipt and consideration of the final report of the joint legislative committee to establish a permanent education foundation aid formula in accordance with § 16-7.2-2 of the general laws.
  5. The state should also share a greater portion of its economically sensitive growth taxes with its cities and towns in order to further shift the burden of funding essential municipal services from the property tax.
  6. The growth in property tax levies should be capped in accordance with § 44-5-2 of the general laws as a quid pro quo for receiving increased state aid to reduce reliance on the property tax.
  7. Cities and towns should be assisted in their efforts to control school and municipal expenditures by appropriately amending state arbitration and school budgeting laws.

History of Section. P.L. 1985, ch. 182, § 1; P.L. 1988, ch. 84, § 99; P.L. 2006, ch. 253, § 3.

Chapter 46 Adult Education Tax Credit

44-46-1. Adult education tax credit.

A taxpayer who is an employer shall be allowed a credit, to be computed as provided in this chapter, against the tax imposed by chapters 11, 13, 14, 15, 17 and 30 of this title. The amount of the credit shall be fifty percent (50%) of the costs incurred solely and directly for non-worksite or worksite-based adult education programs as defined in § 44-46-2 .

History of Section. P.L. 1985, ch. 274, § 1; P.L. 1996, ch. 105, § 1; P.L. 1996, ch. 198, § 1; P.L. 1997, ch. 97, § 1; P.L. 1999, ch. 354, § 38.

44-46-2. Definitions.

  1. As used in this chapter, “worksite-based” means a physical location in this state at which the taxpayer conducts his or her normal trade or business and “non-worksite” means other than “worksite-based”.
  2. “Adult education programs” shall be limited to:
    1. Basic education, which consists of efforts to alleviate illiteracy and provide opportunities for academic achievement up to grade twelve (12) and which shall include instruction in reading, writing, arithmetic, literature, social studies, science, pre-vocational subjects, and other knowledge and skills necessary to cope in contemporary life; courses in Americanization and citizenship for immigrants; teaching English to persons with no or limited ability with the language; and preparation for the demonstration of competencies to qualify for the adult high school diploma or for examinations to earn the general educational development or high school equivalency diploma; and
    2. Vocational training, which consists of the imparting of knowledge and skills necessary to become gainfully employed, at least at entry level, in a recognized occupation, and thus attain economic self-sufficiency, and which shall be conveyed by classroom instruction, on-the-job training, and apprenticeships.
  3. “Employer” means a person, corporation, partnership, estate, or trust subject to the provisions of § 44-30-71 .
  4. “Paid employment” means a period of time during which an employee has been hired by a business and is receiving wages for his or her services.

History of Section. P.L. 1985, ch. 274, § 1; P.L. 1996, ch. 105, § 1; P.L. 1996, ch. 198, § 1.

44-46-3. Credits.

An employer shall be allowed a credit as provided in § 44-46-1 up to a maximum credit of three hundred dollars ($300) against taxes otherwise due under provisions of chapters 11, 13, 14, 15, 17 and 30 of this title per paid employee. The employee must remain in the employ of the business for a minimum period of thirteen (13) consecutive weeks, and a minimum of four hundred and fifty-five (455) hours of paid employment before the employer can become eligible for the income credit. The credit shall not reduce the tax under chapter 11 of this title to less than one hundred dollars ($100). The credit is not refundable. Any amount of credit not deductible in that taxable year may not be carried over to the following year. In the event that the employer is a partnership, joint venture or small business corporation, the credit shall be divided in the same manner as income. This credit may not be applied against the tax until all other credits available to this taxpayer for the taxable year have been applied.

History of Section. P.L. 1985, ch. 274, § 1; P.L. 1996, ch. 105, § 1; P.L. 1996, ch. 198, § 1; P.L. 1997, ch. 97, § 1.

44-46-4. Administration.

The tax administrator shall make available suitable forms with instructions for claiming the credit. The claim shall be in a form that the tax administrator may prescribe. The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter.

History of Section. P.L. 1985, ch. 274, § 1.

44-46-5. Accounting.

An itemized accounting of the costs and an affidavit attesting to the facts shall be furnished by the claimant taxpayer to the division of taxation.

History of Section. P.L. 1985, ch. 274, § 1.

44-46-6. Severability.

If any part of this chapter is for any reason declared void, the invalidity shall not affect the validity of the remaining portion of this chapter.

History of Section. P.L. 1985, ch. 274, § 1.

44-46-7. Limit.

The maximum credit per calendar year per employer allowable under this chapter shall be five thousand dollars ($5,000).

History of Section. P.L. 1996, ch. 105, § 2; P.L. 1996, ch. 198, § 2; P.L. 1997, ch. 97, § 1.

44-46-8. Certificates.

A business shall not be allowed a credit under this chapter for any taxable year unless the business obtains a written certificate from the division of taxation.

History of Section. P.L. 1996, ch. 105, § 2; P.L. 1996, ch. 198, § 2.

Chapter 47 Adult and Child Day Care Assistance and Development Tax Credit

44-47-1. Tax credit.

  1. A taxpayer that pays for or provides adult or child day care services to its employees or to the employees of its commercial tenants, or that provides real property or dedicates rental space for child day care services, is allowed a credit, to be computed as provided in this chapter, against the tax imposed by chapters 11 and 13, except § 44-13-13 , and chapters 14, 17, 30 of this title. The amount of the credit shall be:
    1. Thirty percent (30%) of the total amount expended in the state of Rhode Island during the taxable year by a taxpayer for day care services purchased to provide care for the dependent children or dependent adult family members of the taxpayer’s employees or employees of commercial tenants of the taxpayer during the employees’ hours of employment;
    2. Thirty percent (30%) of the total amount expended during the taxable year by a taxpayer in the establishment and/or operation of a day care facility in the state of Rhode Island used primarily by the dependent children of the taxpayer’s employees or employees of commercial tenants of the taxpayer during the employees’ hours of employment;
    3. Thirty percent (30%) of the total amount expended during the taxable year by a taxpayer in conjunction with one or more other taxpayers for the establishment and/or operation of a day care facility in the state of Rhode Island used primarily by the dependent children of the taxpayer’s employees or employees of commercial tenants of the taxpayer during that employee’s hours of employment;
    4. Thirty percent (30%) of the total amount foregone in rent or lease payments related to the dedication of rental or lease space to child day care services. The amount foregone shall be the difference between fair market rental and actual rental.
  2. No credit shall be allowed pursuant to this chapter unless the child day care facility is licensed pursuant to chapter 72.1 of title 42, and agrees to accept children whose child care services are paid for in full or in part by the Rhode Island department of human services; and/or the adult day care facility is certified by the department of elderly affairs.

History of Section. P.L. 1987, ch. 477, § 1; P.L. 1988, ch. 602, § 1; P.L. 1992, ch. 162, § 1; P.L. 1994, ch. 216, § 2; P.L. 1994, ch. 262, § 1; P.L. 1994, ch. 270, § 2.

44-47-2. “Amount expended” defined.

As used in this chapter, the term “amount expended” means the actual sums of money spent, or the cost or other basis for federal tax purposes of real or tangible personal property donated or dedicated to the establishment of a child day care center.

History of Section. P.L. 1987, ch. 477, § 1; P.L. 1994, ch. 262, § 1.

44-47-3. Limitation on credit — Carry over.

  1. A taxpayer shall be allowed a credit as provided in § 44-47-1(a)(2) , (3) or (4) up to a maximum total credit of thirty thousand dollars ($30,000). The credit shall not reduce the tax due for that year to less than one hundred dollars ($100). If the amount of credit allowable under § 44-47-1(a)(2) , (3) or (4) for any taxable year reduces the tax to one hundred dollars ($100), the balance of the credit may be claimed against the tax imposed for the next five (5) consecutive taxable years; provided, that any balance of credit may not be claimed for any succeeding taxable year in which the taxpayer’s child day care facility is operated for purposes of child day care for less than six (6) months. In no event shall the total credit amount exceed thirty thousand dollars ($30,000).
  2. A taxpayer shall be allowed a credit as provided in § 44-47-1(a)(1) up to a maximum annual credit of thirty thousand dollars ($30,000). That credit shall not reduce the tax due for any taxable year to less than one hundred dollars ($100). If the amount of credit allowable under § 44-47-1(a)(1) reduces the tax to one hundred dollars ($100), the balance of the credit may not be carried over to any subsequent taxable year.

History of Section. P.L. 1987, ch. 477, § 1.

44-47-4. Administration.

The tax administrator shall make available suitable forms with instructions for claiming the credit. The tax administrator may prescribe rules and regulations as may be necessary to carry into effect the provisions of this chapter.

History of Section. P.L. 1987, ch. 477, § 1.

Chapter 48 Tax Expenditure Pilot Project [Repealed.]

44-48-1. Repealed.

History of Section. P.L. 1988, ch. 129, art. 12, § 1; Repealed by P.L. 2000, ch. 109, § 50, effective July 7, 2000.

Compiler’s Notes.

Former § 44-48-1 concerned the tax expenditure pilot project.

Chapter 48.1 Tax Expenditure Reporting

44-48.1-1. Tax expenditure reporting.

  1. On or before the second Tuesday in January of each even numbered year beginning in 2004, the chief of the office of revenue analysis, shall deliver a tax expenditure report to the general assembly. Each report will provide the minimum information for one hundred percent (100%) of tax expenditures in effect on January 1 of the calendar year preceding the report’s publication.
  2. For the purposes of this section, a “tax expenditure” is any tax credit, deduction, exemption, exclusion, credit preferential tax rate, tax abatement, and tax deferral that provides preferential treatment to selected taxpayers, whether directly through Rhode Island general laws or constitutional provisions or indirectly through adoption of other tax codes.
  3. The information included for each tax expenditure shall include, but shall not be limited to:
    1. The legal reference of the expenditures, including information whether the expenditure is required as a result of federal or state constitutional, judicial, or statutory mandate.
    2. Amount of revenues forgone or an estimate, if the actual amount cannot be determined, for the calendar year immediately preceding the publication of the report. The report shall also include an estimate of revenue forgone for the calendar year in which the report is published and the year following the report’s publication. The tax administrator shall develop an index of the reliability of each estimate using five (5) levels with level one being most reliable. Where actual tax returns are the source of the estimate, the estimate should be assigned reliability level one. Where no reliable data exists for the estimate, the estimate should be assigned reliability level five (5). The reliability level shall be reported for the estimate of the revenues forgone.
    3. To the extent allowable by law, identification of the beneficiaries of the exemption by number, income, class and industry.
    4. A comparison of the tax expenditure to the tax systems of the other New England states, with emphasis on Massachusetts and Connecticut.
    5. The data source(s) and analysis methodology.
    6. To the extent allowable by law, identification of similar taxpayers or industries that do not enjoy the exemption.
  4. Each report shall include a section containing recommendations for improving the effectiveness of the report as a tax policy tool. This section shall identify the resources required to implement these recommendations and shall also contain an estimate of the costs associated with such recommendations.
  5. On or before the second Tuesday in January 2004, the chief of the office of revenue analysis shall make available to the general assembly a plan to improve Rhode Island’s tax expenditure reporting effort. The plan shall include measurable criteria to evaluate improvements in the reliability of tax expenditure item estimates and the identification of beneficiaries of each tax expenditure by number, income, class and industry. The plan shall also include cost estimates of additional resources necessary to implement the plan, and may include any other information that the tax administrator deems appropriate for inclusion in said plan.

History of Section. P.L. 1996, ch. 327, § 1; P.L. 1996, ch. 394, § 1; P.L. 1997, ch. 30, art. 38, § 1; P.L. 2003, ch. 142, § 1; P.L. 2003, ch. 146, § 1; P.L. 2006, ch. 246, art. 38, § 16.

Chapter 48.2 Rhode Island Economic Development Tax Incentives Evaluation Act of 2013

44-48.2-1. Short title.

This chapter shall be known and may be cited as the “Economic Development Tax Incentives Evaluation Act of 2013.”

History of Section. P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5.

Compiler’s Notes.

P.L. 2013, ch. 155, § 5, and P.L. 2013, ch. 209, § 5 enacted identical versions of this chapter.

44-48.2-2. Legislative findings and purpose.

The general assembly finds and declares that:

  1. The state of Rhode Island relies on a number of tax incentives, including credits, exemptions, and deductions, to encourage businesses to locate, hire employees, expand, invest, and/or remain in the state;
  2. These various tax incentives are intended as a tool for economic development, promoting new jobs and business growth in Rhode Island;
  3. The state needs a systematic approach for evaluating whether incentives are fulfilling their intended purposes in a cost-effective manner;
  4. In order to improve state government’s effectiveness in serving the residents of this state, the legislature finds it necessary to provide for the systematic and comprehensive analysis of economic development tax incentives and for those analyses to be incorporated into the budget and policymaking processes.

History of Section. P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5; P.L. 2014, ch. 528, § 65.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-48.2-3. Economic development tax incentive defined.

  1. As used in this section, the term “economic development tax incentive” shall include:
    1. Those tax credits, deductions, exemptions, exclusions, and other preferential tax benefits associated with §§ 42-64.3-6 , 42-64.3-7 , 42-64.5-3 , 42-64.6-4 , 42-64.11-4 , 44-30-1.1 , 44-31-1 , 44-31-1.1 , 44-31-2 , 44-31.2-5 , 44-32-1 , 44-32-2 , 44-32-3 , 44-39.1-1 , 44-43-2 , 44-43-3 , and 44-63-2 , and chapters 64.20, 64.21, 64.26, 64.30 of title 42 and chapter 48.3 of title 44;
    2. Any future incentives enacted after the effective date of this section for the purpose of recruitment or retention of businesses in the state of Rhode Island.
  2. In determining whether a future tax incentive is enacted for “the purpose of recruitment or retention of businesses,” the office of revenue analysis shall consider legislative intent, including legislative statements of purpose and goals, and may also consider whether the tax incentive is promoted as a business incentive by the state’s economic development agency or other relevant state agency.

History of Section. P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5; P.L. 2014, ch. 528, § 65; P.L. 2015, ch. 141, art. 19, § 14.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-48.2-4. Economic development tax incentive evaluations — Schedule.

  1. In accordance with the following schedule, the tax expenditure report produced by the chief of the office of revenue analysis pursuant to § 44-48.1-1 shall include an additional analysis component, consistent with § 44-48.2-5 and produced in consultation with the chief executive officer of the commerce corporation, the director of the office of management and budget, and the director of the department of labor and training:
    1. Analyses of economic development tax incentives as listed in subdivision 44-48.2-3(1) shall be completed at least once between July 1, 2014, and June 30, 2017, and no less than once every three (3) years thereafter;
    2. Analyses of any economic development tax incentives created after July 1, 2013, shall be completed within five (5) years of taking effect and no less than once every three (3) years thereafter;
  2. No later than the tenth (10th) of January each year, beginning in 2014, the office of revenue analysis will submit to the chairs of the senate and house finance committees a three-year (3) plan for evaluating economic development tax incentives.

History of Section. P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5; P.L. 2014, ch. 528, § 65.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-48.2-5. Economic development tax incentive evaluations — Analysis.

  1. The additional analysis as required by § 44-48.2-4 shall include, but not be limited to:
    1. A baseline assessment of the tax incentive, including, if applicable, the number of aggregate jobs associated with the taxpayers receiving such tax incentive and the aggregate annual revenue that such taxpayers generate for the state through the direct taxes applied to them and through taxes applied to their employees;
    2. The statutory and programmatic goals and intent of the tax incentive, if said goals and intentions are included in the incentive’s enabling statute or legislation;
    3. The number of taxpayers granted the tax incentive during the previous twelve-month (12) period;
    4. The value of the tax incentive granted, and ultimately claimed, listed by the North American Industrial Classification System (NAICS) Code associated with the taxpayers receiving such benefit, if such NAICS Code is available;
    5. An assessment and five-year (5) projection of the potential impact on the state’s revenue stream from carry forwards allowed under such tax incentive;
    6. An estimate of the economic impact of the tax incentive including, but not limited to:
      1. A cost-benefit comparison of the revenue foregone by allowing the tax incentive compared to tax revenue generated by the taxpayer receiving the credit, including direct taxes applied to them and taxes applied to their employees;
      2. An estimate of the number of jobs that were the direct result of the incentive; and
      3. A statement by the chief executive officer of the commerce corporation as to whether, in his or her judgment, the statutory and programmatic goals of the tax benefit are being met, with obstacles to such goals identified, if possible;
    7. The estimated cost to the state to administer the tax incentive if such information is available;
    8. An estimate of the extent to which benefits of the tax incentive remained in state or flowed outside the state, if such information is available;
    9. In the case of economic development tax incentives where measuring the economic impact is significantly limited due to data constraints, whether any changes in statute would facilitate data collection in a way that would allow for better analysis;
    10. Whether the effectiveness of the tax incentive could be determined more definitively if the general assembly were to clarify or modify the tax incentive’s goals and intended purpose;
    11. A recommendation as to whether the tax incentive should be continued, modified, or terminated; the basis for such recommendation; and the expected impact of such recommendation on the state’s economy;
    12. The methodology and assumptions used in carrying out the assessments, projections and analyses required pursuant to subdivisions (1) through (8) of this section.
  2. All departments, offices, boards, and agencies of the state shall cooperate with the chief of the office of revenue analysis and shall provide to the office of revenue analysis any records, information (documentary and otherwise), data, and data analysis as may be necessary to complete the report required pursuant to this section.

History of Section. P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5; P.L. 2014, ch. 528, § 65.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-48.2-6. Consideration by the governor.

The governor’s budget submission as required under chapter 35-3 shall identify each economic development tax incentive for which an evaluation was completed in accordance with this chapter in the period since the governor’s previous budget submission. For each evaluated tax incentive, the governor’s budget submission shall include a recommendation as to whether the tax incentive should be continued, modified, or terminated.

History of Section. P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5.

Chapter 48.3 Rhode Island New Qualified Jobs Incentive Act 2015

44-48.3-1. Short title.

This chapter shall be known and may be cited as the “Rhode Island Qualified Jobs Incentive Act of 2015.”

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-2. Findings and declaration.

  1. It is hereby found and declared that due to long-term and short-term negative economic trends in Rhode Island, businesses in the state have found it difficult to make investments that would stimulate economic activity and create new jobs. This situation has contributed to a rate of unemployment in Rhode Island that is higher than our neighbors and among the highest in the nation. Consequently, a need exists to promote the creation of new jobs, attract new business and industry, and stimulate growth in businesses that are prepared to make meaningful investment and foster job creation in Rhode Island.
  2. Through the establishment of a jobs incentive program, Rhode Island can take steps to stimulate business expansion and attraction, create well-paying jobs for its residents, and generate revenues for necessary state and local governmental services.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-3. Definitions.

As used in this chapter, unless the context clearly indicates otherwise, the following words and phrases shall have the following meanings:

  1. “Affiliate” or “affiliated entity” means an entity that directly or indirectly controls, is under common control with, or is controlled by the business. Control exists in all cases in which the entity is a member of an affiliated group of corporations as defined pursuant to § 1504 of the Internal Revenue Code of 1986 (26 U.S.C. § 1504) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and convincing evidence, as determined by the commerce corporation, that control exists in situations involving lesser percentages of ownership than required by those statutes. An affiliate of a business may contribute to meeting full-time employee requirements of a business that applies for a credit under this chapter.
  2. “Business” means an applicant that is a corporation, state bank, federal savings bank, trust company, national banking association, bank holding company, loan and investment company, mutual savings bank, credit union, building and loan association, insurance company, investment company, broker-dealer company or surety company, limited liability company, partnership or sole proprietorship.
  3. “Commerce corporation” means the Rhode Island commerce corporation established pursuant to chapter 64 of title 42.
  4. “Commitment period” means the period of time that at a minimum is twenty percent (20%) greater than the eligibility period.
  5. “Eligibility period” means the period in which a business may claim a tax credit under the program, beginning at the end of the tax period in which the commerce corporation issues a certification for the business that it has met the employment requirements of the program and extending thereafter for a term of not more than ten (10) years.
  6. “Eligible position” or “full-time job” means a full-time position in a business which has been filled with a full-time employee who earns no less than the median hourly wage as reported by the United States Bureau of Labor Statistics for the state of Rhode Island, provided, that for economically fragile industries such as manufacturing, the commerce corporation may reduce the wage threshold. An economically fragile industry shall not include retail.
  7. “Full-time employee” means a person who is employed by a business for consideration for at least thirty-five (35) hours a week, or who is employed by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization for at least thirty-five (35) hours a week, and whose wages are subject to withholding.
  8. “Hope community” means municipalities with a percentage of families below the poverty level that is greater than the percentage of families below the poverty level for the state as a whole as determined by the United States Census Bureau’s most recent American Community Survey.
  9. “Incentive agreement” means the contract between the business and the commerce corporation, which sets forth the terms and conditions under which the business shall be eligible to receive the incentives authorized pursuant to the program.
  10. “Incentive effective date” means the date the commerce corporation issues a certification for issuance of tax credit based on documentation submitted by a business pursuant to § 44-48.3-7 .
  11. “New full-time job” means an eligible position created by the business that did not previously exist in this state and which is created after approval of an application to the commerce corporation under the program. Such job position cannot be the result of an acquisition of an existing company located in Rhode Island by purchase, merger, or otherwise. For the purposes of determining the number of new full-time jobs, the eligible positions of an affiliate shall be considered eligible positions of the business so long as such eligible position(s) otherwise meets the requirements of this section.
  12. “Partnership” means an entity classified as a partnership for federal income tax purposes.
  13. “Program” means the incentive program established pursuant to this chapter.
  14. “Targeted industry” means any industry identified in the economic development vision and policy promulgated under § 42-64.17-1 or, until such time as any economic development vision and policy is promulgated, as identified by the commerce corporation.
  15. “Taxpayer” means a business granted a tax credit under this chapter or such person entitled to the tax credit because the business is a pass through entity such as a partnership, S corporation, sole proprietorship or limited liability company taxed as a partnership.
  16. “Transit oriented development area” means an area in proximity to mass-transit infrastructure including, but not limited to, an airport, rail or intermodal facility that will be further defined by regulation of the commerce corporation in consultation with the Rhode Island department of transportation.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-4. Rhode Island qualified jobs incentive program.

  1. The Rhode Island qualified jobs incentive program is hereby established as a program under the jurisdiction of and shall be administered by the commerce corporation. The program may provide tax credits to eligible businesses for an eligibility period not to exceed ten (10) years.
  2. An eligible business under the program shall be entitled to a credit against taxes imposed pursuant to chapters 11, 13, 14, 17 or 30 of title 44 as further provided under this chapter.
  3. The minimum number of new full-time jobs required to be eligible for a tax credit under this program shall be as follows:
    1. For a business in a targeted industry that employs not more than one hundred (100) full-time employees on the date of application to the commerce corporation, the creation of at least ten (10) new full-time jobs in this state;
    2. For a business in a targeted industry that employs more than one hundred (100) full-time employees on the date of application to the commerce corporation, either the creation of new full-time jobs in this state in an amount not less than ten percent (10%) of the business’s existing number of full-time employees or the creation of at least one hundred (100) new full-time jobs in this state;
    3. For a business in a non-targeted industry that employs not more than two hundred (200) full-time employees on the date of application to the commerce corporation, the creation of at least twenty (20) new full-time jobs in this state; or
    4. For a business in a non-targeted industry that employs more than two hundred (200) full-time employees on the date of application to the commerce corporation, either the creation of new full-time jobs in this state in an amount not less than ten percent (10%) of the business’s existing number of full-time employees or the creation of at least one hundred (100) new full-time jobs in this state.
  4. When a business applies for an incentive under this chapter, in order to assist the commerce corporation in determining whether the business is eligible for the incentives under this chapter, the business’s chief executive officer, or equivalent officer, shall attest under oath:
    1. That any projected creation of new full-time jobs would not occur, or would not occur in the state of Rhode Island, but for the provision of tax credits under the program;
    2. The business will create new full-time jobs in an amount equal to or greater than the applicable number set forth in subsection (c) of this section;
    3. That the business’s chief executive officer, or equivalent officer, has reviewed the information submitted to the commerce corporation and that the representations contained therein are accurate and complete.
  5. The commerce corporation shall establish, by regulation, the documentation an applicant shall be required to provide under this subsection. Such documentation may include documentation showing that the applicant could reasonably locate the new positions outside of this state, or that the applicant is considering locating the positions outside of this state, or that it would not be financially feasible for the applicant to create the positions without the tax credits provided in this chapter.
  6. In the event that this attestation by the business’s chief executive officer, or equivalent officer, required under subsection (d) of this section is found to be willfully false, the commerce corporation may revoke any award of tax credits in their entirety, which revocation shall be in addition to any other criminal or civil penalties that the business and/or the officer may be subject to under applicable law. Additionally, the commerce corporation may revoke any award of tax credits in its entirety if the eligible business is convicted of bribery, fraud, theft, embezzlement, misappropriation, and/or extortion involving the state, any state agency or political subdivision of the state.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-5. Incentive agreement required prior to issuance of tax credits.

  1. The commerce corporation shall require an eligible business to enter into an incentive agreement prior to the issuance of tax credits. The incentive agreement shall include, but shall not be limited to, the following:
    1. A detailed description of the proposed job creation including industry sectors and the number of new full-time jobs that are sought to be approved for tax credits;
    2. The eligibility period of the tax credits, including the first year for which the tax credits may be claimed;
    3. A requirement that the applicant maintain the project at a location in Rhode Island for the commitment period, with at least the minimum number of full-time employees as required by this program;
    4. A method for the business to annually certify that it has met the employment requirements of the program for each year of the commitment period;
    5. A provision permitting an audit of the payroll records of the business from time to time, as the commerce corporation deems necessary;
    6. A provision establishing the conditions under which the agreement may be terminated;
    7. A provision that if, in any tax period, the business reduces the total number of full-time employees in its statewide workforce in the last tax period prior to the credit amount approval under this program by more than twenty percent (20%) of jobs for which a credit was granted under this chapter as described in the business’s incentive agreement(s), then the business shall forfeit all credit amounts described in the business’s incentive agreement(s) for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the business’s statewide workforce to the threshold levels required by the incentive agreement(s) has been reviewed and approved by the commerce corporation, for which tax period and each subsequent tax period the full amount of the credit shall be allowed; and
    8. A provision that during the commitment period, if the business ceases operations in the state or transfers more than fifty percent (50%) of the jobs for which a credit was granted under this chapter to another state, the tax credit shall cease pursuant to this section and the business shall be liable to the state for, at a minimum, twenty percent (20%) of all tax benefits granted to the business under this chapter calculated from the date of the incentive agreement.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-6. Total amount of tax credit for eligible business.

  1. The base amount of the tax credit for an eligible business for each new full-time job shall be up to two thousand five hundred dollars ($2,500) annually.
  2. The total tax credit amount shall be calculated and credited to the business annually for each year of the eligibility period after the commerce corporation, in consultation with the division of taxation, has verified that the jobs covered by the tax credit have generated sufficient personal income taxes to comply with subsection (e) of this section.
  3. In addition to the base amount of the tax credit, the amount of the tax credit to be awarded for each new full-time job may be increased, pursuant to the provisions of subsection (d) of this section, if the business meets any of the following criteria or such other additional criteria determined by the commerce corporation from time to time in response to evolving economic or market conditions:
    1. For a business located within a hope community;
    2. For a targeted industry;
    3. For a business located within a transit oriented development area; and
    4. For an out-of-state business that relocates a business unit or units or creates a significant number of new full-time jobs during the commitment period.
  4. For any application made to the commerce corporation the tax credit for an eligible business for each new full-time job shall not exceed seven thousand five hundred dollars ($7,500) annually.
  5. Notwithstanding the provisions of subsections (a) through (d) of this section, for each application approved by the commerce corporation prior to July 1, 2019, the amount of tax credits available to be obtained by the business annually shall not exceed the reasonable W-2 withholding received by the state for each new full-time job created by a business for applications received by the commerce corporation. For each application approved by the commerce corporation after July 1, 2019, the amount of tax credits available to be obtained by the business annually shall not exceed seventy-five percent (75%) of the reasonable W-2 withholding received by the state for each new full-time job created by a business for applications received by the commerce corporation.
  6. The commerce corporation shall establish regulations regarding the conditions under which a business may submit more than one application for tax credits over time. The commerce corporation may place limits on repeat applications.

History of Section. P.L. 2015, ch. 141, art. 19, § 15; P.L. 2019, ch. 88, art. 12, § 7.

44-48.3-7. Documentation.

  1. A business shall submit documentation indicating that it has met the employment requirements specified in the incentive agreement for certification of its tax credit amount within three (3) years following the date of approval of its application by the commerce corporation. The commerce corporation, after a finding of good cause, may grant two (2) six (6) month extensions of this deadline. In no event shall the incentive effective date occur later than four (4) years following the date of approval of an application by the commerce corporation.
  2. Full-time employment for an accounting or privilege period shall be determined as the average of the monthly full-time employment for the period.
  3. In conducting its annual review of a business, the commerce corporation may require a business to submit any information determined by the commerce corporation to be necessary and relevant to its review.
  4. The credit amount for any tax period for which the documentation of a business’s credit amount remains uncertified as of a date one year after the closing date of that period shall be forfeited, although credit amounts for the remainder of the years of the eligibility period shall remain available to the business.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-8. Carry forward, transfer or redemption of tax credits, redemption fund.

  1. If the amount of the tax credit allowed under this chapter exceeds the taxpayer’s total tax liability for the year in which the credit is allowed, the amount of such credit that exceeds the taxpayer’s tax liability may be carried forward and applied against the taxes imposed for the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed to a partnership, a limited liability company taxed as a partnership, or multiple owners of property shall be passed through to the persons designated as partners, members or owners respectively pro rata or pursuant to an executed agreement among such persons designated as partners, members or owners documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity.
  2. The commerce corporation shall establish, by regulation, the process for the assignment, transfer or conveyance of tax credits.
  3. For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller’s tax calculation for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds, without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a natural person, the seller’s tax calculation under chapters 11, 13, 14, or 17 of title 44, as applicable, for the year of revocation, or adjustment, shall be increased by including the total amount of the sales proceeds without proration.
  4. The tax credit allowed under this chapter may be used as a credit against corporate income taxes imposed under chapters 11, 13, 14, or 17 of title 44, or as determined by the commerce corporation may be used as a credit against personal income taxes imposed under chapter 30 of title 44. No more than the amount of tax credits equal to the total credit amount divided by the duration of the eligibility period in years may be taken in any tax period.
  5. Prior to assignment or transfer of a tax credit granted under this chapter, the division of taxation shall, at the request of the business, redeem such credit in whole or in part for ninety percent (90%) of the value of the tax credit with monies in the jobs tax credit redemption fund created under subsection (f) of this section. The division of taxation shall establish by regulation a redemption process for tax credits.
  6. The division of taxation is hereby authorized and empowered to segregate taxes collected as a result of the creation of new full-time jobs under this chapter and transfer such amounts to the general treasurer for deposit in a restricted account known as the jobs tax credit redemption fund. The jobs tax credit redemption fund shall be used solely to pay for the redemption of tax credits granted under this chapter. The director of the department of revenue shall annually determine if a surplus exists in the job tax credit redemption fund over amounts necessary to redeem tax credits in a fiscal year and may authorize the general treasurer to transfer any surplus to the general fund.
  7. The unexpended balance of such sum of money received and appropriated for the jobs tax credit redemption fund remaining in the treasury at the close of each fiscal year, shall be continued to and is hereby annually appropriated for the same account for the ensuing year.
  8. The commerce corporation shall have no obligation to make any award or grant any benefits under this chapter.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-9. Administration.

  1. The commerce corporation may adopt implementation guidelines, directives, criteria, rules and regulations pursuant to chapter 35 of title 42 (“administrative procedures act”) as are necessary to implement this chapter, including, but not limited to: the enumeration of specific targeted industries; specific delineation of the incentive areas; the promulgation of procedures and forms necessary to apply for a tax credit, including the enumeration of the certification procedures and allocation of tax credits; and provisions for tax credit applicants to be charged an initial application fee, and ongoing service fees, to cover the administrative costs related to the tax credit.
  2. For businesses adding jobs on the basis of a future federal procurement, the commerce corporation shall establish specific procedures.
  3. The division of taxation shall adopt rules as are necessary to implement this chapter.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-10. Limitations.

The incentives provided under this chapter shall not be granted in combination with any other job specific benefit provided by the state, the commerce corporation, or any other state agency, board, commission, quasi-public corporation or similar entity without the express authorization of the commerce corporation.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-11. Program integrity.

Program integrity being of paramount importance, the commerce corporation shall establish procedures to ensure ongoing compliance with the terms and conditions of the program established herein, including procedures to safeguard the expenditure of public funds and to ensure that the funds further the objectives of the program. At a minimum these procedures will include an audit, at least every three (3) years, of the process the commerce corporation followed in the administration of the program.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-12. Discontinuance of further rate reductions and future beneficiaries under the jobs development act.

  1. The rate reduction(s) provided pursuant to chapter 64.5 of title 42 shall be discontinued effective July 1, 2015, except as provided in subsection (b) of this section.
  2. Any company that has qualified for a rate reduction pursuant to chapter 64.5 of title 42 prior to July 1, 2015, shall be entitled to maintain the rate reduction in effect as of June 30, 2015, and no additional rate reduction shall be permitted. All obligations of the company required under chapter 64.5 of title 42 to retain a rate reduction shall remain in full force and effect.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-13. Reporting requirements.

  1. By August 1st of each year, each applicant approved for credits under this chapter shall report to the commerce corporation and the division of taxation the following information:
    1. The number of total jobs created;
    2. The applicable north American industry classification survey annual system code of each job created;
    3. The annual salary of each job created;
    4. The address of each new employee;
  2. By September 1, 2016 and each year thereafter, the commerce corporation shall report the name, address, and amount of tax credit approved for each credit recipient during the previous state fiscal year to the governor, the speaker of the house of representatives, the president of the senate, the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, and the department of revenue.
  3. By October 1, 2016 and each year thereafter, the commerce corporation shall report for the year (1) the total number of businesses awarded credits in the previous fiscal year and (2) the name and address of each credit recipient. This report shall be available to the public for inspection by any person and shall be published by the chief executive of the commerce corporation on the commerce corporation and executive office of commerce websites.
  4. By October 1st of each year the division of taxation shall report the name, address, and amount of tax credit received for each credit recipient during the previous state fiscal year to the governor, the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, and the department of labor and training.
  5. By November 1st of each year the division of taxation shall report in the aggregate the information required under subsection 44-48.3-13(a) . This report shall be available to the public for inspection by any person and shall be published by the tax administrator on the tax division website.

History of Section. P.L. 2015, ch. 141, art. 19, § 15.

44-48.3-14. Sunset.

No credits shall be authorized to be reserved pursuant to this chapter after December 31, 2022.

History of Section. P.L. 2015, ch. 141, art. 19, § 15; P.L. 2018, ch. 47, art. 12, § 14; P.L. 2019, ch. 88, art. 12, § 22; P.L. 2020, ch. 80, art. 1, § 21; P.L. 2021, ch. 162, art. 9, § 17, effective July 6, 2021.

Chapter 49 Taxation of Marijuana and Controlled Substances

44-49-1. Short title.

This chapter shall be known as the “Marijuana and Controlled Substances Taxation Act”.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-2. Definitions.

  1. “Controlled substance” means any drug or substance, whether real or counterfeit, as defined in § 21-28-1.02(8) , that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Rhode Island laws. “Controlled substance” does not include marijuana.
  2. “Dealer” means a person who in violation of Rhode Island law manufactures, produces, ships, transports, or imports into Rhode Island or in any manner acquires or possesses more than forty-two and one half (42.5) grams of marijuana, or seven (7) or more grams of any controlled substance, or ten (10) or more dosage units of any controlled substance which is not sold by weight. A quantity of marijuana or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the dealer’s possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
  3. “Marijuana” means any marijuana, whether real or counterfeit, as defined in § 21-28-1.02(30) , that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Rhode Island laws.

History of Section. P.L. 1989, ch. 392, § 1; P.L. 2000, ch. 109, § 52; P.L. 2004, ch. 6, § 24.

44-49-3. Administration.

The tax administrator shall administer this chapter. Payments required by this chapter must be made to the tax administrator on the form provided by the tax administrator. Dealers are not required to give their name, address, social security number, or other identifying information on the form. The tax administrator shall collect all taxes under this chapter.

History of Section. P.L. 1989, ch. 392, § 1; P.L. 1992, ch. 284, § 1.

44-49-4. Rules.

The tax administrator may adopt rules necessary to enforce this chapter. The tax administrator shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-5. Tax payment required for possession.

No dealer may possess any marijuana or controlled substance upon which a tax is imposed under this chapter unless the tax has been paid on the marijuana or a controlled substance as evidenced by a stamp or other official indicia.

History of Section. P.L. 1989, ch. 392, § 1; P.L. 2000, ch. 109, § 52.

44-49-6. No immunity.

Nothing in this chapter may in any manner provide immunity for a dealer from criminal prosecution pursuant to Rhode Island law.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-7. Pharmaceuticals.

Nothing in this chapter shall require persons lawfully in possession of marijuana or a controlled substance to pay the tax required under this chapter.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-8. Measurement.

For the purpose of calculating this tax, a quantity of marijuana or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the dealer’s possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

History of Section. P.L. 1989, ch. 392, § 1; P.L. 2000, ch. 109, § 52.

44-49-9. Tax rate.

A tax is imposed on marijuana and controlled substances as defined in § 44-49-2 at the following rates:

  1. On each gram of marijuana, or each portion of a gram, three dollars and fifty cents ($3.50); and
  2. On each gram of controlled substance, or portion of a gram, two hundred dollars ($200); or
  3. On each ten (10) dosage units of a controlled substance that is not sold by weight, or portion of the dosage units, four hundred dollars ($400).

History of Section. P.L. 1989, ch. 392, § 1.

44-49-9.1. Imposition of tax, interest and liens.

  1. Any law enforcement agency seizing marijuana and/or controlled substances as defined in § 44-49-2 in the quantities set forth in that section shall report to the division of taxation no later than the twenty-fifth (25th) of each month, the amount of all marijuana and controlled substances seized during the previous month and the name and address of each dealer from whom the marijuana and controlled substances were seized.
  2. The tax administrator shall assess the dealer for any tax due at the rate provided by § 44-49-9 . The tax shall be payable within fifteen (15) days after its assessment and, if not paid when due, shall bear interest from the date of its assessment at the rate provided in § 44-1-7 until paid.
  3. The tax administrator may file a notice of tax lien upon the real property of the dealer located in this state immediately upon mailing a notice of assessment to the dealer at the address listed in the report of the law enforcement agency. The tax administrator may discharge the lien imposed upon the filing of a bond satisfactory to the tax administrator in an amount equal to the tax, interest and penalty imposed under this chapter.

History of Section. P.L. 1992, ch. 284, § 2.

44-49-10. Penalties — Criminal provisions.

  1. Penalties.  Any dealer violating this chapter is subject to a penalty of one hundred percent (100%) of the tax in addition to the tax imposed by § 44-49-9 . The penalty will be collected as part of the tax.
  2. Criminal penalty; sale without affixed stamps.  In addition to the tax penalty imposed, a dealer distributing or possessing marijuana or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than five (5) years, or to payment of a fine of not more than ten thousand dollars ($10,000), or both.
  3. Statute of limitations.  An indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six (6) years after the commission of this offense.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-11. Stamp price.

Official stamps, labels, or other indicia to be affixed to all marijuana or controlled substances shall be purchased from the tax administrator. The purchaser shall pay one hundred percent (100%) of face value for each stamp, label, or other indicia at the time of the purchase.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-12. Payment due.

  1. Stamps affixed. When a dealer purchases, acquires, transports, or imports into this state marijuana or controlled substances on which a tax is imposed by § 44-49-9 , and if the indicia evidencing the payment of the tax have not already been affixed, the dealer shall have them permanently affixed on the marijuana or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.
  2. Payable on possession. Taxes imposed upon marijuana or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a dealer.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-13. Injunction prohibited — Burden of proof.

  1. Injunction prohibited.  No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter.
  2. Standard of proof.  The tax and penalties assessed by the tax administrator are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the tax administrator with the court administrator, or any other certificate by the tax administrator of the amount of tax and penalties determined or assessed, is admissible in evidence and is prima facie evidence of the facts it contains.

History of Section. P.L. 1989, ch. 392, § 1; P.L. 1992, ch. 284, § 1.

44-49-13.1. Hearings by tax administrator on application, appeals.

  1. Any dealer aggrieved by any assessment shall notify the tax administrator, in writing, within thirty (30) days from the date of mailing by the tax administrator of the notice of the assessment, and shall request a hearing relative to the assessment; and the tax administrator shall, as soon as practicable, fix a time and place for a hearing and shall, after the hearing, determine the correct amount of the tax, interest and penalties. The tax and penalties assessed by the tax administrator are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity.
  2. Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s right to appeal under this section shall be expressly made conditional upon prepayment of all taxes, interest, and penalties, unless the taxpayer moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 .

History of Section. P.L. 1992, ch. 284, § 2; P.L. 1993, ch. 459, § 12; P.L. 1999, ch. 354, § 39.

44-49-14. Confidential nature of information.

  1. Disclosure prohibited.  Notwithstanding any law to the contrary, neither the tax administrator nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a dealer; nor can any information contained in a report or return or obtained from a dealer be used against the dealer in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the dealer making the return.
  2. Penalty for disclosure.  Any person violating this section is guilty of a misdemeanor.
  3. Statistics.  This section does not prohibit the tax administrator from publishing statistics that do not disclose the identity of dealers or the contents of particular returns or reports.

History of Section. P.L. 1989, ch. 392, § 1.

Collateral References.

Recovery of damages under § 7431(c)(1)(B) of Internal Revenue Code (26 USCA § 7431(c)(1)(B)) based on improper release of confidential tax return information. 154 A.L.R. Fed. 537.

44-49-15. Investigatory powers.

For the purpose of determining the correctness of any return, determining the amount of tax that should have been paid, determining whether or not the dealer should have made a return or paid taxes, or collecting any taxes under this chapter, the tax administrator may examine, or cause to be examined, any books, papers, records, or memoranda, that may be relevant to making those determinations, whether the books, papers, records, or memoranda, are the property of or in the possession of the dealer of another person. The tax administrator may require the attendance of any person having knowledge or information that may be relevant, compel the production of books, papers, records, or memoranda by persons required to attend, take testimony on matters material to the determination, and administer oaths or affirmations. Upon demand of the tax administrator or any examiner or investigator, the court administrator of any court shall issue a subpoena for the attendance of a witness or the production of books, papers, records, and memoranda. The tax administrator may also issue subpoenas. Disobedience of subpoenas issued under this chapter is punishable by the superior court of the district in which the subpoena is issued, or, if the subpoena is issued by the tax administrator, by the superior court or the county in which the party served with the subpoena is located, in the same manner as contempt of superior court.

History of Section. P.L. 1989, ch. 392, § 1.

44-49-16. Abatement.

Notwithstanding any provisions within this chapter, the tax administrator shall have the authority for cause shown to abate any taxes assessed pursuant to §§ 44-49-9.1 and 44-49-10 . Cause shown shall include a request for an abatement by the department of attorney general for dealers who have cooperated with law enforcement authorities in the investigation and prosecution of violations of the Rhode Island Controlled Substances Act, chapter 28 of title 21.

History of Section. P.L. 1992, ch. 284, § 2.

Chapter 50 Health Care Provider Assessment Act [Repealed.]

44-50-1 — 44-50-14. Repealed.

History of Section. P.L. 1992, ch. 15, art. 5, § 1; P.L. 1992, ch. 498, § 2; P.L. 1993, ch. 459, § 14; 1999, ch. 83, § 126; P.L. 1999, ch. 130, § 126; P.L. 2000, ch. 109, § 53; P.L. 2003, ch. 103, art. 2, § 1; P.L. 2008, ch. 98, § 54; P.L. 2008, ch. 145, § 54; Repealed by P.L. 2009, ch. 68, § 3, effective July 1, 2009.

Compiler’s Notes.

Former §§ 44-50-1 44-50-1 4 concerned the Health Care Provider Assessment Act. For present comparable provisions, see chapter 51 of this title.

Applicability.

P.L. 2009, ch. 68, art. 16, § 17 provides that the repeal of this chapter takes effect upon passage [July 1, 2009] and applies to provider tax assessment of gross patient revenues related to services provided after June 30, 2009, but shall not apply to assessments of gross patient revenue due and payable to the State for services provided prior to July 1, 2009.

Chapter 51 Nursing Facility Provider Assessment Act

44-51-1. Short title.

This chapter shall be known as “The Nursing Facility Provider Assessment Act”.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-2. Definitions.

Except where the context otherwise requires, the following words and phrases as used in this chapter shall have the following meaning:

  1. “Administrator” means the tax administrator.
  2. “Assessment” means the assessment imposed upon gross patient revenue pursuant to this chapter.
  3. “Gross patient revenue” means the gross amount received on a cash basis by the provider from all patient care services. Charitable contributions, donated goods and services, fund raising proceeds, endowment support, income from meals on wheels, income from investments, and other nonpatient revenues defined by the tax administrator upon the recommendation of the department of human services shall not be considered as “gross patient revenue”.
  4. “Person” means any individual, corporation, company, association, partnership, joint stock association, and the legal successor thereof.
  5. “Provider” means a licensed facility or operator, including a government facility or operator, subject to an assessment under this chapter.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-3. Imposition of assessment — Nursing facilities.

  1. For purposes of this section, a “nursing facility” means a person or governmental unit licensed in accordance with chapter 17 of title 23 to establish, maintain, and operate a nursing facility.
  2. An assessment is imposed upon the gross patient revenue received by every nursing facility in each month beginning January 1, 2008, at a rate of five and one-half percent (5.5%) for services provided on or after January 1, 2008. Every provider shall pay the monthly assessment no later than the twenty-fifth (25th) day of each month following the month of receipt of gross patient revenue.
  3. The assessment imposed by this section shall be repealed on the effective date of the repeal or a restricted amendment of those provisions of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991 (P.L. 102-234) that permit federal financial participation to match state funds generated by taxes.
  4. If, after applying the applicable federal law and/or rules, regulations, or standards relating to health care providers, the tax administrator determines that the assessment rate established in subsection (b) of this section exceeds the maximum rate of assessment that federal law will allow without reduction in federal financial participation, then the tax administrator is directed to reduce the assessment to a rate equal to the maximum rate which the federal law will allow without reduction in federal participation. Provided, however, that the authority of the tax administrator to lower the assessment rate established in subsection (b) of this section shall be limited solely to such determination.
  5. In order that the tax administrator may properly carry out his/her responsibilities under this section, the director of the department of human services shall notify the tax administrator of any damages in federal law and/or any rules, regulations, or standards which affect any rates for health care provider assessments.

History of Section. P.L. 1992, ch. 133, art. 75, § 1; P.L. 1995, ch. 370, art. 25, § 2; P.L. 1997, ch. 30, art. 23, § 2; P.L. 2003, ch. 376, art. 7, § 14; P.L. 2008, ch. 9, art. 14, § 1.

44-51-4. Returns.

  1. Every provider shall on or before the twenty-fifth (25th) day of the month following the month of receipt of gross patient revenue make a return to the tax administrator.
  2. The tax administrator shall adopt rules, pursuant to this chapter, relative to the form of the return and the data which it must contain for the correct computation of gross patient revenue and the assessment upon that amount. All returns shall be signed by the provider or by its authorized representative, subject to the pains and penalties of perjury. If a return shows an overpayment of the assessment due, the tax administrator shall refund or credit the overpayment to the provider.
  3. For good cause, the tax administrator may extend the time within which a provider is required to file a return, and if the return is filed during the period of extension no penalty or late filing charge may be imposed for failure to file the return at the time required by this chapter, but the provider may be liable for interest as prescribed in this chapter. Failure to file the return during the period for the extension shall void the extension.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-5. Set-off for delinquent assessments.

If a provider shall fail to pay an assessment within thirty (30) days of its due date, the tax administrator may request any agency of state government making payments to the provider to set off the amount of the delinquency against any payment due the provider from the agency of state government and remit the sum to the tax administrator. Upon receipt of the set off request from the tax administrator, any agency of state government is authorized and empowered to set off the amount of the delinquency against any payment or amounts due the provider. The amount of set-off shall be credited against the assessment due from the provider.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-6. Assessment on available information — Interest on delinquencies — Penalties — Collection powers.

If any provider shall fail to file a return within the time required by this chapter, or shall file an insufficient or incorrect return, or shall not pay the assessment imposed by this chapter when it is due, the tax administrator shall assess upon the information as may be available, which shall be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7 from the date when the assessment should have been paid. If any part of the assessment made is due to negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to the assessment. The tax administrator shall collect the assessment with interest in the same manner and with the same powers as are prescribed for collection of taxes in this title.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-7. Claims for refund — Hearing upon denial.

  1. Any provider subject to the provisions of this chapter may file a claim for refund with the tax administrator at any time within two (2) years after the assessment has been paid. If the tax administrator shall determine that the assessment has been overpaid, he or she shall make a refund with interest from the date of overpayment.
  2. Any provider whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the tax administrator of the notice of the decision, request a hearing and the tax administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the provider.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-8. Hearing by administrator on application.

Any provider aggrieved by the action of the tax administrator in determining the amount of any assessment or penalty imposed under the provisions of this chapter may apply to the tax administrator, in writing, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to the assessment or penalty. The tax administrator shall fix a time and place for the hearing and shall notify the provider. Upon the hearing, the tax administrator shall correct manifest errors, if any, disclosed at the hearing and assess and collect the amount lawfully due together with any penalty or interest.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-9. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The provider’s right to appeal under this section shall be expressly made conditional upon prepayment of all assessments, interest, and penalties unless the provider moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the provider is entitled to a refund, the provider shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-10. Provider records.

Every provider shall:

  1. Keep records as may be necessary to determine the amount of its liability under this chapter.
  2. Preserve those records for the period of three (3) years following the date of filing of any return required by this chapter, or until any litigation or prosecution under this chapter is finally determined.
  3. Make those records available for inspection by the tax administrator or his authorized agents, upon demand, at reasonable times during regular business hours.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-11. Method of payment and deposit of assessment.

  1. The payments required by this chapter may be made by electronic transfer of moneys to the general treasurer and deposited to the general fund.
  2. The general treasurer is authorized to establish an account or accounts and to take all steps necessary to facilitate the electronic transfer of monies. The general treasurer shall provide the tax administrator with a record of any monies transferred and deposited.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-12. Rules and regulations.

The tax administrator shall make and promulgate rules, regulations, and procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for the proper administration of this chapter and to carry out the provisions, policy, and purposes of this chapter.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-13. Release of assessment information.

Notwithstanding any other provisions of the general laws, the tax administrator shall not be prohibited from providing assessment information to the director of the department of human services or his or her designee, with respect to the assessment imposed by this chapter; provided, that the director of human services and his or her agents and employees may use or disclose that information only for purposes directly connected with the administration of the duties and programs of the department of human services.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

44-51-14. Severability.

If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 1992, ch. 133, art. 75, § 1.

Chapter 52 Outpatient Health Care Facility Provider Assessment

44-52-1. Short title. [Contingent repeal — See notes.]

This chapter shall be known as “The Outpatient Health Care Facility Provider Assessment Act”.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

Compiler’s Notes.

P.L. 1992, ch. 133, art. 76, § 2, provides that “the monthly Provider Assessment established by section 44-50-3 within section 1 of this article shall not be imposed until the month following the month of receipt by the department of human services and/or the tax administrator of written notification from the secretary of the U.S. department of health and human services approving a waiver, pursuant to 42 USC 1396(w)(1)(E) to treat such provider assessment as revenues from a broad-based health care-related tax. Any regulations required to implement this article shall be effective immediately as an emergency rule upon the filing thereof with the secretary of state, pursuant to the requirements of section 42-35-4(b)(2), as the current fiscal crisis in this state has caused an imminent peril to public health, safety and welfare.”

Delayed Repealed Sections.

P.L. 1992, ch. 133, art. 76, § 3, provides that chapter 52 of this title “shall be repealed on the earlier of (a) the repeal or restrictive amendment of those provisions of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1992 (Public Law 102-234) [42 U.S.C. § 1396 et seq.] that permit federal financial participation to match state funds generated by taxes, or (b) September 30, 1995 if required by said Public Law 102-234.”

44-52-2. Definitions. [Contingent repeal — See notes following § 44-52-1.]

Except where the context otherwise requires, the following words and phrases as used in this chapter have the following meaning:

  1. “Administrator” means the tax administrator.
  2. “Gross patient revenue” means the gross amount received on a cash basis by the provider from all patient care or laboratory services and other gross operating income. Charitable contributions, fund raising proceeds, and endowment support shall not be considered as “gross patient revenue”.
  3. “Person” means any individual, corporation, company, association, partnership, joint stock association, and the legal successor thereof.
  4. “Provider” means a licensed facility or operator, including a government facility or operator, subject to a provider assessment under this chapter.
  5. “Provider assessment” means the assessment imposed upon gross patient revenue pursuant to this chapter.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-3. Imposition of provider assessment — Outpatient health care facility. [Contingent repeal — See notes following § 44-52-1.]

  1. For purposes of this section, an “outpatient health care facility” means a person or governmental unit which is licensed in accordance with chapter 17 of title 23 to establish, maintain, and operate a free-standing emergency care facility, or which is licensed in accordance with chapter 16.2 of title 23 to establish, maintain and operate a clinical laboratory.
  2. A provider assessment is imposed upon the gross patient revenue received by every outpatient health care facility in each month at a rate of one and one-half percent (1.50%). Every provider shall pay the monthly provider assessment no later than the twenty-fifth (25th) day of each month following the month of receipt of gross patient revenue. This provider assessment is in addition to any other fees or assessments upon the outpatient facilities allowed or allowable by law.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-4. Returns. [Contingent repeal — See notes following § 44-52-1.]

  1. Every provider shall on or before the twenty-fifth (25th) day of the month following the month of receipt of gross patient revenue make a return to the tax administrator.
  2. The tax administrator shall adopt rules, pursuant to this chapter, relative to the form of the return and the data which it must contain for the correct computation of gross patient revenue and the licensing fee upon the amount. All returns shall be signed by the provider or by its authorized representative, subject to the pains and penalties of perjury. If a return shows an overpayment of the provider assessment due, the tax administrator shall refund or credit the overpayment to the provider.
  3. The tax administrator, for good cause, may extend the time within which a provider is required to file a return, and if the return is filed during the period of extension no penalty or late filing charge may be imposed for failure to file the return at the time required by this chapter, but the provider shall be liable for interest as prescribed in this chapter. Failure to file the return during the period for the extension shall void the extension.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-5. Set-off for delinquent provider assessment. [Contingent repeal — See notes following § 44-52-1.]

If a provider shall fail to pay a provider assessment within thirty (30) days of its due date, the tax administrator may request any agency of state government making payments to the provider to set off the amount of the delinquency against any payment due the provider from the agency of state government and remit the sum to the tax administrator. Upon receipt of the set-off request from the tax administrator, any agency of state government is authorized and empowered to set off the amount of the delinquency against any payment or amounts due the provider. The amount of set-off shall be credited against the provider assessment due from the provider.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-6. Provider assessment on available information — Interest on delinquencies — Penalties — Collection powers. [Contingent repeal — See notes following § 44-52-1.]

If any provider shall fail to file a return within the time required by this chapter, or shall file an insufficient or incorrect return, or shall not pay the provider assessment imposed by this chapter when it is due, the tax administrator shall assess upon the information as may be available, which shall be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7 , as amended, from the date when the provider assessment should have been paid. If any part of the provider assessment made is due to negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to the assessment. The tax administrator shall collect the provider assessment with interest in the same manner and with the same powers as are prescribed for collection of taxes in this title.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-7. Claims for refund — Hearing upon denial. [Contingent repeal — See notes following § 44-52-1.]

  1. Any provider, subject to the provisions of this chapter, may file a claim for refund with the tax administrator at any time within two (2) years after the provider assessment has been paid. If the tax administrator shall determine that the provider assessment has been overpaid, he or she shall make a refund with interest from the date of overpayment.
  2. Any provider whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the administrator of the notice of the decision, request a hearing and the administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the provider.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-8. Hearing by tax administrator on application. [Contingent repeal — See notes following § 44-52-1.]

Any provider aggrieved by the action of the tax administrator in determining the amount of any provider assessment fee or penalty imposed under the provisions of this chapter may apply to the tax administrator, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to the assessment or penalty. The tax administrator shall fix a time and place for the hearing and shall so notify the provider. Upon the hearing the tax administrator shall correct manifest errors, if any, disclosed at the hearing and thereupon assess and collect the amount lawfully due together with any penalty or interest thereon.

History of Section. P.L. 1992, ch. 133, art. 76, § 1; P.L. 1993, ch. 459, § 16.

44-52-9. Appeals. [Contingent repeal — See notes following § 44-52-1.]

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The provider’s right to appeal under this section shall be expressly made conditional upon prepayment of all provider assessments, interest, and penalties unless the provider moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 . If the court, after appeal, holds that the provider is entitled to a refund, the provider shall also be paid interest on the amount at the rate provided in § 44-1-7.1 .

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-10. Provider records. [Contingent repeal — See notes following § 44-52-1.]

Every provider shall:

  1. Keep records as may be necessary to determine the amount of its liability under this chapter.
  2. Preserve those records for the period of three (3) years following the date of filing of any return required by this chapter, or until any litigation or prosecution under this chapter is finally determined.
  3. Make those records available for inspection by the administrator or his authorized agents, upon demand, at reasonable times during regular business hours.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-11. Method of payment and deposit of provider assessment. [Contingent repeal — See notes following § 44-52-1.]

  1. The payments required by this chapter may be made by electronic transfer of monies to the general treasurer and deposited to the general fund.
  2. The general treasurer is authorized to establish an account or accounts and to take all steps necessary to facilitate the electronic transfer of monies. The general treasurer shall provide the tax administrator a record of any monies transferred and deposited.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-12. Rules and regulations. [Contingent repeal — See notes following § 44-52-1.]

The tax administrator shall make and promulgate rules, regulations, and procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for the proper administration of this chapter and to carry out the provisions, policy, and purposes of this chapter.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-13. Release of provider assessment information. [Contingent repeal — See notes following § 44-52-1.]

Notwithstanding any other provisions of the general laws, the tax administrator shall not be prohibited from providing information to the director of the department of human services or his or her designee, with respect to the provider assessment imposed by this chapter; provided, that the director of human services and his or her agents and employees may use or disclose that information only for purposes directly connected with the administration of the duties and programs of the department of human services.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

44-52-14. Severability. [Contingent repeal — See notes following § 44-52-1.]

If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 1992, ch. 133, art. 76, § 1.

Chapter 53 Levy and Distraint

44-53-1. Levy upon property.

If any person liable to pay any tax or surcharge that is required to be remitted to the tax division pursuant to § 39-21.1-14 neglects or refuses to pay the tax within ten (10) days after demand, it shall be lawful for the tax administrator to collect the tax, and any further sum that is sufficient to cover the expenses of the levy, by levy upon all property and rights to property belonging to the person or on which there is a lien provided in this title or for the payment of the tax. If the tax administrator makes a finding that the collection of the tax is in jeopardy, notice and demand for immediate payment of the tax may be made by the tax administrator and, upon failure or refusal to pay the tax, collection of the tax by levy shall be lawful without regard to the ten (10) day period provided in this section.

History of Section. P.L. 1993, ch. 138, art. 68, § 1; P.L. 2007, ch. 73, art. 4, § 4.

44-53-2. “Levy” defined.

“Levy”, as used in this chapter, includes the power of distraint and seizure by any means. A levy shall extend only to property possessed and obligations existing at the time. In any case in which the tax administrator may levy upon property or rights to property, the tax administrator may seize and sell the property or rights to property, whether real or personal, tangible or intangible.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-3. Successive seizures.

Whenever any property or right to property upon which levy has been made by virtue of § 44-53-1 is not sufficient to satisfy the claim of the state for which levy is made, the tax administrator may, after this, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom the claim exists, until the amount due from the person, together with all expenses, is fully paid.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-4. Notice before levy.

  1. Levy may be made under § 44-53-1 upon the salary or wages or other property of any person with respect to any unpaid tax after the tax administrator has notified the person, in writing, of his or her intention to make the levy. The notice shall be given thirty (30) days prior to the levy and shall be given:
    1. in person, or
    2. left at the dwelling or usual place of business of the person, or
    3. sent by certified or registered mail to the person’s last known address no less than thirty (30) days before the day of the levy.
  2. This section shall not apply to a levy if the tax administrator has made a finding under the last sentence of § 44-53-1 that the collection of tax is in jeopardy.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-5. Continuing levy on salary and wages.

The effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date the levy is first made until the liability out of which the levy arose is satisfied or becomes unenforceable by reason of lapse of time. The effect of a levy on any other property or rights to property shall remain in effect for six months (6) from the date the levy is first made or until the liability out of which the levy arose is satisfied or becomes unenforceable by reason of lapse of time. With respect to a levy described in this section, the tax administrator shall promptly release the levy when the liability out of which the levy arose is satisfied or becomes unenforceable by reason of lapse of time, and shall promptly notify the person upon whom the levy was made that the levy has been released.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-6. Surrender of property.

  1. Any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made shall, upon demand of the tax administrator, surrender the property or rights, or discharge the obligation, to the tax administrator, except that part of the property or rights as is, at the time of the demand, subject to an attachment or execution under any judicial process.
  2. Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the tax administrator, shall be liable in their own person and estate to the state in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which the levy has been made, together with costs and interests on the sum at the rate prescribed in § 44-1-7 from the date of the levy. Any amount, other than costs, recovered under this subsection shall be credited against the tax liability for the collection of which the levy was made.
  3. In addition to the personal liability imposed by subsection (b) of this section, if any person required to surrender property or rights to property fails or refuses to surrender the property or rights to property without a reasonable cause, the person shall be liable for penalty equal to fifty percent (50%) of the amount recoverable under subsection (b) of this section. No part of the penalty shall be credited against the tax liability for the collection of which the levy was made.
  4. Any financial institution chartered under state or federal law, including, but not limited to, trust companies, savings banks, savings and loan associations, national banks and credit unions, shall surrender any deposits, including any interest in the financial institution that would otherwise be required to be surrendered under this subsection only after twenty-one (21) days after service of levy.
  5. Any person in possession of, or obligated with respect to property or rights to property subject to levy upon which a levy has been made, who, upon demand by the tax administrator, surrenders the property or rights to property or discharges the obligation, to the tax administrator, or who pays a liability under subsection (b) of this section shall be discharged from any obligation or liability to the delinquent taxpayer with respect to the property or rights to property arising from the surrender or payment. In the case of a levy which is satisfied, the person shall also be discharged from any obligation or liability to any beneficiary arising from the surrender payment.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-7. Records on property subject to levy.

If a levy has been made or is about to be made on any property, or right to property, any person having custody or control of any books or records, containing evidence or statements relating to the property, or right to property subject to levy, shall, upon demand of the tax administrator, exhibit the books or records to the tax administrator.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-8. Exemptions.

  1. There shall be exempt from levy the following property:
    1. Those items of wearing apparel and school books that are necessary for the taxpayer or for the members of the taxpayer’s family.
    2. If the taxpayer is the head of the family, the fuel, provisions, furniture and personal effects in the taxpayer’s household, and of the arms for personal use, livestock, and poultry of the taxpayer, that does not exceed fifteen hundred dollars ($1,500) in value.
    3. The books and tools necessary for the trade, business or profession of the taxpayer that does not exceed in the aggregate one thousand dollars ($1,000) in value.
    4. Any amount payable to individuals with respect to their unemployment, including any portion payable with respect to dependents, under an unemployment compensation law of the United States, or of any state.
    5. Mail, addressed to any person, which has not been delivered to the addressee.
    6. Annuity or pension payments under the Railroad Retirement Act, 45 U.S.C. § 231 et seq., benefits under the Railroad Unemployment Insurance Act, 45 U.S.C. § 351 et seq., special pension payments received by a person whose name has been entered on the Army, Navy, Air Force and Coast Guard Medal of Honor Roll, 38 U.S.C. § 1562, and annuities based on retired or retainer pay under chapter 73 of title 10 of the United States Code, 10 U.S.C. § 1431 et seq.
    7. Any amount payable to an individual as workers’ compensation, including any portion payable with respect to dependents under a workers’ compensation law of the United States, or of any state.
    8. If the taxpayer is required by judgment of a court of competent jurisdiction, entered prior to the date of levy, to contribute to the support of the taxpayer’s minor children, the amount of their salary, wages, or other income that is necessary to comply with the judgment.
    9. Any amount payable to or received by an individual as wages or salary for personal services, or as income derived from other sources, during any period, to the extent that the total of the amounts payable to or received by them during that period does not exceed the applicable exempt amount determined under subsection (d) of this section.
    10. In addition to the exemptions listed in this section, any property exempt from levy and execution under § 9-26-4 shall also be exempt under this chapter.
  2. The person seizing property of the type described in subsection (a) of this section shall appraise and set aside to the owner the amount of the property declared to be exempt. If the taxpayer objects at the time of seizure to the valuation fixed by the person making the seizure, the tax administrator shall summon three (3) disinterested individuals who shall make the valuation.
  3. Notwithstanding any other law, no property or rights to property shall be exempt from levy other than the property specifically made exempt by subsection (a) of this section.
    1. (i) In the case of individuals who are paid or receive all of their wages, salary, and other income on a weekly basis, the amount of the wages, salary, and other income payable to or received by them during any week which is exempt from levy under subdivision (a)(9) of this section shall be:
      1. Seventy-five dollars ($75.00), plus
      2. Twenty-five dollars ($25.00) for each individual who is specified in a written statement which is submitted to the person on whom notice of levy is served and which is verified in the manner the tax administrator shall prescribe by regulations and:
        1. Over half of whose support for the payroll period was received from the taxpayer,
        2. Who is the spouse of the taxpayer, or who bears a relationship to the taxpayer specified in 26 U.S.C. § 152(a)(1) — (9) relating to definition of dependents, and
        3. Who is not a minor child of the taxpayer with respect to whom amounts are exempt from levy under subsection (a)(8) of this section for the payroll period.
    2. In the case of any individual not described in subdivision (1) of this subsection, the amount of the wages, salary, and other income payable to or received by them during any applicable pay period or other fiscal period, as determined under regulations prescribed by the tax administrator, which is exempt from levy under subdivision (a)(9) of this section shall be an amount, determined under those regulations, which as nearly as possible will result in the same total exemption from levy for the individual over a period of time as the individual would have under subdivision (a)(1) of this section if, during that period of time, the individual were paid or received wages, salary, or other income on a regular weekly basis.

(ii) For the purposes of item (i)(B)(II) of this subdivision, “payroll period” shall be substituted for “taxable year” each place it appears in 26 U.S.C. § 152(a)(9).

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-9. Notice of seizure — Sale of property.

  1. As soon as practicable after seizure of property, notice, in writing, shall be given by the tax administrator to the owner of the property, or, in the case of personal property, the processor, or shall be left at their usual place of abode or business, if they have a place of abode or business within the state. If the owners cannot be readily located, or have no dwelling or place of business within the state, the notice may be mailed to their last known address. The notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property seized and, in the case of real property, a description with reasonable certainty of the property seized.
  2. The tax administrator shall as soon as practicable after the seizure of the property give notice to the owner, in the manner prescribed in subsection (a) of this section, and shall cause notification to be published in some newspaper published or generally circulated within the county where the seizure is made, or, if there be is newspaper published or generally circulated in that county, shall post the notice at the city or town hall nearest the place where the seizure is made, and in not less than two (2) other public places. The notice shall specify the property to be sold and the time, place, manner, and conditions of the sale of the property. Whenever levy is made without regard to the ten (10) day period provided in § 44-53-1 , public notice of sale of the property seized shall not be made within the ten (10) day period unless § 44-53-10 is applicable.
  3. If any property liable to levy is not divisible, enabling the tax administrator by sale of a part of the property to raise the whole amount of the tax expenses, the whole of the property shall be sold.
  4. The time of sale shall not be less than ten (10) days nor more than forty (40) days from the time of giving public notice under subsection (b) of this section. The sale may be adjourned from time to time, but the adjournments shall not be for a period to exceed, in all, one month.
    1. Before the sale, the tax administrator shall determine a minimum price for which the property shall be sold, and if no person offers the minimum price for the property at the sale, the property shall be declared to be purchased at that price for the state; otherwise the property shall be declared to be sold to the highest bidder. In determining the minimum price, the tax administrator shall take into account the expense of making the levy and sale.
    2. The tax administrator may by regulations prescribe the manner and other conditions of the sale of property seized by levy.
    3. If payment in full is required at the time of acceptance of a bid and is not then and there paid, the tax administrator shall immediately proceed to again sell the property as provided under this subsection. If the conditions of the sale permit part of the payment to be deferred, and if that part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or the part of the price that has not been paid, together with interest at the rate prescribed in § 44-1-7 from the date of the sale; or, in the discretion of the tax administrator, the sale may be declared by the tax administrator to be null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided in subsections (b) and (c) of this section and this subsection. In the event of re-advertisement and sale, any new purchaser shall receive the property, or rights to property, free and clear of any claim or right to the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by the defaulting purchaser shall be forfeited.

History of Section. P.L. 1993, ch. 138, art. 68, § 1; P.L. 1999, ch. 354, § 40.

44-53-10. Appraised value of seized property.

  1. If the tax administrator determines that any property seized is liable to perish or become greatly reduced in price or value, or that the property cannot be kept without great expense, the tax administrator shall appraise the value of the property and, if the owner of the property can be readily found, shall give the owner notice of the determination of the appraised value of the property. The property shall be returned to the owner if, within the time specified in the notice, the owner either pays to the tax administrator an amount equal to the appraised value, or gives bond in a form, with the sureties, and in an amount as the tax administrator shall prescribe, to pay the appraised amount at the time the tax administrator determines to be appropriate in the circumstances.
  2. If the owner does not pay the amount or furnish the bond in accordance with this section, the tax administrator shall as soon as practicable make public sale of the property in accordance with regulations that may be prescribed by the tax administrator.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-11. Redemption of levied property.

  1. Any person whose property has been levied upon shall have the right to pay the amount due, together with the expense of the proceeding, if any, to the tax administrator at any time prior to the sale of the property, and upon that payment the tax administrator shall restore the property to the owner, and all further proceedings in connection with the levy of the property shall cease from the time of that payment.
    1. The owners of any real property sold as provided in § 44-53-9 , their heirs, executors, or administrators, or any person having any interest in the property, or a lien on the property, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of the property, at any time within one hundred and eighty (180) days after the sale of the property.
    2. The property or tract of property shall be permitted to be redeemed upon payment to the purchaser, or in case the purchaser cannot be found in the county in which the property to be redeemed is situated, then to the tax administrator for the use of the purchaser, the purchaser’s heirs, or assigns, the amount paid by the purchaser and interest at the rate provided in § 44-1-7 .
  2. When any lands sold are redeemed as provided in this section, the tax administrator shall cause entry of the fact to be made upon record mentioned in § 44-53-14 and the entry shall be evidence of that redemption.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-12. Certificate of sale.

  1. In the case of property sold as provided in § 44-53-9 , the tax administrator shall give the purchaser a certificate of sale upon payment in full of the purchase price. In the case of real property, the certificate must state the real property purchased, for whose taxes it was sold, the name of the purchaser and the price paid.
  2. In the case of any real property sold as provided in § 44-53-9 and not redeemed in the manner and within the time provided in § 44-53-11 , the tax administrator shall execute to the purchaser of the real property at the sale, upon the purchaser’s surrender of the certificate of sale, a deed of the real property purchased reciting the facts stated in the certificate.
  3. If real property is declared purchased by the state at a sale pursuant to § 44-53-9 , the tax administrator shall at the proper time execute a deed for the property, and without delay cause the deed to be recorded in the proper registry of deeds.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-13. Ramifications of certificate of sale.

  1. In all cases of sale of property pursuant to § 44-53-9 , other than real property, the certificate of sale:
    1. Shall be prima facie evidence of the right of the tax administrator to make the sale and conclusive evidence of the regularity of the proceedings of making the sale;
    2. Shall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold;
    3. If the property consists of stocks, shall be notice, when received, to any corporation, company, or association of the transfer, and shall be authority to any corporation, company, or association to record the transfer on its books and records, in the same manner as if the stocks were transferred or assigned by the party holding the stocks, in lieu of any original or prior certificate, which shall be void, whether cancelled or not;
    4. If the subject of sale is securities or other evidences of debt, shall be a good and valid receipt to the person holding them, against any person holding or claiming to hold possession of the securities or other evidences of debt; and
    5. If the property consists of a motor vehicle, shall be notice, when received, to the division of motor vehicles of the state, or to any public official charged with the registration of title to motor vehicles in any other state, of the transfer and shall be authority to the administrator or to the public official to record the transfer on their books and records in the same manner as if the certificate of title to the motor vehicle were transferred or assigned by the party holding it, in lieu of any original or prior certificate, which shall be void whether canceled or not.
  2. In the case of the sale of real property pursuant to § 44-53-9 , the deed of sale given pursuant to § 44-53-12 shall be prima facie evidence of the facts stated in the deed; and if the proceedings of the tax administrator as stated have been substantially in accordance with the provisions of law, the deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property sold at the time the lien of the state attached to the property.
  3. A certificate of sale of personal property given or a deed to real property executed pursuant to § 44-53-12 shall discharge the property from all liens, encumbrances, and title over which the lien of the state with respect to which the levy was made had priority.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-14. Records of sales and redemption.

The tax administrator shall keep a record of all sales of real property under § 44-53-9 and of all redemptions of that property. The record shall state the tax for which any sale was made, the dates of seizure and sale, the name of the party assessed and all proceedings in making the sale, the amount of expenses, the names of the purchasers, and the date of the deed. A copy of the record, or any part of the record, certified by the tax administrator shall be evidence in any court of the truth of the facts stated in the record.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-15. Determination of expenses of levy and sale.

The tax administrator shall determine the expenses to be allowed in all cases of levy and sale.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-16. Disposition of money from sale of property.

Any money realized by proceedings under this chapter shall be applied as follows:

  1. First, against the expenses of the proceedings.
  2. The amount, if any, remaining after payment of the expenses shall be applied against the liability in respect of which the levy was made or the sale was conducted.
  3. Any surplus proceeds remaining after this shall, upon application and satisfactory proof in support, be credited or refunded by the tax administrator to the person or persons legally entitled.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

44-53-17. Release of levy.

  1. It shall be lawful for the tax administrator, under regulations prescribed by the tax administrator, to release the levy upon all or part of the property or rights to property levied upon where it is determined that the action facilitates the collection of the liability, but the release shall not operate to prevent any subsequent levy.
    1. If the tax administrator determines that property has been wrongfully levied upon, it shall be lawful for the tax administrator to return:
      1. The specific property levied upon;
      2. An amount of money equal to the amount of money levied upon; or
      3. An amount of money equal to the amount of money received by the state from a sale of the property.
    2. Property may be returned at any time. An amount equal to the amount of money levied upon or received from the sale may be returned at any time before the expiration of nine (9) months from the date of the levy. For the purposes of paragraph (1)(iii) of this subsection, if property is declared purchased by the state at a sale pursuant to § 44-53-9 relating to the manner and conditions of sale, the state shall be treated as having received an amount of money equal to the minimum price determined pursuant to that section or, if larger, the amount received by the state from the resale of the property. For the purposes of paragraphs (1)(ii) and (1)(iii) of this subsection, the tax administrator shall certify the amount of money to the state treasurer, who shall pay it immediately without specific appropriation from the proceeds of the tax to which the money was originally credited.

History of Section. P.L. 1993, ch. 138, art. 68, § 1.

Chapter 54 Disabled Access Credit for Small Businesses

44-54-1. Tax credit.

  1. A small business taxpayer that pays for or incurs expenses to provide access to persons with disabilities shall be allowed a credit, to be computed against the tax imposed by chapters 11 and 13 of this title. The expenses must be paid or incurred to enable the small business to comply with federal or state laws protecting the rights of persons with disabilities. The credit is equal to ten percent (10%) of the total amount expended in the state of Rhode Island during the taxable year but in no event shall exceed the sum of one thousand dollars ($1,000) for:
    1. Removing architectural, communication, physical, or transportation barriers;
    2. Providing qualified interpreters or other effective methods of delivering aurally delivered materials to persons with hearing impairments;
    3. Providing readers, tapes or other effective means of making visually delivered materials available to persons with visual impairments;
    4. Providing job coaches or other effective methods of supporting workers with severe impairments in competitive employment;
    5. Providing specialized transportation services to employees or customers with mobility impairments;
    6. Buying or modifying equipment for persons with disabilities; and
    7. Providing similar services, modifications, material or equipment for persons with disabilities;
  2. As used in this chapter, the following words have the following meanings:
    1. “Small business” is one that for the preceding year had thirty (30) or fewer full-time employees, or had one million dollars ($1,000,000) or less in gross receipts.
    2. “Full-time employee” is one employed at least thirty (30) hours a week for twenty (20) or more calendar weeks in the preceding year.
    3. “Federal or state laws protecting the rights of persons with disabilities” includes but is not limited to the: Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et. seq.; Title V of the Rehabilitation Act of 1973, 29 U.S.C. § 794; Declaration of Certain Constitutional Rights and Principles — Discrimination, R.I. Const. art. 1, § 2 ; Civil Rights of People with Disabilities, chapter 87 of title 42; Open Meeting Handicapped Accessibility for persons with disabilities, § 42-46-13 ; Access for persons with disabilities, § 37-8-15 ; and AIDS Discrimination Prohibited, § 23-6.3-11 .
    4. “Amount expended” means the actual sum of money spent.

History of Section. P.L. 1997, ch. 112, § 1; P.L. 1999, ch. 83, § 127; P.L. 1999, ch. 130, § 127; P.L. 2010, ch. 239, § 22.

Chapter 55 Tax Incentives for Employers

44-55-1. Short title.

This chapter shall be known as “The Tax Incentives for Employers Act”.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-2. Tax incentives.

There are established tax incentives, which shall be computed in accordance with § 44-55-4.1 , for businesses which employ and retain in the state of Rhode Island employees who have been previously unemployed for a period of at least twenty-six (26) consecutive calendar weeks and who have been domiciled residents of the state of Rhode Island for at least fifty-two (52) consecutive calendar weeks.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-3. Definitions.

The words defined in this section have the meanings established in this section whenever they appear in this chapter:

  1. “Business” means any corporation, limited liability company, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is legally conducted or any successors or assigns of the legal entity.
  2. “First year wages” means the Rhode Island wages or Rhode Island salary of the newly-hired employee and actually paid by the business for a period of three hundred sixty-five (365) days from the employee’s first day of work as evidenced by the W-2(s) provided by the claimant’s business for the calendar year into which the time period falls; provided, that wages subject to the incentive shall be reduced by any direct state or federal assistance.
  3. “Tax incentives” or “incentive” means a deduction or modification in computed taxes owed by a claimant’s business.
  4. “Paid employment” means a period of time during which an employee has been hired by a business and is receiving Rhode Island wages or salaries for his or her service.
  5. “Unemployed” for the purposes of this chapter means and refers to an individual who attests that he or she is not working, and:
    1. Has received unemployment compensation benefits pursuant to chapter 44 of title 28 or any similar laws of another state any time within a one year period preceding the date of hire; or
    2. Has been a recipient of the state of Rhode Island’s aid to families with dependent children program pursuant to chapter 6 of title 40 for a minimum of a one year period preceding the date of hire.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-4. Criteria for tax incentives.

  1. A business whose employees each meet the following criteria as certified by the department of labor and training shall be entitled to an incentive in the amount of forty percent (40%) of the eligible employee’s first year wages, up to a maximum of two thousand four hundred dollars ($2,400) per eligible employee:
    1. The hired employee shall attest and must have been unemployed for a period of at least twenty-six (26) consecutive calendar weeks immediately prior to employment with the claimant business; and
    2. The employee must have been in the employ of the claimant business for a minimum period of fifty-two (52) consecutive calendar weeks, and a minimum of one thousand eight hundred twenty (1,820) hours of paid employment before the employer can become eligible for the incentive.
  2. The incentive shall be applied only once for any given employee. The employee must be a first time hiree of the claimant business and not have worked for any company that subsequently merges with or is acquired by the business. Also, any employee which a business leases does not qualify for this incentive.
  3. In order to avail itself of the incentive, the business must file for the incentive for the employee with the department of labor and training within thirty (30) days from the first day the employee begins work. The department of labor and training shall notify the business as soon as practicable after the completion of certification pursuant to the provisions of this section and § 44-55-4.1 .
  4. The employee cannot be a relative of any controlling shareholder, director, or officer of the claimant corporation, nor controlling shareholder, officer, or manager of the claimant limited liability company, nor partner or owner of any claimant partnership, joint venture, sole proprietorship or any other type of legal business entity claiming the incentive under this chapter.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-4.1. Incentive provisions.

  1. The deduction or modification is not refundable but may be used by the claimant business for the tax against it pursuant to chapters 11, 13, 14, 15, 17, and 30 of this title, not including any tax imposed under § 44-13-13 or other similar provisions in the following manner:
    1. A deduction for purposes of computing net income in accordance with chapter 11 of this title;
    2. A deduction from gross earnings for purposes of computing the public service corporation tax in accordance with chapter 13 of this title;
    3. A deduction for the purposes of computing net income in accordance with chapter 14 of this title;
    4. A deduction for the purposes of computing deposits in accordance with chapter 15 of this title;
    5. A deduction for the purposes of computing gross premiums in accordance with chapter 17 of this title; or
    6. A modification reducing federal adjusted gross income in accordance with chapter 30 of this title.
  2. The modification allowed under this chapter for any taxable year shall not reduce the tax due for that year to below the minimum tax imposed under the applicable chapter of this title. Any amount of modification not used in that taxable year may not be carried over to the following year.
  3. In the event that the claimant business is electing a subchapter S corporation, limited liability company, partnership, or a joint venture, the incentive shall be divided as income.
  4. In the event that the taxpayer is liable for taxes imposed under both chapters 14 and 15 of this title, the taxpayer must elect the tax against which it wishes to claim the incentive. This election shall be made as part of the taxpayer’s filings in accordance with §§ 44-14-6 and 44-15-5 . The taxpayer may not divide the incentive for any year between the two (2) tax liabilities for which it is liable.
  5. In the event that the hiring of the employee is used to obtain any other tax incentive or tax benefit for the business, then the business will not be eligible for the incentive available in this chapter.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-5. Certification.

After receiving the initial request from the claimant business for the tax incentive, the department of labor and training shall provide to the claimant business certification of unemployment as soon as practicable. The department of labor and training shall determine the eligibility of the employee and issue certification for the employee.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-6. Certificates.

A business shall not be allowed an incentive under this chapter for any taxable year unless the business obtains a written certificate from the department of labor and training for each employee claimed.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-7. Administration.

The tax administrator shall make available suitable forms with instructions for claiming the incentive. The claim shall be in a form the tax administrator may prescribe. The tax administrator may prescribe rules and regulations, not inconsistent with law, to carry into effect the provisions of this chapter.

History of Section. P.L. 1997, ch. 362, § 1.

44-55-8. Adding back the domestic production activities deduction.

All corporations doing business in the state of Rhode Island shall add back into their taxable income any amount deducted under the federal “domestic production deduction” of the internal revenue code 26 U.S.C. § 199. State tax forms shall be changed if needed in order to comply with this section.

History of Section. P.L. 2013, ch. 144, art. 9, § 2; P.L. 2014, ch. 528, § 66.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

Applicability.

P.L. 2013, ch. 144, art. 9, § 16, provides that the enactment of this section by that act takes effect upon passage [July 3, 2013] and applies to tax years beginning on or after January 1, 2014.

Chapter 56 Renewable Energy Sales Tax Credit [Repealed.]

44-56-1. Repealed.

History of Section. P.L. 2000, ch. 145, § 1; Repealed by P.L. 2005, ch. 281, § 1, and by P.L. 2005, ch. 305, § 1, effective July 15, 2005.

Compiler’s Notes.

Former § 44-56-1 concerned sales tax on renewable energy systems.

P.L. 2005, ch. 410, § 34 amended former § 44-56-1 , relating to sales tax on renewable energy systems, effective July 19, 2005. However, because of the repeal of that section by P.L. 2005, ch. 281, § 1 and P.L. 2005, ch. 305, § 1, the amendment has not been given effect.

Chapter 57 Residential Renewable Energy System Tax Credit

44-57-1. Tax credit for principal or secondary residence.

  1. An eligible person, as defined in § 44-57-3 , who shall pay all or part of the cost of an eligible renewable energy system, as defined in § 44-57-4 , which is installed in a dwelling, as defined in § 44-57-2(13) , shall be entitled to a tax credit against the tax liability imposed by chapters 11 and 30 of this title. The credit, which shall be nonrefundable, shall be computed in accordance with § 44-57-5 .
  2. The credit shall be claimed in the tax year in which the renewable energy system is placed into service. The credit may be claimed in the tax year the renewable energy system is purchased if the system is placed in service by April 1 of the following tax year.
  3. Any credit not used in accordance with subsection (b) of this section shall not be carried over to any following year or years. The tax credit shall not reduce the tax in any tax year below the minimum tax where a minimum tax is provided by law.
  4. In the event the eligible person is a partnership, joint venture, or corporation, the credit shall be divided in the same manner as income.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-2. Definitions.

As used in this chapter unless the context otherwise requires:

  1. “Active” means a solar renewable energy system that uses mechanical parts to collect, store, and move heat;
  2. “Applicant” means a party who files a Rhode Island tax return and applies for a residential alternative energy device tax credit under this section;
  3. “Application form” means the form that goes to the state energy office that will determine if systems meet the requirements for this tax credit;
  4. “Array” means any number of photovoltaic modules connected together electrically to provide a single electrical output;
  5. “BTU” means British thermal unit;
  6. “Consumer disclosure” means a form provided by the state energy office describing the renewable energy system. The contractor shall fill this form out and give it to the buyer of a renewable energy system. It shall show estimated energy savings of the renewable energy system, required conservation items, required maintenance, and freeze protection information and other data required by the state energy office;
  7. “Consumer information” means literature that is provided by the state energy office to contractors, solar dealers, and consumers informing them about the tax credit contained in this chapter and general consumer information;
  8. “Contractor” means a person or company who sells and/or installs renewable energy systems;
  9. “Contractors’ certification” means a contractor system certification issued by the state energy office to a contractor for a specific renewable energy system. The system shall allow the contractor to install that device for the tax credit without getting a separate system certification for each job;
  10. “Contractors’ registration board” means the board established pursuant to the provisions of chapter 65 of title 5 responsible for issuing contractors’ registration numbers and cards to contractors who are required by state law to be registered. The board is also responsible for ensuring that all registered contractors abide by the guidelines of the contractors’ registration board;
  11. “Director” means the director of the Rhode Island state energy office or the director’s representative;
  12. “Domestic water heating” means the heating of water used in a dwelling for bathing, clothes washing, dishwashing, and other related functions;
  13. “Dwelling” means real property inhabited as a principal or secondary residence and located within this state. “Dwelling” includes, but is not limited to, an individual unit within multiple unit residential housing. For purposes of this subdivision: (i) “Principal residence” means the dwelling owned by the applicant who on the date of the application has legal title to a dwelling, including the mortgagor under a duly recorded mortgage of real property, the trustor under a duly recorded deed of trust, or a purchaser under a duly recorded contract for the purchase of real property, and who inhabits the dwelling for no fewer than fourteen (14) days in the calendar year for which the credit is claimed;
  14. “Grid interconnect form” means the form required on “grid-connected photovoltaic systems” that is signed by the contractor, the master electrician who makes the grid interconnection, and the homeowner. This form shall be sent to both the participating utility company and the state energy office;
  15. “Hybrid” means a renewable energy system that uses some active and passive elements as part of the system;
  16. “Installing contractor” means the contractor or subcontractor who actually installs the renewable energy system. This may or may not be the same person or company as the solar dealer;
  17. “Inverter” means the device used to convert direct current (DC) to alternating current (AC) in a photovoltaic system;
  18. “kWh” means kilowatt-hour; one kWh = 3,413 BTUs;
  19. “Module” means the smallest non-divisible self-contained physical structure housing interconnected photovoltaic cells and providing a single DC electrical output;
  20. “MM” means million;
  21. “Net cost” means what the applicant paid to purchase the renewable energy system. Net cost includes permit and inspection fees. Net costs may include the value of federal tax credits, grants, or utility incentives. Net cost shall not include service contracts, rebates, discounts, or refunds;
  22. “Owner-built” means a renewable energy system that is assembled and installed on an owner’s property and with an owner’s labor only;
  23. “Passive” means a renewable energy system that relies on heated liquid or air rising to collect, store, and move heat without mechanical devices;
  24. “Placed in service” means the date when a renewable energy system is ready and available to produce useable energy;
  25. “Solar dealer” means the person or company who signs a contract or proposal with a customer to provide and/or install solar equipment;
  26. “Solar domestic hot water system” means a configuration of solar collectors, pump, heat exchanger, and storage tank designed to heat water. System types include forced circulation, integral collector storage, thermosyphon, and self-pumping. For the purpose of determining system yields, a configuration of components is considered a new system if changes occur in any of the following: type or size of collectors; heat exchanger type or effectiveness; size of storage tank; or system type;
  27. “State energy office” means the Rhode Island state energy office, also known as the governor’s office of energy assistance, within the department of administration;
  28. “System approval” means an approval given to renewable energy systems that meet all of the requirements of the state energy office;
  29. “System certification” means certification that a renewable energy system as described in the application meets criteria for the tax credit;
  30. “Used equipment” means any solar tank or collector which previously has been installed or any piece of equipment not under current manufacturers’ warranty;
  31. “Verification form” means a form filed with the division of taxation (upon request) by an applicant claiming eligibility for the tax credit. A contractor shall submit a copy of the form to the state energy office;
  32. “Watt” means the electrical unit of power or rate of doing work. The rate of energy transfer equivalent to one ampere of electrical current at one-volt potential;
  33. “Wh” means watt hours-power consumed by a load over a specified time. As used herein, 1,000 Wh = one kilowatt-hour (kWh);
  34. “Wind energy system” means a system that produces electricity through the use of wind generators or wind turbines. The electricity shall be used directly, as in water pumping applications, or shall be stored in batteries for household usage. Wind energy systems shall be used alone, or they shall be used as part of a hybrid system, in which their output is combined with photovoltaics and/or a fossil fuel generator;
  35. “Wind energy system dealer” means the person or company who signs a contract or proposal with a customer to provide and/or install wind energy equipment;
  36. “Wp” means Watts peak, or the rated maximum power output of a photovoltaic device measured under standard conditions of twenty-eight degrees C (28 degrees C) cell temperature and 1000 W/m2 incident sunlight; and
  37. “Geothermal system” means a system that produces and stores energy to heat buildings, cool buildings or produces hot water.

(ii) “Secondary residence” means vacation property owned by the applicant;

(iii) Primary or secondary residences do not include motor homes or recreational vehicles;

History of Section. P.L. 2000, ch. 145, § 1; P.L. 2005, ch. 281, § 3; P.L. 2005, ch. 305, § 3.

44-57-3. Eligibility.

In order to be eligible to receive a renewable energy system tax credit, pursuant to the provisions of this chapter, a person shall:

  1. Pay income taxes in Rhode Island; and
  2. Own, rent, or be the contract buyer of the dwelling or dwellings to be served by the renewable energy system. The dwelling or dwellings must be in the main or secondary residence of the person who applies for the tax credit, or of a tenant; or
  3. Own, or be the contract buyer of the renewable energy system and pay all or part of the cost of the renewable energy system; or
  4. Be the contractor that owns the dwelling for speculative sale in which the renewable energy system is installed.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-4. Eligible devices.

  1. To earn a tax credit pursuant to the provisions of this chapter, the renewable energy system shall be either a photovoltaic system, a solar domestic hot water system, an active solar space heating system, a geothermal system or a wind-generating system:
    1. For photovoltaic systems, the system must be able to generate electricity directly from sunlight and be able to have it provide electricity for the home. These systems can either be “stand alone” systems that use batteries for storage of electricity or “grid interconnected” systems that allow the electric meter to spin backwards during periods where the photovoltaic system is generating more electricity than the load of the house. These systems must have an electrical permit that has had a final inspection done by the electrical inspector for the city or town of the installation.
    2. For solar domestic hot water systems, the system must consist of solar collectors, pump, heat exchanger, and storage tank designed to heat water. These systems must have a plumbing permit that has had a final inspection done by the plumbing inspector for the city or town of the installation.
    3. For solar space heating systems, the system must consist of solar collectors, pump, heat exchanger, storage tank(s), and a method of distributing the heat to areas of the house that need heat. These systems must have a mechanical or plumbing permit and a final inspection done by the mechanical or plumbing inspector for the city or town of the installation.
      1. For wind energy systems, the energy produced by wind generation can be used directly, as in water pumping applications, or it can be stored in batteries for household usage. Wind generators can be used alone, or they can be used as part of a hybrid system, in which their output is combined with photovoltaics, and/or a fossil fuel generator, and shall:
        1. Be a system that is built, installed, and operated in accord with the manufacturer’s specifications;
        2. Be a system with manufacturers’ warranties against defects in products and materials;
        3. Be a system that complies with general and specific standards set forth in this chapter as they apply to renewable energy systems. These shall include:
          1. A photovoltaic system;
          2. A solar domestic hot water system;
          3. An active solar space heating system;
          4. A wind energy system; and
          5. A geothermal system.
      2. The following systems and/or devices shall not be used to qualify for a solar tax credit:
    4. For geothermal systems, the system shall use conventional vapor compression heat pumps to extract low-grade solar energy from the earth. The system shall be used to heat buildings, cool buildings and/or provide hot water. The system shall include all geothermal energy collectors, pumps, including both water to water and water to air type pumps, heat exchangers, storage tanks and heat distribution equipment. Such systems shall have a mechanical permit that has had a final inspection done by the mechanical/plumbing inspector for the city or town of the installation.
    5. Notwithstanding any other provisions of the general laws, for purposes of local municipal property tax assessment, qualifying renewable energy systems shall not be assessed at more than the value of a conventional heating, conventional hot domestic hot water systems, or energy production capacity that otherwise could be necessary to install in the building. Qualifying systems shall include photovoltaic systems (renewable energy systems), solar domestic hot water systems, and active solar space heating systems.
      1. A passive solar space heating system;
      2. Passive solar hot water system;
      3. A sunspace or solar greenhouse;
      4. Photovoltaic systems installed on boats or recreational vehicles;
      5. Solar pool collectors;
      6. Existing renewable energy systems;
      7. Used equipment;
      8. Repairs and replacements of existing renewable energy systems; and
      9. Wind systems installed on boats or installed vehicles.

History of Section. P.L. 2000, ch. 145, § 1; P.L. 2005, ch. 281, § 3; P.L. 2005, ch. 305, § 3.

44-57-5. Computation of tax credit.

  1. The tax credit on each system as provided for in this chapter shall be determined as follows:
    1. Photovoltaic systems:
        1. Photovoltaic systems shall have a minimum module size of twenty-four (24) square feet; and
        2. Be connected to a battery storage system or be grid interconnected;
      1. Qualifying systems shall receive a tax credit of:
        1. Twenty-five percent (25%) of the cost of the system.
      2. The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.
    2. Solar domestic hot water systems:
      1. Twenty-five percent (25%) of the cost of the system.
    3. Active solar heating systems:
      1. Twenty-five percent (25%) of the cost of the system.
    4. Wind energy systems:
      1. Twenty-five percent (25%) of the cost of the system.
    5. Geothermal systems:
      1. ARI/ASHRAE/ISO-13256-1 for water to air geothermal systems;
      2. ARI/ASHRAE/ISO-13256-2 for water to water geothermal systems;
      3. ARI/ASHRAE/ISO-13256 GWHP for groundwater heat pumps;
      4. ARI/ASHRAE/ISO-13256 GLHP for closed loop heat pumps;
  2. For purposes of the tax credit, the cost of the renewable energy system shall be the net cost of acquiring the system, and shall not include:
    1. Unpaid labor including the applicant’s labor;
    2. Operating and maintenance costs;
    3. Land costs;
    4. Legal and court costs;
    5. Patent search fees;
    6. Fees for variances;
    7. Loan interest;
    8. Service contracts;
    9. Cost of moving a used renewable energy system from one site to another;
    10. Cost of repair or resale of a system;
    11. Any part of the purchase price that is optional, such as an extended warranty or an upgraded monitoring system; and
    12. Delivery fees.

(i) (A) Solar domestic hot water systems shall have a minimum collector area of thirty-four (34) square feet; and

(B) A solar storage tank that is at least eighty (80) gallons.

(ii) Qualifying systems shall receive a tax credit of:

(iii) The maximum cost of the system shall not exceed seven thousand dollars ($7,000); provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit based on a seven thousand dollar ($7,000) system cost.

(i) (A) Active solar space heating systems shall have a minimum collector area of one hundred twenty-five (125) square feet; and

(B) A system for storing and/or distributing the heat to the living area of the house.

(ii) Qualifying systems shall receive a tax credit of:

(iii) The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.

(i) (A) Wind energy systems must have a rotor diameter of at least forty-four inches (44"); and

(B) Have a minimum factory rated output of at least two hundred fifty (250) watts at twenty-eight (28) mph.

(ii) Qualifying systems shall receive a tax credit of:

(iii) The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.

(i) Geothermal systems must have either a coefficient of performance of 3.4 or greater or an efficiency ratio of sixteen (16) or greater. All geothermal systems must have a commissioning sign-off by the manufacturer or distributor of the equipment to verify the proper installation and performance of the system. All geothermal systems must meet the following standards:

(ii) Qualifying systems shall receive a tax credit of:

(A) Twenty-five percent (25%) of the cost of the system.

(iii) The maximum cost of the system shall not exceed seven thousand dollars ($7,000). Provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit based on a seven thousand dollar ($7,000) system cost.

History of Section. P.L. 2000, ch. 145, § 1; P.L. 2005, ch. 281, § 3; P.L. 2005, ch. 305, § 3; P.L. 2009, ch. 339, § 1; P.L. 2009, ch. 340, § 1.

44-57-6. Application for system certification.

Applicants for the tax credit shall obtain a systems certification from the state energy office, except if the system is installed by a contractor holding a contractor certification issued by the state energy office. Applications for a system certification shall be made on a form provided by the state energy office. All applications shall contain a statement that the system and contractor or owner-builder will meet all federal, state, and local requirements all applications shall state the net cost and location of the renewable energy system.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-7. Forms of application for system certification.

Application forms for the renewable energy system certification for the respective systems shall contain the following:

  1. Photovoltaic systems.  Renewable energy credit application form for photovoltaic systems shall include:
    1. A proof of purchase, which can be the contract or invoices, dated in the year for which the applicant is claiming the credit;
    2. A copy of the signed electrical permit and a completed grid interconnect application form;
    3. The cost of the renewable energy system;
    4. The brand name of the module;
    5. The module(s) area;
    6. A description of the storage provided if storage is a part of the system;
    7. Storage brand and model;
    8. Storage capacity;
    9. The brand name of the inverter if an inverter is part of the system;
    10. The capacity of the inverter;
    11. Orientation and tilt of the device;
    12. The name, address, and phone number of the solar dealer; and
    13. The name, addresses, and phone number of the installing contractor including any required licenses.
  2. Solar domestic hot water systems.  Renewable energy system certification application form for solar domestic hot water systems shall include:
    1. A proof of purchase, which can be the contract or invoices dated in the year for which the applicant is claiming the credit;
    2. The number of collectors;
    3. The manufacturer and/or supplier;
    4. The collector dimensions and/or the net area of the collectors;
    5. The amount of heat storage;
    6. The system type;
    7. A description of the freeze protection of the system;
    8. A description of the overheat protection for the system;
    9. The system model;
    10. The orientation and tilt of the device;
    11. A consumer disclosure signed by the applicant and the contractor or supplier, if any;
    12. A statement that the purchaser has received a copy of consumer information supplied by the state energy office of Rhode Island.
  3. Solar space heating systems.  Renewable energy system certification application form for solar space heating systems shall include:
    1. All of the data required for solar domestic hot water systems in paragraphs (2)(i) through (2)(xii) of this section;
    2. A description of the heat distribution system;
    3. A heat loss estimate for the house;
    4. An estimate for the solar contribution of the heating load.
  4. Wind energy systems.  Renewable energy tax credit application form for wind energy systems shall include:
    1. A proof of purchase, which can be the contract or invoices, dated in the year for which the applicant is claiming the credit;
    2. A copy of the signed electrical permit and a completed grid interconnect application form if applicable;
    3. The cost of the renewable energy system;
    4. The brand name of the wind generator or wind turbine;
    5. The rotor diameter of the wind generator or wind turbine;
    6. The voltage of the wind generator or wind turbine;
    7. The output of the wind generator or wind turbine;
    8. A drawing or description of the mounting system;
    9. A description of the storage provided if storage is a part of the system;
    10. Storage brand and model;
    11. Storage capacity;
    12. The brand name of the inverter if part of the system;
    13. The capacity of the inverter;
    14. Site plan showing the existing buildings on the property, the location of the wind generator or wind turbine, the height of the tower if applicable including the set-back from all property lines, and the distance to the batteries and/or inverter. On systems using a tower, show all objects (trees, buildings, etc.) that are under thirty (30) feet below anything within five hundred (500) feet. Show the prevailing wind direction on the site plan;
    15. The name, address, and phone number of the wind energy system dealer; and
    16. The name, addresses, and phone number of the installing contractor including any required licenses.
  5. Geothermal systems.  Renewable energy system certification forms for geothermal systems shall include:
    1. The proof of purchase which can be the contract or invoices dated in the year for the applicant is claiming the credit;
    2. The amount of heat storage, if any;
    3. The system type;
    4. The system mode;
    5. Site plan for any work done outside of the building;
    6. The identity of the manufacturer and supplier;
    7. The name, address and telephone number of the geothermal energy system dealer;
    8. The name, address and telephone number of the geothermal energy system installer;
    9. A copy of the signed electrical permit;
    10. A consumer disclosure signed by the applicant and the contractor or supplier; if any;
    11. A statement that the purchaser has received a copy of consumer information supplied by the state energy office.

History of Section. P.L. 2000, ch. 145, § 1; P.L. 2005, ch. 281, § 3; P.L. 2005, ch. 305, § 3.

44-57-8. Contractor Certification.

  1. When the state energy office finds that each sale and installation of a renewable energy system can meet the standards adopted under the provisions of this chapter without requiring a system certification, the state energy office may issue a contractor certification to a contractor. A contractor certification may be required for tax credit eligibility of a specific renewable energy system if the office determines that this will improve installation quality and program efficiency. A contractor certification shall apply only to the specific products, plans, specifications, and installations and operation procedures approved by the state energy office in the contractors certification.
  2. Application for a contractor certification shall be made, in writing, on a form provided by the state energy office. The application shall contain:
    1. A statement that the solar dealer and/or solar contractor is registered and in good standing with the contractors’ registration board and has any license, bonding insurance, and permit that is required by the contractors’ registration board for the sale, construction, and installation of renewable energy systems;
    2. A description of the renewable energy system, including at least the material, equipment and mechanism used in the device, operating procedures, freeze protection method, method of indicating flow or temperature, sizing and siting method, and installation procedure;
    3. The addresses of three (3) installations of the systems installed by the applicant that the state energy office may inspect;
    4. The range of installed costs of the device;
    5. Names and addresses of all retail outlets, partners, and investors in the business, officers, licensed plumbers, license;
    6. Sample copies of sales contracts, including any warranty provisions; and
    7. Any other information that the state energy office determines is needed.
  3. The holder of a contractor certification shall notify the state energy office within ten (10) days if changes are made in any of the information in the contractor certification application.
  4. The holder of a contractor certification shall provide the owner of the renewable energy system with a copy of their contractor’s certification, their building contractor’s registration number, a copy of consumer information published by the state energy office, an operating manual, and a statement of the reasonably expected annual energy savings of the renewable energy system. The contractor shall provide the state energy office with a copy of each signed verification form.
  5. The state energy office may reject any application if the renewable energy system does not comply with the provisions of this chapter. The state energy office shall explain all rejected applications in writing. Approved requests for lesser costs than claimed by the applicant will also include written reasons.
  6. Any system that is not the same as the system or systems for which a contractor certification has been issued shall require a system certification application.
  7. Contractor certificates must be renewed annually. Renewal forms shall be available, upon request, through the state energy office.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-9. Review of applications.

    1. The state energy office shall review applications for compliance with the provisions of this chapter.
    2. The state energy office will return all applications that are not complete. The state energy office shall identify the additional information needed.
    3. The state energy office shall act on a completed application within sixty (60) days after it is received. The state energy office may require more details within thirty (30) days of receipt of an initial application. An additional sixty (60) day review period may be allowed at the director’s discretion. If so, the state energy office will explain to the applicant why more time is needed.
    4. If the state energy office fails to meet these deadlines, the system shall be considered approved.
    5. If the state energy office requests additional data, the review period will be extended until the required data is received.
    6. During review, the state energy office may ask for proof that the system complies with the provisions of this chapter. The state energy office may also ask for changes to make the system and application comply with these same renewable energy system regulations.
    1. To get the information needed to review an application or to verify eligibility, the state energy office may, with the owner’s consent, inspect an installed renewable energy system.
    2. The state energy office may deny a system certification or request the division of taxation to initiate proceedings for the forfeiture of a tax credit if an owner refuses to allow the state energy office to inspect a renewable energy system.
    1. The state energy office may require corrections to make the renewable energy system comply with this chapter to be made within thirty (30) days.
    2. If these changes are not made within the time limit, the state energy office may reject the application. The state energy office may use the results of utility inspections in lieu of their own.
  1. The state energy office will explain all rejected applications in writing. Approved requests for lesser costs than claimed by the applicant will also include written reasons.
  2. If the state energy office rejects an application for system certification or contractor certification, an applicant may appeal the rejection. If the state energy office approves a system certification for lesser cost than claimed by the applicant, the applicant may also appeal the rejection of those costs. The appeal must be within sixty (60) days of the mailing of the rejection notice by the state energy office. Appeals shall be claimed pursuant to the provisions of the Administrative Procedures Act, chapter 35 of title 42.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-10. Rules and regulations.

  1. Renewable energy systems shall comply with all state, federal, and local laws that apply.
  2. The policy of the state energy office shall be:
    1. To accept the findings of local, state, and federal agencies which license or permit renewable energy systems;
    2. To avoid influencing any of those agencies to approve or deny a license or a permit;
    3. To provide facts from tax credit files to those agencies when asked.
  3. Each applicant:
    1. Shall obtain each local and or state permit that applies to the renewable energy system project;
    2. Shall agree to comply with the express terms and conditions of each permit;
    3. Shall agree to comply with all state rules and laws that apply to the renewable energy system project.
  4. System certifications and contractor certifications shall be based on the applicant’s promise that each needed local and state permit has been or will be obtained. Failure to obtain those approvals shall cause the state energy office approval to be revoked.
  5. Renewable energy system contractors shall install all systems to comply with manufacturers’ published specifications.
  6. The director is authorized to promulgate rules and regulations in further support of the provisions of this chapter.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-11. Enforcement.

  1. Applicant’s actions which are cause for revocation of solar tax credit.
    1. A system certification may be revoked if the director finds that:
      1. The applicant obtained the system certification by fraud or misrepresentation;
      2. The verification form was fraudulent or misrepresented by the taxpayer;
      3. The renewable energy system has not been installed or operated in substantial compliance with the plans, specifications, or procedures specified in the application or certification, such as:
        1. Failure to comply with required codes or obtain required permits or inspections;
        2. Return of the renewable energy system to the seller or installer for a refund; or
        3. Sale or removal of the device so that it no longer operates on the property of the applicant; or
      4. The applicant refuses to allow the state energy office to inspect the renewable energy system after a reasonable written request by the state energy office. A reasonable request shall allow applicant to choose a day within three (3) weeks of the request from the state energy office.
    2. Following revocation, the applicant shall forfeit the tax credit, and the division of taxation shall proceed to collect any taxes due from the taxpayer because of this forfeiture.
  2. Contractor’s actions which are cause for revocation of contractor’s certification.
    1. A contractor certification may be revoked if the director finds that the system certification or the contractor certification was obtained by fraud or misrepresentation by the contractor. The director may find that fraud or misrepresentation occurred if the director finds false statements were made regarding the contractor’s licenses held, products or warranties carried, range of product cost, personnel employed in the business, or any other statement made in application for contractor certification.
    2. A contractor certification may be revoked if the director finds that the contractor’s performance regarding sales or installation of the renewable energy system for which the contractor is issued a certificate does not meet industry standards. The director may find that the contractor’s performance does not meet industry standards under the following conditions:
      1. The contractor is not registered with the contractors’ registration board or does not carry the required level of insurance;
      2. The contractor fails to obtain the required state or local permits required to install the renewable energy system;
      3. The contractor fails to install the renewable energy system in compliance with standards adopted under this chapter;
      4. The contractor fails to install the renewable energy system in a workmanlike manner;
      5. The contractor fails to install the renewable energy system to comply with manufacturers’ published specifications;
      6. The contractor fails to honor contract provisions when there is no legitimate excuse for nonperformance of the obligation; or
      7. The contractor fails to honor a warranty which the contractor is contractually obligated to perform; and
      8. The contractor fails to make corrections to remedy failure to comply with paragraphs (i) through (vii) of this subdivision requested by the state energy office within thirty (30) days of written notification from the state energy office of the problem, unless a time extension is granted by the state energy office; or
      9. A tax credit for a renewable energy system sold or installed under the contractor certification is ordered revoked under this section; or
      10. New information indicates that the renewable energy system installed under the contractor certification does not meet eligibility requirements.
    3. A contractor certificate may be revoked if the director finds that the contractor misrepresented to the customer either the tax credit program or the nature of the renewable energy system. The director may find that the contractor has misrepresented the tax credit program or the renewable energy system under the following conditions:

(i) The contractor has provided false or misleading information to the customer regarding the availability of the tax credit, amount and nature of the tax credit, procedures for tax credit application, eligibility standards for credit, or any other misleading information about the program;

(ii) The contractor has misrepresented the nature of the performance of the renewable energy system;

(iii) The contractor has misrepresented the cost of the system. For example, the contractor omits costs in the contract for features necessary for basic installation and/or operation of the system and/or to comply with the renewable energy system eligibility; or

(iv) The contractor has misrepresented a competitor’s product or service; and

(v) The contractor fails to make corrections requested, in writing, by the state energy office to remedy violations of paragraphs (i) through (iv) of this subdivision within thirty (30) days unless more time is allowed by the state energy office, or the contractor fails to remedy the construction and/or warranty claim as directed by order of the contractors’ registration board.

History of Section. P.L. 2000, ch. 145, § 1.

44-57-12. Administrative process for review and revocation of contractor certification.

  1. The state energy office will rely on the contractors’ registration board for monitoring and enforcement of contractor certificates.
  2. If the state energy office receives a complaint, it shall notify the contractors’ registration board who will then act upon this complaint as they would any other complaint they receive against a registered builder.
  3. If the contractors’ registration board finds that the contractor is in violation of the provisions of this chapter, the contractors’ registration board shall take whatever action they deem necessary including, but not limited to, revoking the contractor’s registration card away from the contractor and/or any other action that the contractors’ registration board takes that is under its authority.

History of Section. P.L. 2000, ch. 145, § 1.

Chapter 58 Streamlined Sales Tax System

44-58-1. Short title.

This chapter may be cited as the “Streamlined Sales Tax System for the 21st Century Act.”

History of Section. P.L. 2000, ch. 181, § 1.

44-58-2. Legislative findings and intent — Legislative declaration.

The general assembly finds and declares as follows:

  1. State and local tax systems should treat transactions in a competitively neutral manner.
  2. A simplified sales and use tax system that treats all transactions in a competitively neutral manner will strengthen and preserve the sales and use tax as vital state and local revenue sources and preserve state fiscal sovereignty.
  3. Remote sellers should not receive preferential tax treatment at the expense of local “main street” merchants, nor should those vendors be burdened with special, discriminatory, or multiple taxes.
  4. The state should simplify sales and use taxes to reduce the administrative burden of collection.
  5. While states have the sovereign right to set their own tax policies, states working together have the opportunity to develop a more simple, uniform, and fair system of state sales and use taxation without federal government mandates or interference.

History of Section. P.L. 2000, ch. 181, § 1.

44-58-3. “Tax administrator” defined.

As used in this chapter, “tax administrator” means the tax administrator within the department of revenue as provided for in § 44-1-1 .

History of Section. P.L. 2000, ch. 181, § 1; P.L. 2006, ch. 246, art. 38, § 17; P.L. 2008, ch. 98, § 55; P.L. 2008, ch. 145, § 55.

44-58-4. Legislative authorization to enter into multi-state discussions.

  1. The state tax administrator shall enter into discussions with states regarding development of a multi-state, voluntary, streamlined system for sales and use tax collection and administration. These discussions shall focus on a system that has the capability to determine whether the transaction is taxable or tax exempt, the appropriate tax rate to be applied to the transaction, and the total tax due on the transaction, and shall provide a method for collecting and remitting sales and use taxes to the state. The system may provide compensation for the costs of collecting and remitting sales and use taxes. Discussions between the tax administrator and other states may include, but are not limited to, the following:
    1. The development of a “joint request for information” from the potential public and private parties governing the specifications for the system;
    2. The mechanism for compensating parties for the development and operation of the system;
    3. Establishment of minimum statutory simplification measures necessary for state participation in the system; and
    4. Measures to preserve confidentiality of taxpayer information and privacy rights of consumers.
  2. Following these discussions, the tax administrator may proceed to issue a joint request for information.

History of Section. P.L. 2000, ch. 181, § 1.

44-58-5. Limited test authorization — Optional provision for state electing to participate in early test of simplified system.

  1. The tax administrator shall be authorized to participate in a sales tax pilot project with other states and selected businesses to test means for simplifying sales and use tax administration and may enter into joint agreements for that purpose.
  2. Agreements to participate in these tests shall establish provisions for the administration, imposition, and collection of sales and use taxes resulting in revenues paid that are the same as would be paid under and pursuant to the provisions of chapters 18 and 19 of this title.
  3. Parties to the agreements shall be excused from complying with the provisions of chapters 18 and 19 of this title to the extent a different procedure is required by the agreements, except for confidentiality of taxpayer information as detailed in § 44-58-6 .
  4. Agreements authorized under this section shall terminate no later than December 31, 2001.

History of Section. P.L. 2000, ch. 181, § 1.

44-58-6. Confidentiality of taxpayer information.

Return information submitted to any party or parties acting for and on behalf of the state shall be treated as confidential taxpayer information. Disclosures of confidential taxpayer information necessary under the provisions of this chapter shall be pursuant to a written agreement entered into between the tax administrator and the party or parties. The party or parties shall be bound by the same requirements of confidentiality as the tax administrator under the provisions of chapters 18 and 19 of this title.

History of Section. P.L. 2000, ch. 181, § 1.

44-58-7. Legislative oversight.

There is created a joint legislative oversight committee. The committee shall consist of six (6) members to be selected as follows: three (3) members of the senate, at least one of whom shall be a member of a minority party, to be appointed by the president of the senate; and three (3) members of the house of representatives, at least one of whom shall be a member of a minority party, to be appointed by the speaker of the house. The tax administrator shall provide testimony and information as requested by the committee. The tax administrator shall provide quarterly reports to the governor, the speaker of the house, the president of the senate, and to the members of the joint legislative oversight committee on the progress of multi-state discussions.

History of Section. P.L. 2000, ch. 181, § 1; P.L. 2001, ch. 180, § 140.

44-58-8. Final report to the governor and the legislature.

By March 1, 2001, the tax administrator shall report to the governor, the speaker of the house, the president of the senate, and the members of the joint legislative oversight committee on the status of multi-state discussions and, if a proposed system has been agreed upon by participating states, shall also recommend whether the state should participate in that system.

History of Section. P.L. 2000, ch. 181, § 1; P.L. 2001, ch. 180, § 140.

Chapter 59 Uniform Sales and Use Tax Administration Act

44-59-1. Short title.

This chapter shall be known as and referred to as the “Uniform Sales and Use Tax Administration Act.”

History of Section. P.L. 2001, ch. 172, § 1.

44-59-2. Legislative finding and intent.

The general assembly finds that this state should enter into an agreement with one or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-3. Definitions.

As used in this chapter:

  1. “Agreement” means the Streamlined Sales and Use Tax Agreement.
  2. “Certified Automated System” means software certified jointly by the states that are signatories to the Agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction.
  3. “Certified Service Provider” means an agent certified jointly by the states that are signatories to the Agreement to perform all of the seller’s sales tax functions.
  4. “Person” means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity.
  5. “Sales Tax” means the tax levied pursuant to the provisions of chapters 18 and 19 of this title.
  6. “Seller” means any person making sales, leases, or rentals of personal property or services.
  7. “State” means any state of the United States and the District of Columbia.
  8. “Use Tax” means the tax levied pursuant to the provisions of chapters 18 and 19 of this title.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-4. Authority to enter agreement.

The tax administrator shall be authorized and directed to enter into the Streamlined Sales and Use Tax Agreement with one or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. In furtherance of the Agreement, the tax administrator is authorized to act jointly with other states that are members of the Agreement to establish standards for certification of a certified service provider and certified automated system and to establish performance standards for multi-state sellers. The tax administrator is further authorized to take other actions reasonably required to implement the provisions set forth in this chapter. Other actions authorized by this section include, but are not limited to, the adoption of rules and regulations and the joint procurement, with other member states, of goods and services in furtherance of the cooperative agreement. The tax administrator or the tax administrator’s designee, the chairperson of the house finance committee or the chairperson’s designee(s) and the chairperson of the senate finance committee or the chairperson’s designee(s) are authorized to represent this state before the other states that are signatories to the Agreement.

History of Section. P.L. 2001, ch. 172, § 1; P.L. 2007, ch. 6, § 7.

44-59-5. Relationship to state law.

No provision of the Agreement authorized by this chapter in whole or part shall invalidate or amend any provision of the law of this state. Adoption of the Agreement by this state shall not amend or modify any law of this state. Implementation of any condition of the Agreement in this state, whether adopted before, at, or after membership of this state in the Agreement, shall be implemented by legislation or rule and regulation, as is appropriate.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-6. Agreement requirements.

The tax administrator shall not enter into the Streamlined Sales and Use Tax Agreement unless the Agreement requires each state to abide by the following requirements:

  1. Uniform state rate.  The Agreement must set restrictions to achieve over time more uniform state rates through the following:
    1. Limiting the number of state rates.
    2. Limiting the application of maximums on the amount of state tax that is due on a transaction.
    3. Limiting the application of thresholds on the application of state tax.
  2. Uniform standards.  The Agreement must establish uniform standards for the following:
    1. The sourcing of transactions to taxing jurisdictions.
    2. The administration of exempt sales.
    3. The allowances a seller can take for bad debts.
    4. Sales and use tax returns and remittances.
  3. Uniform definitions.  The Agreement must require states to develop and adopt uniform definitions of sales and use tax terms. The definitions must enable a state to preserve its ability to make policy choices not inconsistent with the uniform definitions.
  4. Central registration.  The Agreement must provided a central, electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states.
  5. No nexus attribution.  The Agreement must provide that registration with the central registration system and the collection of sales and use taxes in the signatory states will not be used as a factor in determining whether the seller has nexus with a state for any tax.
  6. Local sales and use taxes.  The Agreement must provide for reduction of the burdens of complying with local sales and use taxes through the following:
    1. Restricting variances between the state and local tax bases.
    2. Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions.
    3. Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes.
    4. Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions.
  7. Monetary allowances.  The Agreement shall outline any monetary allowances that are to be provided by the states to sellers or certified service providers in exchange for collecting sales and use taxes.
  8. State compliance.  The Agreement must require each state to certify compliance with the terms of the agreement prior to joining and to maintain compliance, under the laws of the member state, with all provisions of the Agreement while a member.
  9. Consumer privacy.  The Agreement must require each state to adopt a uniform policy for certified service providers that protects the privacy of consumers and maintains the confidentiality of tax information.
  10. Advisory councils.  The Agreement must provide for the appointment of an advisory council of private sector representatives and an advisory council of non-member state representatives to consult with the administration of the Agreement.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-7. Cooperating sovereigns.

The Agreement authorized by this chapter shall be an accord among individual cooperating sovereigns in furtherance of their governmental functions. The Agreement shall provide a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-8. Limited binding and beneficial effect.

  1. The Agreement authorized by this chapter shall bind and inure only to the benefit of this state and the other member states. No person, other than a member state, shall be an intended beneficiary of the Agreement. Any benefit to a person other than a state shall be established by the law of this state and the other member states and not by the terms of the Agreement.
  2. Consistent with subsection (a) of this section, no person shall have any cause of action or defense under the Agreement or by virtue of this state’s approval of the Agreement. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the Agreement.
  3. No law of this state, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-9. Seller and third party liability.

  1. A certified service provider shall be the agent of a seller, with whom the certified service provider has contracted, for the collection and remittance of sales and use taxes. As the seller’s agent, the certified service provider shall be liable for sales and use tax due each member state on all sales transactions it processes for the seller except as set out in this section. A seller that contracts with a certified service provider shall not be liable to the state for sales or use tax due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud. In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller shall not be subject to audit on the transactions processed by the certified service provider. A seller shall be subject to audit for transactions not processed by the certified service provider. The member states acting jointly may perform a system check of the seller and review the seller’s procedures to determine if the certified service provider’s system is functioning properly and the extent to which the seller’s transactions are being processed by the certified service provider.
  2. A person that provides a certified automated system shall be responsible for the proper functioning of that system and shall be liable to the state for underpayments of tax attributable to errors in the functioning of the certified automated system. A seller that uses a certified automated system shall remain responsible and shall be liable to the state for reporting and remitting tax.
  3. A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system shall be liable for the failure of the system to meet the performance standard.

History of Section. P.L. 2001, ch. 172, § 1.

44-59-10. Repealed.

History of Section. P.L. 2001, ch. 172, § 1; P.L. 2003, ch. 376, art. 7, § 7; P.L. 2004, ch. 595, art. 17, § 5; P.L. 2005, ch. 117, art. 16, § 3; P.L. 2006, ch. 246, art. 30, § 13; Repealed by P.L. 2007, ch. 6, § 8, effective March 14, 2007.

Compiler’s Notes.

Former § 44-59-10 concerned providing for the sunset of this chapter.

Chapter 60 Borrowing in Anticipation of Taxes

44-60-1. Borrowing in anticipation of receipts from taxes.

  1. The state of Rhode Island is hereby authorized to borrow during its fiscal year ending June 30, 2002, in anticipation of receipts from taxes, any sum or sums, at any time or times and upon any terms and conditions not inconsistent with the provisions and limitations of R.I. Const., Art. VI, § 17 , that the general treasurer, with the advice of the governor, shall deem for the best interests of the state, provided that the amounts so borrowed shall not exceed one hundred fifty million dollars ($150,000,000), at any time outstanding. The state is hereby further authorized to give its promissory note or notes signed by the general treasurer and counter-signed by the secretary of state for the payment of any sum so borrowed. Any proceeds shall be invested by the general treasurer until such time that they are needed. The interest income earned from the investments shall be used to pay the interest on the promissory note or notes, and any expense of issuing the promissory note or notes, with the balance remaining at the end of the fiscal year, if any, shall be used toward the payment of long-term debt service of the state, unless prohibited by federal law or regulation.
  2. Notwithstanding any other authority to the contrary, duly authorized bonds or notes of the state issued during the fiscal year ending June 30, 2002, may be issued in the form of commercial paper, so-called. In connection with this provision, the state, acting through the general treasurer, may enter into agreements with banks, trust companies or other financial institutions within or outside the state, whether in the form of letters or lines of credit, liquidity facilities, insurance or other support arrangements. Any notes issued as commercial paper shall be in any amounts and bear any terms that the general treasurer, with the advice of the governor, shall determine, which may include provisions for prepayment at any time with or without premium at the option of the state. The notes may be sold at a premium or discount, and may bear interest or not and, if interest bearing, may bear interest at any rate or rates variable from time to time as determined by the Federal Reserve Bank Composite Index of Commercial Paper, or the Municipal Market Data General Market Index or other similar commercial paper offerings, or other method specified in any agreement with brokers for the placement or marketing of the notes issued as commercial paper, or other like agreements. Any such agreement may also include any other covenants and provisions for protecting the rights, security and remedies of the lenders that may, in the discretion of the general treasurer, be reasonable, legal and proper. The general treasurer may also enter into agreements with brokers for the placement or marketing of the notes of the state issued as commercial paper. Any notes to the state issued as commercial paper in anticipation of receipts from taxes in any fiscal year must also be issued in accordance with the provisions of R.I. Const., Art. VI, § 17 and within the limitation set forth in this section.

History of Section. P.L. 2002, ch. 5, § 1.

Chapter 61 Relating to Depreciation of Assets and Net Operating Loss Deduction

44-61-1. Depreciation of assets.

  1. For purposes of depreciation of assets under chapters 11, 14 and 30 of this title, the bonus depreciation provided by the Job Creation and Worker Assistance Act of 2002, (P.L. 107-147) (see 26 U.S.C. § 168), the Jobs and Growth Tax Relief Reconciliation Act of 2003 or any subsequent federal enactment for federal tax purposes shall not be allowed for Rhode Island tax purposes. In the year that those assets are placed in service and in all subsequent years, depreciation for Rhode Island tax purposes shall be allowed on those assets as it would have been computed prior to the enactment of the Job Creation and Worker Assistance Act of 2002.
  2. The gain resulting from any subsequent disposition of these assets shall be computed using a basis consistent with the Rhode Island depreciation allowed under subsection (a) of this section.

History of Section. P.L. 2002, ch. 65, art. 16, § 3; P.L. 2003, ch. 376, art. 7, § 3; P.L. 2008, ch. 14, § 1.

Applicability.

P.L. 2008, ch. 14, § 3, provides that the amendment to this section by that act takes effect upon passage [May 9, 2008] and applies to tax years beginning January 1, 2007 and thereafter.

44-61-1.1. Expensing in lieu of depreciation of assets.

  1. For purposes of expensing of assets under chapters 11, 14, and 30 of this title, the expense deduction shall not exceed the sum provided for under the internal revenue code, 26 U.S.C. § 179. In the year that those assets are placed in service, expensing of assets for Rhode Island tax purposes shall be allowed in the same manner as is provided for under the internal revenue code 26 U.S.C. § 179. Any remaining tax basis of the asset purchased shall be depreciated as provided for under the internal revenue service code sections 26 U.S.C. §§ 167 and 168, excluding § 168(k).
  2. The gain resulting from any subsequent disposition of these assets shall be computed using a basis consistent with the Rhode Island expenses and depreciation allowed under subsection (a) of this section.
  3. There is hereby established a depreciation of assets transfer fund for the purpose of reserving sufficient funding for the expensing of assets in accordance with subsection (a). The general assembly may appropriate such amounts to the fund deemed necessary for said purpose.

History of Section. P.L. 2003, ch. 376, art. 7, § 4; P.L. 2008, ch. 14, § 1; P.L. 2013, ch. 144, art. 9, § 1; P.L. 2014, ch. 528, § 67.

Effective Dates.

P.L. 2013, ch. 144, art. 9, § 1, provides that the amendment to this section by that act takes effect on January 1, 2014.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

Applicability.

P.L. 2008, ch. 14, § 3, provides that the amendment to this section by that act takes effect upon passage [May 9, 2008] and applies to tax years beginning January 1, 2007 and thereafter.

P.L. 2013, ch. 144, art. 9, § 16, provides that the amendment to this section by that act takes effect on January 1, 2014, and shall apply to all assets placed in service on or after January 1, 2014.

44-61-1.2. Annual report.

The department of revenue shall prepare and annually submit to the governor and general assembly by January 31st, a report concerning the decoupling from the federal depreciation changes in the Recovery Rebates and Economic Stimulus for the American People Act of 2008 and other federal acts outlined in this section.

History of Section. P.L. 2008, ch. 14, § 2.

Applicability.

P.L. 2008, ch. 14, § 3, provides that the enactment of this section by that act takes effect upon passage [May 9, 2008] and applies to tax years beginning January 1, 2007 and thereafter.

Chapter 62 Tax Credits for Contributions to Scholarship Organizations

44-62-1. Tax credit for contributions to a scholarship organization — General.

In order to enhance the educational opportunities available to all students in this state, a business entity will be allowed a tax credit to be computed as provided in this chapter for voluntary cash contribution made by the business entity to a qualified scholarship.

History of Section. P.L. 2006, ch. 246, art. 24, § 1.

44-62-2. Qualification of scholarship organization.

A scholarship organization must certify annually by December 31st to the division of taxation that the organization is eligible to participate in the program in accordance with criteria as defined below:

  1. “Eligible student” means a school-age student who is registered in a qualified school and is a member of a household with an annual household income of not more than two hundred fifty percent (250%) of the federal poverty guidelines as published in the federal register by the United States department of health and human services.
  2. “Household” means one or more persons occupying a dwelling unit and living as a single nonprofit housekeeping unit. Household does not mean bona fide lessees, tenants, or roomers and borders on contract.
  3. “Household income” means all income received by all persons of a household in a calendar year while members of the household.
  4. “Income” means the sum of federal adjusted gross income as defined in the internal revenue code of the United States, 26 U.S.C. § 1 et seq., and all nontaxable income including, but not limited to, the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief (not including relief granted under this chapter), the gross amount of any pension or annuity (including Railroad Retirement Act (see 45 U.S.C. § 231 et seq.) benefits, all payments received under the federal Social Security Act, 42 U.S.C. § 301 et seq., state unemployment insurance laws, and veterans’ disability pensions (see 38 U.S.C. § 301 et seq.), nontaxable interest received from the federal government or any of its instrumentalities, workers’ compensation, and the gross amount of “loss of time” insurance. It does not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a public or private agency.
  5. “Qualified school” means a nonpublic elementary or secondary school that is located in this state and that satisfies the requirements prescribed by law for nonpublic schools in this state.
  6. “Scholarship organization” means a charitable organization in this state that is exempt from federal taxation under § 501(c)(3) of the internal revenue code, and that allocates at least ninety percent (90%) of its annual revenue through a scholarship program for tuition assistance grants to eligible students to allow them to attend any qualified school of their parents’ choice represented by the scholarship organization.
  7. “Scholarship program” means a program to provide tuition assistance grants to eligible students to attend a nonpublic school located in this state. A scholarship program must include an application and review process for the purpose of making these grants only to eligible students. The award of scholarships to eligible students shall be made without limiting availability to only students of one school.
  8. “School-age student” means a child at the earliest admission age to a qualified school’s kindergarten program or, when no kindergarten program is provided, the school’s earliest admission age for beginners, until the end of the school year, the student attains twenty-one (21) years of age or graduation from high school whichever occurs first.
  9. Designation.  A donation to a scholarship organization, for which the donor receives a tax credit under this provision, may not be designated to any specific school or student by the donor.
  10. Nontaxable income.  A scholarship received by an eligible student shall not be considered to be taxable income.

History of Section. P.L. 2006, ch. 246, art. 24, § 1; P.L. 2010, ch. 239, § 46.

44-62-3. Application for the tax credit program.

  1. Prior to the contribution, a business entity shall apply in writing to the division of taxation. The application shall contain such information and certification as the tax administrator deems necessary for the proper administration of this chapter. A business entity shall be approved if it meets the criteria of this chapter; the dollar amount of the applied for tax credit is no greater than one hundred thousand dollars ($100,000) in any tax year, and the scholarship organization that is to receive the contribution has qualified under § 44-62-2 .
  2. Approvals for contributions under this section shall be made available by the division of taxation on a first-come-first-serve basis. The total aggregate amount of all tax credits approved shall not exceed one million five hundred thousand dollars ($1,500,000) in a fiscal year.
  3. The division of taxation shall notify the business entity in writing within thirty (30) days of the receipt of application of the division’s approval or rejection of the application.
  4. Unless the contribution is part of a two-year plan, the actual cash contribution by the business entity to a qualified scholarship organization must be made no later than one hundred twenty (120) days following the approval of its application. If the contribution is part of a two-year plan, the first year’s contribution follows the general rule and the second year’s contribution must be made in the subsequent calendar year by the same date.
  5. The contributions must be those charitable contributions made in cash as set forth in the Internal Revenue Code.

History of Section. P.L. 2006, ch. 246, art. 24, § 1; P.L. 2013, ch. 144, art. 9, § 14; P.L. 2014, ch. 528, § 68.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-62-4. Calculation of tax credit and issuance of tax credit certificate.

  1. When the contribution has been made as set forth in section 3 above, the business entity shall apply to the division of taxation for a tax credit certificate. The application will include such information, documentation, and certification as the tax administrator deems proper for the administration of this chapter including, but not limited to a certification by an independent Rhode Island certified public accountant that the cash contribution has actually been made to the qualified scholarship organization. For purposes of the proper administration of this section, an independent Rhode Island certified public accountant shall be licensed in accordance with RIGL 5-3.1 and means a person, partnership, corporation, limited liability corporation that is not affiliated with or an employee of said business entity or its affiliates and is not affiliated in any manner whatsoever with a qualified scholarship organization or scholarship program as defined in § 42-62-2 (a) — (j).
  2. The division of taxation will review the documentation submitted; calculate the tax credit pertaining to the contribution, and prepare and mail a certificate for amount of credit to be granted.
  3. Unless a two year contribution plan is in place, the credit, is computed at seventy-five percent (75%) of the total voluntary cash contribution made by the business entity.
  4. This credit is available against taxes otherwise due under provisions of chapters 11, 13, 14, 15, 17 or 30 of title 44.
    1. A two year contribution plan is based on the written commitment of the business entity to provide the scholarship organization with the same amount of contribution for two (2) consecutive tax years. The business entity must provide in writing a commitment to this extended contribution to the scholarship organization and the division of taxation at the time of application.
    2. In the event that a two year contribution plan is in place, the calculation of credit for each year shall be ninety percent (90%) of the total voluntary contribution made by a business entity.
    3. In the event that, in the second year of the plan, a business entity’s contribution falls below the contribution amount made in the first year but the second year’s contribution is eighty percent (80%) or greater than the first year’s contribution, the business entity shall receive a credit for both the first and second year contributions equal to ninety percent (90%) of each year’s contribution.
    4. If the amount of the second year contribution is less than eighty percent (80%) of the first year contribution, then the credit for both the first and second year contributions shall be equal to seventy-five percent (75%) of each year’s contribution. In such case, the tax administrator shall prepare the tax credit certificate for the second year at seventy-five percent (75%). The difference in credit allowable for the first year [90% — 75% = 15% x first year contribution] shall be recaptured by adding it to the taxpayer’s tax in that year.

History of Section. P.L. 2006, ch. 246, art. 24, § 1; P.L. 2007, ch. 73, art. 7, § 1.

44-62-5. Limitations.

  1. The credit shall not exceed one hundred thousand dollars ($100,000) annually per business entity.
  2. The tax credit must be used in the tax year the contribution was made. Any amounts of unused tax credit may not be carried forward. The tax credit is not refundable, assignable or transferable. The tax credit may not reduce the tax below the state minimum tax.
  3. The credit allowed under this chapter is only allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.

History of Section. P.L. 2006, ch. 246, art. 24, § 1.

44-62-6. Definitions.

The following words and phrases used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

  1. “Business entity” means an entity authorized to do business in this state and subject to taxes imposed under chapters 44-11, 44-13, 44-14, 44-15 and 44-17 of the general laws. Business entities also include Subchapter S Corporations, Limited Liability Partnerships, and Limited Liability Corporations.
  2. “Division of taxation” means the Rhode Island division of taxation.

History of Section. P.L. 2006, ch. 246, art. 24, § 1; P.L. 2007, ch. 73, art. 7, § 1.

44-62-7. Miscellaneous — Lists.

By June 30 of each year, the division of taxation shall annually publish in print and on the division of taxation’s website a list of all qualified scholarship organizations under § 44-62-4 . The list will indicate which scholarship organizations received contributions from business entities for which tax credits were authorized under this chapter. In addition, each scholarship organization shall submit to the division of taxation by December 31st of each year the following information, which shall be a public record: the number of scholarships distributed by the organization, per school, and the dollar range of those scholarships; a breakdown by zip code of the place of residence for each student receiving a scholarship under this program; and a description of all criteria used by the organization in determining to whom scholarships under this program shall be awarded.

History of Section. P.L. 2006, ch. 246, art. 24, § 1.

Chapter 63 Incentives for Innovation and Growth [Repealed.]

44-63-1. Repealed.

History of Section. P.L. 2006, ch. 568, § 1; P.L. 2006, ch. 572, § 1; Repealed by P.L. 2006, ch. 568, § 2, effective December 31, 2016; P.L. 2006, ch. 572, § 2, effective December 31, 2016.

Compiler’s Notes.

Former § 44-63-1 concerned definitions.

44-63-2. Repealed.

History of Section. P.L. 2006, ch. 568, § 1; P.L. 2006, ch. 572, § 1; Repealed by P.L. 2006, ch. 568, § 2, effective December 31, 2016; P.L. 2006, ch. 572, § 2, effective December 31, 2016.

Compiler’s Notes.

Former § 44-63-2 concerned credit innovation.

44-63-3. Repealed.

History of Section. P.L. 2006, ch. 568, § 1; P.L. 2006, ch. 572, § 1; P.L. 2008, ch. 100, art. 32, § 4; P.L. 2008, ch. 165, § 2; P.L. 2008, ch. 173, § 2; P.L. 2011, ch. 151, art. 19, § 6; Repealed by P.L. 2006, ch. 568, § 2, effective December 31, 2016; P.L. 2006, ch. 572, § 2, effective December 31, 2016.

Compiler’s Notes.

Former § 44-63-3 concerned eligibility for credit.

44-63-4. Repealed.

History of Section. P.L. 2006, ch. 568, § 1; P.L. 2006, ch. 572, § 1; Repealed by P.L. 2006, ch. 568, § 2, effective December 31, 2016; P.L. 2006, ch. 572, § 2, effective December 31, 2016.

44-63-5. Repealed.

History of Section. P.L. 2006, ch. 568, § 1; P.L. 2006, ch. 572, § 1; Repealed by P.L. 2006, ch. 568, § 2, effective December 31, 2016; P.L. 2006, ch. 572, § 2, effective December 31, 2016.

Chapter 64 The Outpatient Health Care Facility Surcharge

44-64-1. Short title.

This chapter shall be known as “The Outpatient Health Care Facility Surcharge Act.”

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-2. Definitions.

The following words and phrases as used in this chapter have the following meaning:

  1. “Administrator” means the tax administrator within the department of revenue.
  2. “Gross patient revenue” means the gross amount received on a cash basis by the provider from all patient care and other gross operating income. However, charitable contributions, fund raising proceeds, and endowment support shall not be considered “gross patient revenue.”
  3. “Net patient services revenue” means the charges related to patient care services less (i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.
  4. “Person” means any individual, corporation, company, association, partnership, joint stock association, and the legal successor thereof.
  5. “Provider” means a licensed facility or operator, including a government facility or operator, subject to a surcharge under this chapter.
  6. “Surcharge” means the assessment that is imposed upon net patient revenue pursuant to this chapter.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-3. Repealed.

History of Section. P.L. 2007, ch. 73, art. 11, § 2; Repealed by P.L. 2015, ch. 141, art. 11, § 13, effective July 1, 2015.

Compiler’s Notes.

Former § 44-64-3 concerned imposition of surcharge and outpatient health care facility.

44-64-4. Returns.

  1. Every provider shall, on or before the twenty-fifth (25th) day of the month following the month that the gross patient revenue is received, make a return to the tax administrator.
  2. The tax administrator is authorized to adopt rules relative to the form of the return and the data it must contain for the correct computation of gross patient revenue and the surcharge. All returns shall be signed by the provider or its authorized representative, subject to the penalties of perjury. If a return shows an overpayment of the surcharge due, the tax administrator shall refund or credit the overpayment to the provider.
  3. The tax administrator, for good cause shown, may extend the time within which a provider is required to file a return. If the return is filed during the period of extension, no penalty or late filing charge may be imposed for failure to file the return at the time required by this chapter, but the provider shall be liable for any interest as prescribed in this chapter. Failure to file the return during the period for the extension shall make the extension null and void.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-5. Set-off for delinquent payment of surcharge.

If a provider shall fail to pay a surcharge within thirty (30) days of its due date, the tax administrator may request any agency of state government to set off the amount of the delinquency against any payment they might be due the provider from the agency and to remit any such payment to the tax administrator. Upon receipt of a request for set-off from the tax administrator, any agency of state government is authorized and empowered to set off the amount of any delinquency against any payment that is due the provider. The amount of set-off shall be credited against the surcharge due from the provider.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-6. Surcharge on available information — Interest on delinquencies — Penalties — Collection powers.

If any provider shall fail, within the time required by this chapter, to file a return, or shall file an insufficient or incorrect return, or shall not pay the surcharge imposed by this chapter when it is due, the tax administrator shall make an assessment based upon information that may be available, which assessment shall be payable upon demand and shall bear interest from the date when the surcharge should have been paid at the annual rate set forth in § 44-1-7 of the Rhode Island general laws, as amended. If any part of the surcharge is caused by the negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to the surcharge. The tax administrator shall collect the surcharge with interest in the same manner and with the same powers as are prescribed for collection of taxes in this title.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-7. Claims for refund — Hearing upon denial.

  1. Any provider, subject to the provisions of this chapter, may file a claim for refund with the tax administrator at any time within two (2) years after the surcharge has been paid. If the tax administrator shall determine that the surcharge has been overpaid, the tax administrator shall make a refund with interest from the date of overpayment.
  2. Any provider aggrieved by an action of the tax administrator in determining the amount of any surcharge or penalty imposed under the provisions of this chapter may, within thirty (30) days after the notice of the action was mailed, apply to the tax administrator, for a hearing relative to the surcharge or penalty. The tax administrator shall fix a time and place for the hearing and shall so notify the provider.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-8. Hearing by tax administrator on application.

Following hearing, if the tax administrator upholds the assessment of the surcharge, the amount owed shall be assessed together with any penalty or interest thereon.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-9. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8 of the Rhode Island general laws, as amended. The provider’s right to appeal under this section shall be expressly made conditional upon prepayment of all surcharges, interest, and penalties, unless the provider moves for and is granted an exemption from the prepayment requirement, pursuant to § 8-8-26 of the Rhode Island general laws, as amended. Following the appeal, if the court determines that the provider is entitled to a refund, the provider shall also be paid interest on the refund at the rate provided in § 44-1-7.1 of the Rhode Island general laws, as amended.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-10. Provider records.

Every provider shall:

  1. Keep records as may be necessary to determine the amount of its liability under this chapter;
  2. Preserve those records for the period of three (3) years following the date of filing of any return required by this chapter, or until any litigation or prosecution under this chapter has been completed; and
  3. Make those records available for inspection upon demand by the tax administrator or his authorized agents at reasonable times during regular business hours.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-11. Method of payment and deposit of surcharge.

  1. Payments required by this chapter may be made by electronic transfer of monies to the general treasurer for deposit in the general fund.
  2. The general treasurer is authorized to establish necessary accounts and to take all steps necessary to facilitate the electronic transfer of monies. The general treasurer shall provide the tax administrator a record of any such monies transferred and deposited.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-12. Rules and regulations.

The tax administrator is authorized to promulgate all necessary rules, regulations, and procedures, not inconsistent with state law and fiscal procedures, for the proper administration of this chapter and in order to carry out the provisions, policy, and purposes of this chapter.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

44-64-13. Severability.

If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2007, ch. 73, art. 11, § 2.

Chapter 65 Imaging Services Surcharge

44-65-1. Short title.

This chapter shall be known as “The Imaging Services Surcharge Act.”

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-2. Definitions.

The following words and phrases as used in this chapter have the following meaning:

  1. “Administrator” means the tax administrator within the department of administration.
  2. “Gross patient revenue” means the gross amount received on a cash basis by a provider from all income derived from the provision of imaging services to patients. Charitable contributions, fundraising proceeds, and endowment support shall not be considered as “gross patient revenue.”
  3. “Imaging services” means and includes all the professional and technical components of x-ray, ultrasound (including echocardiography), computed tomography (CT), magnetic resonance imaging (MRI), positron emission tomography (PET), positron emission tomography/computed tomography (PET/CT), general nuclear medicine, and bone densitometry procedures.
  4. “Net patient services revenue” means the charges related to patient care services less (i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.
  5. “Person” means any individual, corporation, company, association, partnership, joint stock association, and the legal successor thereof.
  6. “Provider” means any person who furnishes imaging services for the purposes of patient diagnosis, assessment or treatment, excluding any person licensed as a hospital or a rehabilitation hospital center or a not-for-profit organization ambulatory care facility, pursuant to the provisions of chapter 17 of title 23 of the Rhode Island general laws, as amended or not performing more than two hundred (200) radiological procedures per month. Further, the term “provider” shall not apply to any person subject to the provisions of chapter 64 of title 44 or to any person licensed in the state of Rhode Island as a dentist or a podiatrist or a veterinarian.
  7. “Surcharge” means the assessment imposed upon net patient revenue pursuant to this chapter.

History of Section. P.L. 2007, ch. 73, art. 11, § 3; P.L. 2010, ch. 239, § 47.

44-65-3. Repealed.

History of Section. P.L. 2007, ch. 73, art. 11, § 3; Repealed by P.L. 2015, ch. 141, art. 11, § 14, effective July 1, 2015.

Compiler’s Notes.

Former § 44-65-3 concerned imposition of surcharge.

44-65-4. Returns.

  1. Every provider shall on or before the twenty-fifty (25th) day of the month following the month of receipt of gross patient revenue make a return to the tax administrator.
  2. The tax administrator is authorized to adopt rules, pursuant to this chapter, relative to the form of the return and the data that it must contain for the correct computation of gross patient revenue and the surcharge upon the amount. All returns shall be signed by the provider or by its authorized representative, subject to the pains and penalties of perjury. If a return shows an overpayment of the surcharge due, the tax administrator shall refund or credit the overpayment to the provider.
  3. The tax administrator, for good cause shown, may extend the time within which a provider is required to file a return, and if the return is filed during the period of extension no penalty or late filing charge may be imposed for failure to file the return at the time required by this chapter, but the provider shall be liable for interest as prescribed in this chapter. Failure to file the return during the period for the extension shall void the extension.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-5. Set-off for delinquent payment of surcharge.

If a provider shall fail to pay a surcharge within thirty (30) days of its due date, the tax administrator may request any agency of state government making payments to the provider to set-off the amount of the delinquency against any payment due the provider from the agency of state government and remit the sum to the tax administrator. Upon receipt of the set-off request from the tax administrator, any agency of state government is authorized and empowered to set-off the amount of the delinquency against any payment or amounts due the provider. The amount of set-off shall be credited against the surcharge due from the provider.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-6. Surcharge on available information — Interest on delinquencies — Penalties — Collection powers.

If any provider shall fail to file a return within the time required by this chapter, or shall file an insufficient or incorrect return, or shall not pay the surcharge imposed by this chapter when it is due, the tax administrator shall assess upon the information as may be available, which shall be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7 of the Rhode Island general laws, as amended, from the date when the surcharge should have been paid. If any part of the surcharge made is due to negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to the tax. The tax administrator shall collect the surcharge with interest in the same manner and with the same powers as are prescribed for collection of taxes in this title.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-7. Claims for refund — Hearing upon denial.

  1. Any provider, subject to the provisions of this chapter, may file a claim for refund with the tax administrator at any time within two (2) years after the surcharge has been paid. If the tax administrator shall determine that the surcharge has been overpaid, he or she shall make a refund with interest from the date of overpayment.
  2. Any provider whose claim for refund has been denied may, within thirty (30) days from the date of the mailing by the administrator of the notice of the decision, request a hearing and the administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the provider.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-8. Hearing by tax administrator on application.

Any provider aggrieved by the action of the tax administrator in determining the amount of any surcharge or penalty imposed under the provisions of this chapter may apply to the tax administrator, within thirty (30) days after the notice of the action is mailed to it, for a hearing relative to the surcharge or penalty. The tax administrator shall fix a time and place for the hearing and shall so notify the provider. Upon the hearing the tax administrator shall correct manifest errors, if any, disclosed at the hearing and thereupon assess and collect the amount lawfully due together with any penalty or interest thereon.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-9. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8 of the Rhode Island general laws, as amended. The provider’s right to appeal under this section shall be expressly made conditional upon prepayment of all surcharges, interest, and penalties unless the provider moves for and is granted an exemption from the prepayment requirement pursuant to § 8-8-26 of the Rhode Island general laws, as amended. If the court, after appeal, holds that the provider is entitled to a refund, the provider shall also be paid interest on the amount at the rate provided in § 44-1-7.1 of the Rhode Island general laws, as amended.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-10. Provider records.

Every provider shall:

  1. Keep records as may be necessary to determine the amount of its liability under this chapter.
  2. Preserve those records for the period of three (3) years following the date of filing of any return required by this chapter, or until any litigation or prosecution under this chapter is finally determined.
  3. Make those records available for inspection by the administrator or his/her authorized agents, upon demand, at reasonable times during regular business hours.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-11. Method of payment and deposit of surcharge.

  1. The payments required by this chapter may be made by electronic transfer of monies to the general treasurer and deposited to the general fund.
  2. The general treasurer is authorized to establish an account or accounts and to take all steps necessary to facilitate the electronic transfer of monies. The general treasurer shall provide the tax administrator a record of any monies transferred and deposited.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-12. Rules and regulations.

The tax administrator is authorized to make and promulgate rules, regulations, and procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for the proper administration of this chapter and to carry out the provisions, policies, and purposes of this chapter.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

44-65-13. Severability.

If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2007, ch. 73, art. 11, § 3.

Chapter 66 Recognition of Income from Discharge of Business Indebtedness

44-66-1. Recognition of income from discharge of business indebtedness.

For purposes of Rhode Island taxable income under Chapters 11, 14 and 30 of this title, the recognition of income from the discharge of business indebtedness deferred under the American Recovery and Reinvestment Act of 2009 for federal tax purposes, must be reported as a modification increasing federal income for Rhode Island tax purposes in the year it occurred. When claimed as income on a future federal tax return it may be reported as a modification decreasing federal income for Rhode Island tax purposes to the extent it had been added back.

History of Section. P.L. 2009, ch. 68, art. 16, § 11.

Chapter 67 The Compassion Center Surcharge Act

44-67-1. Short title.

This chapter shall be known as “The Compassion Center Surcharge Act.”

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-2. Definitions.

For purposes of this chapter:

  1. “Administrator” means the tax administrator within the department of revenue.
  2. “Compassion center” means a not-for-profit entity registered under § 21-28.6-12 that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies or dispenses marijuana, or related supplies and educational materials, to registered qualifying patients and their registered primary caregivers who have designated it as one of their primary caregivers.
  3. “Net patient revenue” means the gross amount received on a cash basis by a compassion center net of returns and allowances.
  4. “Practitioner” means a person who is licensed with authority to prescribe drugs pursuant to chapter 37 of title 5 or a physician licensed with authority to prescribe drugs in Massachusetts or Connecticut.
  5. “Primary caregiver” means either a natural person who is at least twenty-one (21) years old or a compassion center. Unless the primary caregiver is a compassion center, a natural primary caregiver may assist no more than five (5) qualifying patients with their medical use of marijuana.
  6. “Qualifying patient” means a person who has been diagnosed by a practitioner as having a debilitating medical condition and is a resident of Rhode Island.
  7. “Surcharge” means the assessment that is imposed upon net patient revenue pursuant to this chapter.
  8. Any term not defined in this chapter shall have the same meaning as used in chapter 28.6 of title 21.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-3. Imposition of surcharge — Compassion centers.

A surcharge at a rate of four percent (4.0%) shall be imposed upon the net patient revenue received each month by every compassion center. Every compassion center shall pay the monthly surcharge to the tax administrator no later than the twentieth (20th) day of the month following the month that the net patient revenue was received. This surcharge shall be in addition to any other authorized fees that have been assessed upon a compassion center.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-4. Returns.

  1. Every compassion center shall, on or before the twentieth (20th) day of the month following the month that the net patient revenue was received, make a return to the tax administrator.
  2. Compassion centers shall file their returns on a form as prescribed by the tax administrator containing data for the computation of net patient revenue and the surcharge. If a return shows an overpayment of a surcharge, the tax administrator shall refund or credit the overpayment to the compassion center.
  3. The tax administrator, for good cause shown, may extend the time within which a compassion center is required to file a return. If the return is filed during the period of extension, no penalty or late filing charge may be imposed for failure to file the return at the time required by this chapter, but the compassion center shall be liable for any interest as prescribed in this chapter. Failure to file the return during the period for the extension shall make the extension null and void and an appropriate penalty or late filing charge shall be imposed.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-5. Setoff for delinquent payment of surcharge.

If a compassion center fails to pay a surcharge, penalty or late filing charge within thirty (30) days of its due date, the tax administrator may request any agency of state government to setoff the amount of the delinquency against any payment due the compassion center from the agency and to remit to the tax administrator the amount of the surcharge, penalty and/or late filing charge from any such payment owed the compassion center. Upon receipt of a request for setoff from the tax administrator, any agency of state government is authorized and empowered to setoff the amount of any delinquency against any payment due the compassion center. The amount of setoff shall be credited against the surcharge, penalty and/or late filing charge due from the compassion center.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-6. Surcharge on available information — Interest on delinquencies — Penalties — Collection powers.

If any compassion center fails, within the time required by this chapter, to file a return, or files an insufficient or incorrect return, or does not pay the surcharge imposed by this chapter when it is due, the tax administrator shall make an assessment based upon available information, which assessment shall be payable upon demand and shall bear interest from the date when the surcharge should have been paid at the annual rate set forth in § 44-1-7 . If any part of the surcharge is caused by the negligence or intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount of the determination shall be added to the surcharge. The tax administrator shall collect the surcharge with interest, penalty and/or late filing charge in the same manner and with the same powers as prescribed for collection of taxes in this title.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-7. Claims for refund — Hearing upon denial.

  1. A claim for refund of an overpayment of a surcharge may be filed by a compassion center with the tax administrator at any time within two (2) years after the surcharge has been paid. If the tax administrator determines that a surcharge has been overpaid, the tax administrator shall make a refund with interest from the date of overpayment at the rate provided in § 44-1-7.1 .
  2. Any compassion center aggrieved by an action of the tax administrator in determining the amount of any surcharge or penalty imposed under the provisions of this chapter may, within thirty (30) days after the notice of the action was mailed, apply to the tax administrator, for a hearing relative to the surcharge or penalty. The tax administrator shall fix a time and place for the hearing and shall so notify the compassion center.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-8. Hearing by tax administrator on application.

Following the hearing, if the tax administrator upholds the amount of the surcharge assessed, the amount owed shall be assessed together with any penalty and/or interest thereon.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-9. Appeals.

Appeals from administrative orders or decisions made pursuant to any provisions of this chapter shall be to the sixth (6th) division district court pursuant to chapter 8 of title 8. The compassion center’s right to appeal under this section shall be conditional upon prepayment of all surcharges, interest, and penalties, unless the compassion center moves for and is granted an exemption from the prepayment requirement, pursuant to § 8-8-26 . Following the appeal, if the court determines that the compassion center is entitled to a refund, the compassion center shall be paid interest on the refund at the rate provided in § 44-1-7.1 .

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-10. Compassion center records.

Every compassion center shall:

  1. Keep records as may be necessary to determine the amount of its liability under this chapter;
  2. Preserve those records for the period of three (3) years following the date of filing of any return required by this chapter, or until any litigation or prosecution under this chapter has been completed; and
  3. Make those records available for inspection upon demand by the tax administrator or his/her authorized agents at reasonable times during regular business hours.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-11. Method of payment and deposit of surcharge.

  1. Payments required by this chapter shall be made by electronic transfer of monies to the general treasurer for deposit in the general fund.
  2. The general treasurer is authorized to establish necessary accounts and to take all steps necessary to facilitate the electronic transfer of monies. Upon request of the tax administrator the general treasurer shall provide the tax administrator a record of any such monies transferred and deposited.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

44-67-12. Rules and regulations.

The tax administrator is authorized to promulgate rules and regulations to carry out the provisions, policies, and purposes of this chapter including, but not limited to, emergency rules and regulations pursuant to § 42-35-3(b).

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

Compiler’s Notes.

Section 42-35-3 , referred to in this section, was amended by P.L. 2016, ch. 203, § 2, and P.L. 2016, ch. 206, § 2, effective June 29, 2016. Comparable provisions are now found in chapter 35 of title 42.

44-67-13. Severability.

If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

History of Section. P.L. 2011, ch. 151, art. 19, § 17.

Chapter 68 Tax Preparers Act of 2013

44-68-1. Short title.

This chapter shall be known as the “Tax Preparers Act.”

History of Section. P.L. 2013, ch. 144, art. 9, § 6.

44-68-2. Definitions.

  1. “Tax return preparer” means an individual who prepares a substantial portion of any return for compensation. Tax return preparers include individuals required to register with the Internal Revenue Service as a tax return preparer and who have a Preparer Tax Identification Number (PTIN). For the purpose of this chapter the following individuals shall not be considered tax return preparers:
    1. Volunteer tax return preparers; or
    2. Employees of a tax return preparer and employees of a commercial tax return preparation business who provide only clerical, administration or other similar services.
  2. “Preparer Tax Identification Number” means the number issued by the Internal Revenue Service (IRS) to paid preparers to use on all the returns they prepare.
  3. “Return” shall mean any tax report, return, claim for refund or attachment to any report, return and/or claim for return filed with the tax administrator pursuant to the tax laws of this state.

History of Section. P.L. 2013, ch. 144, art. 9, § 6.

44-68-3. Duties and responsibilities.

  1. A tax return preparer who prepares any return that is submitted to the tax administrator must comply with all state laws and all applicable regulations promulgated by the tax administrator.
  2. A tax return preparer must sign and include his/her preparer tax identification number on all returns prepared and filed with the division of taxation.

History of Section. P.L. 2013, ch. 144, art. 9, § 6; P.L. 2014, ch. 528, § 69.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-68-4. Civil penalties.

  1. Failure to be diligent in determining eligibility for or amount of earned-income credit.   Upon a determination by the tax administrator that a tax return preparer prepared a return(s) and failed to comply with due diligence requirements imposed by regulations issued by the tax administrator with respect to determining eligibility for, or the amount of, the credit allowable by § 44-30-2.6(c)(2)(N) , the tax return preparer shall pay a penalty of five hundred dollars ($500) for each such return and/or claim.
  2. Failure to be diligent in determining eligibility for property tax relief credit.   Upon a determination by the tax administrator that a tax return preparer prepared a return(s) and failed to comply with due diligence requirements imposed by regulations issued by the tax administrator with respect to determining eligibility for, or the amount of, the property tax relief credit allowable by § 44-33-1 et seq., the tax return preparer shall pay a penalty of five hundred dollars ($500) for each such return.
  3. Tax return preparer civil penalties.  Upon a determination by the tax administrator that a tax return preparer willfully prepared, assisted in preparing, or caused the preparation of a return(s) filed with the division of taxation with intent to wrongfully obtain a property tax relief credit or with the intent to evade or reduce a tax obligation, the tax return preparer shall be liable for a penalty of one thousand dollars ($1,000), or five hundred ($500) for each return so filed during any calendar year, whichever is greater.
  4. The tax administrator may suspend or revoke the privilege of a tax return preparer to prepare and/or file returns with the division of taxation upon a determination that the tax return preparer has failed to comply with or violated any provision of this section, any regulations issued by the tax administrator, or with any provision of any other laws relative to the preparation of tax returns. Any tax return preparer receiving a notice of intent to suspend or revoke the privilege to file tax returns with the division of taxation may request a hearing on the notice of intent to suspend or revoke; provided that said request for a hearing must be made within thirty (30) days of such notice to suspend or revoke. If, after hearing, the tax return preparer is aggrieved by a decision of the tax administrator (or his or her designated hearing officer), the tax return preparer may, within thirty (30) days after notice of the decision is sent to the tax return preparer by certified or registered mail, directed to their last known address, petition the sixth division of the district court pursuant to chapter 8 of title 8, setting forth the reasons why the decision is alleged to be erroneous and praying for relief therefrom.

History of Section. P.L. 2013, ch. 144, art. 9, § 6.

44-68-5. Criminal penalties.

Any tax return preparer who has previously been assessed a penalty by the tax administrator under § 44-68-4(c) who is found by a court of competent jurisdiction to have thereafter willfully prepared, assisted in preparing, or caused a preparation of another false tax return or claim for refund, that was filed with the division of taxation with the intent to wrongfully obtain a property relief credit or the intent to wrongfully evade or reduce a tax obligation, shall be guilty of a felony and, on conviction, shall be subject to a fine not exceeding fifty-thousand dollars ($50,000) or imprisonment not exceeding five (5) years or both.

History of Section. P.L. 2013, ch. 144, art. 9, § 6; P.L. 2014, ch. 528, § 69.

Effective Dates.

P.L. 2014, ch. 528, § 71 provides that the amendment to this section by that act takes effect on December 31, 2014.

44-68-6. Regulations.

The tax administrator shall promulgate rules and regulations in order to implement the provisions of this chapter.

History of Section. P.L. 2013, ch. 144, art. 9, § 6.

44-68-7. Severability.

If any provision of this chapter or the application of this chapter to any tax return preparer is held invalid, the remainder of this chapter and the application of the provisions to other tax return preparers or circumstances shall not be affected.

History of Section. P.L. 2013, ch. 144, art. 9, § 6.

Chapter 69 Compliance of Public Employees with State Income Tax Act

44-69-1. Short title.

This chapter shall be known as the “Public Employee Tax Compliance Act.”

History of Section. P.L. 2014, ch. 145, art. 12, § 3.

44-69-2. Definitions.

  1. “Appointing authority” means the person or group of persons having the power by virtue of the constitution, a state statute, or lawfully delegated authority to make appointments.
  2. “Employee” or “state or public employee” means an elected official, appointed officer or employee of any political subdivision of this state.
  3. “State agency” means any office, department, board, commission or institution of the executive, legislative, higher education or judicial branch of state government.
  4. “Political subdivision” means any office, department, board, commission or institution of the executive, legislative, education, or, public safety, or judicial branch of any city, town, or school district within the state.

History of Section. P.L. 2014, ch. 145, art. 12, § 3.

44-69-3. Administration.

  1. The department of administration and all political subdivisions shall, not later than August 1, 2014, and August 1 of each year thereafter, provide to the tax administrator a list of all public employees as of the preceding July 1 and such identifying information as may be required by the tax administrator. Such list and information shall be used by the tax administrator exclusively for the purpose of collection of income taxes due to the state of Rhode Island.
  2. The tax administrator shall, not later than December 1, 2014, and December 1 of each year thereafter, notify any public employee who is not in compliance with the income tax laws of this state. Such notification shall include:
    1. A statement that the employee will be subject to mandatory garnishment of wages by the state controller, unless the taxpayer is deemed by the tax administrator to be in compliance with the income tax laws of this state;
    2. The reasons that the taxpayer is considered to be out of compliance with the income tax laws of this state, including a statement of the amount of any tax, penalties and interest due, or a list of the tax years for which income tax returns have not been filed, as required by law;
    3. An explanation of the rights of the taxpayer and the procedures which must be followed by the taxpayer in order to come into compliance with the income tax laws of this state; and
    4. Such other information as may be deemed necessary by the tax administrator.
  3. A public employee who has entered into and is abiding by a payment agreement, or who has requested relief as an innocent spouse, which request is pending or has been granted, shall be deemed to be in compliance with the state income tax laws for purposes of this section.
  4. If the tax administrator notifies a public employee who is not in compliance with the income tax laws of this state as required in this section and such public employee does not respond to such notification or fails to come into compliance with the income tax laws of this state after an assessment has been made final or after the tax administrator determines that every reasonable effort has been made to assist the public employee to come into compliance with the income tax laws of this state, the tax administrator shall so notify the state controller or political subdivision, which shall commence mandatory garnishment of the public employee’s wages and shall notify the employee of the reason for such action. If a public employee, who has been previously reported by the tax administrator to a state agency or the political subdivision as being out of compliance, comes into compliance, the tax administrator shall immediately notify the state controller or the political subdivision. Neither a state agency or the political subdivision nor an appointing authority shall be held liable for any action with respect to a public employee pursuant to the provisions of this section.

History of Section. P.L. 2014, ch. 145, art. 12, § 3.