2013 -- H 5308

=======

LC00987

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TAXATION

     Introduced By: Representatives Lima, Lombardi, Shekarchi, Cimini, and Newberry

     Date Introduced: February 07, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

1-2

adding thereto the following chapter:

1-3

     CHAPTER 68

1-4

     TAX CREDIT BENEFIT VERIFICATION

1-5

     44-68-1. Benefit of tax credits to the state of Rhode Island to be verified. – Any

1-6

business applying for a tax credit pursuant to title 42 or title 44 shall comply with the provisions

1-7

of this chapter relating to tax credit benefits to the state of Rhode Island deriving from the

1-8

issuance of tax credits to businesses. Any business applying for a tax credit shall provide the

1-9

division of taxation with:

1-10

     (1) A waiver of confidentiality providing the division of taxation access to any and all

1-11

business or financial records necessary to verify the benefit to the state of Rhode Island from the

1-12

issuance of the tax credit to the business.

1-13

     (2) A signed affidavit indicating that the business shall turn over all financial records

1-14

which are relevant to determine what the benefit to the state of Rhode Island is as a result of the

1-15

issuance of the tax credit to the business.

1-16

     44-68-2. Benefit of tax credits to the state of Rhode Island to be verified—Existing

1-17

recipients requirements. – (a) Any business currently receiving a tax credit pursuant to title 42

1-18

or title 44 of the general laws shall comply with the provisions of section 44-68-1 by providing

1-19

the division of taxation with a waiver of confidentiality and an affidavit indicating that the

1-20

business will provide all relevant business records necessary to verify benefits to the state of

2-1

Rhode Island resulting from the issuance of the tax credit to the business.

2-2

     (b) Any business which fails to comply with the provisions of this chapter shall return to

2-3

the state of Rhode Island an amount equal to the tax credit already given.

2-4

     44-68-3. Rules and regulations. – The tax administrator is authorized and empowered to

2-5

promulgate rules and regulations necessary for the proper administration and enforcement of this

2-6

chapter.

2-7

     SECTION 2. This act shall take effect upon passage.

=======

LC00987

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION

***

3-1

     This act would require business tax credit recipients to provide the state with financial

3-2

business records to document any benefit to the state from the issuance of the tax credit.

3-3

     This act would take effect upon passage.

=======

LC00987

=======