2013 -- S 0633

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION -- SERVICE DISABLED VETERAN BUSINESS TAX CREDIT

     Introduced By: Senators Lombardi, Conley, Ciccone, McCaffrey, and Archambault

     Date Introduced: March 06, 2013

     Referred To: Senate Special Legislation and Veterans Affairs

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 7-1.2-1602 of the General Laws in Chapter 7-1.2 entitled "Rhode

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Island Business Corporation Act" is hereby amended to read as follows:

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     7-1.2-1602. Fees and charges payable to the secretary of state upon filing, certifying

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or copying of papers. -- (a) The secretary of state shall charge and collect for filing:

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      (1) Articles of incorporation and issuing a certificate of incorporation, seventy dollars

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($70.00).

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      (2) Articles of amendment and issuing a certificate of amendment, fifty dollars ($50.00).

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      (3) Restated articles of incorporation, seventy dollars ($70.00).

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      (4) Articles of merger or consolidation and issuing a certificate of merger or

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consolidation, one hundred dollars ($100).

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      (5) An application to reserve a corporate name, fifty dollars ($50.00).

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      (6) A notice of transfer of a reserved corporate name, fifty dollars ($50.00).

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      (7) (i) Filing a statement of change of registered agent and registered office or filing a

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statement of change of registered agent, twenty dollars ($20.00).

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      (ii) Filing a statement of change of registered office only, without fee.

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      (8) A statement of the establishment of a series of shares, ten dollars ($10.00).

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      (9) A statement of cancellation of shares, ten dollars ($10.00).

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      (10) A statement of reduction of stated capital, ten dollars ($10.00).

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      (11) A statement of intent to dissolve, without fee.

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      (12) A statement of revocation of voluntary dissolution proceedings, ten dollars

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($10.00).

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      (13) Articles of dissolution, fifty dollars ($50.00).

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      (14) An application of a foreign corporation for a certificate of authority to transact

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business in this state and issuing a certificate of authority, one hundred fifty dollars ($150).

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      (15) An application of a foreign corporation for an amended certificate of authority to

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transact business in this state and issuing an amended certificate of authority, seventy-five dollars

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($75.00).

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      (16) A copy of an amendment to the articles of incorporation of a foreign corporation

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holding a certificate of authority to transact business in this state, fifty dollars ($50.00).

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      (17) A copy of articles of merger of a foreign corporation holding a certificate of

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authority to transact business in this state, fifty dollars ($50.00).

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      (18) An application for withdrawal of a foreign corporation and issuing a certificate of

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withdrawal, fifty dollars ($50.00).

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      (19) An annual report, fifty dollars ($50.00).

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      (20) Registered name application, fifty dollars ($50.00).

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      (21) Certificate of good standing/letter of status, twenty dollars ($20.00).

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      (22) Certificate of fact, thirty dollars ($30.00).

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      (23) Any other statement or report, except an annual report, of a domestic or foreign

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corporation, ten dollars ($10.00).

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      (24) A certificate of conversion to a non-Rhode Island entity, fifty dollars ($50.00).

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      (b) The secretary of state shall charge and collect:

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      (1) To withdraw the certificate of revocation or a corporation, whether domestic or

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foreign, a penalty in the amount of fifty dollars ($50.00) for each year or part of a year that has

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elapsed since the issuance of the certificate of revocation.

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      (2) For furnishing a certified copy of any document, instrument, or paper relating to a

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corporation, fifteen cents ($.15) per page and ten dollars ($10.00) for the certificate and affixing

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the seal to it.

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      (3) At the time of any service of process on him or her as resident agent of a corporation,

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fifteen dollars ($15.00), which amount may be recovered as taxable costs by the party to the suit

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or action making the service if the party prevails in the suit or action.

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      (c) (1) The secretary of state shall charge and collect from each domestic corporation

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license fees, based on the number of shares which it has authority to issue or the increase in the

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number of shares which it has authority to issue, at the time of:

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      (i) Filing articles of incorporation;

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      (ii) Filing articles of amendment increasing the number of authorized shares; and

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      (iii) Filing articles of merger increasing the number of authorized shares which the

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surviving or new corporation, if a domestic corporation, has the authority to issue above the

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aggregate number of shares which the constituent domestic corporations and constituent foreign

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corporations authorized to transact business in this state had authority to issue.

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      (2) The license fees charged to a domestic corporation are as follows:

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      (i) One hundred sixty dollars ($160) for less than seventy-five million (75,000,000)

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authorized shares and

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      (ii) One-fifth (1/5) cent per share of each authorized share for seventy-five million

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(75,000,000) shares or greater.

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      (3) The above license fee calculations also apply when a corporation files an amendment

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or merger showing an increase in authorized shares.

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      (d) (1) The secretary of state shall charge and collect from each foreign corporation

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license fees at the time of:

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      (i) Filing an application for a certificate of authority to transact business in this state;

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      (ii) Filing articles of amendment which increased the number of authorized shares; and

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      (iii) Filing articles of merger which increased the number of authorized shares which the

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surviving or new corporation, if a foreign corporation, has authority to issue above the aggregate

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number of shares which the constituent domestic corporations and constituent foreign

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corporations authorized to transact business in this state had authority to issue.

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      (2) The license fees charged to a foreign corporation are as follows:

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      (i) One hundred sixty dollars ($160) for less than seventy-five million (75,000,000)

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authorized shares represented in the State of Rhode Island and

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      (ii) One-fifth (1/5) cent per share of each authorized share for 75,000,000 shares or

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greater.

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      (3) The above license fee calculations also apply when a corporation files an amendment

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or merger showing an increase in authorized shares.

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      (4) The number of authorized shares represented in this state is that proportion of its total

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authorized shares which the sum of the value of its property located in this state and the gross

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amount of business transacted by it at or from places of business in this state bears to the sum of

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the value of all of its property, wherever located, and the gross amount of its business, wherever

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transacted. The proportion is determined from information contained in the application for a

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certificate of authority to transact business in this state or in the application for an amended

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certificate of authority to transact business in this state.

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     (f) Corporate taxes imposed by this section shall be waived in the instance where the

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majority owner of the corporation is a disabled veteran whose disability is service connected as

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determined by a finding of the veteran's administration.

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     SECTION 2. Section 44-11-2 of the General Laws in Chapter 44-11 entitled "Business

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Corporation Tax" is hereby amended to read as follows:

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     44-11-2. Imposition of tax. -- (a) Each corporation shall annually pay to the state a tax

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equal to nine percent (9%) of net income, as defined in section 44-11-11, qualified in section 44-

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11-12, and apportioned to this state as provided in sections 44-11-13 -- 44-11-15, for the taxable

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year.

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      (b) A corporation shall pay the amount of any tax as computed in accordance with

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subsection (a) of this section after deducting from "net income," as used in this section, fifty

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percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if

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for the taxable year:

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      (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its

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own behalf and not as a broker, underwriter, or distributor;

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      (2) Its gross receipts derived from these activities during the taxable year amounted to at

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least ninety percent (90%) of its total gross receipts derived from all of its activities during the

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year. "Gross receipts" means all receipts, whether in the form of money, credits, or other valuable

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consideration, received during the taxable year in connection with the conduct of the taxpayer's

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activities.

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      (c) A corporation shall not pay the amount of the tax computed on the basis of its net

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income under subsection (a) of this section, but shall annually pay to the state a tax equal to ten

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cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of

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one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the

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corporation is either a "personal holding company" registered under the federal Investment

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Company Act of 1940, 15 U.S.C. section 80a-1 et seq., "regulated investment company", or a

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"real estate investment trust" as defined in the federal income tax law applicable to the taxable

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year. "Gross income" means gross income as defined in the federal income tax law applicable to

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the taxable year, plus:

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      (1) Any interest not included in the federal gross income; minus

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      (2) Interest on obligations of the United States or its possessions, and other interest

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exempt from taxation by this state; and minus

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      (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during

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the taxable year.

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      (d) (1) A small business corporation having an election in effect under subchapter S, 26

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U.S.C. section 1361 et seq., shall not be subject to the Rhode Island income tax on corporations,

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except that the corporation shall be subject to the provisions of subsection (a), to the extent of the

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income that is subjected to federal tax under subchapter S.

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      (2) The shareholders of the corporation who are residents of Rhode Island shall include

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in their income their proportionate share of the corporation's federal taxable income.

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      (3) [Deleted by P.L. 2004, ch. 595. art. 29, section 1.]

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      (4) [Deleted by P.L. 2004, ch. 595, art. 29, section 1.]

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      (e) Minimum tax. - The tax imposed upon any corporation under this section shall not be

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less than five hundred dollars ($500).

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     (e) Fees and charges payable to the secretary of state shall be waived in the instance

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where the majority owner of the corporation is a disabled veteran whose disability is service

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connected as determined by a finding of the veteran's administration.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- SERVICE DISABLED VETERAN BUSINESS TAX CREDIT

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     This act would waive corporate filing fees and the business corporation tax for those

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corporations whose majority owners are veterans suffering a service connected disability.

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     This act would take effect upon passage.

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