2022 -- S 2845

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LC005692

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

     

     Introduced By: Senators Lombardo, Pearson, Ciccone, McCaffrey, Goodwin, F
Lombardi, Picard, Gallo, Sosnowski, and Felag

     Date Introduced: April 05, 2022

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Subject to the conditions, limitations and restrictions hereinafter contained in

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this act, in addition to those monies previously appropriated pursuant to chapter 162 of the Public

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Laws of 2021, the sum equal to the amount calculated by the division of taxation necessary to

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replace lost revenues as a result of the suspension of the taxes noted in Section 2 is hereby

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appropriated to the restricted receipt account for highway improvement funds established under §

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31-36-7(b) to ensure that no loss of revenues to any department, agencies or other public body or

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organ of government as provided by law prior to the enactment of this act in addition to amounts

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previously appropriated and the amount made necessary to replace lost revenue shall be paid out

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of funds made available to the state from federal sources under the American Rescue Plan Act of

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2021 and State Fiscal Relief Funds not otherwise appropriated to be extended during the fiscal year

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ending June 30, 2022. For the purposes and functions hereinafter mentioned, the state controller is

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hereby authorized and directed to draw his or her orders upon the general treasurer for the payment

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of such sums or such portions thereof as may be required from time to time upon receipt by him or

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her of properly authenticated vouchers.

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     SECTION 2. Section 31-36-7 of the General Laws in Chapter 31-36 entitled "Motor Fuel

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Tax" is hereby amended to read as follows:

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     31-36-7. Monthly report of distributors -- Payment of tax.

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     (a) State requirements. Every distributor shall, on or before the twentieth (20th) day of each

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month, render a report to the tax administrator, upon forms to be obtained from the tax

 

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administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor

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within this state and the amount of fuels sold by the distributor without this state from fuels within

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this state during the preceding calendar month, and, if required by the tax administrator as to

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purchases, the name or names of the person or persons from whom purchased and the date and

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amount of each purchase, and as to sales, the name or names of the person or persons to whom sold

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and the amount of each sale, and shall pay at the same time to the administrator tax at the rate of

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thirty-two cents ($0.32) per gallon on all taxable gallons of fuel sold or used in this state.

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     (b) Federal requirements. In the event the federal government requires a certain portion of

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the gasoline tax to be dedicated for highway improvements, then the state controller is directed to

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establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings

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the state into federal compliance.

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     Beginning July 1, 2015, and every other year thereafter, the gasoline tax shall be adjusted

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by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

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published by the United States Bureau of Labor Statistics determined as of September 30 of the

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prior calendar year; said adjustment shall be rounded to the nearest one cent ($.01) increment,

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provided that the total tax shall not be less than provided for in section (a).

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     (c) Emergency suspension of tax. From April 1, 2022 to June 30, 2022, inclusive, the tax

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imposed under this chapter shall not apply to fuels or manufactured biodiesel fuel sold or used by

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any distributor, filling station, owner, peddler or retail dealer in this state. Nothing in this section

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shall be construed to affect the tax due pursuant to other sections of law related to taxes on propane,

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natural gas or diesel sold or used by a distributor or other person or entity in this state.

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     (d) Required reduction in price by sellers during emergency suspension. During the period

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provided in subsection (c) of this section, each retail dealer shall reduce the per-gallon price of fuels

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or manufactured biodiesel fuel sold by such peddler, owner, filling station or retail dealer in an

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amount equal to the amount of the reduction in such tax pursuant to subsection (a) of this section.

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     (e) A violation of subsection (d) of this section shall be deemed an unfair or deceptive trade

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practice as defined § 6-13.1-1(6).

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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 MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

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     This act would suspend the tax on fuel or manufactured biodiesel fuel sold or used by any

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distributor, filling station owner, peddler or retail dealer in Rhode Island from April 1, 2022 to June

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30, 2022, and require the seller to reduce the per-gallon price of fuel or manufactured biodiesel fuel

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by a sum equal to the tax abatement. The act would deem a failure to reduce the per-gallon price

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reduction as an unfair or deceptive trade practice.

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     This act would take effect upon passage.

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