Chapter 226

2003 -- S 0197 SUBSTITUTE A

Enacted 07/15/03

AN ACT

RELATING TO TAXATION -- PERSONAL INCOME TAX

Introduced By: Senators Badeau, and Cote

Date Introduced: January 30, 2003

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-30-1.1 of the General Laws in Chapter 44-30 entitled "Personal

Income Tax" is hereby amended to read as follows:

44-30-1.1. Exemption from tax for writers, composers and artists. -- (A) This section

shall only apply to writers, composers and artists residing within a section of the defined

economic development zone within the cities of Providence, or Pawtucket or Woonsocket, or the

economic development zone within the town of Westerly as defined in section 44-18-

30B(c)(1)(i), or a tax pass-through entity wholly owned by one or more such individuals and

who create such work while residing in the zone. For the purposes of this section, a "work" shall

mean 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, which 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.

      (B) (1) This section shall apply to any individual:

      (a) Who is a resident within the section of the economic development zone designated as

the Arts and Entertainment District in the downtown area of the city of Providence, Woonsocket

or in the city of Pawtucket, 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 section 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 arts and entertainment district in Providence 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. The Westerly arts and entertainment district is defined in section 44-18-

30B(C)(1)(i). The abovementioned streets shall be included in the district; and in Pawtucket 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.; and in Woonsocket 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.

     (b) 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 would fall into one of the categories listed in

section (A) above.

      (C) (1) An individual to whom this section applies and who duly makes a claim to the

tax administrator in that behalf shall, subject to paragraph (2) below, 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)(1)(b) 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.

      (D) The tax administrator may serve on an individual who makes a claim under this

subsection a notice or notices in writing requiring him or her to make available within such time

as 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.

      (E) For the purpose of determining the amount of profits or gains subject to modification

under this section, the tax administrator may make such apportionment of receipts and expenses

as may be necessary.

      (F) 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.

     SECTION 2. This act shall take effect on January 1, 2004.     

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LC01171/SUB A

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