Chapter
257
2005 -- S 0833 SUBSTITUTE A AS AMENDED
Enacted 07/13/05
A N A C T
RELATING TO TAXATION
Introduced By: Senators Paiva-Weed, P Fogarty, and Gibbs
Date Introduced: February
17, 2005
It is enacted
by the General Assembly as follows:
SECTION
1. Section 44-18-30B of the General Laws in Chapter 44-18 entitled "Sales
and Use
Taxes - Liability and Computation" is hereby amended to read as follows:
44-18-30.B.
Exemption from sales tax for sales by writers, composers, artists --
Findings.
[Effective January 1, 2005.] --
(a) The general assembly makes the following findings
of
facts:
(1) The downtown area of the city of Providence has been characterized by
blighted
areas,
and dilapidated and abandoned structures;
(2) As a result, the downtown area has been designated an economic development
zone
in order
to stop the deterioration and stimulate economic activity;
(3) The capitol center area of the city of Providence has become an attractive
location,
especially
with the construction of the Providence Place Mall;
(4) In order to promote, revitalize and redevelop the "Old Downtown"
area of the city of
Providence
it is necessary to provide tax exemptions to this area as it has been
designated as an
economic
development zone;
(5) In order to promote, revitalize, and redevelop the "Downtown or other
industrial or
manufacturing
buildings" located in the City of Pawtucket, it is necessary to provide
tax
exemptions
to this area as it has been designated as an economic development zone;
(6) The development of an active artistic community, including "artists in
residence", in
this
area would promote economic development, revitalization, tourism, employment
opportunities,
and encourage business development by providing alternative commercial
enterprises
while in Providence creating a link between the Old Downtown and the Capital
Center
Area.
(7) There is a separate artistic community in the town of Westerly which is
important to
preserve,
promote, and revitalize, and which is distinct from that in the city of
Providence.
(8) There is a separate artistic community in the city of Woonsocket which is
important
to
promote and revitalize and which is distinct from that in the cities of
Providence and Pawtucket
and the
town of Westerly.
(9) There is a separate artistic community in the city of Warwick which is
important to
preserve,
promote, and revitalize and which is distinct from that in the cities of
Providence,
Pawtucket,
Woonsocket and the town of Westerly.
(10) There is a are separate artistic community communities
in the city of Newport and
in
the town of Tiverton which is are
important to promote and revitalize and which is are distinct
from that
those in the cities of Providence, Pawtucket, Warwick and
Woonsocket and the towns
of
Westerly and Tiverton.
(11) There is a separate artistic community in the town of Warren which is
important to
promote
and revitalize and which is distinct from that in the cities of Providence,
Pawtucket,
Newport,
Warwick, and Woonsocket and the towns
of Westerly and Tiverton.
(b) (1) This section only applies to sales by writers, composers and artists
residing in and
conducting
a business within a section of the defined economic development zone in the
cities of
Providence
or Pawtucket, or the defined economic development zone in the town of Westerly
or
the
defined economic zone in the city of Woonsocket, or the defined economic zone
in the city of
Warwick,
or in those areas within the city of Newport and the town of Tiverton
which are zoned
"general
business," or "waterfront business", or "limited
business" or have been designated by the
city
of Newport as part of the arts district, or in those areas of the town of Warren which are
zoned
"waterfront district," "special district," "village
business district," "manufacturing district,"
"business
district" or "Warren historic district", or in those areas of
the town of Tiverton which
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
or executed for "one-of-a-kind limited" production and which falls
into one of the
following
categories:
(i) A book or other writing;
(ii) A play or the performance of said play;
(iii) A musical composition or the performance of said composition;
(iv) A painting or other like picture;
(v) A sculpture;
(vi) Traditional and fine crafts;
(vii) The creation of a film or the acting within the film;
(viii) 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 or related production.
(c) (1) This section applies to sales by any individual:
(i) Who is a resident of and has a principal place of business situated in the
section of the
economic
development zone designated as the arts and entertainment district in the
downtown
area of
the city of Providence or in the city of Pawtucket, or the defined economic
development
zone in
the town of Westerly or the defined economic zone in the city of Woonsocket, or
the
defined
economic zone in the city of Warwick, or who is a resident of and has a
principal place of
business
situated in those areas within the city of Newport and the town of Tiverton
which are
zoned
"general business," or "waterfront business",
or "limited business," or have been designated
by
the city of Newport as part of the arts district, or who is a resident of and has a principal place
of
business situated in those areas within the town of Warren which are zoned
"waterfront
district,"
"special district," "village business district,"
"manufacturing district," "business district"
or
"Warren historic district.," or who is a resident or
has a principal place of business situated in
those
areas within the town of Tiverton which are zoned "business
commercial," business
waterfront"
or "village commercial."
For the purposes of this section, the Providence 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
named streets are included in the Providence district; and in Pawtucket is
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 named streets are included in the district. The
Westerly arts and
entertainment
district is defined as assessor's plat 56, lots 1 through 24, lot 48, lots 50
through 62,
and lots
71 through 82, and assessors plat 66, lots 22 through 26, and lots 29 through
36 the
Woonsocket
arts and entertainment district is 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 north/east 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
south/west
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.
(ii) Who is determined by the tax administrator, after consideration of any
evidence he or
she
deems necessary or which is submitted to him or her by the individual, to have
written,
composed,
or executed, either solely or jointly, a work or works which 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 arts
and
entertainment
district described in subsection (c)(1)(i) as well as any other arts and
entertainment
district
designated by the general assembly, as well as to sales by any other gallery
located in
those
areas within the city of Newport and the town of Tiverton which are
zoned "general
business,"
or "waterfront business", or "limited business"
or have been designated by the city of
Newport
as part of the arts district, as well
as to sales by any other gallery located in those areas
within
the town of Warren which are zoned "waterfront district,"
"special district," "village
business
district," "manufacturing district," "business
district" or "Warren historic district," as
well
as to sales by any other gallery located in those areas within the town of
Tiverton which are
zoned
"business commercial," “business waterfront" or "village commercial."
(3) The tax administrator shall not make a determination unless:
(i) The individual(s) concerned duly make(s) an application to the tax
administrator for
the
sales tax exemption which 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.
(d) 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 economic development zone which would, apart from this
section,
be subject to the tax rate imposed by the state of Rhode Island.
(e) 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.
(f) 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.
(g) Any person storing, using, or otherwise consuming in this state any work or
works
which is
deemed to be exempt from the sales tax pursuant to this section is not liable
for the use
tax on
the work or works.
(h) 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.
SECTION
2. 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. [Effective
January
1, 2005.] -- (a) 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 or Warwick, or the economic development zone within the town of
Westerly
as defined in section 44-18-30B(c)(1)(i), or within the city of Newport or
within the
town of
Tiverton, or within those areas of the town of Warren which 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
within
the town of Tiverton, within those
areas of the city or town which are zoned "general
business,"
or "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 which
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 which 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, 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:
(i) 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
or
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 "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.
The abovementioned
streets shall be included in the district. The "Westerly arts and
entertainment
district"
is defined in section 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.
This section shall also apply to any individual who is a resident of the city
of Newport or
the town
of Tiverton 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.
(ii) 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.
(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 subdivision (2) of this subsection, 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
paragraph
(b)(1)(ii)
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
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.
(e) 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.
(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 3. This act
shall take effect upon passage.
=======
LC02113/SUB A
=======