Chapter 258
2021 -- S 0575
Enacted 07/14/2021

A N   A C T
RELATING TO TAXATION -- PERSONAL INCOME TAX

Introduced By: Senators Lawson, Coyne, and Mendes

Date Introduced: March 11, 2021

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 city of Providence, Pawtucket, Woonsocket,
or Warwick, or East Providence, or the economic development zone within the town of Westerly
as defined in § 44-18-30B(c)(1)(i), or within the city of Newport or within the town of Tiverton or
the town of Little Compton, or within those areas of the town of Warren which that 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 the town of Little Compton, within those areas of the city or town which that are zoned
"general business," "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 that are zoned "waterfront district," "special district," "village business district,"
"manufacturing district," "business district," or "Warren historic district," or in the case of Tiverton
with within those areas of the town which that 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 that falls into one of the following
categories: (1) a A book or other writing; (2) a A play or the performance of said play; (3) a A
musical composition or the performance of said composition; (4) a A painting or other like picture;
(5) a A sculpture; (6) traditional Traditional and fine crafts; (7) the The creation of a film or the
acting of said film; (8) the 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) (1) 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 or East Providence, 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 § 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. Said Providence arts and entertainment district also includes the area
beginning at the point of intersection of Acorn Street and Harris Avenue, then turning east onto
Atwells Avenue to Service Road 7, then turning southerly onto Service Road 7 to Westminster
Street, then turning westerly onto Westminster Street, continuing until Bridgham, then turning
south onto Bridgham to Cranston Street, then turning southwesterly onto Cranston Street, then
continuing to Messer Street, then turning north onto Messer Street to Westminster Street, turning
west onto Westminster Street to US Hwy 6 off ramp, then heading west on US Hwy 6 to Sheridan
Street, then heading northeast on Sheridan Street to Aleppo Street, then turning southeast along
Aleppo Street to Pelham Street, then heading northeast on Pelham Street to Manton Avenue, then
continuing southeast on Manton Avenue until Delaine Street, then heading northeast on Delaine
Street until Appleton Street, then continuing northwesterly on Appleton Street until Bowdoin
Street, then heading north on Bowdoin Street until Barstow Street, then heading east on Barstow
until Valley Street, then heading northeast on Valley Street to Hemlock Street, then turning
southeast on Hemlock Street until Promenade Street, then heading east on Promenade Street to
Acorn Street, then heading south on Acorn Street to the intersection of Acorn Street and Harris
Avenue. The abovementioned streets shall be included in the district. The "Westerly arts and
entertainment district" is defined in § 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. The "East Providence art
district" shall be defined at a point of land on the northeast bank of the Seekonk River abutting the
Henderson Bridge and proceeding easterly along Wilmarth Avenue to a point at the intersection of
North Broadway, then proceeding southerly to South Broadway and continuing to the intersection
of Warren Avenue, then proceeding westerly on the southerly side of Warren Avenue to the
intersection with Burgess Avenue, then proceeding southerly to the intersection at Veterans
Memorial Parkway, then proceeding westerly to the intersection at Waterfront Drive, including the
area known as Bold Point Park, then northerly along the southeast bank of the Seekonk River back
to the point of the beginning.
     This section shall also apply to any individual who is a resident of the city of Newport or
the town of Tiverton or the town of Little Compton 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) (2) 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 subsection (c)(2) of
this section, 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) subsection (b)(2) 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 section 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 2. This act shall take effect upon passage.
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