| Chapter 232 |
| 2026 -- H 7809 Enacted 06/19/2026 |
| A N A C T |
| RELATING TO TAXATION -- STATE TAX OFFICIALS |
Introduced By: Representative Alex D. Marszalkowski |
| Date Introduced: February 12, 2026 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 44-1-6 of the General Laws in Chapter 44-1 entitled "State Tax |
| Officials" is hereby amended to read as follows: |
| 44-1-6. Additional collection powers — Nonresident contractors. |
| (a) Any person doing business with a nonresident contractor shall withhold payment of an |
| amount of three percent (3%) of the contract price until thirty (30) sixty (60) days after the |
| contractor has completed the contract and has requested the tax administrator, in writing, to audit |
| the records for the particular project, a receipted copy of the request to be furnished to the person |
| holding the funds. The tax administrator shall, within thirty (30) sixty (60) days after receipt of the |
| request, furnish to the nonresident contractor and to the person holding the funds either a certificate |
| of no tax due or a certificate of sales and use tax or income tax withheld, or both, due from the |
| nonresident contractor. |
| (b) Upon receipt of a certificate of no tax due, the person holding the payment may pay the |
| nonresident contractor. Upon receipt of a certificate of taxes due, the person may pay to the |
| contractor out of the amount withheld the excess over the amount of taxes stated in the certificate |
| together with the interest and penalties assessed. If the tax administrator furnishes neither certificate |
| to both parties within thirty (30) sixty (60) days after receipt of a written request for the making of |
| the audit, the person holding the payment may immediately pay the payment withheld to the |
| nonresident contractor under the terms of the contract free from any claims of the tax administrator |
| against either the person holding the payment or the nonresident contractor for payment of sales or |
| use taxes or income taxes withheld, or both. |
| (c) In the event the tax administrator serves upon the contractor and the person holding the |
| payment a certificate showing the taxes due within a thirty (30) sixty-(60)day (60) period, the |
| person holding the payment shall deposit with the tax administrator the amount stated in the |
| certificate which is not in excess of three percent (3%) of the contract price, taking a receipt for the |
| amount, and is free from any claim of the nonresident contractor for that amount or of the tax |
| administrator for sales and use taxes or income taxes withheld, or both, arising out of the materials, |
| equipment, and services used in performance of the contract of the nonresident contractor on that |
| project. |
| (d) As used in this section, “a nonresident contractor” is one who does not maintain a |
| regular place of business in this state. “A regular place of business” means and includes any bona |
| fide office (other than a statutory office), factory, warehouse, or other space in this state at which |
| the taxpayer is doing business in its own name in a regular and systematic manner, and which is |
| continuously maintained, occupied, and used by the taxpayer in carrying on its business through its |
| regular employees regularly in attendance. A temporary office at the site of construction shall not |
| constitute a regular place of business. |
| (e) Any person doing business with a nonresident contractor who fails to comply with the |
| provisions of this section shall be liable for payment of the amount due as determined by the tax |
| administrator and shall be subject to the same collection activities as a taxpayer pursuant to this |
| title. |
| SECTION 2. This act shall take effect upon passage. |
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| LC004983 |
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