Introduced By: Representative Reps. M. Anderson, Coderre, Kilmartin, Cicilline and Montalbano
Date Introduced : May 5, 1998 February 3, 1998
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 for 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 {DEL city DEL} {ADD cities ADD}
of Providence {ADD or Pawtucket ADD} 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 (1) 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 {ADD or in the city of Pawtucket, ADD} and deriving the income exempted from within said district while a resident of said zone. For the purposes of this section, the arts and entertainment district {ADD in Providence ADD} 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; and {ADD 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. ADD}
(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 (1) 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) 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 herein.
SECTION 2. This act shall take effect on January 1, 1999.
