2013 -- H 6021

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LC02410

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY

     Introduced By: Representatives Lally, Azzinaro, Hull, Edwards, and Tanzi

     Date Introduced: April 24, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-18-18 of the General Laws in Chapter 44-18 entitled "Sales and

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Use Taxes - Liability and Computation" is hereby amended to read as follows:

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     44-18-18. Sales tax imposed. [Effective October 1, 2012.] – (a) A tax is imposed upon

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sales at retail in this state including charges for rentals of living quarters in hotels as defined in

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section 42-63.1-2, rooming houses, or tourist camps, at the rate of six percent (6%) of the gross

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receipts of the retailer from the sales or rental charges; provided, that the tax imposed on charges

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for the rentals applies only to the first period of not exceeding thirty (30) consecutive calendar

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days of each rental; provided, further, that for the period commencing July 1, 1990, the tax rate is

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seven percent (7%). The tax is paid to the tax administrator by the retailer at the time and in the

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manner provided. Excluded from this tax are those living quarters in hotels, rooming houses, or

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tourist camps for which the occupant has a written lease for the living quarters which lease covers

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a rental period of twelve (12) months or more. In recognition of the work being performed by the

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Streamlined Sales and Use Tax Governing Board, upon any federal law which requires remote

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sellers to collect and remit taxes, effective the first (1st) day of the first (1st) state fiscal quarter

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following the change, the rate imposed under section 44-18-18 shall be six and one-half percent

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(6.5%).

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     (b) Notwithstanding the provisions of subsection (a), a tax is imposed upon sales at retail

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in this state for any and all alcoholic beverages as defined in section 44-18-7.1 at the rate of three

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percent (3%).

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     SECTION 2. Section 3-10-1 of the General Laws in Chapter 3-10 entitled "Taxation of

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Beverages" is hereby amended to read as follows:

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     3-10-1. Manufacturing tax rates -- Exemption of religious uses. -- (a) There shall be

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assessed and levied by the tax administrator on all beverages manufactured, rectified, blended, or

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reduced for sale in this state a tax of three dollars ($3.00) three dollars and thirty cents ($3.30) on

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every thirty-one (31) gallons, and a tax at a like rate for any other quantity or fractional part. On

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any beverage manufactured, rectified, blended, or reduced for sale in this state consisting in

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whole or in part of wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other strong liquors

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(as distinguished from beer or other brewery products) the tax to be assessed and levied is as

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follows:

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      (1) Still wines (whether fortified or not), sixty cents ($.60) fifty-five cents ($.55) per

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gallon;

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      (2) Still wines (whether fortified or not) made entirely from fruit grown in this state,

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thirty cents ($.30) per gallon;

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      (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) seventy cents

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($.70) per gallon;

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      (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole

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or in part of alcohol which is the product of distillation, three dollars and seventy-five cents

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($3.75) four dollars and five cents ($4.05) per gallon, except that whiskey, rum, gin, brandy

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spirits, cordials, and other beverages consisting in whole or in part of alcohol which is the product

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of distillation but which contains alcohol measuring thirty (30) proof or less, one dollar and ten

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cents ($1.10) per gallon;

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      (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50)

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per gallon; and

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      (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon.

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      (b) Sacramental wines are not subject to any tax if sold directly to a member of the

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clergy for use by the purchaser, or his or her congregation for sacramental or other religious

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purposes.

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      (c) A brewer who brews beer in this state which is actively and directly owned,

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managed, and operated by an authorized legal entity which has owned, managed, and operated a

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brewery in this state for at least twelve (12) consecutive months, shall receive a tax exemption on

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the first one hundred thousand (100,000) barrels of beer that it produces and distributes in this

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state in any calendar year. A barrel of beer is thirty one (31) gallons.

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     SECTION 3. This act shall take effect on July 1, 2013.

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LC02410

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY

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     This act would lower the sales tax imposed on alcoholic beverages from six percent (6%)

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to three percent (3%) and change the manufacturing taxes imposed on wine, beer and strong

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liquors to match the manufacturing taxes currently imposed by the commonwealth of

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Massachusetts.

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     This act would take effect on July 1, 2013.

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LC02410

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