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2013 -- S 0011 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2013 | |
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A N A C T | |
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RELATING TO TAXATION - FRANCHISE TAX | |
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Introduced By: Senators Bates, DiPalma, Walaska, Lombardo, and Ruggerio | |
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Date Introduced: January 16, 2013 | |
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Referred To: Senate Corporations | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 44-12-1 of the General Laws in Chapter 44-12 entitled "Franchise |
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Tax" is hereby amended to read as follows: |
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44-12-1. Tax imposed -- Corporations liable -- Credit for tax on income -- Reduced |
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rate where no business done. -- (a) Every corporation, joint-stock company, or association |
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incorporated in this state or qualified to do business in this state, whether or not doing business |
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for profit, all referred to in this section under the term "corporation", except those enumerated in |
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section 44-12-11, shall pay an annual franchise tax to the state upon its authorized capital stock of |
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two dollars fifty cents ($2.50) for each ten thousand dollars ($10,000) or fractional part, or the |
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sum of five hundred dollars ($500), whichever is greater; reduced however, by a credit, not to |
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exceed four hundred dollars ($400), of one hundred dollars ($100) for each employee of such |
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entity as of the last day of its preceding tax year. |
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(b) In the case of corporations liable to a tax under chapter 11 of this title, only the |
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amount by which the franchise tax exceeds the tax payable under that chapter shall be assessed. |
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(c) If a corporation shall show by supplemental affidavit attached to the prescribed return |
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and signed in the manner provided for each return that it has not, at any time during its preceding |
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taxable year, been engaged within the state in any business activities, it shall only pay an annual |
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franchise tax upon its authorized capital stock at the following rates: five hundred dollars ($500) |
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where the stock does not exceed one million dollars ($1,000,000); and the further sum of twelve |
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dollars fifty cents ($12.50) for each additional one million dollars ($1,000,000) or fractional part |
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of the stock. |
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(d) Notwithstanding any other provisions of this section or the general or public laws to |
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the contrary, no entity liable for the tax set forth in this section shall be required to pay such tax |
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for the tax year in which it was formed, or for the two (2) tax years immediately following. |
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SECTION 2. This act shall take effect upon passage. |
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LC00086 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TAXATION - FRANCHISE TAX | |
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This act would provide each corporation with a credit against the franchise tax, not to |
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exceed four hundred dollars ($400), of one hundred dollars ($100) for each employee of such |
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entity as of the last day of its preceding tax year. It would further exempt any corporation from |
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the payment of the franchise tax in the first three (3) years of its incorporation. |
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This act would take effect upon passage. |
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LC00086 | |
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