2013 -- S 0245

=======

LC00778

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TAXATION

     Introduced By: Senator Michael J. McCaffrey

     Date Introduced: February 13, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 7-12-60 of the General Laws in Chapter 7-12 entitled

1-2

"Partnerships" is hereby amended to read as follows:

1-3

     7-12-60. Filing of returns with the tax administrator -- Annual charge. -- (a) For tax

1-4

years beginning on or after January 1, 2012 a limited liability partnership registered under section

1-5

7-12-56, shall file a return in the form and containing the information as prescribed by the tax

1-6

administrator as follows:

1-7

      (1) If the fiscal year of the limited liability partnership is the calendar year, on or before

1-8

the fifteenth (15th) day of April in the year following the close of the fiscal year; and

1-9

      (2) If the fiscal year of the limited liability partnership is not a calendar year, on or

1-10

before the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.

1-11

      (b) An annual charge, equal to the minimum tax imposed upon a corporation under

1-12

subsection 44-11-2(e), shall be due on the filing of the limited liability partnership's return filed

1-13

with the tax administrator and shall be paid to the division of taxation.

1-14

      (c) The annual charge is delinquent if not paid by the due date for the filing of the return

1-15

and an addition of one hundred dollars ($100) to the charge is then due.

1-16

     SECTION 2. Section 7-13-69 of the General Laws in Chapter 7-13 entitled "Limited

1-17

Partnerships" is hereby amended to read as follows:

1-18

     7-13-69. Filing of returns with the tax administrator -- Annual charge. -- (a) For tax

1-19

years beginning on or after January 1, 2012 a limited partnership certified under this chapter shall

1-20

file a return in the form and containing the information as prescribed by the tax administrator as

2-1

follows:

2-2

      (1) If the fiscal year of the limited partnership is the calendar year, on or before the

2-3

fifteenth (15th) day of April in the year following the close of the fiscal year; and

2-4

      (2) If the fiscal year of the limited partnership is not a calendar year, on or before the

2-5

fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.

2-6

      (b) An annual charge, equal to the minimum tax imposed upon a corporation under

2-7

subsection 44-11-2(e), shall be due on the filing of the limited partnership's return filed with the

2-8

tax administrator and shall be paid to the division of taxation.

2-9

      (c) The annual charge is delinquent if not paid by the due date for the filing of the return

2-10

and an addition of one hundred dollars ($100) to the charge is then due.

2-11

     SECTION 3. Section 7-16-67 of the General Laws in Chapter 7-16 entitled "The Rhode

2-12

Island Limited Liability Company Act" is hereby amended to read as follows:

2-13

     7-16-67. Filing of returns with the tax administrator -- Annual charge. -- (a) A return

2-14

in the form and containing the information as the tax administrator may prescribe shall be filed

2-15

with the tax administrator by the limited liability company:

2-16

      (1) In case the fiscal year of the limited liability company is the calendar year, on or

2-17

before the fifteenth day of March in the year following the close of the fiscal year; and

2-18

      (2) In case the fiscal year of the limited liability company is not a calendar year, on or

2-19

before the fifteenth day of the third month following the close of the fiscal year.

2-20

      (b) An annual charge shall be due on the filing of the limited liability company's return

2-21

filed with the tax administrator and shall be paid to the Division of Taxation as follows:

2-22

      (1) If the limited liability company is treated as a corporation for purposes of federal

2-23

income taxation, it shall pay the taxes as provided in chapters 11 and 12 of title 44. ; or

2-24

      (2) If the limited liability company is not treated as a corporation for purposes of federal

2-25

income taxation, it shall pay a fee in an amount equal to the minimum tax imposed upon a

2-26

corporation under section 44-11-2(e). The due date for a limited liability company that is not

2-27

treated as a corporation for purposes of federal income taxation shall be on or before the fifteenth

2-28

(15th) day of the fourth (4th) month following the close of the fiscal year.

2-29

      (c) The annual charge is delinquent if not paid by the due date for the filing of the return

2-30

and an addition of one hundred dollars ($100.00) to the charge is then due.

2-31

     SECTION 4. Section 44-11-2 of the General Laws in Chapter 44-11 entitled "Business

2-32

Corporation Tax" is hereby amended to read as follows:

2-33

     44-11-2. Imposition of tax. -- (a) Each corporation shall annually pay to the state a tax

2-34

equal to nine percent (9%) of net income, as defined in section 44-11-11, qualified in section 44-

3-1

11-12, and apportioned to this state as provided in sections 44-11-13 -- 44-11-15, for the taxable

3-2

year.

3-3

      (b) A corporation shall pay the amount of any tax as computed in accordance with

3-4

subsection (a) of this section after deducting from "net income," as used in this section, fifty

3-5

percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if

3-6

for the taxable year:

3-7

      (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its

3-8

own behalf and not as a broker, underwriter, or distributor;

3-9

      (2) Its gross receipts derived from these activities during the taxable year amounted to at

3-10

least ninety percent (90%) of its total gross receipts derived from all of its activities during the

3-11

year. "Gross receipts" means all receipts, whether in the form of money, credits, or other valuable

3-12

consideration, received during the taxable year in connection with the conduct of the taxpayer's

3-13

activities.

3-14

      (c) A corporation shall not pay the amount of the tax computed on the basis of its net

3-15

income under subsection (a) of this section, but shall annually pay to the state a tax equal to ten

3-16

cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of

3-17

one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the

3-18

corporation is either a "personal holding company" registered under the federal Investment

3-19

Company Act of 1940, 15 U.S.C. section 80a-1 et seq., "regulated investment company", or a

3-20

"real estate investment trust" as defined in the federal income tax law applicable to the taxable

3-21

year. "Gross income" means gross income as defined in the federal income tax law applicable to

3-22

the taxable year, plus:

3-23

      (1) Any interest not included in the federal gross income; minus

3-24

      (2) Interest on obligations of the United States or its possessions, and other interest

3-25

exempt from taxation by this state; and minus

3-26

      (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during

3-27

the taxable year.

3-28

      (d) (1) A small business corporation having an election in effect under subchapter S, 26

3-29

U.S.C. section 1361 et seq., shall not be subject to the Rhode Island income tax on corporations,

3-30

except that the corporation shall be subject to the provisions of subsection (a), to the extent of the

3-31

income that is subjected to federal tax under subchapter S.

3-32

      (2) The shareholders of the corporation who are residents of Rhode Island shall include

3-33

in their income their proportionate share of the corporation's federal taxable income.

4-34

      (3) [Deleted by P.L. 2004, ch. 595. art. 29, section 1.]

4-35

      (4) [Deleted by P.L. 2004, ch. 595, art. 29, section 1.]

4-36

      (e) Minimum tax. - The tax imposed upon any corporation under this section shall not be

4-37

less than five hundred dollars ($500).

4-38

     SECTION 5. This act shall take effect upon passage.

=======

LC00778

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION

***

5-1

     This act would repeal the five hundred dollar ($500) minimum tax on corporations,

5-2

limited liability companies and partnerships.

5-3

     This act would take effect upon passage.

=======

LC00778

=======