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art.004/1

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     ARTICLE 4

RELATING TO TAXES

     SECTION 1. Section 31-36-7 of Chapter 31-36 of the General Laws entitled "Motor Fuel

Tax" is hereby amended as follows:

     31-36-7. Monthly report of distributors — Payment of tax.

     (a) State requirements. Every distributor shall, on or before the twentieth (20th) day of

each month, render a report to the tax administrator, upon forms to be obtained from the tax

administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor

within this state and the amount of fuels sold by the distributor without this state from fuels within

this state during the preceding calendar month, and, if required by the tax administrator as to

purchases, the name or names of the person or persons from whom purchased and the date and

amount of each purchase, and as to sales, the name or names of the person or persons to whom sold

and the amount of each sale, and shall pay at the same time to the administrator tax at the rate of

thirty-two cents ($0.32) per gallon on all taxable gallons of fuel sold or used in this state.

     (b) Federal requirements. In the event the federal government requires a certain portion

of the gasoline tax to be dedicated for highway improvements, then the state controller is directed

to establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings

the state into federal compliance.

     (c) Beginning July 1, 2015, and every other year thereafter, through July 1, 2021, the

gasoline tax shall be adjusted by the percentage of increase in the Consumer Price Index for all

Urban Consumers (CPI-U) as published by the United States Bureau of Labor Statistics determined

as of September 30 of the prior calendar year; said adjustment shall be rounded to the nearest one

cent ($.01) increment, provided that the total tax shall not be less than provided for in section (a).

     (d) Beginning July 1, 2025, and every other year thereafter, the gasoline tax shall be

adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-

U) as published by the United States Bureau of Labor Statistics determined as of September 30 of

the prior calendar year; said adjustment shall be rounded to the nearest one cent ($.01) increment,

provided that the total tax shall not be less than provided for in subsection (a).

     SECTION 2. Sections 44-18-18, 44-18-19, and 44-18-20 of the General Laws in

     Chapter 44-18 entitled "Sales and Use Taxes – Liability and Computation" are hereby

amended to read as follows:

     44-18-18.  Sales tax imposed.

     A tax is imposed upon sales at retail in this state, including charges for rentals of living

quarters in hotels as defined in § 42-63.1-2, rooming houses, or tourist camps, at the rate of six

percent (6%) of the gross receipts of the retailer from the sales or rental charges; provided, that the

tax imposed on charges for the rentals applies only to the first period of not exceeding thirty (30)

consecutive calendar days of each rental; provided, further, that for the period commencing July 1,

1990, the tax rate is seven percent (7%); provided, further, that for the period commencing October

1, 2023, the tax rate is six and eighty-five one-hundredths percent (6.85%). The tax is paid to the

tax administrator by the retailer at the time and in the manner provided. Excluded from this tax are

those living quarters in hotels, rooming houses, or tourist camps for which the occupant has a

written lease for the living quarters which lease covers a rental period of twelve (12) months or

more.

     44-18-19.  Collection of sales tax by retailer.

     The retailer shall add the tax imposed by this chapter to the sale price or charge, and when

added the tax constitutes a part of the price or charge, is a debt from the consumer or user to the

retailer, and is recoverable at law in the same manner as other debts; provided, that the amount of

tax that the retailer collects from the consumer or user is as follows:

      Amount of Sale Amount of Tax

      $0.01 to $ .08 inclusive No Tax

      .09 to .24 inclusive .01

      .25 to .41 inclusive .02

      .42 to .58 inclusive .03

      .59 to .74 inclusive .04

      .75 to .91 inclusive .05

      .92 to 1.08 inclusive .06

     and where the amount of the sale is more than one dollar and eight cents ($1.08) the amount

of the tax is computed at the rate of six percent (6%); provided, that the amount of tax that the

retailer collects from the consumer or user for the period commencing July 1, 1990 is as follows:

      Amount of Sale Amount of Tax

      $ 0.01 to $ .07 inclusive No Tax

      .08 to .21 Inclusive .01

      .22 to .35 inclusive .02

      .36 to .49 inclusive .03

      .50 to .64 inclusive .04

      .65 to .78 inclusive .05

      .79 to .92 inclusive .06

      .93 to 1.07 inclusive .07

     and where the amount of the sale is more than one dollar and seven cents ($1.07) the

amount of the tax is computed at the rate of seven percent (7%).; provided further, that the amount

of tax that the retailer collects from the consumer or user for the period commencing October 1,

2023, is as follows:

      Amount of Sale Amount Tax

      $ 0.01 to $ .07 inclusive No Tax

      .08 to .21 inclusive .01

      .22 to .36 inclusive .02

      .37 to .51 inclusive .03

      .52 to .65 inclusive .04

      .66 to .80 inclusive .05

      .81 to .94 inclusive .06

      .95 to 1.09 inclusive .07

     and where the amount of the sale is more than one dollar and nine cents ($1.09) the amount

of the tax is computed at the rate of six and eighty-five one-hundredths percent (6.85%).

     44-18-20.  Use tax imposed.

     (a) An excise tax is imposed on the storage, use, or other consumption in this state of

tangible personal property; prewritten computer software delivered electronically or by load and

leave; vendor-hosted prewritten computer software; specified digital products; or services as

defined in § 44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer, purchased from

any retailer at the rate of six percent (6%) of the sale price of the property.

     (b) An excise tax is imposed on the storage, use, or other consumption in this state of a

motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle

dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent

(6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

     (c) The word "trailer," as used in this section and in § 44-18-21, means and includes those

defined in § 31-1-5(a) — (f) and also includes boat trailers, camping trailers, house trailers, and

mobile homes.

(d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to the

imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in any

casual sale:

     (1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child

of the transferor or seller;

     (2) When the transfer or sale is made in connection with the organization, reorganization,

dissolution, or partial liquidation of a business entity, provided:

     (i) The last taxable sale, transfer, or use of the article being transferred or sold was

subjected to a tax imposed by this chapter;

     (ii) The transferee is the business entity referred to or is a stockholder, owner, member, or

partner; and

     (iii) Any gain or loss to the transferor is not recognized for income tax purposes under the

provisions of the federal income tax law and treasury regulations and rulings issued thereunder;

     (3) When the sale or transfer is of a trailer, other than a camping trailer, of the type

ordinarily used for residential purposes and commonly known as a house trailer or as a mobile

home; or

     (4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or other

general law of this state or special act of the general assembly of this state.

     (e) The term "casual" means a sale made by a person other than a retailer, provided, that in

the case of a sale of a motor vehicle, the term means a sale made by a person other than a licensed

motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed under the

provisions of subsections (a) and (b) of this section on the storage, use, or other consumption in

this state of a used motor vehicle less than the product obtained by multiplying the amount of the

retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate; provided,

that where the amount of the sale price exceeds the amount of the retail dollar value, the tax is

based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as

shown in the current issue of any nationally recognized, used-vehicle guide for appraisal purposes

in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax

administrator determines that the retail dollar value as stated in this subsection is inequitable or

unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, re-

determine the tax.

     (f) Every person making more than five (5) retail sales of tangible personal property or

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3

during any twelve-month (12) period, including sales made in the capacity of assignee for the

benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the provisions

of this chapter.

     (g) (1) "Casual sale" includes a sale of tangible personal property not held or used by a

seller in the course of activities for which the seller is required to hold a seller's permit or permits

or would be required to hold a seller's permit or permits if the activities were conducted in this

state, provided that the sale is not one of a series of sales sufficient in number, scope, and character

(more than five (5) in any twelve-month (12) period) to constitute an activity for which the seller

is required to hold a seller's permit or would be required to hold a seller's permit if the activity were

conducted in this state.

     (2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by

nonprofit organizations, that are organized for charitable, educational, civic, religious, social,

recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6)

days duration each calendar year. Each event requires the issuance of a permit by the division of

taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a

nonprofit organization, the sales are in the regular course of business and are not exempt as casual

sales.

     (h) The use tax imposed under this section for the period commencing July 1, 1990, is at

the rate of seven percent (7%) and corresponding commencement date as set forth in § 44-18-18.

     SECTION 3. Effective on January 1, 2024, the title of Chapter 44-44 of the General Laws

entitled “Taxation of Beverage Containers, Hard-To-Dispose Material and Litter Control

Participation Permittee” is hereby amended to read as follows:

     CHAPTER 44-44

     Taxation of Beverage Containers, Hard-To-Dispose Material and Litter Control

Participation Permittee

CHAPTER 44-44

TAXATION OF BEVERAGE CONTAINERS AND HARD-TO-DISPOSE

MATERIAL

     SECTION 4. Effective on January 1, 2024, Sections 44-44-2, 44-44-17, 44-44-18,

44-44-19, 44-44-20, and 44-44-22 of the General Laws in Chapter 44-44 entitled "Taxation

of Beverage Containers, Hard-To-Dispose Material and Litter Control Participation Permittee" are

hereby amended to read as follows:

      44-44-2. Definitions.

     As used in this chapter:

     (1) “Beverage” means all non-alcoholic drinks for human consumption, except milk but

including beer and other malt beverages.

     (2) “Beverage container” means any sealable bottle, can, jar, or carton which contains a

beverage.

     (3) “Beverage retailer” means any person who engages in the sale of a beverage container

to a consumer within the state of Rhode Island, including any operator of a vending machine.

     (4) “Beverage wholesaler” means any person who engages in the sale of beverage

containers to beverage retailers in this state, including any brewer, manufacturer, or bottler who

engages in those sales.

     (5) “Case” means:

     (i) Forty-eight (48) beverage containers sold or offered for sale within this state when each

beverage container has a liquid capacity of seven (7) fluid ounces or less;

     (ii) Twenty-four (24) beverage containers sold or offered for sale within this state when

each beverage container has a liquid capacity in excess of seven (7) fluid ounces but less than or

equal to sixteen and nine tenths (16.9) fluid ounces;

     (iii) Twelve (12) beverage containers sold or offered for sale within this state when each

beverage container has a liquid capacity in excess of sixteen and nine tenths (16.9) fluid ounces but

less than thirty-three and nine tenths (33.9) fluid ounces; and

     (iv) Six (6) beverage containers sold or offered for sale within this state when each

beverage container has a liquid capacity of thirty-three and nine tenths (33.9) fluid ounces or more.

     (6) A permit issued in accordance with § 44-44-3.1(1) is called a Class A permit.

     (7) A permit issued in accordance with § 44-44-3.1(2) is called a Class B permit.

     (8) A permit issued in accordance with § 44-44-3.1(3) is called a Class C permit.

     (9) A permit issued in accordance with § 44-44-3.1(4) is called a Class D permit.

     (10) A permit issued in accordance with § 44-44-3.1(5) is called a Class E permit.

     (11)(6) “Consumer” means any person who purchases a beverage in a beverage container

for use or consumption with no intent to resell that filled beverage container.

     (12) “Gross receipts” means those receipts reported for each location to the tax

administrator included in the measure of tax imposed under chapter 18 of this title, as amended.

For those persons having multiple locations’ receipts reported to the tax administrator the “gross

receipts” to be aggregated shall be determined by each individual sales tax permit number. The

term gross receipts shall be computed without deduction for retail sales of items in activities other

than those which this state is prohibited from taxing under the constitution of the United States.

     (713) “Hard-to-dispose material” is as defined in § 37-15.1-3.

     (814) “Hard-to-dispose material retailer” means any person who engages in the retail sale

of hard-to-dispose material (as defined in § 37-15.1-3) in this state.

     (915) “Hard-to-dispose material wholesaler” means any person, wherever located, who

engages in the sale of hard-to-dispose material (as defined in § 37-15.1-3) to customers for sale in

this state (including manufacturers, refiners, and distributors and retailers), and to other persons as

defined above.

     (106) “New vehicle” means any mode of transportation for which a certificate of title is

required pursuant to title 31 and for which a certificate of title has not been previously issued in

this state or any other state or country.

     (117) “Organic solvent” is as defined in § 37-15.1-3.

     (128) “Person” means any natural person, corporation, partnership, joint venture,

association, proprietorship, firm, or other business entity.

     (19) “Prior calendar year” means the period beginning with January 1 and ending with

December 31 immediately preceding the permit application due date.

     (20) “Qualifying activities” means selling or offering for retail sale food or beverages for

immediate consumption and/or packaged for sale on a take out or to go basis regardless of whether

or not the items are subsequently actually eaten on or off the vendor’s premises.

     (1321) “Vending machine” means a self-contained automatic device that dispenses for sale

foods, beverages, or confection products.

     44-44-17. Deficiency determination — Determination without return.

     If any hard-to-dispose material wholesaler or hard-to-dispose material retailer or person or

beverage wholesaler or litter control participation permittee fails to file a return or application or to

keep records described in § 44-44-8, or if the tax administrator is not satisfied with the amount of

taxes or fees paid to him or her, the tax administrator may compute and determine the amount

required by this chapter to be paid to him or her upon the basis of the facts contained in the returns

or applications which have been filed or upon the basis of any information in the tax administrator’s

possession or that may come into his or her possession.

     44-44-18. Notice of determination.

     The tax administrator shall give written notice of his or her determination to the beverage

wholesaler or litter control participation permittee or hard-to-dispose material wholesaler or hard-

to-dispose material retailer or person. Except in the case of fraud or failure to make a return, or

noncompliance with § 44-44-8, every notice of determination shall be mailed within three (3) years

of the date the taxes first became due. The amount of this determination shall bear interest at the

rate prescribed in § 44-1-7 from the date when taxes should have been paid until the date of

payment.

     44-44-19. Payment of refunds.

     Whenever the tax administrator shall determine that any beverage wholesaler or hard-to-

dispose material wholesaler or hard-to-dispose material retailer or person or litter control

participation permittee is entitled to a refund of any moneys paid under the provisions of this

chapter, or whenever a court of competent jurisdiction orders a refund of any moneys paid, the

general treasurer shall, upon certification by the tax administrator, pay the refund from any moneys

in the litter control account or hard-to-dispose material account other than those moneys already

appropriated for the administration of the taxes and programs entitled by this chapter and § 37-15-

13; provided, that no refund shall be allowed unless a claim for a refund is filed with the tax

administrator within three (3) years from the date the overpayment was made. Every claim for a

refund shall be made in writing, shall be in a form, and shall present only information that the tax

administrator may, by regulation, require. Within thirty (30) days after disallowing any claim in

whole or in part the tax administrator shall give written notice of his or her decision to the beverage

wholesaler or hard-to-dispose material wholesaler or hard-to-dispose material retailer or person or

litter control participation permittee. A refund of less than ten dollars ($10.00) will not be

processed, but may be credited to the following month’s return without interest.

     44-44-20. Hearing on application by beverage wholesaler or litter control

participation permittee.

     Any person aggrieved by any assessment or decision of the tax administrator shall notify

the tax administrator and request a hearing, in writing, within thirty (30) days from the date of

mailing of the assessment or decision. The tax administrator or a hearing officer designated by the

tax administrator shall, as soon as practicable, fix a time and place for the hearing and, after the

hearing, determine the correct amount of the tax and interest.

     44-44-22. Information confidential.

     It shall be unlawful for any state official or employee to divulge or to make known to any

person in any manner not provided by law the amount or source of income, profits, losses,

expenditures, or any particular of these set forth or disclosed in any return, permit application or

other record required under this chapter, or to permit any return, permit application, or other record

required by this chapter or copy of a record, or any book containing any abstract or particulars to

be seen or examined by any person except as provided by law. Any offense against this provision

shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment not

exceeding one year, or both, at the discretion of the court.

     SECTION 5. Effective on January 1, 2024, Sections 44-44-3.1, 44-44-3.2, 44-44-3.3, 44-

44-3.4, and 44-44-3.5 of the General Laws in Chapter 44-44 entitled "Taxation of Beverage

Containers, Hard-To-Dispose Material and Litter Control Participation Permittee" are hereby

repealed.

     44-44-3.1. Permit required.

     Commencing August 1, 1988, every person engaging in, or desiring to engage in activities

described in § 44-44-2(20), shall annually file an application with the tax administrator for a litter

control participation permit, hereinafter called a “permit”, for each place of business in Rhode

Island. In those cases where the only qualifying activity is the operation of vending machines, the

person shall either obtain a Class A permit for each vending machine or obtain a permit based on

total gross receipts. All applications shall be in a form, including information and bearing signatures

that the tax administrator may require. At the time of making an application, the applicant shall pay

the tax administrator a permit fee based as follows:

     (1) For the applicant whose gross receipts for the prior calendar year measured less than

fifty thousand dollars ($50,000), a fee of twenty-five dollars ($25.00);

     (2) For the applicant whose gross receipts for the prior calendar year measured at least fifty

thousand dollars ($50,000), but less than one hundred thousand dollars ($100,000), a fee of thirty-

five dollars ($35.00);

     (3) For the applicant whose gross receipts for the calendar year measured at least one

hundred thousand dollars ($100,000), but less than four hundred thousand dollars ($400,000), a fee

of seventy-five dollars ($75.00);

     (4) For the applicant whose gross receipts for the prior calendar year measured at least four

hundred thousand dollars ($400,000), but less than one million dollars ($1,000,000), a fee of one

hundred dollars ($100); and

     (5) For the applicant whose gross receipts for the prior calendar year measured one million

dollars ($1,000,000) or more, a fee of one hundred twenty-five dollars ($125) for each one million

dollars ($1,000,000) or fraction of this amount. The fee in this subdivision shall not exceed the sum

of one thousand dollars ($1,000) for each permit at each place of business in Rhode Island when

the “qualifying activities” referred to in this section and defined in § 44-44-2(20) and the sale of

food products do not exceed ten percent (10%) of the gross receipts for each permit.

     44-44-3.2. Penalty for operation without a permit — Injunctive relief.

     (a) Any person who engages (or the officer of a corporation engaged) in activities described

in § 44-44-2(20) without the permit required by this chapter shall be guilty of a misdemeanor and

shall, for each offense, be fined not more than one thousand dollars ($1,000), or be imprisoned for

not more than one year, or punished by both a fine and imprisonment. Each day in which a person

is so engaged shall constitute a separate offense.

     (b) The superior court of this state shall have jurisdiction of restraining any person from

engaging in activities described in § 44-44-2(20) without the proper permit as prescribed in this

chapter. The tax administrator may institute proceedings to prevent and restrain violations of this

chapter.

     44-44-3.3. Partial periods.

     (a)(1) Each applicant which did not do business at a particular location during the prior

calendar year for the purposes of determining the proper fee in accordance with § 44-44-3.1 may,

for application purposes, only apply for a Class A permit for that location.

     (2) For purposes of this section, the term “applicant” shall not include any person who

purchases an ongoing business and continues to operate the same type of business from the same

location without interruption of thirty (30) days or more immediately following the purchase of the

business.

     (b) Any permittee ceasing business at a location before the annual expiration date of permit

shall return the permit to the tax administrator for cancellation.

     (c) The fees set forth in § 44-44-3.1 are neither proratable nor refundable for partial periods

of operation at a specific location.

     (d) A person who purchases an ongoing business and continues to operate the business in

the same location in a calendar year for which the prior permit holder has paid the applicable fee

may obtain a permit for the remainder of that calendar year upon payment of a twenty-five dollar

($25.00) fee.

     44-44-3.4. Issuance of permit — Assignment prohibited — Display.

     Upon receipt of the required application and permit fee, the tax administrator shall issue to

the applicant a separate permit for each location in Rhode Island. A permit is not assignable and is

valid only for the person in whose name it was issued and only for the business location shown in

the permit. It shall at all times be conspicuously displayed at the location for which it was issued.

     44-44-3.5. Application due date — Weekends and holidays — Mailing.

     (a) Each applicant shall apply for a permit prior to engaging in the activities described in §

44-44-2(20) for each location in Rhode Island and, after this, shall annually reapply on or before

August 1 of each year.

     (b) When the application due date, or any other due date for activity by an applicant or

permittee, falls on a Saturday, Sunday, or Rhode Island legal holiday, the application or activity

will be considered timely if it is performed on the next succeeding day which is not a Saturday,

Sunday, or Rhode Island legal holiday.

     (c) When any application, payment or other document required to be filed on or before a

prescribed date set forth in this chapter is delivered after the required date by United States Post

Office to the tax administrator, office, officer, or person with which or with whom the document is

required to be filed, the date on which the document is dated by the post office shall be deemed to

be the date of delivery. This subsection shall apply only if the document was, within the prescribed

time, deposited in the mail with United States postage prepaid and properly addressed.

     SECTION 6. Sections 1 and 2 of this article shall take effect upon passage. Sections 3

through 5 shall take effect on January 1, 2024.