It is enacted by the General Assembly as follows:

SECTION 1. Section 44-30-71.3 of the General Laws in Chapter 44-30 entitled "Personal Income Tax" is hereby amended to read as follows:

{ADD 44-30-71.3. Sale of real property by nonresidents -- Withholding requirements. -- ADD} (a) In a sale of real property and associated tangible personal property owned by a nonresident, the buyer shall deduct and withhold on the payments an amount equal to six percent (6%) of the total payment to nonresident individuals, estates, partnerships or trusts, and nine percent (9%) of the total payment to nonresident corporations. For purposes of this section a nonresident corporation is a corporation that is neither incorporated in this state nor authorized by the secretary of state or board of bank incorporation to do business in this state.

(b) "Total payment" means the net proceeds of the sale actually paid to the nonresident seller including the fair market value of any property to be transferred to the seller.

(c) Every buyer subject to the withholding, deduction and payment provisions of this section shall be liable for all amounts withheld or required to be withheld and the amount required to be withheld under the provisions of this section shall, until remitted, constitute a lien upon the property of the owner.

(d) The buyer shall remit all monies deducted and withheld pursuant to subsection (a) to the tax administrator within three (3) banking days of date of closing on forms prescribed by the tax administrator. Interest provisions of R.I.G.L. 44-1-7 shall be applicable to this section.

(e) Payments upon which monies were deducted and withheld pursuant to subsection (a) shall be deemed to have been paid to the tax administrator on behalf of the person from whom withheld and the person shall be credited with having paid that amount for the taxable year beginning in that calendar year.

(f) The closing attorney, lending institution, and real estate agent/broker in any transaction governed by the provisions of this section is not subject to the withholding, deduction, or payment provisions of this section.

{ADD (g) All forms prescribed by the tax administrator which require recording in the land evidence records shall include the name of the sellers and the street address of the property. ADD}

SECTION 2. This act shall take effect upon passage.