It is enacted by the General Assembly as follows:

SECTION 1. Title 44 of the General Laws entitled "Taxation" is hereby amended by adding thereto the following chapter:

{ADD 44-6.2-1. Short title. -- ADD} {ADD This chapter shall be known as the "1996 Rhode Island Tax Amnesty Act". ADD}

{ADD 44-6.2-2. Definitions. -- ADD} {ADD As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:

(1) "Taxable period" means any period for which a tax return is required by law to be filed with the tax administrator.

(2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by the tax administrator. ADD}

{ADD 44-6.2-3. Establishment of tax amnesty. -- ADD} {ADD (a) The tax administrator shall establish a tax amnesty program for all tax payers owing any tax imposed by reason of or pursuant to authorization by any law of the state of Rhode Island and collected by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator. Amnesty tax return forms shall be prepared by the tax administrator and shall provide for specificity by the taxpayer of the tax and the taxable period for which amnesty is being sought by the taxpayer.

(b) The amnesty program shall be conducted for a seventy-five (75) day period established by the tax administrator in the state fiscal year 1995-1996. The amnesty program shall provide that upon written application by any taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state of Rhode Island for any taxable period ending prior to December 31, 1995, the tax administrator shall not seek civil or criminal prosecution for any taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period, which have paid the tax and interest due upon filing the amnesty tax return, or who have entered into an installment payment agreement for reasons of financial hardship upon the terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any installment at the time such installment payment is due under the agreement, the agreement shall cease to be effective and the balance of the amounts required to be paid thereunder shall be due immediately. Failure to pay all amounts due to the state of Rhode Island shall invalidate any amnesty granted pursuant to this chapter. Amnesty shall be granted for only the taxable period specified in the application and only if all amnesty conditions are satisfied by the taxpayer.

(c) The provisions of this section shall include a taxable period for which a notice of deficiency determination or bill has been sent to the taxpayer and/or a taxable period in which an audit is completed but has not yet been billed.

(d) Amnesty shall not be granted to taxpayers who are a party to any criminal investigations or to any civil or criminal litigation which is pending in any court of the United States or the state of Rhode Island for fraud in relation to any state tax imposed by any law of the state and collected by the tax administrator ADD}

{ADD 44-6.2-4. Interest under tax amnesty. -- ADD} {ADD Notwithstanding any general or specific statute to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate of twelve percent (12%) annually from due to time of payment. ADD}

{ADD 44-6.2-5. Implementation. -- ADD} {ADD Notwithstanding any provision of law to the contrary, the tax administrator may do all things necessary in order to provide for the timely implementation of this chapter, including but not limited to procurement of printing and other services and expenditure of appropriated funds as provided for in section 44-6.2-5. ADD}

{ADD 44-6.2-6. Disposition of monies -- Rules and regulations. -- ADD} {ADD (a) All monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted for separately and paid into the general fund.

(b) The tax administrator shall promulgate such rules and regulations as are necessary to implement the provisions of this chapter. ADD}

{ADD 44-6.2-7. Analysis of amnesty program by tax administrator. -- ADD} {ADD The tax administrator shall provide an analysis of the amnesty program to the chairpersons of the house finance committee and senate finance committee with copies to the members of the revenue estimating conference by September 1, 1996. The report shall include an analysis of revenues received by tax source, distinguishing between the tax collected and interest collected for each source. In addition, the report shall further delineate the amounts that are new revenues from that already included in the general revenue receivable taxes defined under generally accepted accounting principles and the state's audited financial statements. The auditor general shall include review of the analysis as part of the activities involved in preparation of the combined annual financial report for fiscal year 1996. ADD}

SECTION 2. This act shall take effect upon passage.