1 ARTICLE 7 SUBSTITUTE A AS AMENDED
2 RELATING TO BUSINESS CORPORATION TAX RELATING TO TAXES
3 SECTION 1. Chapter 44-11 of the General Laws in Title 44 entitled “Business
4 Corporation Tax” is hereby amended by adding thereto the following section:
5 44-11-14.6. Allocation and apportionment – Manufacturers.—(a) Notwithstanding
6 any other provision of the general laws, a taxpayer described in subsection (a) of section 44-11-14
7 whose principal business is described in sector 31, 32, or 33 of the North American Industry
8 Classification System, as adopted by the United States Office of Management and Budget and as
9 revised from time to time, may, in lieu of apportioning its net income to this state based on the
10 allocation fraction described in section 44-11-14(a), elect for any year to apportion its net income
11 to this state based on the following allocation fraction:
12 (1) for the tax year beginning on or after January 1, 2004, but before January 1, 2005,
13 thirty percent (30%) of the property factor determined pursuant to section 44-11-14(a)(1) (the
14 “property factor”), thirty percent (30%) of the payroll factor determined pursuant to section
15 44-11-14(a)(3) (the “payroll factor”), and forty percent (40%) of the sales factor determined
16 pursuant to section 44-11-14(a)(2) (the “sales factor”);
17 (2) for tax years beginning on or after January 1, 2005, twenty-five percent (25%) of the
18 property factor, twenty-five percent (25%) of the payroll factor and fifty percent (50%) of the
19 sales factor.
20 SECTION 2. Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal
21 Income Tax" is hereby amended to read as follows:
22 44-30-2.6. Rhode Island taxable income -- Rate of tax. -- (a) "Rhode Island taxable
23 income" means federal taxable income as determined under the Internal Revenue Code [26
24 U.S.C. section 1 et seq.] as amended, not including the increase in the basic standard deduction
25 amount for married couples filing joint returns as provided in the Jobs and Growth Tax Relief
26 Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 2001
27 (EGTRRA), and as modified by the modifications in section 44-30-12.
28 (b) Notwithstanding the provisions of sections 44-30-1 and 44-30-2, for tax years
29 beginning on or after January 1, 2001, a Rhode Island personal income tax is imposed upon the
30 Rhode Island taxable income of residents and nonresidents, including estates and trusts, at the rate
31 of twenty-five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -1-) 1 tax year 2002, and thereafter of the federal income tax rates, including capital gains rates and any
2 other special rates for other types of income, except as provided in section 44-30-2.7, which were
3 in effect immediately prior to enactment of the Economic Growth and Tax Relief Reconcilia tion
4 Act of 2001 (EGTRRA), provided, however, rate schedules shall be adjusted for inflation by the
5 tax administrator beginning in taxable year 2002, and thereafter in the manner prescribed for
6 adjustment by the commissioner of Internal Revenue in 26 U.S.C. section 1(f).
7 (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative
8 minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode
9 Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by
10 multiplying the federal tentative minimum tax without allowing for the increased exemptions
11 under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as determined redetermined
12 on federal form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent
13 (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002, and thereafter, and
14 comparing the product to the Rhode Island tax as computed otherwise under this section. The
15 excess shall be the taxpayer's Rhode Island alternative minimum tax.
16 (d) Credits against tax. - For tax years beginning on or after January 1, 2001, a taxpayer
17 entitled to any of the following federal credits enacted prior to January 1, 1996:
18 Earned income credit;
19 Child and dependent care credit;
20 General business credit(s);
21 Foreign tax credit;
22 Credit for elderly or the disabled;
23 Credit for prior year minimum tax;
24 Mortgage interest credit;
25 Empowerment zone employment credit;
26 Qualified electric vehicle credit;
27 Shall be entitled to a credit against the Rhode Island tax imposed under this section. The
28 credit shall be twenty-five and one-half percent (25.5%) of the aforementioned federal credits for
29 tax year 2001, and shall be twenty-five percent (25%) of the aforementioned federal credits for
30 tax year 2002 and thereafter, provided, further, there shall be no deduction based on any federal
31 credit(s) enacted after January 1, 1996, including the rate reduction credit provided by the federal
32 Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA). In no event shall the tax
33 imposed under this section be reduced to less than zero. A taxpayer required to recapture any of
34 the above credits for federal tax purposes shall determine the Rhode Island amount to be
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -2-) 1 recaptured in the same manner as prescribed in this subsection.
2 SECTION 3. Section 44-61-1 of the General Laws in Chapter 44-61 entitled "Relating To
3 Depreciation of Assets and Net Operating Loss Deduction" is hereby amended to read as follows:
4 44-61-1. Depreciation of assets. -- (a) For purposes of depreciation of assets under
5 chapters 11, 14 and 30 of this title, the bonus depreciation provided by the Job Creation and
6 Worker Assistance Act of 2002 (P.L. 107-147) [see 26 U.S.C. section 168] and the Jobs and
7 Growth Tax Relief Reconciliation Act of 2003 for federal tax purposes shall not be allowed for
8 Rhode Island tax purposes. In the year that those assets are placed in service and in all subsequent
9 years, depreciation for Rhode Island tax purposes shall be allowed on those assets as it would
10 have been computed prior to the enactment of the Job Creation and Worker Assistance Act of
11 2002.
12 (b) The gain resulting from any subsequent disposition of these asset(s) shall be
13 computed using a basis consistent with the Rhode Island depreciation allowed under subsection
14 (a) of this section.
15 SECTION 4. Chapter 44-61 of the General Laws entitled "Relating To Depreciation of
16 Assets and Net Operating Loss Deduction" is hereby amended by adding thereto the following
17 section:
18 44-61-1.1. Expensing in lieu of depreciation of assets. – (a) For purposes of expensing
19 of assets under chapters 11, 14 and 30 of this title, the additional expensing of assets for federal
20 tax purposes under section 179 of the Internal Revenue Code provided by the Jobs and Growth
21 Tax Relief Reconciliation Act of 2003 shall not be allowed for Rhode Island tax purposes. In the
22 year that those assets are placed in service and in all subsequent years, expenses and depreciation
23 for Rhode Island tax purposes shall be allowed on those assets as it would have been computed
24 prior to the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.
25 (b) The gain resulting from any subsequent disposition of these asset(s) shall be
26 computed using a basis consistent with the Rhode Island expenses and depreciation allowed
27 under subsection (a) of this section.
28 SECTION 5. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is
29 hereby amended by adding thereto the following section:
30 44-30-98. Refundable earned income credit. – A taxpayer shall be allowed a credit as
31 provided in section 44-30-2.6(d) provided; however, five percent (5%) of the excess Rhode Island
32 earned income credit will be refunded for the 2003 taxable year and each taxable year thereafter.
33 SECTION 6. Sections 44-20-12, 44-20-12.1 and 44-20-13 of the General Laws in
34 Chapter 44-20 entitled "Cigarette Tax" are hereby amended to read as follows:
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -3-) 1 44-20-12. Tax imposed on cigarettes sold. -- A tax is imposed on all cigarettes sold or
2 held for sale in the state by any person, the payment of the tax to be evidenced by stamps affixed
3 to the packages containing the cigarettes and as required by the administrator. Any cigarettes on
4 which the proper amount of tax provided for in this chapter has been paid, payment being
5 evidenced by the stamp, is not subject to a further tax under this chapter. The tax is at the rate of
6 sixty-six (66) eighty-five and one-half (85.5) mills for each cigarette. The tax shall further
7 increase by 9 mills for each cigarette on July 1, 2003 and shall further increase by 5 mills for each
8 cigarette on July 1, 2004 and each July 1 thereafter through July 1, 2008.
9 44-20-12.1. Floor stock tax on cigarettes and stamps. -- (a) Whenever used in this
10 section, unless the context requires:
11 (1) "Cigarette" means and includes any cigarette as defined in section 44-20-1(2);
12 (2) "Person" means and includes each individual, firm, fiduciary, partnership,
13 corporation, trust, or association however formed.
14 (b) Each person engaging in the business of selling cigarettes at retail in this state pays a
15 tax or excise to the state for the privilege of engaging in that business during any part of the
16 calendar years year 2003. through 2008. In calendar years year 2003, through 2008, the tax shall
17 be measured by the number of cigarettes held by the person in this state at 12:01 a.m. on each
18 July 1 and is computed at the rate of 9 mills for each cigarette on July 1, 2003 and is computed at
19 the rate of 5 mills for each cigarette on July 1, 2004, and each July 1 thereafter through July 1,
20 2008. nineteen and one-half (19.5) mills for each cigarette on July 1, 2003.
21 (c) Each distributor licensed to do business in this state pursuant to this chapter shall pay
22 a tax or excise to the state for the privilege of engaging in business during any part of the calendar
23 years 2002 through 2008. year 2003. The tax is measured by the number of stamps, whether
24 affixed or to be affixed to packages of cigarettes, as required by section 44-20-28. In calendar
25 year 2002 2003 the tax is measured by the number of stamps, as defined in subsection 44-20-
26 1(10), whether affixed or to be affixed, held by the distributor at 12:01 a.m. on May 1, 2002 July
27 1, 2003 and is computed at the rate of 16 mills nineteen and one-half (19.5) mills per cigarette in
28 the package to which the stamps are affixed or to be affixed. In calendar years 2003 through 2008
29 the tax shall be measured by the number of stamps, as defined in section 44-20-1(10), whether
30 affixed or to be affixed, held by the distributor at 12:01 a.m. on each July 1, and is computed at
31 the rate of 9 mills per cigarette in the package to which the stamps are affixed or to be affixed on
32 July 1, 2003, and computed at the rate of 5 mills per cigarette in the package to which the stamps
33 are affixed or to be affixed on each July 1 thereafter through July 1, 2008.
34 (d) Each person subject to the payment of the tax imposed by this section shall, on or
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -4-) 1 before June 17, 2002, July 16, 2003, and each July 16 thereafter through July 16, 2008, file a
2 return, under oath or certified under the penalties of perjury, with the tax administrator on forms
3 furnished by him or her, showing the amount of cigarettes or stamps in that person's possession in
4 this state at 12:01 a.m. on May 1, 2002, July 1, 2003, and each July 1 thereafter through July 1,
5 2008, and the amount of tax due, and shall at the time of filing the return pay the tax to the tax
6 administrator. Failure to obtain forms shall not be an excuse for the failure to make a return
7 containing the information required by the tax administrator.
8 (e) The tax administrator may prescribe rules and regulations, not inconsistent with law,
9 with regard to the assessment and collection of the tax imposed by this section.
10 44-20-13. Tax imposed on unstamped cigarettes. -- A tax is imposed at the rate of
11 sixty-six (66) eighty-five and one-half (85.5) mills for each cigarette upon the storage or use
12 within this state of any cigarettes not stamped in accordance with the provisions of this chapter in
13 the possession of any person other than a licensed distributor or dealer, or a carrier for transit
14 from without this state to a licensed distributor or dealer within this state. The tax shall further
15 increase by 9 mills for each cigarette on July 1, 2003 and shall further increase by 5 mills for each
16 cigarette on July 1, 2004, and each July 1 thereafter through July 1, 2008.
17 SECTION 7. Section 44-59-10 of the General Laws in Chapter 44-59 entitled "Uniform
18 Sales And Use Tax Administration Act" is hereby amended to read as follows:
19 44-59-10. Sunset provision. -- This chapter shall be repealed on June 30, 2003 2004,
20 without further action by the general assembly, if the statutory amendments to the sales and use
21 tax law necessary to bring this state into compliance with the Streamlined Sales and Use Tax
22 Agreement are not enacted by the general assembly by June 30, 2003 2004.
23 SECTION 8. Chapter 44-1 of the General Laws entitled "State Tax Officials" is hereby
24 amended by adding thereto the following section:
25 44-1-34. Tax Administrator to prepare list of delinquent taxpayers – Notice -- Public
26 inspection. -- (a) Notwithstanding any other provision of law, the tax administrator, may, on a
27 quarterly basis, prepare a list of the one hundred (100) delinquent taxpayers who owe the largest
28 amount of state tax and whose taxes have been unpaid for a period in excess of ninety (90) days
29 following the date their tax was due. Any such list may contain the name and address of each
30 delinquent taxpayer, the type of tax levied, and the amount of the delinquency, including interest
31 and penalty, as of the end of the quarter. No taxpayer shall be included on such list if the tax
32 assessment in question is the subject of appeal.
33 (b) The tax administrator shall not list any delinquent taxpayer until such time as he/she
34 gives the delinquent taxpayer thirty (30) days notice of intent to publish the taxpayer’s
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -5-) 1 delinquency. Said notice shall be sent to the taxpayer’s last known address by regular and
2 certified mail. If during said thirty (30) day period the taxpayer makes satisfactory arrangement
3 for payment of the delinquent tax, the name of such taxpayer shall not be published as long as the
4 taxpayer does not default on any payment agreement entered into with the division of taxation.
5 (c) Any such list prepared by the tax division shall be available to the public for
6 inspection by any person and may be published by the tax administrator on the tax division
7 website.
8 SECTION 9. Section 44-18-18.1 of the General Laws in Chapter 44-18 entitled "Sales
9 and Use Taxes - Liability and Computation" is hereby amended by adding thereto the following
10 section:
11 44-18-18.1 Local meals and beverage tax. – (a) There is hereby levied and imposed,
12 upon every purchaser of a meal and/or beverage, in addition to all other taxes and fees now
13 imposed by law, a local sales/use tax upon each and every meal and/or beverage sold within the
14 state of Rhode Island in or from an eating and/or drinking establishment, whether prepared in the
15 eating and/or drinking establishment or not and whether consumed at the premises or not, at a rate
16 of one percent (1%) of the gross receipts. The tax shall be paid to the tax administrator by the
17 retailer at the time and in the manner provided.
18 (b) All sums received by the division of taxation under this section as taxes, penalties or
19 forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid
20 by the state treasurer to the city or town where the meals and beverages are delivered.
21 (c) When used in this section, the following words have the following meanings:
22 (1) “Beverage” means all nonalcoholic beverages, as well as alcoholic beverages, beer,
23 lager beer, ale, porter, wine, similar fermented malt or vinous liquor.
24 (2) “Meal” means any prepared food or beverage offered or held out for sale by an eating
25 and/or drinking establishment for the purpose of being consumed by any person to satisfy the
26 appetite and which is ready for immediate consumption. All such food and beverage, unless
27 otherwise specifically exempted or excluded herein shall be included, whether intended to be
28 consumed on the seller’s premises or elsewhere, whether designated as breakfast, lunch, snack,
29 dinner, supper or by some other name, and without regard to the manner, time or place of service.
30 (3) “Eating and/or drinking establishments” mean and include restaurants, bars, taverns,
31 lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish and
32 chip places, fried chicken places, pizzerias, food and drink concessions, vending machines, or
33 similar facilities in amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial
34 plants, race tracks, shore resorts or other locations, lunch carts, mobile canteens and other similar
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -6-) 1 vehicles, and other like places of business which furnish or provide facilities for immediate
2 consumption of food at tables, chairs or counters or from trays, plates, cups or other tableware or
3 in parking facilities provided primarily for the use of patrons in consuming products purchased at
4 the location.
5 Ordinarily, eating establishments do not mean and include food stores and supermarkets.
6 Retailers selling prepared foods in bulk either in customer-furnished containers or in the
7 seller’s containers, for example “Soup and Sauce” establishments, are deemed to be selling
8 prepared foods ordinarily for immediate consumption and as such are considered eating
9 establishments.
10 This local sales/use tax shall be administered and collected by the division of taxation and
11 unless provided to the contrary in this chapter, all of the administration, collection, and other
12 provisions of chapters 18 and 19 of this article apply.
13 SECTION 10. Section 34-13-7 of the General Laws in Chapter 34-13 entitled "Recording
14 Of Instruments" is hereby amended to read as follows:
15 34-13-7. General recording fees. -- (a) The fees to the recording officers for recording
16 the following described instruments relating to real estate shall be as follows:
17 Warranty deed $25.00 $80.00
18 Quitclaim deed 25.00 80.00
19 Deed of executor, administrator,
20 trustee, conservator, receiver
21 or commissioner 25.00 80.00
22 Mortgage 25.00 60.00
23 Partial release of mortgage 10.00 45.00
24 Assignment of mortgage 10.00 45.00
25 Foreclosure deed under power of sale
26 with affidavit 25.00 80.00
27 Lease 25.00 60.00
28 General assignment 10.00 45.00
29 Discharge of mortgage 10.00 45.00
30 Discharge of attachment or execution 4.00 45.00
31 Any other instrument not otherwise
32 expressly provided for by statute 10.00 45.00
33 Lien - Federal tax 4.00 7.25
34 Lien - Federal tax, discharge of 4.00 7.25
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -7-) 1 Maps, plats, surveys, drawings (not
2 attached to or a part of another
3 recordable instrument) 30.00 45.00
4 Bill of sale 25.00 45.00
5 Power of attorney 10.00 45.00
6 Lis pendens 10.00 80.00
7 (b) The recording officers shall be allowed to charge a rate of one dollar ($1.00) for each
8 additional page or fraction over.
9 (c) Ten percent (10%) of the recording fees provided for in this section shall be utilized
10 by each city or town for the purposes of document preservation and technological upgrades.
11 SECTION 11. Sections 3-7-3, 3-7-7, 3-7-7.1, 3-7-8, 3-7-11 and 3-7-13 of the General
12 Laws in Chapter 3-7 entitled "Retail Licenses" are hereby amended to read as follows:
13 3-7-3. Class A license -- Towns and cities of 10,000 or more. -- (a) In cities and towns
14 having a population of ten thousand (10,000) or more inhabitants, a retailer's Class A license
15 authorizes the holder to keep for sale and to sell, at the place described, beverages at retail and to
16 deliver the beverages in a sealed package or container, which package or container shall not be
17 opened nor its contents consumed on the premises where sold. The holder of a Class A license, if
18 other than a person entitled to retail, compound, and dispense medicines and poisons, shall not on
19 the licensed premises engage in any other business, keep for sale or sell any goods, wares,
20 merchandise or any other article or thing except the beverages authorized under this license and
21 nonalcoholic beverages. This provision shall not apply to the sale or selling of cigarettes,
22 newspapers, cigars, cigarette lighters, gift bags, prepackaged peanuts, pretzels, chips, olives,
23 onions, cherries, hot stuffed cherry peppers, Slim Jims and similar pre-packaged dried meat
24 products, pickled eggs, popcorn, pre-packaged candy, styrofoam cooler and ice, nor to home bar
25 accessories such as pourers, glasses, cork screws, stirrers, flasks, jiggers, wine racks, ice crushers,
26 bottle openers, can openers and any other items of like nature which may, by suitable regulation
27 of the director of business regulation, be authorized to be sold. This section shall not apply to
28 promotional free goods which are subject to approval by the director. In the city of Newport this
29 license may be issued to any person, firm or corporation who are owners of bona fide markets for
30 the sale of alcoholic beverages in conjunction with and in addition to the sale of meats or
31 groceries in those bona fide markets. A person, firm or corporation in that city may obtain a
32 limited Class A license to sell beer, lager and ale on the same premises as other goods, wares,
33 merchandise and articles are sold. No Class A license is granted for any premises unless the
34 premises constitute a separate store, the entrance or entrances to which shall be exclusively from
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -8-) 1 the street or streets or arcade. This provision shall not apply to any person, firm or corporation in
2 the city of Newport who are owners of bona fide markets for the sale of alcoholic beverages in
3 conjunction with and in addition to the sale of meats or groceries in those bona fide markets and
4 as long as the market is owned and operated by the mother, father, son, daughter, brother or sister
5 of the original licensee, but not otherwise.
6 (b) The premises shall have opaque walls which shall completely partition and sever the
7 premises from any adjoining market, concession or business. This provision shall not be
8 construed to limit the powers of the department to issue licenses on condition nor to make rules
9 and regulations as provided. The annual fee for a Class A license is five hundred one thousand
10 dollars ($500) ($1,000) prorated to the year ending December 1st in every calendar year.
11 (c) Any licenses issued under the provisions of this section prior to May 8, 1964 remains
12 in full force and effect.
13 3-7-7. Class B license. -- (a) (1) A retailer's Class B license is issued only to a licensed
14 bona fide tavern keeper or victualer whose tavern or victualing house may be open for business
15 and regularly patronized at least from nine o'clock (9:00) a.m. to seven o'clock (7:00) p.m.
16 provided no beverage is sold or served after one o'clock (1:00) a.m., nor before six o'clock (6:00)
17 a.m. Local licensing boards may fix an earlier closing time within their jurisdiction, at their
18 discretion. The East Greenwich town council may, in its discretion, issue full and limited Class B
19 licenses which may not be transferred, but which shall revert to the town of East Greenwich if not
20 renewed by the holder.
21 (2) The license authorizes the holder to keep for sale and sell beverages including beer in
22 cans, at retail at the place described and to deliver them for consumption on the premises or place
23 where sold, but only at tables or a lunch bar where food is served. It also authorizes the charging
24 of a cover, minimum, or door charge. The amount of the cover, or minimum, or door charge is
25 posted at the entrance of the establishments in a prominent place.
26 (3) Holders of licenses are not permitted to hold dances within the licensed premises,
27 unless proper permits have been properly obtained from the local licensing authorities.
28 (4) Any holder of a Class B license may, upon the approval of the local licensing board
29 and for the additional payment of two five hundred dollars ($200) ($500) , open for business at
30 twelve o'clock (12:00) p.m. and on Fridays and Saturdays and the night before legal state holidays
31 may close at two o'clock (2:00) a.m. All requests for a two o'clock (2:00) a.m. license shall be
32 advertised by the local licensing board in a newspaper having a circulation in the county where
33 the establishment applying for the license is located.
34 (5) A holder of a retailer's Class B license is allowed to erect signs advertising his or her
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -9-) 1 business and products sold on the premises, including neon signs, and is allowed to light those
2 signs during all lawful business hours, including Sundays and holidays.
3 (b) The annual license fee for a tavern keeper shall be four hundred dollars ($400) to one
4 two thousand five hundred dollars ($1,500) ($2,000) , and for a victualer the license fee shall be
5 four hundred dollars ($400) to one two thousand dollars ($1,000) ($2,000). In towns with a
6 population of less than two thousand five hundred (2,500) inhabitants, as determined by the last
7 census taken under the author ity of the United States or the state, the fee for each retailer's Class
8 B license shall be determined by the town council, but shall in no case be less than three hundred
9 dollars ($300) annually. If the applicant requests it in his or her application, any retailer's Class B
10 license may be issued limiting the sale of beverages on the licensed premises to malt and vinous
11 beverages containing not more than twenty percent (20%) alcohol by volume, and the fee for that
12 limited Class B license shall be two one thousand five hundred dollars ($200) ($1,500) annually.
13 The fee for any Class B license shall in each case be prorated to the year ending December 1 in
14 every calendar year.
15 3-7-7.1. Class B-H license. -- (a) A retailer's Class B-H license shall be issued only to a
16 licensed hotel. The license authorizes the holder to keep for sale and sell beverages in containers
17 of a minimum capacity of fifty milliliters (50 ml.) or one and seven tenths ounces (1.7 oz). The
18 beverages shall be sold and served only in the room of a registered hotel guest. The beverages
19 may be served in the hotel room at least from nine o'clock (9:00) a.m. to seven o'clock (7:00) p.m.
20 No beverages shall be served in the hotel room after one o'clock (1:00) a.m., nor before six
21 o'clock (6:00) a.m. The beverages may be sold only in the room of the registered hotel guest at
22 any time.
23 (b) A Class B and B-H liquor license may be issued for the same licensed hotel,
24 notwithstanding the provisions of section 3-5-9.
25 (c) The annual fee for this license shall be one five hundred dollars ($100.00) ($500).
26 3-7-8. Class C license. -- (a) A retailer's Class C license authorizes the holder of the
27 license to keep for sale and to sell beverages at retail at the place described in the license and to
28 deliver those beverages for consumption on the premises where sold. No beverages shall be sold
29 or served after twelve o'clock (12:00) midnight nor before six o'clock (6:00) a.m. Local license
30 boards in the several cities and towns may fix an earlier closing time within their discretion. The
31 license authorizes the holder to keep for sale and sell beverages, including beer in cans, at retail at
32 the place described in the license and to deliver those beverages for consumption on the premises.
33 (b) The license authorizes the holder to sell pre-packaged foods prepared off the
34 premises with beverages but prohibits the preparation and serving of foods cooked on the
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -10-) 1 premises. The holder of the license may serve with beverages and without charge popcorn,
2 crackers, bread, pretzels, sausage of any type, pickles, sardines, smoked herring, lupino beans,
3 and potato chips. No food shall be cooked on the premises but pre-packaged foods prepared and
4 cooked off the premises and purchased by the holder from a supplier may be warmed and sold on
5 the premises in their original packaging, and all foods shall be covered in accordance with the
6 regulations of the state department of health. The annual fee for the license is four hundred
7 dollars ($400) to six eight hundred dollars ($600) ($800) , prorated to the year ending December 1
8 in every calendar year.
9 (c) The town councils of the towns of Coventry and South Kingstown are authorized to
10 prohibit by ordinance the issuance of Class C licenses. Upon prohibiting Class C licenses, the
11 license board of the towns of Coventry and South Kingstown shall issue Class B licenses to the
12 holder of all Class C licenses in those towns. The Class B licenses may be issued to the holders of
13 Class C licenses notwithstanding any requirements of section 3-7-7. The holders of Class C
14 licenses shall have the full privileges of a Class B license and shall pay the annual fee provided
15 for Class B licenses.
16 (d) Notwithstanding any prohibitions on the preparation and serving of foods cooked on
17 the premises contained in paragraph (b) herein, the holders of Class C licenses in the city of
18 Newport are authorized to prepare and serve foods cooked on the premises. The holders of Class
19 C licenses in the city of Newport shall be deemed to be victualling houses for purposes of section
20 3-8-1.
21 3-7-11. Class D license. -- A retailer's Class D license shall be issued only to a club or to
22 any corporation organized prior to the year 1900 for purposes similar to those set forth in chapter
23 6 of title 7, and which has held a Class D license for at least ten (10) consecutive years prior to
24 July 1, 1993, and authorizes the holder of the license to keep for sale and to sell beverages at the
25 place described at retail and to deliver those beverages for consumption on the premises where
26 sold. The license authorizes the holder of the license to keep for sale and sell beverages, including
27 beer in cans, at retail at the place described and to deliver those beverages for consumption on the
28 premises. If a club is not the owner or, for the period of two (2) years before the filing of its
29 application for a license, the lessee of the premises where its principal activities are carried on or
30 of kitchen and dining room equipment in the club premises reasonably adequate to supply its
31 members and guests with food, then the license shall authorize the holder of the license to keep
32 for sale and sell malt and vinous beverages, but not beverages consisting in whole or in part of
33 alcohol produced by distillation. Notwithstanding the provisions of this section, with the
34 permission of the local authority, the licensee may supply food and beverage to the public for
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -11-) 1 consumption on the premises at times determined by the holder of the license. The annual fee for
2 the license to sell beverages shall be not more than four eight hundred dollars ($400) ($800) and
3 for the license to sell malt and vinous beverages only shall be not more than two four hundred
4 dollars ($200) ($400), in each case prorated to the year ending December 1 in every calendar year
5 determined by each local municipality.
6 3-7-13. Class E license. -- A retailer's Class E license authorizes a person entitled to
7 retail, compound, and dispense medicines and poisons to keep for sale and to sell at the place
8 described in the license, beverages not to exceed one quart each for medicinal purposes and only
9 upon the prescription of a licensed practicing physician. The license shall not authorize the doing
10 of any act in violation of any law of the United States. The annual fee for the license is ten two
11 hundred dollars ($10.00) ($200).
12 SECTION 12. Chapter 39-3 of the General Laws entitled "Regulatory Powers of
13 Administration" is hereby amended by adding thereto the following section:
14 39-3-11.3. Providence water supply board transfer. – Notwithstanding any other
15 provisions of law, the Providence Water Supply Board shall transfer to the general fund of the
16 city of Providence and amount equal to five percent (5%) per annum times the annual gross
17 revenues of the Providence Water Supply Board for the fiscal year ending June 30, 2004, and for
18 the next two (2) succeeding fiscal years. This transfer shall not be included as part of the
19 Providence Water Supply Board's rates approved by a final unappealable order of the Public
20 Utilities Commission for same three (3) fiscal years.
21 SECTION 13. Section 46-15.3-21 of the General Laws in Chapter 46-15.3 entitled
22 "Public Drinking Water Supply System Protection" is hereby amended to read as follows:
23 46-15.3-21. Fees, rates and charges. -- (a) The fees, rates, and charges for drinking
24 water are a mandatory component of water supply system management.
25 (b) The following factors shall be considered in setting fees, rates, and charges:
26 (1) Recovery of all capital and operating costs, fixed and variable of production,
27 conservation, use, management, protection, obtaining, development, procuring, and/or
28 transporting water, and its sale at wholesale or retail;
29 (2) Marginal cost pricing;
30 (3) Emergency and drought period surcharges;
31 (4) Seasonal price structures;
32 (5) Difference in costs based upon different points of delivery;
33 (6) The effect of fees, rates, and charges on use of water and, where applicable, on
34 wastewater costs and charges;
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -12-) 1 (7) The effect of reducing non-account water to levels consistent with stated goals;
2 (8) Preparing, maintaining and implementing water supply system management
3 programs.; and
4 (9) Notwithstanding any other provisions of law, the Providence Water Supply Board
5 shall transfer to the general fund of the city of Providence an amount equal to five percent (5%)
6 per annum times the annual gross revenues of the Providence Water Supply Board for the fiscal
7 year ending June 30, 2004, and for the next two (2) succeeding fiscal years. This transfer shall
8 not be included as part of the Providence Water Supply Board's rates approved by a final
9 unappealable order of the Public Utilities Commission for same three (3) fiscal years.
10 (c) Notwithstanding the provisions of sections 39-2-2 and 39-2-5, all rates and charges
11 made by water suppliers which decline as quantity used increased are hereby declared to be no
12 longer conducive to sound water supply system management designed to properly conserve,
13 develop, utilize, and protect this finite natural resource. The public utilities commission may
14 order rates for suppliers of water which either do not vary with quantities used or when there is
15 evidence of increasing costs to either the utility or to society, rates which increase as the quantity
16 used increases. If the commission finds that changing rates to comply with this section will cause
17 a hardship to a class of customers, the commission may order that rates for that class of customers
18 be changed to comply with this section over a period of time not to exceed five (5) years.
19 (d) Notwithstanding the provisions of sections 39-2-2 and 39-2-5, the public utilities
20 commission may order a reduction in rates consistent with the amount by which a supplier
21 exceeds the stated goals for non-account water. Non-account water shall be defined as the
22 difference between the metered supply and the metered consumption for a specific period
23 including an allowance for firefighting. No estimates for non-metered usage, except for the
24 firefighting allowance, shall be included in the calculation of accounted for water.
25 SECTION 14. Section 44-51-3 of the General Laws in Chapter 44-51 entitled "Nursing
26 Facility Provider Assessment Act" is hereby amended to read as follows:
27 44-51-3. Imposition of assessment -- Nursing facilities. -- (a) For purposes of this
28 section, a nursing facility means a person or governmental unit licensed in accordance with
29 chapter 17 of title 23 to establish, maintain, and operate a nursing facility.
30 (b) An assessment is imposed upon the gross patient revenue received by every nursing
31 facility in each month beginning October 1, 1995 2003 at a rate of three and three-quarters
32 percent (3.75%) six percent (6%) for services provided on or after October 1, 1995 2003. Every
33 provider shall pay the monthly assessment no later than the twenty-fifth day of each month
34 following the month of receipt of gross patient revenue.
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -13-) 1 (c) The assessment imposed by this section shall be repealed on the effective date of the
2 repeal or a restricted amendment of those provisions of the Medicaid Voluntary Contribution and
3 Provider-Specific Tax Amendments of 1991 (Public Law 102-234) that permit federal financial
4 participation to match state funds generated by taxes.
5 SECTION 15. Sections 1, 5, 8, 11 and 12 of this article shall take effect upon passage. Section 7 6 of this article shall take effect as of June 1, 2003. Sections 6, 13 and 14 of this article shall take 7 effect as of July 1, 2003. Section 9 of this article shall take effect on August 1, 2003. Section 10 8 of this article shall take effect on January 1, 2004. Sections 2, 3 and 4 of this article shall take 9 effect upon passage and shall apply to the tax year beginning on or after January 1, 2003.
Art7 RELATING TO BUSINESS CORPORATION TAX (Page -14-)