Tuesday, August 15, 2017

Cigarette tax increase tomorrow

Starting tomorrow, Wednesday, Rhode Island’s cigarette excise tax will be $4.25 per pack of 20 cigarettes, up from $3.75, an increase of 50 cents, or 13.3 percent, per pack.

The increase was contained in the recently enacted fiscal 2018 budget bill, which also requires that cigarette dealers take inventory and apply a floor tax. Many retailers will perform the inventory tonight (Tuesday, August 15). The official measuring point for the floor tax is 12:01 a.m. tomorrow, Wednesday, August 16.

For more details about tax changes contained in the fiscal 2018 budget bill, click here.

Friday, August 11, 2017

Sales tax and boat

The Rhode Island Division of Taxation has posted a Declaratory Ruling involving the application of the sales and use tax to a boat.

In Ruling 2017-04, the Division determined that a nonprofit organization's receipt and ownership of a boat, as well as the organization's lease of the boat to others, the receipt of payments under the lease, and the potential sale of the boat are all exempt from Rhode Island sales and use tax under Rhode Island General Laws sections 44-18-30(48). To view a copy, click here.

Wednesday, August 9, 2017

Recent developments


Digital networks may be at risk

The Rhode Island Division of Taxation, the Internal Revenue Service, and other members of the Security Summit recently reminded tax professionals that their entire digital network could be at risk for remote takeover by cybercriminals. Such a takeover could lead to fraudulent tax filings and damage to their clients. For more information, click here.

Newsletter for tax professionals

The latest edition of the Rhode Island Division of Taxation’s newsletter includes coverage of the following topics:

  • new account IDs;
  • assistant tax administrator;
  • recent state tax cases; and
  • Q&A for tax professionals.

Notices for cigarette dealers, non-collecting retailers

The Rhode Island Division of Taxation recently posted 10 Notices to let stakeholders know about certain tax provisions that were contained in the fiscal year 2018 budget bill, which was enacted August 3, 2017.

One Notice for cigarette dealers and another for cigarette distributors focus on the cigarette tax increase, which takes effect at 12:01 a.m. on August 16, 2017, and the associated floor stock tax and its payment and return due date.

Eight other Notices provide stakeholders with more information about certain registration and/or notice and reporting requirements involving Rhode Island sales and use tax. Which of the requirements apply to a given entity depends upon whether the entity is a “non-collecting retailer,” a “retail sale facilitator,” or a “referrer” -- the terms are defined in the new law. For more information about all of the Notices, click here.

For more information about these and other tax-related provisions in the budget bill, click here.

Tuesday, August 8, 2017

Summary of legislative changes

The Rhode Island Division of Taxation today posted a “Summary of Legislative Changes.” The document summarizes key tax provisions contained in the fiscal 2018 budget bill enacted last week. To view a copy, click here.


Tuesday, August 1, 2017

Security Summit warns about ransomware

The Security Summit -- made up of the Internal Revenue Service, state tax agencies, and the tax industry -- today warned tax professionals that ransomware attacks are on the rise worldwide as criminals in the U.S. and abroad infiltrate computer systems and hold sensitive data hostage. For more information, click here.

Annual disclosure forms

Entities that receive specific tax credits and incentives must, by law, annually disclose certain
information to the Rhode Island Division of Taxation.

The Division recently posted a Notice which explains entity reporting obligations. Some information is due on or before August 15, 2017. Other information is due on or before September 1, 2017. To view the Notice, click here.


Monday, July 31, 2017

Regulatory hearing

The Rhode Island Division of Taxation plans to hold a hearing on August 30 on a number of proposed regulatory changes. The hearing will begin at 9:30 a.m. at the Department of Administration building at One Capitol Hill in Providence, Rhode Island, diagonally across from the Smith Street entrance to the State House. The proposed changes are available on the Rhode Island Secretary of State website: http://www.sos.ri.gov/ProposedRules/.

Proposed regulatory actions
Regulation topic
Old #
Proposed action
Reason
Administrative hearing procedures
AHP 97-01
Amend
New format for regulations, updating
Administrative rules of practice
AF 90-01
Amend
New format, new name
Apportionment of franchise tax
FT 09-01
Repeal
Franchise tax law has been repealed
Bank deposits tax
BDT 95-01
Amend
New format, updating
Deadlines for filing sales tax
SU 87-32
Repeal
Merging into new regulation
Filing deadlines
N/A
Adopt
Consolidating two old regulations into one
Offers in compromise
OC 98-01
Amend
New format, updating
Personal income tax filing deadlines
PIT 98-7
Repeal
Merging into new regulation
Declaratory rulings
DR 03-01
Amend
New format, minor revisions, updating