Tax changes take effect this weekend in Rhode Island

Saturday is the last day for the tax on package tours and sightseeing services -- the tax has been repealed, effective Sunday.

The tax on cigarettes goes up by 4 cents per pack of 20 starting Sunday. Also Sunday, the surcharge on rental vehicles changes. The Tax Division posted an Advisory today that provides details.

Mass. DOR blog adds details about TDI tax

The Massachusetts Department of Revenue has posted on its blog some additional information about processing of abatement requests related to Rhode Island's Temporary Disability Insurance (TDI) tax.

The post will be especially helpful to those who live in Massachusetts, work in the private sector in Rhode Island, and pay TDI tax.

Sentence handed down in contraband case

A key figure in last year's case involving contraband cigarettes was sentenced today in U.S. District Court, Providence. For more about the sentencing, click here. For more about the case, click here.

Corporate e-file: higher than all of last year

More corporate tax returns have been filed electronically so far this year than for all of last year, new Tax Division figures show.

For the year to date (through June 25), 10,037 corporate returns have been e-filed. That’s up from 6,250 for the corresponding period a year ago. It’s also greater than the 10,025 corporate returns that were e-filed during all of last year.

	Filing season 2011	Filing season 2012	Difference
Total returns processed	20,730	26,998	+ 30.24 %
Returns e-filed	6,250	10,037	+ 60.59 %
E-file as a percentage of total	30 %	37 %	+ 23.33 %
For tax year 2010 returns (on Forms RI-1120C and RI-1120S) filed through June 25, 2011, and tax year 2011 returns filed through June 25, 2012. Many returns are filed after the usual mid-March deadline because they are on extension.

In addition, the number of partnership information returns e-filed so far this year on Form RI-1065 exceeds the number e-filed for all of last year – a total of 1,076 so far this year, compared with 939 for all of last year.

Sales tax booklets, new Notices, personnel changes

The Tax Division's latest Advisory focuses on sales tax booklets, new Notices, and some personnel changes.

Repeal of tax on package tours

A new Notice provides details about the repeal of the tax on package tours and scenic and sightseeing transportation services. The tax will no longer apply after June 30, 2012. The Tax Division is in the process of distributing the Notice by mail to tour operators, tourism councils, and others.

Changes to surcharge on car rentals

The Tax Division today posted a Notice that explains changes to the surcharge on motor vehicle rentals. The changes are the result of a new law and take effect July 1, 2012. The Tax Division is also in the process of distributing the Notice by mail to car rental agencies and others.

"Summary of Legislative Changes" now online

The Tax Division today posted the latest “Summary of Legislative Changes.” It summarizes key tax items in the newly enacted state budget for the year that begins July 1.

The budget bill -- House Bill No. 7323 SUB A as amended -- was approved by the House on June 8, and by the Senate on June 11. It was signed into law on June 15.

Tonight's the night -- deadline for estimated tax

Here's a last-minute reminder: Quarterly estimated payments of Rhode Island personal income tax are due by midnight tonight.

Tonight is also the deadline for the second installment of estimated tax for calendar-year payers of corporate tax, franchise tax, bank excise tax, political organization tax, composite income tax, and pass-through withholding.

In addition, tonight's the deadline for the second installment of estimated tax for payers of the bank deposits tax, insurance gross premiums tax (admitted carriers), and public service corporation tax.

Corporate tax update - Form 1065

The Tax Division yesterday posted on its website a draft of the revised Form RI-1065 partnership return so that software developers and others may review it.

The form is for tax year 2012, is generally for LLCs, LPs, and LLPs, and reflects changes in state tax law that were enacted in June 2011.

Sales tax permits, fiduciary returns, and more

The latest Advisory, posted today by the Tax Division, has information about sales tax permits, fiduciary returns, combined reporting, and assistance for East Providence related to refund offsets.

Corporate tax update - combined reporting

The Rhode Island Division of Taxation today posted on its website a form related to pro forma combined reporting: RI-7004-CRS. Corporations that are subject to pro forma combined reporting rules may use the form to request an additional one-month filing extension.

(To file the new Form RI-7004-CRS, you must have previously filed for the standard six-month extension on Form RI-7004. Filing the new form means you will have an overall seven-month extension.)

Estimated payments due a week from tonight

Don't forget that quarterly estimated payments for Rhode Island personal income tax are due a week from tonight. The deadline is midnight on June 15.

June 15 is also the deadline for the second installment of estimated tax for calendar year payers of corporate tax, franchise tax, bank excise tax, political organization tax, composite income tax, and pass-through withholding.

In addition, June 15 is the deadline for the second installment of estimated tax for payers of the bank deposits tax, insurance gross premiums tax (admitted carriers), and public service corporation tax.

Final regulations posted

The Tax Division today posted several final regulations, mainly involving business taxes and sales taxes. The regulations take effect July 1.

Among those affected by the new rules are limited liability companies (LLCs), limited partnerships (LPs), and limited liability partnerships (LLPs).