Tax changes take effect this Sunday

Two key tax changes will take effect this Sunday:

* If you buy wine and spirits from a liquor store in Rhode Island, you will not have to pay Rhode Island’s 7 percent sales tax.

* If you buy original works of art or limited edition works of art anywhere in Rhode Island, you will not have to pay Rhode Island’s 7 percent sales tax.

The Division of Taxation has just posted an Advisory with details about the changes.

Renewal for historic tax credit reg

The Rhode Island Division of Taxation today renewed for 90 days its emergency regulation involving historic tax credits. 

The agency originally filed the emergency regulation this summer so that it would take effect August 1, 2013, and remain in force for 120 days, until November 29, 2013. The Division of Taxation today took action to renew it, with no changes, so that it will remain in effect from November 29, 2013, through February 27, 2014.

This will give the agency ample time to develop a formal (non-emergency) regulation on the subject. The agency tentatively plans to propose such a regulation sometime in December 2013, and schedule a public hearing on it sometime in January 2014; dates and other details will be announced. The goal is to make the regulation final by the end of February.

Legislation approved by the General Assembly and signed into law by Governor Lincoln D. Chafee in July 2013 essentially reopened the state’s historic tax credit program, with certain limits, to encourage redevelopment and reuse of historic buildings. The Division of Taxation’s emergency regulation is intended to provide guidance to developers and other stakeholders about the credit program.

Tax Administrator at SALT conference

Rhode Island Tax Administrator David M. Sullivan was a guest speaker on November 15, 2013, at the New England State and Local Tax Forum, held at the Boston Marriott Newton hotel in Newton, Mass.

Sullivan was on a panel of top tax officials from each of the six New England states. (See photo below.)

From left, Rhode Island Tax Administrator David Sullivan; John Lewandowski, director of the Audit Division for Maine Revenue Services; Mary Peterson, Vermont Commissioner of Taxes; Kevin Sullivan, Connecticut Commissioner of Revenue Services; John Beardmore, Commissioner of the New Hampshire Department of Revenue Administration; and Massachusetts Revenue Commissioner Amy Pitter. (Photo by Kathryn H. Michaelis)

Seminar draws more than 100 tax preparers

In Newport yesterday, the Rhode Island Division of Taxation held a seminar for tax preparers. The event, at the Community College of Rhode Island, focused on what's new for the coming filing season and other topics.

More than 100 preparers attended the session, which began with a greeting by Tax Administrator David M. Sullivan.

Preparers attend Division of Taxation seminar at CCRI in Newport.

Inflation adjustments for tax year 2014

The Division of Taxation today issued inflation-adjusted standard deduction, personal exemption, and other amounts for tax year 2014. For details, please click here.

Final regulations on arts district, film tax credit

The Division of Taxation today posted two final regulations: 

• One provides guidance on the sales tax exemption for the new statewide arts district, which takes effect December 1, 2013. Click here to view it.
• The other reflects changes in state law involving the motion picture production tax credit (sometimes called the film tax credit). Click here to view it.

One week left to register for tax preparers' seminar

There's one week left to register for the Division of Taxation's seminar for tax preparers.

At the seminar, the Division of Taxation will offer an update for filing season. There will also be a personal income tax "boot camp," which will focus on some items that are of particular interest to preparers, such as the Form RI-1040H (property tax relief).

The free seminar will be held at the Community College of Rhode Island in Newport from 9 a.m. to 11:30 a.m. on November 14, 2013, but pre-registration is required -- and the deadline to register is 4 p.m. on Friday, November 8, 2013. For more information, please click here.  (A second session, at CCRI in Warwick on December 4, 2013, is sold out.)