Latest Administrative Decisions focus on refunds

The Division of Taxation has posted five new Administrative Decisions. They all focus on the same theme -- whether claims for personal income tax refunds were filed on time. These latest Administrative Decisions are available via the following links:

• 2016-11
• 2016-12
• 2016-13
• 2016-14
• 2016-15

Mailing of sales tax permits, coupon booklets

The Rhode Island Division of Taxation is preparing its annual mailing of sales tax permits and coupon booklets. There will be two separate mailings: one containing the permits, the other containing the booklets. For details, please click here.

Tax credits for projects in Providence, North Providence

The Rhode Island Division of Taxation has posted details about three rehabilitation projects: two in Providence and the other in North Providence. All involve historic preservation tax credits.

• Plans are to rehabilitate the Union Trust Building, on Dorrance Street in the Downtown Providence Historic District, to a mix of business and restaurant use on the first two floors and rooftop, with apartments on all other floors.
• The Irons & Russell Building, at 95 Chestnut St., in the Providence Jewelry Manufacturing Historic District, is to be converted to residential use, with 57 apartment units and a small ground-floor restaurant.
• The proposal for the Lymansville Company Mill, at 184 Woonasquatucket Ave., North Providence, is to establish 101 apartments.

The Division of Taxation's web page on historic tax credits shows details involving all applicants that have signed a contract and paid the required fee under the state's 2013 historic preservation tax credit
program.

Tax credits for projects in Providence, Pawtucket

The Rhode Island Division of Taxation has posted details about two rehabilitation projects. One is of a building in downtown Providence. The other is of a building in downtown Pawtucket. Both involve historic preservation tax credits.

• The rehabilitation of the five-story Case-Mead Building -- at 68-76 Dorrance St., in the Downtown Providence Historic District -- will include commercial space on the first floor and "micro" apartments on the upper four stories.
• The rehabilitation of the George H. Fuller and Sons Co. building -- at 151 Exchange St., along the Blackstone River in Pawtucket's Exchange Street Historic District -- will include commercial space on the street level, with residential space elsewhere.

The Division of Taxation's web page on historic tax credits shows details involving all applicants that have signed a contract and paid the required fee under the state's 2013 historic preservation tax credit
program.

Application deadline for Wavemaker program

The Rhode Island Division of Taxation reminds tax professionals and others that the application deadline is Wednesday for the Wavemaker tax credit program.

Applications must be filed with the Rhode Island Commerce Corporation on or before June 15, 2016.

The Wavemaker program is a competitive student loan reimbursement program for recent graduates working in jobs in the STEM (science, technology, engineering, and mathematics) fields and certain design fields. If an eligible applicant is selected, he or she may receive a refundable tax credit that can help to cover student loan payments for up to four years.

• For the program's home page, click here.
• For the application and related information, click here.
• For a recent announcement about the program, click here.

Hearing on personal income tax refunds

Rhode Island Department of Revenue Director Robert S. Hull and Acting Tax Administrator Neena S. Savage tonight testified before the House Committee on Oversight.

The presentation was titled, "The Causes of the Delay of Tax Refunds in 2016 and How the Department Will Address Them before Next Tax Season."

They said that the Division of Taxation has processed approximately 395,000 personal income tax refunds so far this year (through June 6, 2016). That represents about 95 percent of the refunds processed last year.

Among the reasons that some refunds have been delayed this year:

• an 84 percent increase in the number of potentially fraudulent refund claims (following a nationwide trend);
• a mandate from the Auditor General to review refund claims more closely;
• the rollout of a new, agency-wide computer system;
• filing errors; and
• staffing challenges due to increases in phone calls, walk-ins, and emails.

They told the committee that substantially all valid tax refunds on returns filed as of June 6, 2016, should be issued by mid-July 2016. They also made the point that safeguarding taxpayer information and money is the agency's primary objective. Plans for the coming filing season include expanding the Division's cyber fraud unit to streamline the process and further protect taxpayers.

Rhode Island Department of Revenue Director Robert S. Hull and Acting Tax Administrator Neena S. Savage

Regulation on sales and hotel taxes

The Rhode Island Division of Taxation today posted, as final, a regulation involving sales and hotel taxes.

The final regulation updates an older regulation to reflect changes in the law enacted last year. Those changes extended the sales and hotel taxes to short-term residential rentals. The final regulation discusses room rentals – by hotels, room resellers, hosting platforms, and others.