The bill amends Section 44-18 of the General Laws in Chapter 44-18, titled "Sales and Use Taxes — Liability and Computation," to include a new section that provides a sales tax exemption for sales by writers, composers, and artists within Rhode Island. The exemption applies to original and creative works that are "one-of-a-kind, limited production" and fall into specific categories such as books, plays, musical compositions, paintings, sculptures, crafts, films, and dances. The exemption does not apply to works created for commercial or industry-oriented production. To qualify, individuals must be residents and have a principal place of business in Rhode Island, and they must be determined by the tax administrator, in consultation with the Rhode Island Council on the Arts, to have created eligible works. The tax administrator may require applicants to provide evidence related to the creation of their works and submit an annual certified accounting of sales.

The bill also introduces a new provision that sets a four-year validity period for the certificate of exemption, with all certificates issued prior to the effective date of this subsection expiring four years from that date. The Rhode Island Council on the Arts is tasked with overseeing the transition to a statewide arts district program and coordinating efforts to promote it. The tax administrator, in cooperation with the Council, will gather data to assess the impact of the program and issue an annual report. The act would take effect upon passage, and it specifies that individuals to whom the exemption applies must still comply with other provisions of chapters 18 and 19 of the title related to taxation.

Statutes affected:
7331: 44-18-0