The bill amends Section 44-18-18.1 of the General Laws in Chapter 44-18, titled "Sales and Use Taxes — Liability and Computation," to include retail liquor stores with a Class A liquor license in the definition of "eating and/or drinking establishment" for the purposes of the local meals and beverage tax. This tax is levied at a rate of one percent of the gross receipts from every meal and/or beverage sold within the state of Rhode Island, whether prepared in the establishment or not, and whether consumed on the premises or elsewhere. The tax collected is to be distributed quarterly to the city or town where the meals and beverages are delivered.

The bill specifies that the local meals and beverage tax will be administered and collected by the division of taxation, and the general administration, collection, and other provisions of chapters 18 and 19 of the title apply to this tax. The bill also provides definitions for "beverage," "eating and/or drinking establishment," and "meal" to clarify what is subject to the tax. The act is set to take effect upon passage, thereby immediately imposing the local meals and beverage tax on retail liquor stores with a Class A liquor license.

Statutes affected:
7596: 44-18-18.1