The bill amends Section 44-18-30B of the General Laws in Chapter 44-18, titled "Sales and Use Taxes Liability and Computation," to provide a sales tax exemption for sales by writers, composers, and artists residing and conducting business 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 industry-oriented, commercial, or related production. To qualify, individuals must apply to the tax administrator, who will consult with the Rhode Island Council on the Arts to determine eligibility based on the nature of the works. The tax administrator may request documentation related to the creation of the works and an annual certified accounting of sales.

The bill also introduces a new provision that the certificate of exemption will be valid for four years from the date of issue, with all certificates issued prior to the effective date of this subsection expiring four years from said date. The Rhode Island Council on the Arts is tasked with overseeing the transition to a statewide arts district program and coordinating with various agencies to promote the program. The tax administrator will gather data to assess the impact of the program and issue an annual report. The act will take effect upon passage, and it specifies that the exemption certificate's validity period is four years.

Statutes affected:
2931: 44-18-0