The bill seeks to amend the Rhode Island General Laws to enhance the process of confirming state fees and taxes compliance for business entities. It allows the division of taxation to share tax information with the secretary of state to determine if an entity is compliant with state tax obligations. If an entity is noncompliant, the secretary of state is to issue notice and start revocation proceedings. The bill includes insertions that outline the procedure for the secretary of state to request tax status information and the steps to follow if an entity has not paid the required fees or taxes. It also includes deletions, such as removing the phrase "state law to the contrary" and replacing "make up" with "compile" in the context of compiling a list of noncompliant LLCs. The bill emphasizes the importance of maintaining the confidentiality of tax information.

The bill updates the revocation process for corporations and LLCs that fail to pay state fees or taxes. It specifies that the secretary of state must protect tax information and only disclose the basis for revocation as nonpayment of state fees and/or taxes. The language in the bill changes from "make up" to "compile" for the tax administrator's list of noncompliant entities and requires the secretary of state to issue notice and initiate revocation proceedings based on this list. The bill also ensures that the secretary of state and staff adhere to confidentiality laws regarding taxpayer information. The proposed changes are scheduled to take effect on January 1, 2025.

Statutes affected:
3056: 7-12.1-915, 7-13.1-214, 7-16-67.1, 44-11-26.1