The bill amends various sections of the Rhode Island General Laws concerning taxation, particularly focusing on the taxation of alcoholic beverages. Key changes include the addition of Section 3-10-5, titled "Information supplemental to returns Audit of books," which clarifies the tax administrator's authority to request additional information and examine financial records. The requirement for Class A licensees to file annual sales and tax reports has been removed.

Section 31-36-20's title is updated to "Disposition of proceeds," changing the fund transfer schedule from a 24-hour requirement to a monthly basis, with payments credited and paid by the general treasurer to the designated fund. The bill also eliminates a sunset provision in Section 44-1-2 regarding the tax administrator's authority to amend tax forms in response to IRS changes.

New provisions are introduced in Section 44-11-7.1, establishing a ten-year limitation on assessments and collection actions for taxes due and payable, including personal income, estate, and sales taxes. Section 44-18-30B introduces a sales tax exemption for works created by writers, composers, and artists residing in Rhode Island, with the certificate of exemption valid for four years from the date of issue.

Additionally, the bill sets new requirements for the renewal of manufacturers, importers, and distributors licenses, specifying a renewal fee structure. Technical corrections are made regarding the taxation of alcoholic beverages, clarifying that certain liabilities are excluded from specific provisions and that the ten-year limitation on collections does not affect ongoing state collection efforts.

Sections 1 and 2 of the bill will take effect on January 1, 2026, while other provisions will take effect upon passage.

Statutes affected:
5735: 3-10-5, 31-36-20, 44-1-2, 44-18-0, 44-19-13, 44-20-5, 44-23-9, 44-30-83