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 collection 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. The bill also introduces new provisions in Section 44-11-7.1, establishing a ten-year limitation on deficiency determinations and collection actions for taxes due, ensuring that notices of deficiency cannot be issued more than ten years after a return is filed.

Additionally, the bill establishes a sales tax exemption for works created by writers, composers, and artists residing in Rhode Island, detailing that the certificate of exemption shall be valid for four years from the date of issue. It 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 renewal requirements and fees for manufacturers, importers, distributors, and dealers licenses are introduced, effective January 1, 2025. The bill clarifies that certain liabilities classified as trust funds are excluded from specific provisions and that the ten-year limitation on collections does not affect the state's ongoing collection efforts for liabilities due within that period.

Sections 1 and 2 will take effect on January 1, 2026, while the remaining sections will take effect upon passage.

Statutes affected:
614: 3-10-5, 31-36-20, 44-1-2, 44-18-0, 44-19-13, 44-20-5, 44-23-9, 44-30-83