The bill amends Section 44-1-6 of the General Laws in Chapter 44-1, titled "State Tax Officials," to enhance the collection powers related to nonresident contractors. Key changes include extending the timeframe for the division of taxation to review nonresident contractor cases and for withholding payments from thirty (30) days to sixty (60) days after a nonresident contractor completes a contract and requests an audit from the tax administrator. Additionally, if the tax administrator does not provide a certificate of no tax due or a certificate of taxes due within the new sixty (60) day period, the person holding the payment may release the funds to the contractor without any claims from the tax administrator.

Furthermore, the bill introduces a new provision that holds any person doing business with a nonresident contractor liable for payment of any amounts due as determined by the tax administrator if they fail to comply with the withholding requirements. This provision subjects them to the same collection activities as a taxpayer under the relevant title. The act is set to take effect upon passage.

Statutes affected:
7809: 44-1-6