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 commercial or industrial production. To qualify, individuals must apply to the tax administrator, who will consult with the Rhode Island council on the arts to determine eligibility. The exemption also applies to sales by galleries located in the state.

The bill introduces a new subsection (i), which states that the certificate of exemption shall be valid for four years from the date of issue, and all certificates issued prior to the effective date of this subsection shall expire four years from the effective date of this subsection. 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, in cooperation with the council, will gather data to assess the impact of the program and issue an annual report. The act will take effect upon passage and includes a provision that sets a four-year expiration period on any certificate of exemption for writers, composers, and artists.

Statutes affected:
7331: 44-18-0