Rhode IslandH57352025 Regular SessionHouseWALLET

AN ACT RELATING TO ALCOHOLIC BEVERAGES -- TAXATION OF BEVERAGES .

Sponsored By: Marvin L. Abney (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 3 costs, 2 mixed.

Tax-free sales for qualifying Rhode Island artists

Rhode Island-resident writers, composers, and artists with a principal business in the state can apply for a sales tax exemption. It covers qualifying original, one-of-a-kind, or limited-production works sold from their Rhode Island business, plus qualifying gallery sales. Works include writing, music, visual art, crafts, film, and dance, but exclude industry-oriented commercial productions; exempt works also escape use tax. The tax administrator decides eligibility with the arts council and can require certified annual sales reports; failure to report can end eligibility. Certificates last four years from issuance; certificates issued before the section took effect expire four years after that effective date.

State agencies coordinate statewide arts promotion

The Rhode Island Council on the Arts oversees the transition to a statewide arts district program. It coordinates promotion with tourism agencies, business groups, marketing agencies, and local governments. State entities must provide data, help, and resources the council requests for the program. The provision sets no funding amount or direct household payment.

Annual fees for tobacco and nicotine businesses

Beginning January 1, 2025, tobacco and nicotine product manufacturers, importers, and distributors must renew annually by February 1. Their renewal fee is $1,000, or $100 for distributors that do not affix stamps; dealers pay $25. Renewed licenses run July 1 through June 30. Manufacturer and distributor licenses also fall under the expiration rules, generally ending at midnight on the next June 30. Revocation, ownership changes, or business closure can end licenses earlier; any expiration period set by the tax administrator cannot exceed three years.

Advance tax notice for major business sales

Covered businesses must ensure a request for a tax good-standing letter arrives at least five business days before a sale. The rule covers transfers of most asset value outside the ordinary course of business. For foreign entities, it measures their Rhode Island assets. Missing the notice deadline makes required tax returns immediately due when notice occurs or should have occurred. Sales by receivers, assignees for creditors, bankruptcy trustees, debtors in possession, and public officers acting under judicial process are exempt.

Fuel-tax transfers shift to monthly payments

Rhode Island now deposits and transfers this fuel-tax money monthly, rather than within 24 hours of receipt or prior deposit. The treasurer credits and pays the money to the designated funds. Recipients include public transit, human services, the turnpike and bridge authority, and the general fund. The law changes payment timing, not the amounts allocated.

New starting point for household tax deadlines

Rhode Island's 10-year deadline for additional personal income and estate tax assessments now starts when the return is filed. It no longer starts from the return's due date. This can shorten the assessment window for early filings or lengthen it for late filings. The law does not change tax rates or amounts owed.

Business tax deadlines start at filing

Rhode Island measures the 10-year assessment deadline from filing for corporation tax and covered sales and use taxes. It no longer uses the return's due date as the starting point. Early filings can shorten the window, while late filings can lengthen it. The sales and use tax limit excludes trust-fund liabilities and the listed meals, beverage, and hotel taxes. This changes assessment timing, not tax rates or amounts owed.

Sponsors & Cosponsors

Sponsor

Marvin L. Abney
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 73 • No: 0

House vote • 6/16/2025

TAXATION OF BEVERAGES PASSAGE