§ 44-18-30.B - Exemption from sales tax for sales by writers, composers, artists – Findings.
SECTION 44-18-30.B
§ 44-18-30.B Exemption from sales tax forsales by writers, composers, artists – Findings. – (a) The general assembly makes the following findings of facts:
(1) The downtown area of the city of Providence has beencharacterized by blighted areas, and dilapidated and abandoned structures;
(2) As a result, the downtown area has been designated aneconomic development zone in order to stop the deterioration and stimulateeconomic activity;
(3) The capitol center area of the city of Providence hasbecome an attractive location, especially with the construction of theProvidence Place Mall;
(4) In order to promote, revitalize and redevelop the "OldDowntown" area of the city of Providence it is necessary to provide taxexemptions to this area as it has been designated as an economic developmentzone;
(5) In order to promote, revitalize, and redevelop the"Downtown or other industrial or manufacturing buildings" located in the Cityof Pawtucket, it is necessary to provide tax exemptions to this area as it hasbeen designated as an economic development zone;
(6) The development of an active artistic community,including "artists in residence", in this area would promote economicdevelopment, revitalization, tourism, employment opportunities, and encouragebusiness development by providing alternative commercial enterprises while inProvidence creating a link between the Old Downtown and the Capital Center Area;
(7) There is a separate artistic community in the town ofWesterly which is important to preserve, promote, and revitalize, and which isdistinct from that in the city of Providence;
(8) There is a separate artistic community in the city ofWoonsocket which is important to promote and revitalize and which is distinctfrom that in the cities of Providence and Pawtucket and the town of Westerly;
(9) There is a separate artistic community in the city ofWarwick which is important to preserve, promote, and revitalize and which isdistinct from that in the cities of Providence, Pawtucket, Woonsocket and thetown of Westerly;
(10) There are separate artistic communities in the city ofNewport and in the town of Tiverton which are important to promote andrevitalize and which are distinct from those in the cities of Providence,Pawtucket, Warwick and Woonsocket and the towns of Westerly and Little Compton;
(11) There is a separate artistic community in the town ofWarren which is important to promote and revitalize and which is distinct fromthat in the cities of Providence, Pawtucket, Newport, Warwick and Woonsocketand the towns of Westerly and Tiverton.
(b) This section only applies to sales by writers, composersand artists residing in and conducting a business within a section of thedefined economic development zone in the cities of Providence or Pawtucket, orthe defined economic development zone in the town of Westerly or the definedeconomic zone in the city of Woonsocket, or the defined economic zone in thecity of Warwick, or in those areas within the city of Newport, and the town ofLittle Compton, which are zoned "general business," "waterfront business," or"limited business" or have been designated by the city of Newport as part ofthe arts district, or in those areas of the town of Warren which are zoned"waterfront district," "special district," "village business district,""manufacturing district," "business district" or "Warren historic district," orin those areas of the town of Tiverton which are zoned "business commercial,""business waterfront" or "village commercial." For the purposes of thissection, a "work" means an original and creative work, whether written,composed or executed for "one-of-a-kind limited" production and which fallsinto one of the following categories:
(i) A book or other writing;
(ii) A play or the performance of said play;
(iii) A musical composition or the performance of saidcomposition;
(iv) A painting or other like picture;
(v) A sculpture;
(vi) Traditional and fine crafts;
(vii) The creation of a film or the acting within the film;
(viii) The creation of a dance or the performance of thedance.
(2) For the purposes of this section, a "work" includes anyproduct generated as a result of any of the above categories.
(3) For the purposes of this section, a "work" does not applyto any piece or performance created or executed for industry oriented orrelated production.
(c) This section applies to sales by any individual:
(i) Who is a resident of and has a principal place ofbusiness situated in the section of the economic development zone designated asthe arts and entertainment district in the downtown area of the city ofProvidence or in the city of Pawtucket, or the defined economic developmentzone in the town of Westerly or the defined economic zone in the city ofWoonsocket, or the defined economic zone in the city of Warwick, or who is aresident of and has a principal place of business situated in those areaswithin the city of Newport or the town of Little Compton, which are zoned"general business," "waterfront business," or "limited business," or have beendesignated by the city of Newport as part of the arts district, or who is aresident of and has a principal place of business situated in those areaswithin the town of Warren which are zoned "waterfront district," "specialdistrict," "village business district," "manufacturing district," "businessdistrict" or "Warren historic district," or who is a resident or has aprincipal place of business situated in those areas within the town of Tivertonwhich are zoned "business commercial," "business waterfront" or "villagecommercial." For the purposes of this section, the Providence arts andentertainment district in Providence is defined as the area bounded by PineStreet to the southeast, Dorrance Street to the northeast, Sabin Street to thenorthwest and Empire Street to the southwest. Said Providence arts andentertainment district also includes the area beginning at the point ofintersection of Acorn Street and Harris Avenue, then turning east onto AtwellsAvenue to Service Road 7, then turning southerly onto Service Road 7 toWestminster Street, then turning westerly onto Westminster Street, continuinguntil Bridgham, then turning south onto Bridgham to Cranston Street, thenturning southwesterly onto Cranston Street, then continuing to Messer Street,then turning north onto Messer Street to Westminster Street, turning west ontoWestminster Street to US Hwy 6 off ramp, then heading west on US Hwy 6 toSheridan Street, then heading northeast on Sheridan Street to Aleppo Street,then turning southeast along Aleppo Street to Pelham Street, then headingnortheast on Pelham Street to Manton Avenue, then continuing southeast onManton Avenue until Delaine Street, then heading northeast on Delaine Streetuntil Appleton Street, then continuing northwesterly on Appleton Street untilBowdoin Street, then heading north on Bowdoin Street until Barstow Street, thenheading east on Barstow until Valley Street, then heading northeast on ValleyStreet to Hemlock Street, then turning southeast on Hemlock Street untilPromenade Street, then heading east on Promenade Street to Acorn Street, thenheading south on Acorn Street to the intersection of Acorn Street and HarrisAvenue. The named streets are included in the Providence district; and inPawtucket is defined as the area beginning at the point of intersection ofDexter Street and the Central Falls line, then east along the Central Fallsline to the Blackstone River, then north along the city boundary on theBlackstone River to the Cumberland line, then west along the Pawtucket cityboundary line to I-95, then south along I-95 to Pine Street, then north on PineStreet to AMTRAK Right of Way, then northwest along the AMTRAK Right of Way toDexter Street, then north on Dexter Street to the Central Falls line. The namedstreets are included in the district. The Westerly arts and entertainmentdistrict is defined as assessor's plat 56, lots 1 through 24, lot 48, lots 50through 62, and lots 71 through 82, and assessors plat 66, lots 22 through 26,and lots 29 through 36 the Woonsocket arts and entertainment district isdefined as the area beginning at a point of land on the southwest bank of theBlackstone River abutting the bridge for the Providence & Worcester Railroadand proceeding northerly to a point at the intersection of Worrall Street,Clinton Street and Harry S. Truman Drive, then proceeding northwesterly alongWorrall Street to its intersection with Social Street, then turning westerly onSocial Street proceeding to its intersection with Main Street, BlackstoneStreet and North Main Street, then turning northwesterly and proceeding alongBlackstone Street to its intersection with River Street, then turning northerlyand proceeding along River Street to its intersection with the north/east bankof Blackstone River, then following the riverbank southerly to the bridge atBernon Street and turning easterly crossing the Blackstone River via BernonStreet and proceeding to its intersection with Front Street, then turningnortheasterly on Front Street and proceeding to its intersection with HamletAvenue, and to include the former courthouse on the southerly side of FrontStreet at its intersection with Hamlet Avenue, then turning easterly on HamletAvenue and proceeding to its intersection with Manville Road, then turningsoutheasterly on Manville Road and proceeding to its intersection with DavisonAvenue, then turning northeasterly on Davison Avenue and proceeding to a pointon the south/west bank of the Blackstone River, then turning northerly,following the southerly riverbank to the point of beginning. The abovementionedstreets are included in the district. The Warwick arts district is defined asthat area known as Pontiac Village, beginning on Route 5 at theWarwick/Cranston municipal boundary, then south to the intersection of Route 5and the Pawtuxet River, then following the Pawtuxet River in an easterly andnortherly direction to the municipal boundary in the vicinity of Knight Street,then from the intersection of Knight Street and the municipal boundary westerlyalong the Warwick/Cranston municipal boundary to the intersection of Route 5and Greenwich Avenue. The above named streets are included in the district.
(ii) Who is determined by the tax administrator, afterconsideration of any evidence he or she deems necessary or which is submittedto him or her by the individual, to have written, composed, or executed, eithersolely or jointly, a work or works which would fall into one of the categorieslisted in subsection (b)(1).
(2) This section also applies to sales by any other gallerylocated in the arts and entertainment district described in subsection(c)(1)(i) as well as any other arts and entertainment district designated bythe general assembly, as well as to sales by any other gallery located in thoseareas within the city of Newport, or the town of Little Compton, which arezoned "general business," "waterfront business," or "limited business" or havebeen designated by the city of Newport as part of the arts district, as well asto sales by any other gallery located in those areas within the town of Warrenwhich are zoned "waterfront district," "special district," "village businessdistrict," "manufacturing district," "business district" or "Warren historicdistrict," as well as to sales by any other gallery located in those areaswithin the town of Tiverton which are zoned "business commercial," "businesswaterfront" or "village commercial."
(3) The tax administrator shall not make a determinationunless:
(i) The individual(s) concerned duly make(s) an applicationto the tax administrator for the sales tax exemption which applies to the worksdefined in this section; and
(ii) The individual has complied and continues to comply withany and all requests made by the tax administrator.
(d) Any individual to whom this section applies and who makesan application to the tax administrator is entitled to a sales tax exemptionfor the sale of a work or works sold from the individual's business located inthe economic development zone which would, apart from this section, be subjectto the tax rate imposed by the state of Rhode Island.
(e) When an individual makes a request for the exemption, thetax administrator is entitled to all books, documents, or other evidencerelating to the publication, production or creation of the works that may bedeemed necessary by the tax administrator for the purposes of the exemption.The time period in which to provide this information is in the sole discretionof the tax administrator and specified in the notice.
(f) In addition to the information required in subsection(e), the tax administrator may require the individual(s) to submit an annualcertified accounting of the numbers of works sold, the type of work sold, andthe date of the sale. Failure to file this report may, in the sole discretionof the tax administrator, terminate the individual's eligibility for theexemption.
(g) Any person storing, using, or otherwise consuming in thisstate any work or works which is deemed to be exempt from the sales taxpursuant to this section is not liable for the use tax on the work or works.
(h) Notwithstanding the provisions of this section, anyindividual to whom this section may apply shall comply with all theadministration, collection, and other provisions of chapters 18 and 19 of thistitle.