2023 Rhode Island General Laws › Title 44 - Taxation › Chapter 44-70 - Cannabis Tax › Section 44-70-13. - Penalties.

§ 44-70-13. Penalties.
(a)
Failure to file tax returns or to pay tax.
In the case of failure:
(1)
To file. The tax return on or before the prescribed date, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax required to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for payment and by the amount of any credit against the tax which may properly be claimed upon the return.
(2)
To pay. The amount shown as tax on the return on or before the prescribed date for payment of the tax unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on the return ten percent (10%) of the amount of the tax.
(b)
Negligence.
If any part of a deficiency is due to negligence or intentional disregard of the Rhode Island General Laws or rules or regulations under this chapter (but without intent to defraud), five percent (5%) of that part of the deficiency shall be added to the tax.
(c)
Fraud.
If any part of a deficiency is due to fraud, fifty percent (50%) of that part of the deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts imposed by subsections (a) and (b) of this section.
(d)
Failure to collect and pay over tax.
Any person required to collect, truthfully account for, and pay over any tax under this title who willfully fails to collect the tax or truthfully account for and pay over the tax or willfully attempts in any manner to evade or defeat the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for the imposition of a civil penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
(e)
Additions and penalties treated as tax.
The additions to the tax and civil penalties provided by this section shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as taxes.
(f)
Bad checks.
If any check or money order in payment of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered the check, upon notice and demand by the tax administrator or his or her delegate, in the same manner as tax, an amount equal to one percent (1%) of the amount of the check, except that if the amount of the check is less than five hundred dollars ($500), the penalty under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered the check in good faith and with reasonable cause to believe that it would be duly paid.
(g)
Misuse of trust funds.
Any retailer and any officer, agent, servant, or employee of any corporate retailer responsible for either the collection or payment of the tax, who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter, shall upon conviction for each offense be fined not more than ten thousand dollars ($10,000), or be imprisoned for one year, or by both fine and imprisonment, in addition to any other penalty provided by this chapter.
(h)
Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever is greater.
(i)
When determining the amount of a penalty sought or imposed under this section, evidence of mitigating or aggravating factors, including history, severity, and intent, shall be considered.
History of Section.
P.L. 2022, ch. 31, § 4, effective May 25, 2022; P.L. 2022, ch. 32, § 4, effective May 25, 2022.