reglab/statecodes huggingface dataset:
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 6 - Offers in Compromise (280-RICR-20-00-6) › Section 280-RICR-20-00-6.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstance, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 6 - Offers in Compromise (280-RICR-20-00-6) › Section 280-RICR-20-00-6.5 - Form RI 656

Current through June 14, 2024
A. A taxpayer may
				 propose an offer in compromise by filing Form RI 656 with the Tax
				 Administrator. The offer, in addition to taxpayer identification, shall set
				 forth:
1. type(s) of tax;
2. the amount of offer in
				 compromise;
3. reasons for the
				 offer in compromise and
4. any
				 information relating to offers in compromise submitted to the Internal Revenue
				 Service.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 6 - Offers in Compromise (280-RICR-20-00-6) › Section 280-RICR-20-00-6.6 - Form RI 433

Current through June 14, 2024
When making such offer, or within ten (10) days from the
					 date of application, the taxpayer shall submit a completed Rhode Island Form
					 433.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 6 - Offers in Compromise (280-RICR-20-00-6) › Section 280-RICR-20-00-6.7 - Withdrawal, Rejection or Acceptance of Offer

Current through June 14, 2024
The offer may be withdrawn by the taxpayer at any time
					 prior to its acceptance. If the offer is rejected, the taxpayer will be
					 notified by the Tax Administrator in writing, and if payment of the compromise
					 offer was made at the time of application, the payment remitted with the
					 proposed compromise will be returned to the taxpayer without interest. An offer
					 is considered accepted only when the taxpayer is notified in writing of its
					 acceptance. Full payment must be made within thirty (30) days from date of
					 notification that the offer is accepted. Accepting or rejecting an offer in
					 compromise is a discretionary determination that does not give rise to a cause
					 of action.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 6 - Offers in Compromise (280-RICR-20-00-6) › Section 280-RICR-20-00-6.8 - Additional Information

Current through June 14, 2024
The Tax Administrator may request additional financial or
					 other information as he/she deems necessary in considering the
					 offer.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 6 - Offers in Compromise (280-RICR-20-00-6) › Section 280-RICR-20-00-6.9 - Failure to Comply

Current through June 14, 2024
If the taxpayer fails to comply with all provisions of
					 state law relating to the filing of returns and paying required taxes for five
					 (5) years from the date the offer was accepted, the Tax Administrator may treat
					 the offer as defaulted and reinstate the unpaid balance. Interest shall accrue
					 from the date of default.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.1 - Purpose

Current through June 14, 2024
The purpose of this regulation is to provide for additional
					 time to file and pay Rhode Island tax when a due date falls on a weekend or
					 legal holiday.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.2 - Authority

Current through June 14, 2024
This regulation is promulgated pursuant to R.I. Gen. Laws
					 §
										44-1-4.
					 This regulation has been prepared in accordance with the requirements of R.I.
					 Gen. Laws §§
										42-35-1 et
					 seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.3 - Application

Current through June 14, 2024
This regulation shall be liberally construed so as to
					 permit the Division of Taxation the authority to effectuate the purpose of R.I.
					 Gen. Laws Title 44.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.4 - Severability

Current through June 14, 2024
If any provision of this regulation, or the application
					 thereof to any person or circumstances, is held invalid by a court of competent
					 jurisdiction, the validity of the remainder of this regulation shall not be
					 affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.5 - General

Current through June 14, 2024
When the due date for filing any Rhode Island tax return or
					 making a payment falls on a Saturday, Sunday or Rhode Island legal holiday, the
					 filing or payment is considered timely if it is made on the next business day
					 which is not a Saturday, Sunday or Rhode Island legal
					 holiday.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.6 - Special Federal Due Date - April 15th

Current through June 14, 2024
A.
				 When the due date for filing any Rhode Island return for which there is a
				 corresponding Federal filing falls on a day not covered by the general
				 provision above and when that is a day for which the Internal Revenue Service
				 has issued a special extension for the filing of Federal returns, the Rhode
				 Island due date is likewise extended. This may occur when the Emancipation Day
				 holiday in Washington, D. C. and the April 15th deadline coincide.
B. This section does not apply to payments
				 required on notices of tax due under Title 44 of the Rhode Island General Laws
				 (including any interest and/or penalties), to the limitation on claims for
				 refund, or to the time within which the taxpayer must file a request for
				 hearing.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 7 - Filing Deadlines: Weekends, Holidays and Mailings (280-RICR-20-00-7) › Section 280-RICR-20-00-7.7 - Mailing

Current through June 14, 2024
A. Proof of Timely Mailing: If a document is
				 sent by United States mail and is received by the Tax Administrator after the
				 due date for filing, the date on which the document was dated by the post
				 office is deemed to be the date of receipt. It is timely filed only if both of
				 the following are true:
1. The date falls
				 within the time set for filing or the date falls on or before the due date
				 (including any extension); AND
2.
				 The document was deposited in the United States mail with postage prepaid and
				 properly addressed.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 8 - Conduct of Public Hearings (280-RICR-20-00-8) › Section 280-RICR-20-00-8.1 - Purpose

Current through June 14, 2024
To establish a defined set of procedures for the Rhode
					 Island Department of Revenue, Division of Taxation for the conduct of Public
					 Hearings regarding Proposed Rulemaking.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 8 - Conduct of Public Hearings (280-RICR-20-00-8) › Section 280-RICR-20-00-8.2 - Authority

Current through June 14, 2024
This regulation is promulgated pursuant to the authority
					 granted in R.I. Gen. Laws §
										42-35-2(a)(4).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 8 - Conduct of Public Hearings (280-RICR-20-00-8) › Section 280-RICR-20-00-8.3 - Definitions

Current through June 14, 2024
A. For the Purpose of this regulation:
1. "Department" means Rhode Island Department
				 of Revenue, Division of Taxation.
2. "Member of the public" means any
				 individual, firm, business, corporation, association, partnership or other
				 group.
3. "Presiding department
				 official" means the Division of Taxation employee conducting the Public
				 Hearing.
4. "Public hearing" means
				 the convening of Members of the Public and agency personnel for the purpose of
				 obtaining public comment on a Proposed Rulemaking.
5. "Proposed rulemaking" means a proposed new
				 rule, proposed amendment to a rule or proposed repeal of a rule as noticed
				 pursuant to R.I. Gen. Laws §
											42-35-2.7.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 00 - General Administration › Part 8 - Conduct of Public Hearings (280-RICR-20-00-8) › Section 280-RICR-20-00-8.4 - Procedure for Conduct of Public Hearings

Current through June 14, 2024
A.
				 Convening of Public Hearing
1. Public Hearings
				 may be held at the election of the agency or as required pursuant to R.I. Gen.
				 Laws §
											42-35-2.8(c).
2. Notice of Public Hearings shall be issued
				 in accordance with the provisions of R.I. Gen. Laws §§
											42-35-2.8 and
				  42-46-6, when
				 applicable.
3. The Public Hearing
				 shall be held at a time and place designated by the Department.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.1 - Purpose

Current through June 14, 2024
The purpose of these rules and regulations is to implement
					 R.I. Gen. Laws Chapter 44-15 regarding the tax filing and payment requirements
					 for credit unions.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.2 - Authority

Current through June 14, 2024
These rules and regulations are promulgated pursuant to
					 R.I. Gen. Laws §§
										44-15-17 and
					  44-1-4. The
					 rules and regulations have been prepared in accordance with the requirements of
					 R.I. Gen Laws §§
										42-35-1 et
					 seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.3 - Application

Current through June 14, 2024
These rules and regulations shall be liberally construed so
					 as to permit the Division of Taxation to effectuate the purpose of R.I. Gen.
					 Laws Chapter 44-15 and other applicable state laws and
					 regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstances, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.5 - Incorporated Materials

Current through June 14, 2024
A. These
				 regulations hereby adopt and incorporate
				  12 C.F.R. §
											204.8(1)  (1996) by
				 reference, not including any further editions or amendments thereof and only to
				 the extent that the provisions therein are not inconsistent with these
				 regulations.
B. These regulations
				 hereby adopt and incorporate
				  12 C.F.R. §
											700.2  (2013) by reference, not
				 including any further editions or amendments thereof and only to the extent
				 that the provisions therein are not inconsistent with these
				 regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.6 - Definitions

Current through June 14, 2024
A. "Deposits" for institutions other than
				 credit unions means:
1. In the case of a
				 national banking association, state bank, trust company, or savings bank:
				 savings deposits, participation deposits, or time deposits of any kind which
				 bear interest or which are entitled to dividends.
2. In the case of a building and loan
				 association or a savings and loan association: outstanding shares of stock of
				 every class and howsoever designated plus dividend earnings applicable to such
				 stock, or time deposits of any kind, but shall not include shares of stock and
				 the dividend earnings applicable thereto, or time deposits of any kind pledged
				 as collateral to secure mortgage loans on real estate.
3. In the case of a loan and investment
				 company: deposits or time deposits of any kind, which bear interest; also fully
				 paid or partly paid certificates of investment not including, however, payments
				 made on investment certificates hypothecated as collateral against
				 loans.
4. The terms "deposits" and
				 "time deposits" as used in §§
											1.6(A)(1) through
				 (3)     of this Part mean and include deposits or
				 savings made under any type of deposits or savings plan represented by
				 certificates of deposit, savings bonds, or income certificates issued by any
				 banking institution, or howsoever such or similar time deposits or savings plan
				 may otherwise be designated.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.7 - Specific Exclusions

Current through June 14, 2024
A. Banking
				 institutions and credit unions may exclude from taxation a percentage of
				 deposits equal to the percentage of the daily average of book value of total
				 assets of the taxpayer for the calendar year as are invested in the book value
				 of obligations of the United States, its territories and possessions and of any
				 authority, commission or instrumentality of the United States exempt from state
				 taxation under the laws of the United States.
B. The formula for this exclusion may be
				 stated as follows:
EXCLUSION =
Daily Average Book Value of Exempt Obligations DAILY
					 AVERAGE
-----------------------------------------------------------------
					 X OF
Daily Average Book Value of Total Assets
					 DEPOSITS
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.8 - Reporting

Current through June 14, 2024
A. Banking Institution or credit union are
				 required to file proper returns/reports twice each year. On or before January
				 15 following the close of the taxable year, banking institutions or credit
				 unions shall file a report containing the information the Tax Administrator
				 shall prescribe. No payment is required with the January 15 report. The June 15
				 filing is not an estimate and the amount reflected on it and those shown on the
				 report filed on January 15 should be identical. In the case of mathematical
				 and/or other errors and/or omissions which are discovered after the filing of
				 the January report and prior to the filing of the June return, full and
				 complete disclosure of the differences must be submitted with the June return
				 and payment.
B. Each banking
				 institution or credit union, on or before June 15 in each year, shall file a
				 return with the tax administrator I the form and containing the information as
				 he or she shall prescribe, and shall at the same time pay the tax imposed under
				 R.I. Gen. Laws Chapter 44-15.
C.
				 Institutions and credit unions reducing deposits for amounts shown in
				 §§
										1.6(H)  or
				   1.7(A)     of
				 this Part must attach schedules to reports/returns filed showing the nature,
				 extent of loans to numbers, deposits in other Rhode Island credit unions and
				 the relationship and location of each branch, facility or office.
D. Calculations of daily averages of
				 deposits, book values of investments and assets, and other data used in the
				 preparation of reports/returns required by this Chapter should be easily
				 traceable to the institution or credit union's books, records and statements of
				 condition. Reports to the Federal Deposit Insurance Corporation of the branch
				 or branches within the State of Rhode Island may be used to verify such books,
				 records and statements of condition.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 05 - Banks › Part 1 - Bank Deposits Tax (280-RICR-20-05-1) › Section 280-RICR-20-05-1.9 - Rate of Tax

Current through June 14, 2024
A. Credit Unions -
				 An annual tax is imposed on every credit union with total deposits in excess of
				 one hundred fifty million dollars ($150,000,000) at a rate of six and
				 ninety-five one hundredths cents ($.0695) on each one hundred dollars ($100) of
				 the daily average of the deposits with the credit union during the calendar
				 year. For those credit unions with total deposits of one hundred fifty million
				 dollars ($150,000,000) or less the rate shall be six and one-quarter cents
				 ($.0625) on each one hundred dollars ($100) of the daily average of deposits
				 with the credit union during the calendar year.
B. Banking Institutions - For the period
				 beginning January 1, 1998, and thereafter the tax rate shall be zero for all
				 deposits.
C. Estimated Payments -
				 Estimated payments are required in accordance the requirements of R.I. Gen.
				 Laws Chapter 44-26.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.1 - Purpose

Current through June 14, 2024
The purpose of this Part is to implement R.I. Gen. Laws
					 §
										44-30-71.3 which provides for withholding of income tax on the sale of real estate by
					 nonresidents.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.2 - Authority

Current through June 14, 2024
These rules and regulations are promulgated pursuant to
					 R.I. Gen. Laws §§
										44-1-4 and
					  44-30-95.
					 The rules and regulations have been prepared in accordance with the
					 requirements of R.I. Gen. Laws §§
										42-35-1 et
					 seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.3 - Application

Current through June 14, 2024
These rules and regulation shall be liberally construed so
					 as to permit the Division of Taxation the authority to effectuate the purpose
					 of R.I. Gen. Title 44 and other applicable state laws and
					 regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstances, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be impaired or affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.6 - GENERAL

Current through June 14, 2024
A. Effective January 1, 1992, when Rhode
				 Island realty and associated tangible personality is sold by a nonresident, the
				 buyer must deduct and withhold six percent (6%) of the total amount paid or
				 gain to the seller if the seller is a nonresident individual, estate,
				 partnership or trust and seven percent (7%) of the total amount paid or gain if
				 the seller is a nonresident corporation. The buyer then must pay the amount
				 withheld to the Division of Taxation within three (3) banking days after the
				 date closing.
B. Every buyer
				 subject to these provisions is liable for the amount withheld or required to be
				 withheld and the amount shall, until paid, constitute a lien on the property.
				 Said lien shall be subordinate to any mortgage of any lender other than the
				 seller granted in connection with the purchase of the property. Filing and
				 paying the amount of withholding due will automatically discharge the lien
				 under R.I. Gen. Laws §
										44-30-71.3.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.7 - Compliance

Current through June 14, 2024
A. Residency affidavit: The buyer may rely on
				 the seller's determination of residency only if the seller furnishes the buyer
				 with a notarized seller's residency affidavit under penalties of perjury. A
				 recitation of the seller's residency may be contained on the deed. If a deed
				 contains a recitation of residency by the seller, the recording of such deed
				 shall in all instances discharge the lien imposed by R.I. Gen. Laws §
										44-30-71.3(c).
1. If a buyer has actual knowledge that a
				 seller's residency affidavit is false and the buyer fails to withhold the
				 prescribed amount, the buyer is liable for an amount equal to the amount which
				 should have been withheld, together with penalty and interest and a lien shall
				 arise upon the recording of a notice of lien by the Division of Taxation.
				 Provided, however, notice of lien may only be filed if title to said property
				 remains in the name of the buyer.
2. If, upon examination of title during a
				 subsequent sale of the property, a recital of residency is not found in the
				 deed and the affidavit of residency cannot be obtained from the prior seller,
				 the prospective buyer or examining attorney may petition the tax administrator
				 for a discharge of the lien based upon other indicia of residency or no tax
				 due.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.8 - Multiple Sellers

Current through June 14, 2024
A. No matter how
				 the sellers hold their interests in the property, if there is more than one
				 name on the deed, there are multiple sellers. Thus, forms of ownership such as
				 tenancy by the entirety; tenancy in common and joint tenancy all indicate
				 multiple sellers.
B. The buyer must
				 either obtain seller's residency affidavits from each of the multiple sellers,
				 or for each nonresident seller, withhold and remit for each nonresident seller
				 separately. If sellers are married and will file a joint RI income tax return,
				 they should so indicate on Form RI 71.3 Remittance and Form RI 71.3
				 Election.
C. Unless otherwise
				 provided, it is assumed that each of the multiple sellers share equally in the
				 net proceeds for the purposes of calculating amounts to be withheld.
D. A pass-through entity must comply and
				 either obtain seller's residency affidavits from each member or, for each
				 nonresident member, withhold and remit for such nonresident member based on the
				 member's share. It is assumed that the members share equally unless otherwise
				 specifically provided.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.9 - Computation

Current through June 14, 2024
A. General: In accordance with the above, the
				 buyer must deduct and withhold six percent (6%) of the net proceeds or gain to
				 the seller if the seller is a nonresident individual, estate, partnership or
				 trust and seven percent (7%) of the net proceeds or gain if the seller is a
				 nonresident corporation. If there are multiple sellers, the buyer must compute
				 and withhold for each seller separately.
B. EXAMPLES:
1. Net Proceeds Method:
a. Joseph Smith and Andrew David (both
				 nonresidents) are selling a summer house in Rhode Island for $175,000, the
				 proceeds to be shared equally, and they have not elected withholding based on
				 gain. At the closing, cash at settlement to the nonresident sellers is $170,000
				 and the buyer withholds six percent (6%) or $10,200. The buyer then remits to
				 the Division of Taxation using form RI-71.3 Remittance. Since there are
				 multiple sellers, the buyer attaches a schedule listing both nonresidents'
				 names, addresses and social security numbers so that the nonresidents may take
				 proper credit for the amounts withheld when they file their Rhode Island
				 personal income tax returns for the year of the sale.
b. In the example above, if Joseph was a
				 resident and gave a residency affidavit to the buyer at the closing, the buyer
				 would only withhold and remit $5,100 to the Division of Taxation calculated as
				 1/2 x $170,000 or $85,000 @ 6% = $5,100.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.10 - Payment

Current through June 14, 2024
A. The buyer must remit amounts withheld from
				 the seller or sellers within three (3) banking days after the date
				 closing.
B. The buyer must remit to
				 the Rhode Island Division of Taxation using the RI 71.3 Remittance
				 Form.
C. In the event of nonpayment
				 or late payment, interest will be computed in accordance with R.I. Gen. Laws
				 §
										44-1-7 and added to the amount due.
D.
				 Filing and paying the amount of withholding due will automatically discharge
				 the lien under R.I. Gen. Laws §
										44-30-71.3.
				 For an acknowledgement of the lien discharge, the buyer should complete the
				 reverse side of the remittance form and provide a pre-addressed envelope. The
				 Division of Taxation will acknowledge the lien discharge and send it to the
				 buyer or designee.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.11 - Liability

Current through June 14, 2024
A. Every buyer subject to withholding is
				 liable for the amounts withheld or required to be withheld. If there is more
				 than one buyer's name on the deed, the buyers are jointly and severally liable
				 for compliance and remittance.
B.
				 If a seller gives the buyer a fraudulent residency affidavit taken in good
				 faith by the buyer the seller remains liable for any tax due resulting from the
				 sale of the property.
C. The
				 closing attorney, lending institution, and real estate agent/broker in a
				 transaction governed by R.I. Gen. Laws §
										44-30-71.3 and these regulations is not subject to the withholding and payment
				 provisions.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.12 - Document submission and Retention

Current through June 14, 2024
A. Seller's
				 residency affidavit: The buyer should retain the original affidavit with the
				 other records pertaining to the closing and must produce it for the Division of
				 Taxation, if requested. One copy of the affidavit should be given to the
				 seller. The buyer should not send the affidavit to the Division of Taxation. If
				 there are multiple sellers, there should be one affidavit and copies for each
				 nonresident seller.
B. Election to
				 have withholding based on gain: The seller makes this election by completing
				 one RI Form 71-3 Election and submitting the completed form (and any
				 attachments) to the Division of Taxation at least twenty (20) days prior to the
				 closing date. The seller should retain a copy of the election for matching with
				 Certificate of Withholding Due which will be returned by the Division of
				 Taxation.
C. Installment sale
				 schedule: The information which must be supplied as part of the Form RI 71.3
				 Election for the installment sale method must be supplied under penalties of
				 perjury by the seller, the seller's certified public accountant, licensed
				 public accountant or attorney and must include all the information contained in
				 §
										1.7(F)     of
				 this Part
D. Certificate of
				 withholding due: The Division of Taxation shall review the election (Form RI
				 71.3 Election) and send the approved Certificate of Withholding Due (Form RI
				 71.3 Certificate) to the seller or designee. The seller must present the
				 certificate to the buyer at the closing and the buyer, using the certificate,
				 completes the remittance form and attaches the original certificate for
				 submission to the Division of Taxation. The buyer and seller should each retain
				 one copy of the certificate with the documents of the sale.
E. Real estate withholding remittance: The
				 buyer should retain one copy of the remittance form with the other records
				 pertaining to the closing, one copy of the remittance form should be given to
				 the seller and the original is sent to the Rhode Island Division of Taxation
				 with the payment indicated. If the remittance is being made for multiple
				 nonresident sellers, a schedule must be attached giving the names, addresses,
				 Federal employer identification numbers (FEI #) or social security numbers
				 (SS#) and the amount being withheld attributable to each nonresident seller.
				 Copies of the remittance form and supplemental schedule should be provided for
				 each nonresident seller in order that appropriate credit can be taken on the
				 nonresident seller's tax return.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.13 - Sales/Transfers of Property by Exempt Organizations

Current through June 14, 2024
A.
				 Sales/transfers of property by organizations which are exempt from taxation
				 under provisions of the Internal Revenue Code, or by their charter, are exempt
				 from the withholding provisions of R.I. Gen. Laws §
										44-30-71.3.
				 The buyer may rely on the seller's determination of exempt status only if
				 seller furnishes the buyer with a notarized Affidavit of Exempt Seller
				 (NRWXMPT) signed under penalties of perjury. If a deed contains a recitation of
				 exempt status by the seller, the recording of such deed shall in all instances
				 discharge the lien imposed by R.I. Gen. Laws §
										44-30-71.3(c).
B. Provided, however, that when property is
				 sold/transferred by the following named organizations only, no Affidavit of
				 Exempt Seller need be executed nor is a recital of exempt status required in
				 the deed so long as said exempted entities are fully identified in the granting
				 clause of the deed in question. Such entities include:
1. The Federal Deposit Insurance
				 Corporation
2. The Resolution Trust
				 Corporation
3. Rhode Island Housing
				 and Mortgage Finance Corporation
4.
				 Board of Governors of the Federal Reserve System
5. Federal Reserve Bank
6. Federal Home Loan Bank
7. Comptroller of the Currency
8. The Office of Thrift Supervision
9. The National Credit Union Administration
				 Board
10. The Farm Credit
				 Administration
11. The Farm Credit
				 System Insurance Corporation
12.
				 The Small Business Administration
13. The Federal National Mortgage
				 Association
14. The Federal Home
				 Loan Mortgage Corporation
15. The
				 Government National Mortgage Association
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.14 - Gifts

Current through June 14, 2024
A. Bona fide gifts of property (e.g.
				 transfers where there is no consideration and no gain attributed to the
				 transferor) do not fall within the purview of R.I. Gen. Laws §
										44-30-71.3 and therefore no withholding is required. In transfers by way of gifts the
				 transferor may combine language in the deed stating that no documentary stamps
				 are required with language stating that this transfer is by way of gift and no
				 withholding is required under R.I. Gen. Laws §
										44-30-71.3.
1. EXAMPLE: Transfer is by gift so that no
				 documentary stamps are required and no withholding is required under R.I. Gen.
				 Laws §
											44-30-71.3.
				 If a deed contains a recitation of gift by the seller, the recording of such
				 deed shall in all instances discharge the lien imposed by R.I. Gen. Laws §
											44-30-71.3(c).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.15 - Intercompany Transfers/Transfers among Affiliated Companies

Current through June 14, 2024
Intercompany transfers or transfers among affiliated
					 companies which do not entail consideration and in which no gain is recognized
					 by the transferor or transferee are not sales and as such do not fall within
					 the purview of R.I. Gen. Laws §
										44-30-71.3.
					 In such transfers the transferor may combine language in the deed stating that
					 no documentary stamps are required with language that this intercompany
					 transfer or transfer among affiliated companies is such that no withholding is
					 required under R.I. Gen. Laws §
										44-30-71.3.
					 If a deed contains such a recital, the recording of such deed shall in all
					 instances discharge the lien imposed by R.I. Gen. Laws §
										44-30-71.3(c).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.16 - Sales/Transfers by Banks and Insurance Companies

Current through June 14, 2024
A.
				 State banks, mutual savings banks, federal savings banks, trust companies,
				 national banking associations, building and loan associations and credit
				 unions, whether or not such entities are chartered in, or have a place of
				 business in Rhode Island and loan and investment companies organized under R.I.
				 Gen. Laws Chapter 19-20 are not subject to the tax imposed on corporations
				 under R.I. Gen. Laws Chapter 44-11. Insurance companies are likewise exempt
				 from tax imposed on corporations under R.I. Gen. Laws Chapter 44-11. Therefore,
				 those specific types of lending institutions and insurance companies are not
				 subject to the withholding provisions of R.I. Gen. Laws §
										44-30-71.3 when they sell real estate that they own. Any description in the granting
				 clause of the deed which sufficiently identifies those entities as one of the
				 entities mentioned herein is sufficient to discharge any lien imposed pursuant
				 to R.I. Gen. Laws §
										44-30-71.3.
B. Exception - Bank Foreclosure/deeds in Lieu
				 of Foreclosure
1. The purchaser at a
				 foreclosure sale under power of sale takes, not as grantee of the mortgagee,
				 but as a grantee of the mortgagor. Therefore, when a bank forecloses on a
				 defaulting nonresident mortgagor and a third party purchases at the foreclosure
				 sale for an amount in excess of the sums legally due on the mortgage, the
				 purchaser must withhold six (6) percent (or seven (7) percent if the mortgagor
				 is a corporation) of the net proceeds resulting from the sale. (Where there are
				 net proceeds and junior lienholders, see §
											1.7     of this Part.) Provided,
				 however, no withholding is required if there are no net proceeds disbursed to
				 the mortgagor as a result of the foreclosure or deed given in lieu of
				 foreclosure. In those instances the foreclosure deed or deed in lieu of
				 foreclosure may contain a recital that the transfer of the property was the
				 subject of foreclosure and there were no net proceeds subject to the
				 withholding provisions of R.I. Gen. Laws §
											44-30-71.3.
				 The recording of such deed shall in all instances discharge the lien imposed by
				 R.I. Gen. Laws §44-30 - 71.3(c).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.17 - Receivership/Bankruptcy

Current through June 14, 2024
In a sale by a court appointed receiver or trustee in
					 bankruptcy where all the proceeds of the sale are placed in the receivership
					 estate or bankruptcy estate and where no proceeds are given to the nonresident
					 debtor, no withholding is required. A recital in the deed that the sale is by a
					 receiver or trustee in bankruptcy shall be sufficient to discharge any lien
					 under R.I. Gen. Laws §
										44-30-71.3(c).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.18 - Bills of Interpleader

Current through June 14, 2024
Where there is a foreclosure sale on property of a
					 defaulting nonresident mortgagor and the mortgagee has proceeds in excess of
					 its mortgage and there are junior lienholders, the buyer is not required to
					 withhold on the net proceeds if the mortgagee intends to file a bill of
					 interpleader naming the Division of Taxation as a party thereto. Receipt of the
					 Bill of Interpleader complaint naming the Division of Taxation as a party
					 therein shall be sufficient to grant the buyer a discharge of the lien imposed
					 under R.I. Gen. Laws §
										44-30-71.3(c).
					 Provided however, where the net proceeds accruing to the junior lienholders are
					 of such a nominal amount that the filing of a bill of interpleader is not
					 practicable and the mortgagee turns over said nominal sum to the second
					 mortgagee and obtains a release and indemnification agreement from the second
					 mortgagee, no withholding is required. In that instance the foreclosure deed or
					 deed in lieu of foreclosure may contain a recital that the transfer of the
					 property was subject to foreclosure and there were no net proceeds subject to
					 withholding under R.I. Gen. Laws §
										44-30-71.3.
					 The recording of such deed shall in all instances discharge the lien imposed by
					 R.I. Gen. Laws §
										44-30-71.3(c).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.19 - Name on Deed for Convenience Purpose

Current through June 14, 2024
Where an individual claims that his/her name is on a deed
					 merely for convenience and will not share in any way with the proceeds from a
					 sale, that person may file an affidavit to that fact under penalties of
					 perjury. That affidavit must contain a statement as to who is the true owner of
					 the property in question; why the affiant's name appears on the deed; and the
					 name and social security number of the person(s) who will be responsible for
					 claiming any gain from the sale of the property. A copy of said affidavit must
					 be filed with the Division of Taxation and a copy should be given to the buyer.
					 A recital in the deed that the Grantor "_________'s" name was on the deed for
					 convenience purposes only and that an affidavit to that effect has been filed
					 with the Division of Taxation shall in all instances discharge the lien imposed
					 by R.I. Gen. Laws §
										44-30-71.3(c).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.20 - Transfers of Property Incident to Divorce

Current through June 14, 2024
Generally, no gain or loss is recognized on a transfer of
					 property from an individual to (or in a trust for the benefit of) a spouse, or
					 a former spouse if incident to a divorce. Any transfer of property to a spouse
					 or former spouse on which gain or loss is not recognized is treated by the
					 transferee as acquired by gift and is not considered as a sale or exchange. In
					 that instance, no withholding is required. See §
										1.14     of this Part "Gifts." A
					 recital in the deed that the property was transferred incident to divorce or by
					 way of gift shall in all instances discharge the lien imposed by R.I. Gen. Laws
					 §
										44-30-71.3(c).
					 A transfer of property is incident to a divorce if the transfer occurs within
					 one year after the date on which the marriage ends, or if the transfer is
					 related to the ending of the marriage.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.21 - Relocation Company Sales

Current through June 14, 2024
A. In the ordinary
				 course a relocation company does not take legal title to real property but
				 merely acts as a conduit to transfer title pursuant to a contract with the
				 employer of the seller of the property. This regulation pertains to situations
				 in which the relocation company does not take legal title. If a relocation
				 company takes title from the grantor the general rules for nonresident
				 withholding apply.
B. If the sales
				 price on real and associated tangible property is paid or advanced to an
				 employee by a relocation company, withholding will be required as follows:
1. If the employee(s)/grantor(s) is a
				 resident of this state at the time he/she signs the deed in blank, the
				 relocation company may take a residency affidavit from the employee(s) and no
				 withholding is required from that transaction. A recitation of residency of the
				 grantor(s) may be inserted in the deed stating that no withholding is required
				 under R.I. Gen. Laws §
											44-30-71.3,
				 since the grantor(s) was a resident of the state at the time he/she signed the
				 deed.
2. The buyer(s) of the
				 property who receives the deed through the relocation company must receive
				 before or simultaneously with the delivery of the deed an affidavit from the
				 relocation company of its intention to file a Notice of Sale with the Division
				 of Taxation. Said buyer(s) of the property who receive the deed through the
				 relocation company and all subsequent buyers may rely upon the recitation of
				 residency in the deed by the employee(s)/grantor(s) and the recording of the
				 deed containing such recital, shall in all instances, discharge the lien
				 imposed by R.I. Gen. Laws §
											44-30-71.3(c).
3. In every transaction in which a relocation
				 company holds a deed executed by the grantor(s) in blank, the relocation
				 company shall file a notice of sale with the division of taxation within five
				 (5) working days of the transfer of title to the buyer. That notice shall
				 include the name and FEIN of the relocation company; the name and FEI Number of
				 the company which contracted its services; the names and addresses of the
				 buyer(s) and seller(s) and location of the property sold; the sales price paid
				 to the grantor(s) by the relocation company or employer and the sales price of
				 the property at the time title passes. The relocation company must present the
				 buyer with an affidavit of intent to file a notice of sale with the Division of
				 Taxation.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 10 - Withholding Tax › Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1) › Section 280-RICR-20-10-1.22 - Sales/Transfers of Property from the U.S. Government, Agencies of the U.S. Government, the State of Rhode Island, its Agencies, or Political Subdivisions

Current through June 14, 2024
Transfers/sales of property by the above-mentioned
					 instrumentalities are exempt from the withholding provisions of R.I. Gen. Laws
					 §
										44-30-71.3.
					 A deed may contain a recital that the sale/transfer is not subject to
					 withholding under R.I. Gen. Laws §
										44-30-71.3 since the transfer is made by the U.S. Government, an agency of the U.S.
					 Government, the State of Rhode Island, or an agency or political subdivision
					 thereof, whichever is applicable.