§ 44-1-6 Additional collection powers– Nonresident contractors. – (a) Any person doing business with a nonresident contractor shall withholdpayment of an amount of three percent (3%) of the contract price until thirty(30) days after the contractor has completed the contract and has requested thetax administrator, in writing, to audit the records for the particular project,a receipted copy of the request to be furnished to the person holding thefunds. The tax administrator shall, within thirty (30) days after receipt ofthe request, furnish to the nonresident contractor and to the person holdingthe funds either a certificate of no tax due or a certificate of sales and usetax or income tax withheld, or both, due from the nonresident contractor.
(b) Upon receipt of a certificate of no tax due, the personholding the payment may pay the nonresident contractor. Upon receipt of acertificate of taxes due, the person may pay to the contractor out of theamount withheld the excess over the amount of taxes stated in the certificatetogether with the interest and penalties assessed. If the tax administratorfurnishes neither certificate to both parties within thirty (30) days afterreceipt of a written request for the making of the audit, the person holdingthe payment may immediately pay the payment withheld to the nonresidentcontractor under the terms of the contract free from any claims of the taxadministrator against either the person holding the payment or the nonresidentcontractor for payment of sales or use taxes or income taxes withheld, or both.
(c) In the event the tax administrator serves upon thecontractor and the person holding the payment a certificate showing the taxesdue within a thirty (30) day period, the person holding the payment shalldeposit with the tax administrator the amount stated in the certificate whichis not in excess of three percent (3%) of the contract price, taking a receiptfor the amount, and is free from any claim of the nonresident contractor forthat amount or of the tax administrator for sales and use taxes or income taxeswithheld, or both, arising out of the materials, equipment, and services usedin performance of the contract of the nonresident contractor on that project.
(d) As used in this section, "a nonresident contractor" isone who does not maintain a regular place of business in this state. "A regularplace of business" means and includes any bona fide office (other than astatutory office), factory, warehouse, or other space in this state at whichthe taxpayer is doing business in its own name in a regular and systematicmanner, and which is continuously maintained, occupied, and used by thetaxpayer in carrying on its business through its regular employees regularly inattendance. A temporary office at the site of construction shall not constitutea regular place of business.
§ 44-1-6 Additional collection powers– Nonresident contractors. – (a) Any person doing business with a nonresident contractor shall withholdpayment of an amount of three percent (3%) of the contract price until thirty(30) days after the contractor has completed the contract and has requested thetax administrator, in writing, to audit the records for the particular project,a receipted copy of the request to be furnished to the person holding thefunds. The tax administrator shall, within thirty (30) days after receipt ofthe request, furnish to the nonresident contractor and to the person holdingthe funds either a certificate of no tax due or a certificate of sales and usetax or income tax withheld, or both, due from the nonresident contractor.
(b) Upon receipt of a certificate of no tax due, the personholding the payment may pay the nonresident contractor. Upon receipt of acertificate of taxes due, the person may pay to the contractor out of theamount withheld the excess over the amount of taxes stated in the certificatetogether with the interest and penalties assessed. If the tax administratorfurnishes neither certificate to both parties within thirty (30) days afterreceipt of a written request for the making of the audit, the person holdingthe payment may immediately pay the payment withheld to the nonresidentcontractor under the terms of the contract free from any claims of the taxadministrator against either the person holding the payment or the nonresidentcontractor for payment of sales or use taxes or income taxes withheld, or both.
(c) In the event the tax administrator serves upon thecontractor and the person holding the payment a certificate showing the taxesdue within a thirty (30) day period, the person holding the payment shalldeposit with the tax administrator the amount stated in the certificate whichis not in excess of three percent (3%) of the contract price, taking a receiptfor the amount, and is free from any claim of the nonresident contractor forthat amount or of the tax administrator for sales and use taxes or income taxeswithheld, or both, arising out of the materials, equipment, and services usedin performance of the contract of the nonresident contractor on that project.
(d) As used in this section, "a nonresident contractor" isone who does not maintain a regular place of business in this state. "A regularplace of business" means and includes any bona fide office (other than astatutory office), factory, warehouse, or other space in this state at whichthe taxpayer is doing business in its own name in a regular and systematicmanner, and which is continuously maintained, occupied, and used by thetaxpayer in carrying on its business through its regular employees regularly inattendance. A temporary office at the site of construction shall not constitutea regular place of business.
§ 44-1-6 Additional collection powers– Nonresident contractors. – (a) Any person doing business with a nonresident contractor shall withholdpayment of an amount of three percent (3%) of the contract price until thirty(30) days after the contractor has completed the contract and has requested thetax administrator, in writing, to audit the records for the particular project,a receipted copy of the request to be furnished to the person holding thefunds. The tax administrator shall, within thirty (30) days after receipt ofthe request, furnish to the nonresident contractor and to the person holdingthe funds either a certificate of no tax due or a certificate of sales and usetax or income tax withheld, or both, due from the nonresident contractor.
(b) Upon receipt of a certificate of no tax due, the personholding the payment may pay the nonresident contractor. Upon receipt of acertificate of taxes due, the person may pay to the contractor out of theamount withheld the excess over the amount of taxes stated in the certificatetogether with the interest and penalties assessed. If the tax administratorfurnishes neither certificate to both parties within thirty (30) days afterreceipt of a written request for the making of the audit, the person holdingthe payment may immediately pay the payment withheld to the nonresidentcontractor under the terms of the contract free from any claims of the taxadministrator against either the person holding the payment or the nonresidentcontractor for payment of sales or use taxes or income taxes withheld, or both.
(c) In the event the tax administrator serves upon thecontractor and the person holding the payment a certificate showing the taxesdue within a thirty (30) day period, the person holding the payment shalldeposit with the tax administrator the amount stated in the certificate whichis not in excess of three percent (3%) of the contract price, taking a receiptfor the amount, and is free from any claim of the nonresident contractor forthat amount or of the tax administrator for sales and use taxes or income taxeswithheld, or both, arising out of the materials, equipment, and services usedin performance of the contract of the nonresident contractor on that project.
(d) As used in this section, "a nonresident contractor" isone who does not maintain a regular place of business in this state. "A regularplace of business" means and includes any bona fide office (other than astatutory office), factory, warehouse, or other space in this state at whichthe taxpayer is doing business in its own name in a regular and systematicmanner, and which is continuously maintained, occupied, and used by thetaxpayer in carrying on its business through its regular employees regularly inattendance. A temporary office at the site of construction shall not constitutea regular place of business.
