§ 44-11-43 Passive investment treatment.– (a) Notwithstanding any amendments or revisions to, or the repeal of, §44-11-1(1)(vii), or any other law, or new legislative action that shall serveto repeal or limit the benefits conferred therein, the provisions of thatstatute as in effect on the date of passage of this section shall continue tobe applicable until December 31, 2014, for a "qualifying business" that meetsthe requirements set forth herein.
(b) A "qualifying business" for the purposes of this chaptershall mean a business which meets the terms and conditions imposed by the boardof directors of the Rhode Island economic development corporation and isdesignated as such upon a finding of fact that:
(1) The business has committed to relocate from outside thestate to a Rhode Island location no less than an annual tax year average of twohundred and fifty (250) full-time employees with a combined payroll of no lessthan twelve million dollars ($12,000,000) annually within twenty-eight (28)months following such designation; for the purposes of this section "full-timeemployee" means any employee of the qualified business who works a minimum ofthirty (30) hours per week within the state;
(2) The business would not relocate such jobs to the statebut for such a designation of a qualifying business; and
(3) The annual salary of each employee counted in subdivision(b)(1) shall be no less than twenty-five thousand dollars ($25,000) per year,plus benefits typical to the industry.
(c) The division of taxation shall require annual reportsfrom a qualified business, which shall include, but not be limited to, thenumber of individuals employed by the company within the state, the jobdescriptions, and the annual salaries. The division of taxation shall verifythese annual reports and certify that they are correct. The certification shallbe sent to the board of directors of the economic development corporation,president of the senate, speaker of the house, the chairperson of the senatefinance committee, the chairperson of the house finance committee, the senatefiscal advisor, and the house fiscal advisor. If the division of taxation findsthat the qualified business no longer meets the criteria set forth insubdivision (b)(1) or (3), and if, sixty (60) days after receipt of writtennotice from the division of taxation describing such finding in detail, thebusiness has reasonably cured the noticed violations, then such business willcontinue to receive the benefits offered under the provisions of subsection (f)as if such violation had not occurred, otherwise that business shall no longerbe considered a qualified business and shall no longer be entitled to anyfurther benefits under any agreement made under the provisions of subsection(f) and such provisions shall become null and void.
Notwithstanding the foregoing, upon a finding the violationwas caused by natural disaster, acts of terrorism, acts of war, or othersimilar events reasonably beyond the control of the business, the division oftaxation may extend the cure period hereunder for up to twelve months.
(d) The economic development corporation shall certify onlyone company pursuant to this section, and such certification shall be issuedprior to August 31, 2004.
(e) The economic development corporation shall be authorizedto enter into such agreements as it may deem necessary or prudent in order tomemorialize and effect the intent of the provisions of this section. The termsof such agreements shall not extend beyond December 31, 2014. Any suchagreement shall include provisions for recapture of some portion of lost taxrevenue, if any, resulting from the conveyance of the benefits contemplatedhereunder, if the division of taxation finds that the qualified business hasfailed to maintain its qualified status pursuant to subsection (c) above. Suchrecapture provisions shall be in place for the first five (5) years of theagreement, and shall require the recapture of the value of any tax revenue lostin the last tax year that the company was a qualified company. Such recaptureshall only apply to tax revenue lost through the amendment or revision to, orthe repeal of, § 44-11-1(1)(vii), or any other law, or new legislativeaction that shall serve to repeal or limit the benefits conferred therein, andthe subsequent avoidance of such newly imposed tax by the company through thefunction of this section. Calculation of any amount recaptured shall take intoaccount other preferential tax treatments, credits, or other benefits in orderto assure that the company is treated no less favorably under the recapturecalculation than they would have been if they had not become a qualifyingcompany under the provisions of this section. The corporation may, within theterms of the contract, include as a condition of default the failure tomaintain employment criteria more rigorous than the criteria set forth insubdivision (b)(1) or (3); however, a default for violation of such highercontractual standards shall not necessitate a recapture of lost revenues ascontemplated herein.
§ 44-11-43 Passive investment treatment.– (a) Notwithstanding any amendments or revisions to, or the repeal of, §44-11-1(1)(vii), or any other law, or new legislative action that shall serveto repeal or limit the benefits conferred therein, the provisions of thatstatute as in effect on the date of passage of this section shall continue tobe applicable until December 31, 2014, for a "qualifying business" that meetsthe requirements set forth herein.
(b) A "qualifying business" for the purposes of this chaptershall mean a business which meets the terms and conditions imposed by the boardof directors of the Rhode Island economic development corporation and isdesignated as such upon a finding of fact that:
(1) The business has committed to relocate from outside thestate to a Rhode Island location no less than an annual tax year average of twohundred and fifty (250) full-time employees with a combined payroll of no lessthan twelve million dollars ($12,000,000) annually within twenty-eight (28)months following such designation; for the purposes of this section "full-timeemployee" means any employee of the qualified business who works a minimum ofthirty (30) hours per week within the state;
(2) The business would not relocate such jobs to the statebut for such a designation of a qualifying business; and
(3) The annual salary of each employee counted in subdivision(b)(1) shall be no less than twenty-five thousand dollars ($25,000) per year,plus benefits typical to the industry.
(c) The division of taxation shall require annual reportsfrom a qualified business, which shall include, but not be limited to, thenumber of individuals employed by the company within the state, the jobdescriptions, and the annual salaries. The division of taxation shall verifythese annual reports and certify that they are correct. The certification shallbe sent to the board of directors of the economic development corporation,president of the senate, speaker of the house, the chairperson of the senatefinance committee, the chairperson of the house finance committee, the senatefiscal advisor, and the house fiscal advisor. If the division of taxation findsthat the qualified business no longer meets the criteria set forth insubdivision (b)(1) or (3), and if, sixty (60) days after receipt of writtennotice from the division of taxation describing such finding in detail, thebusiness has reasonably cured the noticed violations, then such business willcontinue to receive the benefits offered under the provisions of subsection (f)as if such violation had not occurred, otherwise that business shall no longerbe considered a qualified business and shall no longer be entitled to anyfurther benefits under any agreement made under the provisions of subsection(f) and such provisions shall become null and void.
Notwithstanding the foregoing, upon a finding the violationwas caused by natural disaster, acts of terrorism, acts of war, or othersimilar events reasonably beyond the control of the business, the division oftaxation may extend the cure period hereunder for up to twelve months.
(d) The economic development corporation shall certify onlyone company pursuant to this section, and such certification shall be issuedprior to August 31, 2004.
(e) The economic development corporation shall be authorizedto enter into such agreements as it may deem necessary or prudent in order tomemorialize and effect the intent of the provisions of this section. The termsof such agreements shall not extend beyond December 31, 2014. Any suchagreement shall include provisions for recapture of some portion of lost taxrevenue, if any, resulting from the conveyance of the benefits contemplatedhereunder, if the division of taxation finds that the qualified business hasfailed to maintain its qualified status pursuant to subsection (c) above. Suchrecapture provisions shall be in place for the first five (5) years of theagreement, and shall require the recapture of the value of any tax revenue lostin the last tax year that the company was a qualified company. Such recaptureshall only apply to tax revenue lost through the amendment or revision to, orthe repeal of, § 44-11-1(1)(vii), or any other law, or new legislativeaction that shall serve to repeal or limit the benefits conferred therein, andthe subsequent avoidance of such newly imposed tax by the company through thefunction of this section. Calculation of any amount recaptured shall take intoaccount other preferential tax treatments, credits, or other benefits in orderto assure that the company is treated no less favorably under the recapturecalculation than they would have been if they had not become a qualifyingcompany under the provisions of this section. The corporation may, within theterms of the contract, include as a condition of default the failure tomaintain employment criteria more rigorous than the criteria set forth insubdivision (b)(1) or (3); however, a default for violation of such highercontractual standards shall not necessitate a recapture of lost revenues ascontemplated herein.
§ 44-11-43 Passive investment treatment.– (a) Notwithstanding any amendments or revisions to, or the repeal of, §44-11-1(1)(vii), or any other law, or new legislative action that shall serveto repeal or limit the benefits conferred therein, the provisions of thatstatute as in effect on the date of passage of this section shall continue tobe applicable until December 31, 2014, for a "qualifying business" that meetsthe requirements set forth herein.
(b) A "qualifying business" for the purposes of this chaptershall mean a business which meets the terms and conditions imposed by the boardof directors of the Rhode Island economic development corporation and isdesignated as such upon a finding of fact that:
(1) The business has committed to relocate from outside thestate to a Rhode Island location no less than an annual tax year average of twohundred and fifty (250) full-time employees with a combined payroll of no lessthan twelve million dollars ($12,000,000) annually within twenty-eight (28)months following such designation; for the purposes of this section "full-timeemployee" means any employee of the qualified business who works a minimum ofthirty (30) hours per week within the state;
(2) The business would not relocate such jobs to the statebut for such a designation of a qualifying business; and
(3) The annual salary of each employee counted in subdivision(b)(1) shall be no less than twenty-five thousand dollars ($25,000) per year,plus benefits typical to the industry.
(c) The division of taxation shall require annual reportsfrom a qualified business, which shall include, but not be limited to, thenumber of individuals employed by the company within the state, the jobdescriptions, and the annual salaries. The division of taxation shall verifythese annual reports and certify that they are correct. The certification shallbe sent to the board of directors of the economic development corporation,president of the senate, speaker of the house, the chairperson of the senatefinance committee, the chairperson of the house finance committee, the senatefiscal advisor, and the house fiscal advisor. If the division of taxation findsthat the qualified business no longer meets the criteria set forth insubdivision (b)(1) or (3), and if, sixty (60) days after receipt of writtennotice from the division of taxation describing such finding in detail, thebusiness has reasonably cured the noticed violations, then such business willcontinue to receive the benefits offered under the provisions of subsection (f)as if such violation had not occurred, otherwise that business shall no longerbe considered a qualified business and shall no longer be entitled to anyfurther benefits under any agreement made under the provisions of subsection(f) and such provisions shall become null and void.
Notwithstanding the foregoing, upon a finding the violationwas caused by natural disaster, acts of terrorism, acts of war, or othersimilar events reasonably beyond the control of the business, the division oftaxation may extend the cure period hereunder for up to twelve months.
(d) The economic development corporation shall certify onlyone company pursuant to this section, and such certification shall be issuedprior to August 31, 2004.
(e) The economic development corporation shall be authorizedto enter into such agreements as it may deem necessary or prudent in order tomemorialize and effect the intent of the provisions of this section. The termsof such agreements shall not extend beyond December 31, 2014. Any suchagreement shall include provisions for recapture of some portion of lost taxrevenue, if any, resulting from the conveyance of the benefits contemplatedhereunder, if the division of taxation finds that the qualified business hasfailed to maintain its qualified status pursuant to subsection (c) above. Suchrecapture provisions shall be in place for the first five (5) years of theagreement, and shall require the recapture of the value of any tax revenue lostin the last tax year that the company was a qualified company. Such recaptureshall only apply to tax revenue lost through the amendment or revision to, orthe repeal of, § 44-11-1(1)(vii), or any other law, or new legislativeaction that shall serve to repeal or limit the benefits conferred therein, andthe subsequent avoidance of such newly imposed tax by the company through thefunction of this section. Calculation of any amount recaptured shall take intoaccount other preferential tax treatments, credits, or other benefits in orderto assure that the company is treated no less favorably under the recapturecalculation than they would have been if they had not become a qualifyingcompany under the provisions of this section. The corporation may, within theterms of the contract, include as a condition of default the failure tomaintain employment criteria more rigorous than the criteria set forth insubdivision (b)(1) or (3); however, a default for violation of such highercontractual standards shall not necessitate a recapture of lost revenues ascontemplated herein.
