§ 44-19-41 Materialperson –Definitions and applicability. – (a) Notwithstanding any of the provisions of chapters 18 and 19 of this title,any retailer required to collect and remit state sales and use taxes pursuantto those chapters, who can demonstrate to the satisfaction of the taxadministrator by February 1 of any year that for six (6) consecutive monthswithin the most recent twelve (12) month period the retailer is a"materialperson" as defined in this section, may elect to report the sales on acash basis as the consideration is received. Upon approval of the taxadministrator, the materialperson shall, with respect to sales made beginningthe succeeding July 1st through June 30th, collect the tax due on sales to anycontractors, subcontractors or repairpersons of any building material, madeduring the period July 1st through June 30th, at the time and to the extentthat the materialperson receives the receipts from, or consideration for, thesales from contractors, subcontractors or repairpersons. If a materialpersonreceives a portion of the receipts or consideration the materialperson shallcollect the tax due on that portion at the time the portion is received, inwhich case the materialperson will be required to file his or her return and topay the tax due in the manner provided in § 44-19-10(a)(1). The taxesimposed by chapter 18 of this title on receipts and consideration shall bedeemed not to be imposed solely for purposes of determining when amaterialperson is required to collect and pay over taxes to the taxadministrator under § 44-19-10(a)(1), until the materialperson hasreceived payment of the receipts or consideration in money (or money's worth)from the contractor, subcontractor or repairperson. A contractor, subcontractoror repairperson who purchases building materials from a materialperson pursuantto this section shall, at the time the contractor, subcontractor orrepairperson pays any portion of the purchase price, pay to the materialpersonthe tax due on the portion of the purchase price paid in accordance with §44-18-19. For purposes of chapters 18 and 19 of this title, "materialperson" isdefined as those retailers of lumber who are engaged in the business primarilyof selling lumber and building materials to contractors, subcontractors, orrepairpersons to be used in the construction, erection, alteration, orrepairing of a building or other structure or in the making of any otherimprovements on land or the preparation of making improvements, and whoselumber and building material sales comprise of at least fifty percent (50%) oftheir total sales and who may file a notice of intention to claim a lienpursuant to chapter 28 of title 34 for any materials sold.
(b) The provisions of subsection (a) of this section relatingto the collection of tax at the time the materialperson receives the receiptsor consideration from sales applies only to the in-house credit extended by thematerialperson. In the event that a materialperson described in subsection (a)of this section finances any portion of the receipts or consideration from asale described in subsection (a) of this section, including any tax due on thesale, directly or indirectly, with any person (other than a contractor,subcontractor or repairperson described in subsection (a) of this section),whether by factoring, or any other means, then the materialperson shall bedeemed to have received payment of the receipts or consideration in money (ormoney's worth) from the contractor, subcontractor or repairperson and shall berequired to pay over tax on those sales with the next return due, with a creditagainst the tax for any tax already paid over with respect to the sale. Anyamount of tax paid over in accordance with the prior sentence shall be onaccount of the tax required to be collected on the sale to which it relates andthe materialperson may take a credit against any tax paid by the contractor,subcontractor or repairperson in the future on the sale, to ensure that taxpaid over with respect to those sales does not exceed the amount of the taximposed on the sale as if the entire purchase price has been paid at the timeof sale.
(c) A materialperson described in subsection (a) of thissection, who has not collected the tax due on the full purchase price for asale described in subsection (a) of this section from a contractor,subcontractor or repairperson within one year of the date of sale, shall berequired to pay over to the tax administrator the tax due on any balance of thefull purchase price with the materialperson's return for the period whichincludes the date which is one year after the date of the sale.
(d) The tax administrator may assess an additional tax duewith respect to a sale described in subsection (a) of this section within three(3) years from the date the tax is required to be paid over to the taxadministrator pursuant to this section. In the case of a willfully false orfraudulent return with intent to evade the tax, or where no return has beenfiled as prescribed by law, the tax may be assessed at any time.
(e) Every materialperson described in subsection (a) of thissection shall, in addition to those records required to be kept in compliancewith chapters 18 and 19 of this title, keep the following records with respectto each sale of building materials described in subsection (a) of this sectionto a contractor, subcontractor or repairperson: (1) the date of the sale; (2)proof that the sale meets the qualifications described in subsection (a) ofthis section; (3) the amount of credit, if any, extended by the materialpersonto the contractor, subcontractor or repairperson for each sale; (4) the termsfor payment of the purchase price or repayment of any credit; and (5) the dateor dates on which the purchase price is paid or credit is repaid, in part orwhole, and the amount of each payment or repayment. Notwithstanding theprovisions of subsection (a) of this section, the records referred to in thissubdivision shall be preserved by said materialperson for a period of three (3)years from the date the tax on each sale is paid over to the tax administratorin full; provided, however, that the tax administrator may consent to theirdestruction within that period or may require that they be kept longer.
(f) No retailer shall avail himself or herself of thissection without prior written approval of the tax administrator. The taxadministrator shall grant that approval when the administrator is satisfiedthat the retailer qualifies as a materialperson as defined in subsection (a) ofthis section and when the retailer has submitted satisfactory evidence that theretailer can and will maintain records, in accordance with subsection (e) ofthis section, adequate to substantiate the election authorized in this section.Any attempt on the part of any retailer to exercise this provision withoutprior written approval of the tax administrator shall be deemed to be failureto pay the tax and the retailer shall be subject to assessment for taxes onthose sales plus penalties and interest on those sales as provided for in thischapter.
(g) Notwithstanding the provision of this section, anyretailer to whom this section may apply shall comply with all theadministration, collection, and other provisions of chapters 18 and 19 of thistitle.
§ 44-19-41 Materialperson –Definitions and applicability. – (a) Notwithstanding any of the provisions of chapters 18 and 19 of this title,any retailer required to collect and remit state sales and use taxes pursuantto those chapters, who can demonstrate to the satisfaction of the taxadministrator by February 1 of any year that for six (6) consecutive monthswithin the most recent twelve (12) month period the retailer is a"materialperson" as defined in this section, may elect to report the sales on acash basis as the consideration is received. Upon approval of the taxadministrator, the materialperson shall, with respect to sales made beginningthe succeeding July 1st through June 30th, collect the tax due on sales to anycontractors, subcontractors or repairpersons of any building material, madeduring the period July 1st through June 30th, at the time and to the extentthat the materialperson receives the receipts from, or consideration for, thesales from contractors, subcontractors or repairpersons. If a materialpersonreceives a portion of the receipts or consideration the materialperson shallcollect the tax due on that portion at the time the portion is received, inwhich case the materialperson will be required to file his or her return and topay the tax due in the manner provided in § 44-19-10(a)(1). The taxesimposed by chapter 18 of this title on receipts and consideration shall bedeemed not to be imposed solely for purposes of determining when amaterialperson is required to collect and pay over taxes to the taxadministrator under § 44-19-10(a)(1), until the materialperson hasreceived payment of the receipts or consideration in money (or money's worth)from the contractor, subcontractor or repairperson. A contractor, subcontractoror repairperson who purchases building materials from a materialperson pursuantto this section shall, at the time the contractor, subcontractor orrepairperson pays any portion of the purchase price, pay to the materialpersonthe tax due on the portion of the purchase price paid in accordance with §44-18-19. For purposes of chapters 18 and 19 of this title, "materialperson" isdefined as those retailers of lumber who are engaged in the business primarilyof selling lumber and building materials to contractors, subcontractors, orrepairpersons to be used in the construction, erection, alteration, orrepairing of a building or other structure or in the making of any otherimprovements on land or the preparation of making improvements, and whoselumber and building material sales comprise of at least fifty percent (50%) oftheir total sales and who may file a notice of intention to claim a lienpursuant to chapter 28 of title 34 for any materials sold.
(b) The provisions of subsection (a) of this section relatingto the collection of tax at the time the materialperson receives the receiptsor consideration from sales applies only to the in-house credit extended by thematerialperson. In the event that a materialperson described in subsection (a)of this section finances any portion of the receipts or consideration from asale described in subsection (a) of this section, including any tax due on thesale, directly or indirectly, with any person (other than a contractor,subcontractor or repairperson described in subsection (a) of this section),whether by factoring, or any other means, then the materialperson shall bedeemed to have received payment of the receipts or consideration in money (ormoney's worth) from the contractor, subcontractor or repairperson and shall berequired to pay over tax on those sales with the next return due, with a creditagainst the tax for any tax already paid over with respect to the sale. Anyamount of tax paid over in accordance with the prior sentence shall be onaccount of the tax required to be collected on the sale to which it relates andthe materialperson may take a credit against any tax paid by the contractor,subcontractor or repairperson in the future on the sale, to ensure that taxpaid over with respect to those sales does not exceed the amount of the taximposed on the sale as if the entire purchase price has been paid at the timeof sale.
(c) A materialperson described in subsection (a) of thissection, who has not collected the tax due on the full purchase price for asale described in subsection (a) of this section from a contractor,subcontractor or repairperson within one year of the date of sale, shall berequired to pay over to the tax administrator the tax due on any balance of thefull purchase price with the materialperson's return for the period whichincludes the date which is one year after the date of the sale.
(d) The tax administrator may assess an additional tax duewith respect to a sale described in subsection (a) of this section within three(3) years from the date the tax is required to be paid over to the taxadministrator pursuant to this section. In the case of a willfully false orfraudulent return with intent to evade the tax, or where no return has beenfiled as prescribed by law, the tax may be assessed at any time.
(e) Every materialperson described in subsection (a) of thissection shall, in addition to those records required to be kept in compliancewith chapters 18 and 19 of this title, keep the following records with respectto each sale of building materials described in subsection (a) of this sectionto a contractor, subcontractor or repairperson: (1) the date of the sale; (2)proof that the sale meets the qualifications described in subsection (a) ofthis section; (3) the amount of credit, if any, extended by the materialpersonto the contractor, subcontractor or repairperson for each sale; (4) the termsfor payment of the purchase price or repayment of any credit; and (5) the dateor dates on which the purchase price is paid or credit is repaid, in part orwhole, and the amount of each payment or repayment. Notwithstanding theprovisions of subsection (a) of this section, the records referred to in thissubdivision shall be preserved by said materialperson for a period of three (3)years from the date the tax on each sale is paid over to the tax administratorin full; provided, however, that the tax administrator may consent to theirdestruction within that period or may require that they be kept longer.
(f) No retailer shall avail himself or herself of thissection without prior written approval of the tax administrator. The taxadministrator shall grant that approval when the administrator is satisfiedthat the retailer qualifies as a materialperson as defined in subsection (a) ofthis section and when the retailer has submitted satisfactory evidence that theretailer can and will maintain records, in accordance with subsection (e) ofthis section, adequate to substantiate the election authorized in this section.Any attempt on the part of any retailer to exercise this provision withoutprior written approval of the tax administrator shall be deemed to be failureto pay the tax and the retailer shall be subject to assessment for taxes onthose sales plus penalties and interest on those sales as provided for in thischapter.
(g) Notwithstanding the provision of this section, anyretailer to whom this section may apply shall comply with all theadministration, collection, and other provisions of chapters 18 and 19 of thistitle.
§ 44-19-41 Materialperson –Definitions and applicability. – (a) Notwithstanding any of the provisions of chapters 18 and 19 of this title,any retailer required to collect and remit state sales and use taxes pursuantto those chapters, who can demonstrate to the satisfaction of the taxadministrator by February 1 of any year that for six (6) consecutive monthswithin the most recent twelve (12) month period the retailer is a"materialperson" as defined in this section, may elect to report the sales on acash basis as the consideration is received. Upon approval of the taxadministrator, the materialperson shall, with respect to sales made beginningthe succeeding July 1st through June 30th, collect the tax due on sales to anycontractors, subcontractors or repairpersons of any building material, madeduring the period July 1st through June 30th, at the time and to the extentthat the materialperson receives the receipts from, or consideration for, thesales from contractors, subcontractors or repairpersons. If a materialpersonreceives a portion of the receipts or consideration the materialperson shallcollect the tax due on that portion at the time the portion is received, inwhich case the materialperson will be required to file his or her return and topay the tax due in the manner provided in § 44-19-10(a)(1). The taxesimposed by chapter 18 of this title on receipts and consideration shall bedeemed not to be imposed solely for purposes of determining when amaterialperson is required to collect and pay over taxes to the taxadministrator under § 44-19-10(a)(1), until the materialperson hasreceived payment of the receipts or consideration in money (or money's worth)from the contractor, subcontractor or repairperson. A contractor, subcontractoror repairperson who purchases building materials from a materialperson pursuantto this section shall, at the time the contractor, subcontractor orrepairperson pays any portion of the purchase price, pay to the materialpersonthe tax due on the portion of the purchase price paid in accordance with §44-18-19. For purposes of chapters 18 and 19 of this title, "materialperson" isdefined as those retailers of lumber who are engaged in the business primarilyof selling lumber and building materials to contractors, subcontractors, orrepairpersons to be used in the construction, erection, alteration, orrepairing of a building or other structure or in the making of any otherimprovements on land or the preparation of making improvements, and whoselumber and building material sales comprise of at least fifty percent (50%) oftheir total sales and who may file a notice of intention to claim a lienpursuant to chapter 28 of title 34 for any materials sold.
(b) The provisions of subsection (a) of this section relatingto the collection of tax at the time the materialperson receives the receiptsor consideration from sales applies only to the in-house credit extended by thematerialperson. In the event that a materialperson described in subsection (a)of this section finances any portion of the receipts or consideration from asale described in subsection (a) of this section, including any tax due on thesale, directly or indirectly, with any person (other than a contractor,subcontractor or repairperson described in subsection (a) of this section),whether by factoring, or any other means, then the materialperson shall bedeemed to have received payment of the receipts or consideration in money (ormoney's worth) from the contractor, subcontractor or repairperson and shall berequired to pay over tax on those sales with the next return due, with a creditagainst the tax for any tax already paid over with respect to the sale. Anyamount of tax paid over in accordance with the prior sentence shall be onaccount of the tax required to be collected on the sale to which it relates andthe materialperson may take a credit against any tax paid by the contractor,subcontractor or repairperson in the future on the sale, to ensure that taxpaid over with respect to those sales does not exceed the amount of the taximposed on the sale as if the entire purchase price has been paid at the timeof sale.
(c) A materialperson described in subsection (a) of thissection, who has not collected the tax due on the full purchase price for asale described in subsection (a) of this section from a contractor,subcontractor or repairperson within one year of the date of sale, shall berequired to pay over to the tax administrator the tax due on any balance of thefull purchase price with the materialperson's return for the period whichincludes the date which is one year after the date of the sale.
(d) The tax administrator may assess an additional tax duewith respect to a sale described in subsection (a) of this section within three(3) years from the date the tax is required to be paid over to the taxadministrator pursuant to this section. In the case of a willfully false orfraudulent return with intent to evade the tax, or where no return has beenfiled as prescribed by law, the tax may be assessed at any time.
(e) Every materialperson described in subsection (a) of thissection shall, in addition to those records required to be kept in compliancewith chapters 18 and 19 of this title, keep the following records with respectto each sale of building materials described in subsection (a) of this sectionto a contractor, subcontractor or repairperson: (1) the date of the sale; (2)proof that the sale meets the qualifications described in subsection (a) ofthis section; (3) the amount of credit, if any, extended by the materialpersonto the contractor, subcontractor or repairperson for each sale; (4) the termsfor payment of the purchase price or repayment of any credit; and (5) the dateor dates on which the purchase price is paid or credit is repaid, in part orwhole, and the amount of each payment or repayment. Notwithstanding theprovisions of subsection (a) of this section, the records referred to in thissubdivision shall be preserved by said materialperson for a period of three (3)years from the date the tax on each sale is paid over to the tax administratorin full; provided, however, that the tax administrator may consent to theirdestruction within that period or may require that they be kept longer.
(f) No retailer shall avail himself or herself of thissection without prior written approval of the tax administrator. The taxadministrator shall grant that approval when the administrator is satisfiedthat the retailer qualifies as a materialperson as defined in subsection (a) ofthis section and when the retailer has submitted satisfactory evidence that theretailer can and will maintain records, in accordance with subsection (e) ofthis section, adequate to substantiate the election authorized in this section.Any attempt on the part of any retailer to exercise this provision withoutprior written approval of the tax administrator shall be deemed to be failureto pay the tax and the retailer shall be subject to assessment for taxes onthose sales plus penalties and interest on those sales as provided for in thischapter.
(g) Notwithstanding the provision of this section, anyretailer to whom this section may apply shall comply with all theadministration, collection, and other provisions of chapters 18 and 19 of thistitle.
