§ 44-3-29.1 Wholesale and retail inventorytax phase out. – (a) Beginning July 1, 1999, the city council or town council of anymunicipality shall, by ordinance, phase out, over a ten (10) year period, thestock in trade or inventory tax of wholesalers and retailers. The rate scheduleto be implemented by the cities and towns is established in this section.
(b) "Inventory", as it refers to wholesalers, "stock intrade", as it refers to wholesalers, and "wholesaler" have the same meaning asdefined in § 44-3-19.
(c) "Inventory", as it refers to retailers, "stock in trade",as it refers to retailers, and "retailer" have the same meaning as defined in§ 44-3-40.
(d) The rate schedule for the ten (10) year phase out of thewholesale and retail inventory tax is as follows:
Year Maximum Tax Rate
FY 1999 set by local officials
FY 2000 ninety percent (90%) of FY 1999 rate
FY 2001 eighty percent (80%) of FY 1999 rate
FY 2002 seventy percent (70%) of FY 1999 rate
FY 2003 sixty percent (60%) of FY 1999 rate
FY 2004 fifty percent (50%) of FY 1999 rate
FY 2005 forty percent (40%) of FY 1999 rate
FY 2006 thirty percent (30%) of FY 1999 rate
FY 2007 twenty percent (20%) of FY 1999 rate
FY 2008 ten percent (10%) of FY 1999 rate
FY 2009 no tax authorized
(e) In the event that a wholesaler sold inventory or stock intrade both at wholesale and at retail in the preceding calendar year, the taxassessor of the municipality shall assess on the same basis as a retailer'sinventory or stock in trade as of December 31 of that year, to the extentpermitted by applicable law, notwithstanding any freeze of assessed valuationor exemption permitted pursuant to § 44-5-12(c), that proportion ofinventory or stock in trade of the wholesaler which are equal to the percentageof the wholesaler's total sales during the preceding calendar year that were atretail. For the purposes of this paragraph, "sales at retail" do include salesto employees of the wholesaler or to employees of its affiliates. If retailsales are less than one percent (1%) of total sales during the year, it isdeemed that no sales were made at retail during the year. All sales of awholesaler to a customer, which is an affiliated entity, are deemed to beretail sales for the purposes of this subsection if more than half of thedollar volume of the sales of the affiliated entity is made within themunicipality.
(f) For purposes of this section, a wholesaler is consideredaffiliated with customers if it controls, or is under common control with thecustomers.
(g) In the event that a wholesaler or retailer subject to theinventory tax commences operations in a particular city or town after fiscalyear 1999, the tax assessor for that municipality shall determine what wouldhave been the value of the inventory as of December 1998, adjusting theinventory value to fiscal year 1999 using the changes in the consumer priceindex – all urban consumers (CPI-U) published by the Bureau of LaborStatistics of the United States Department of Labor. The director of thedepartment of revenue shall annually publish an adjustment schedule.
(h) This section also applies to motor vehicle dealers, asdefined in § 31-5-5.
(i) The assent of two-thirds ( 2/3) of the members elected toeach house of the general assembly is required to repeal or amend this section.
§ 44-3-29.1 Wholesale and retail inventorytax phase out. – (a) Beginning July 1, 1999, the city council or town council of anymunicipality shall, by ordinance, phase out, over a ten (10) year period, thestock in trade or inventory tax of wholesalers and retailers. The rate scheduleto be implemented by the cities and towns is established in this section.
(b) "Inventory", as it refers to wholesalers, "stock intrade", as it refers to wholesalers, and "wholesaler" have the same meaning asdefined in § 44-3-19.
(c) "Inventory", as it refers to retailers, "stock in trade",as it refers to retailers, and "retailer" have the same meaning as defined in§ 44-3-40.
(d) The rate schedule for the ten (10) year phase out of thewholesale and retail inventory tax is as follows:
Year Maximum Tax Rate
FY 1999 set by local officials
FY 2000 ninety percent (90%) of FY 1999 rate
FY 2001 eighty percent (80%) of FY 1999 rate
FY 2002 seventy percent (70%) of FY 1999 rate
FY 2003 sixty percent (60%) of FY 1999 rate
FY 2004 fifty percent (50%) of FY 1999 rate
FY 2005 forty percent (40%) of FY 1999 rate
FY 2006 thirty percent (30%) of FY 1999 rate
FY 2007 twenty percent (20%) of FY 1999 rate
FY 2008 ten percent (10%) of FY 1999 rate
FY 2009 no tax authorized
(e) In the event that a wholesaler sold inventory or stock intrade both at wholesale and at retail in the preceding calendar year, the taxassessor of the municipality shall assess on the same basis as a retailer'sinventory or stock in trade as of December 31 of that year, to the extentpermitted by applicable law, notwithstanding any freeze of assessed valuationor exemption permitted pursuant to § 44-5-12(c), that proportion ofinventory or stock in trade of the wholesaler which are equal to the percentageof the wholesaler's total sales during the preceding calendar year that were atretail. For the purposes of this paragraph, "sales at retail" do include salesto employees of the wholesaler or to employees of its affiliates. If retailsales are less than one percent (1%) of total sales during the year, it isdeemed that no sales were made at retail during the year. All sales of awholesaler to a customer, which is an affiliated entity, are deemed to beretail sales for the purposes of this subsection if more than half of thedollar volume of the sales of the affiliated entity is made within themunicipality.
(f) For purposes of this section, a wholesaler is consideredaffiliated with customers if it controls, or is under common control with thecustomers.
(g) In the event that a wholesaler or retailer subject to theinventory tax commences operations in a particular city or town after fiscalyear 1999, the tax assessor for that municipality shall determine what wouldhave been the value of the inventory as of December 1998, adjusting theinventory value to fiscal year 1999 using the changes in the consumer priceindex – all urban consumers (CPI-U) published by the Bureau of LaborStatistics of the United States Department of Labor. The director of thedepartment of revenue shall annually publish an adjustment schedule.
(h) This section also applies to motor vehicle dealers, asdefined in § 31-5-5.
(i) The assent of two-thirds ( 2/3) of the members elected toeach house of the general assembly is required to repeal or amend this section.
§ 44-3-29.1 Wholesale and retail inventorytax phase out. – (a) Beginning July 1, 1999, the city council or town council of anymunicipality shall, by ordinance, phase out, over a ten (10) year period, thestock in trade or inventory tax of wholesalers and retailers. The rate scheduleto be implemented by the cities and towns is established in this section.
(b) "Inventory", as it refers to wholesalers, "stock intrade", as it refers to wholesalers, and "wholesaler" have the same meaning asdefined in § 44-3-19.
(c) "Inventory", as it refers to retailers, "stock in trade",as it refers to retailers, and "retailer" have the same meaning as defined in§ 44-3-40.
(d) The rate schedule for the ten (10) year phase out of thewholesale and retail inventory tax is as follows:
Year Maximum Tax Rate
FY 1999 set by local officials
FY 2000 ninety percent (90%) of FY 1999 rate
FY 2001 eighty percent (80%) of FY 1999 rate
FY 2002 seventy percent (70%) of FY 1999 rate
FY 2003 sixty percent (60%) of FY 1999 rate
FY 2004 fifty percent (50%) of FY 1999 rate
FY 2005 forty percent (40%) of FY 1999 rate
FY 2006 thirty percent (30%) of FY 1999 rate
FY 2007 twenty percent (20%) of FY 1999 rate
FY 2008 ten percent (10%) of FY 1999 rate
FY 2009 no tax authorized
(e) In the event that a wholesaler sold inventory or stock intrade both at wholesale and at retail in the preceding calendar year, the taxassessor of the municipality shall assess on the same basis as a retailer'sinventory or stock in trade as of December 31 of that year, to the extentpermitted by applicable law, notwithstanding any freeze of assessed valuationor exemption permitted pursuant to § 44-5-12(c), that proportion ofinventory or stock in trade of the wholesaler which are equal to the percentageof the wholesaler's total sales during the preceding calendar year that were atretail. For the purposes of this paragraph, "sales at retail" do include salesto employees of the wholesaler or to employees of its affiliates. If retailsales are less than one percent (1%) of total sales during the year, it isdeemed that no sales were made at retail during the year. All sales of awholesaler to a customer, which is an affiliated entity, are deemed to beretail sales for the purposes of this subsection if more than half of thedollar volume of the sales of the affiliated entity is made within themunicipality.
(f) For purposes of this section, a wholesaler is consideredaffiliated with customers if it controls, or is under common control with thecustomers.
(g) In the event that a wholesaler or retailer subject to theinventory tax commences operations in a particular city or town after fiscalyear 1999, the tax assessor for that municipality shall determine what wouldhave been the value of the inventory as of December 1998, adjusting theinventory value to fiscal year 1999 using the changes in the consumer priceindex – all urban consumers (CPI-U) published by the Bureau of LaborStatistics of the United States Department of Labor. The director of thedepartment of revenue shall annually publish an adjustment schedule.
(h) This section also applies to motor vehicle dealers, asdefined in § 31-5-5.
(i) The assent of two-thirds ( 2/3) of the members elected toeach house of the general assembly is required to repeal or amend this section.
