§ 45-37.1-9.1 - Procedure.
SECTION 45-37.1-9.1
§ 45-37.1-9.1 Procedure. – (a) An exemption from payment of state sales tax applicable to materials usedin construction of a facility only to the extent that the costs of suchmaterials do not exceed the amount financed through the corporation as requiredin § 45-37.1-9 shall be deemed to have been authorized thirty (30) daysfrom the date of the completion by the corporation of an economic analysis thatshall include:
(1) A full description of the project to which the taxexemption is related; and
(2) The corporation's analysis of the impact of the proposedproject will or may have on the state. The analysis shall be supported by suchappropriate data and documentation and shall consider, but not be limited to,the following factors:
(i) The impact on the industry or industries in which thecompleted project will be involved;
(ii) State fiscal matters, including the state budget(revenues and expenses);
(iii) The financial exposure of the taxpayers of the stateunder the plans for the proposed project and negative foreseeable contingenciesthat may arise therefrom;
(iv) The approximate number of jobs projected to be created,construction and nonconstruction;
(v) Identification of geographic sources of the staffing foridentified jobs;
(vi) The projected duration of the identified constructionjobs;
(vii) The approximate wage rates for the identified jobs;
(viii) The types of fringe benefits to be provided with theidentified jobs, including healthcare insurance and any retirement benefits;
(ix) The projected fiscal impact on increased personal incometaxes to the state of Rhode Island; and
(x) The description of any plan or process intended tostimulate hiring from the host community, training of employees or potentialemployees and outreach to minority job applicants and minority businesses.
(b) For purposes of the exemption from taxes and assessmentsfor any project of the corporation held by a lessee of the corporation undersection 9 of this chapter and subsection (a) of this section, any such projectshall be subject to the following additional requirements:
(1) The total sales tax exemption benefit to the lessee willbe implemented through a reimbursement process as determined by the division oftaxation rather than an up-front purchase exemption;
(2) The sales tax benefits granted pursuant to section 9 ofthis chapter shall: (i) only apply to materials used in the construction,reconstruction or rehabilitation of the project and to the acquisition offurniture, fixtures and equipment, except automobiles, trucks or other motorvehicles, or materials that otherwise are depreciable and have a useful life ofone year or more, for the project for a period not to exceed six (6) monthsafter receipt of a certificate of occupancy for any given phase of the projectfor which sales tax benefits are utilized; and (ii) not exceed an amount equalto the income tax revenue received by the state from the new full-time jobswith benefits excluding project construction jobs, generated by the projectwithin a period of three (3) years from after the receipt of a certificate ofoccupancy for any given phase of the project. For purposes of this section,"full-time jobs with benefits" means jobs that require working a minimum ofthirty (30) hours per week within the state, with a median wage that exceeds byfive percent (5%) the median annual wage for the preceding year for full-timejobs in Rhode Island, as certified by the department of labor and training,with a benefit package that is typical of companies within the lessee'sindustry.
(3) The corporation shall transmit the analysis requiredunder section 9 of this chapter to the house and senate fiscal committeechairs, the department of labor and training and the division of taxationpromptly upon completion. Annually thereafter, the department of labor andtraining shall certify to the house and senate fiscal committee chairs, thehouse and senate fiscal advisors, the corporation and the division of taxationthe actual number of new full-time jobs with benefits created by the project,in addition to construction jobs, and whether such new jobs are on target tomeet or exceed the estimated number of new jobs indentified in the analysisabove. This certification shall no longer be required when the total amount ofnew income tax revenue received by the state exceeds the amount of the salestax exemption benefit granted above.
(4) The department of labor and training shall certify to thehouse and senate fiscal committee chairs and the division of taxation that jobscreated by the project are "new jobs" in the state of Rhode Island, meaningthat the employees of the project are in addition to, and without a reductionof, those employees of the lessee currently employed in Rhode Island, are notrelocated from another facility of the lessee's in Rhode Island or areemployees assumed by the lessee as the result of a merger or acquisition of acompany already located in Rhode Island. Additionally, the corporation, withthe assistance of the lessee, the department of labor and training, thedepartment of human services and the division of taxation shall provideannually an analysis of whether any of the employees of the project qualify forRIte Care or RIte Share benefits and the impact such benefits or assistance mayhave on the state budget.
(5) Notwithstanding any other provision of law, the divisionof taxation, the department of labor and training and the department of humanservices are authorized to present, review and discuss lessee specific tax oremployment information or data with the corporation, the house and senatefiscal committee chairs, and/or the house and senate fiscal advisors for thepurpose of verification and compliance with this resolution; and
(6) The corporation and the project lessee shall agree that,if any time prior to the state recouping the amount of the sales tax exemptionthrough new income tax collections from the project, not including constructionjob income taxes, the lessee will be unable to continue the project, orotherwise defaults on its obligations to the corporation, the lessee shall beliable to the state for all the sales tax benefits granted to the project plusinterest, as determined in RIGL 44-1-7, calculated from the date the lesseereceived the sales tax benefits.