Section 280-RICR-20-45-2.3 - Responsibility of Hard-to-Dispose Material RetailerA. Liability for Tax1. Every hard-to-dispose material retailer selling, using or otherwise consuming hard-to-dispose material in this state is liable for the tax. Liability for the tax arises at the time such hard-to-dispose material is purchased for sale, use or consumption in this state. The tax, if not paid to a hard-to-dispose material wholesaler authorized to collect the tax, must be paid directly to the Division of Taxation based upon the rates set forth in the table under §§ 2.1(H) and 2.2(A) of this part.2. The hard-to-dispose material tax is a tax imposed on the retailer, accordingly retailers are not permitted to charge a tax to their customers and/or separately state the tax on their customer's invoices.3. Liability of a hard-to-dispose retailer is not extinguished until the tax has been paid to the state, except that a receipt from a hard-to-dispose material wholesaler engaging in business in this state or authorized by the tax administrator to collect the tax is sufficient to relieve the hard-to-dispose retailer from further liability for the tax to which the receipt refers.4. Where a retailer has paid the tax to a hard-to-dispose material wholesaler or directly to the state on materials which are subsequently transported out of state for sale or use solely outside the state the retailer may apply for a credit or refund (see credit and refund provision, § 2.3(C) of this Part. Proper documentation supporting subsequent out-of-state transportation must be established by the retailer.B. Returns 1. Whenever the hard-to-dispose material retailer is required to file a return, it must do so on or before the twenty-fifth (25th) day of the month. Payment for all taxes imposed under the law for the previous calendar month must accompany the return.2. An extension for filing a return may be granted (up to 30 days) for reasonable cause upon written request to the tax administrator.C. Credits and Refunds1. Every hard-to-dispose material retailer engaging in business in this state who has purchased and paid tax to a hard-to-dispose material wholesaler or directly to the state is entitled to a credit or refund on the hard-to-dispose material subsequently transported out of state for resale or use solely outside the state. The credit may be applied against the tax due on the monthly return, but only to the extent of the amount of tax for which the retailer is liable. Any excess credit may be carried forward to the next succeeding month.2. Penalties - A penalty of ten percent (10%) of the tax due will be added to delinquent payments and deficiency determinations made, due the negligence or intentional disregard.3. If any part of the deficiency made is due to fraud or intent to evade the provisions of the law, a penalty of fifty percent (50%) of the tax amount of the determination will be imposed.280 R.I. Code R. § 280-RICR-20-45-2.3
Amended effective 3/12/2020