2009 Rhode Island Code
Title 45 - Towns and cities
CHAPTER 45-37.1 - Industrial Facilities Corporation
§ 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 used in construction of a facility only to the extent that the costs of such materials do not exceed the amount financed through the corporation as required in § 45-37.1-9 shall be deemed to have been authorized thirty (30) days from the date of the completion by the corporation of an economic analysis that shall include:

   (1) A full description of the project to which the tax exemption is related; and

   (2) The corporation's analysis of the impact of the proposed project will or may have on the state. The analysis shall be supported by such appropriate data and documentation and shall consider, but not be limited to, the following factors:

   (i) The impact on the industry or industries in which the completed project will be involved;

   (ii) State fiscal matters, including the state budget (revenues and expenses);

   (iii) The financial exposure of the taxpayers of the state under the plans for the proposed project and negative foreseeable contingencies that may arise therefrom;

   (iv) The approximate number of jobs projected to be created, construction and nonconstruction;

   (v) Identification of geographic sources of the staffing for identified jobs;

   (vi) The projected duration of the identified construction jobs;

   (vii) The approximate wage rates for the identified jobs;

   (viii) The types of fringe benefits to be provided with the identified jobs, including healthcare insurance and any retirement benefits;

   (ix) The projected fiscal impact on increased personal income taxes to the state of Rhode Island; and

   (x) The description of any plan or process intended to stimulate hiring from the host community, training of employees or potential employees and outreach to minority job applicants and minority businesses.

   (b) For purposes of the exemption from taxes and assessments for any project of the corporation held by a lessee of the corporation under section 9 of this chapter and subsection (a) of this section, any such project shall be subject to the following additional requirements:

   (1) The total sales tax exemption benefit to the lessee will be implemented through a reimbursement process as determined by the division of taxation rather than an up-front purchase exemption;

   (2) The sales tax benefits granted pursuant to section 9 of this chapter shall: (i) only apply to materials used in the construction, reconstruction or rehabilitation of the project and to the acquisition of furniture, fixtures and equipment, except automobiles, trucks or other motor vehicles, or materials that otherwise are depreciable and have a useful life of one year or more, for the project for a period not to exceed six (6) months after receipt of a certificate of occupancy for any given phase of the project for which sales tax benefits are utilized; and (ii) not exceed an amount equal to the income tax revenue received by the state from the new full-time jobs with benefits excluding project construction jobs, generated by the project within a period of three (3) years from after the receipt of a certificate of occupancy for any given phase of the project. For purposes of this section, "full-time jobs with benefits" means jobs that require working a minimum of thirty (30) hours per week within the state, with a median wage that exceeds by five percent (5%) the median annual wage for the preceding year for full-time jobs in Rhode Island, as certified by the department of labor and training, with a benefit package that is typical of companies within the lessee's industry.

   (3) The corporation shall transmit the analysis required under section 9 of this chapter to the house and senate fiscal committee chairs, the department of labor and training and the division of taxation promptly upon completion. Annually thereafter, the department of labor and training shall certify to the house and senate fiscal committee chairs, the house and senate fiscal advisors, the corporation and the division of taxation the 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 to meet or exceed the estimated number of new jobs indentified in the analysis above. This certification shall no longer be required when the total amount of new income tax revenue received by the state exceeds the amount of the sales tax exemption benefit granted above.

   (4) The department of labor and training shall certify to the house and senate fiscal committee chairs and the division of taxation that jobs created by the project are "new jobs" in the state of Rhode Island, meaning that the employees of the project are in addition to, and without a reduction of, those employees of the lessee currently employed in Rhode Island, are not relocated from another facility of the lessee's in Rhode Island or are employees assumed by the lessee as the result of a merger or acquisition of a company already located in Rhode Island. Additionally, the corporation, with the assistance of the lessee, the department of labor and training, the department of human services and the division of taxation shall provide annually an analysis of whether any of the employees of the project qualify for RIte Care or RIte Share benefits and the impact such benefits or assistance may have on the state budget.

   (5) Notwithstanding any other provision of law, the division of taxation, the department of labor and training and the department of human services are authorized to present, review and discuss lessee specific tax or employment information or data with the corporation, the house and senate fiscal committee chairs, and/or the house and senate fiscal advisors for the purpose 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 exemption through new income tax collections from the project, not including construction job income taxes, the lessee will be unable to continue the project, or otherwise defaults on its obligations to the corporation, the lessee shall be liable to the state for all the sales tax benefits granted to the project plus interest, as determined in RIGL 44-1-7, calculated from the date the lessee received the sales tax benefits.