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Tue, Sep 02, 2003

Rhode Island: We Want to Screw Only Our Own

State 'Clarifies' Who'll Get Screwed

The special aircraft tax was meant only to go on new A/C purchased by Rhode Islanders, the miniature state now seems to be saying, after receiving tons of negative feedback from pilots and operators whom the Rhode Island legislature cannot control. The work of pilots' groups, notably the NBAA and AOPA, was additionally influential, it seems.

NBAA, in fact, reported last month on that issuance of an emergency regulation that could subject certain aircraft traveling to Rhode Island to the state's use tax.

After the organization mobilized the publicity against the tax, the Rhode Island Division of Taxation (RIDT) has verbally confirmed to NBAA that the state's use tax generally does not apply to property purchased by nonresidents and used outside of Rhode Island prior to its use in the state. The RIDT also has verbally stated that the emergency regulation will not be applied to "nonresidents" of Rhode Island.

Are you in or out?

However, the NBAA reports, the manner in which residency has been judicially defined in Rhode Island raises concerns regarding whether or not a company or individual domiciled elsewhere, but with contacts in Rhode Island, could be considered a "resident." NBAA is working to clarify the applicability of the Rhode Island use tax to nonresidents and will be represented at an upcoming public hearing on the emergency regulation.

FMI: http://web.nbaa.org/member/ops/taxes/state/ri

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