A.
Collection of Tax. Every hard-to-dispose material wholesaler, whether located
in Rhode Island or not, is required to charge and collect a tax upon the sale
of hard-to-dispose materials to retailers who are engaged in the retail sale of
hard-to-dispose material in this state. The tax shall be determined in
accordance with the rates specified in the table below.
1. Table
|
Hard to Dispose Material
|
Tax Rate
|
|
Lubrication Oils
|
Ten cents ($0.10) per quart or ten and
6/10th cents ($0.106) per liter
|
|
Antifreeze
|
Twenty cents ($0.20) per gallon or five and
28/100th cents ($0.0528) per liter
|
|
Organic Solvents
|
One half cent ($0.005) per gallon or one hundred
thirty-two thousandths ($0.00132) per liter
|
|
Tires
|
One dollar ($1.00) per tire
|
B. The hard-to-dispose material wholesaler
shall separately state the amount of the tax on the invoice.
C. Certain Sales not Subject to Tax - No tax
need be collected by the hard-to-dispose material wholesaler where the
hard-to-dispose material is sold:
1. To a
retailer for resale or use outside this state and the wholesaler is obligated
to deliver such materials to a point outside the state or to deliver them to a
common carrier for transportation outside this state, or
2. To a retailer not engaged in the sale of
hard-to-dispose material in this state who then transports the material outside
the state for the sole purpose of reselling such materials outside this state,
or
3. Directly to the United States
Government or its agencies, or
4.
To another Rhode Island hard-to-dispose material wholesale tax permittee. In
such case the seller must obtain a copy of the purchaser's Rhode Island
hard-to-dispose material wholesale tax permit.
5. Under §
2.2(C)(2) of
this Part above, the hard-to-dispose wholesaler must obtain a Rhode Island
exemption certificate from the purchaser.
6. The wholesaler must collect the tax from
retailers engaged in the sale of hard-to-dispose materials in this state on all
purchases picked up by or delivered to retailers in this state, including
purchases of materials earmarked by the retailer for subsequent transportation
out of state for resale or use out of state.
7. If a wholesaler sells hard-to-dispose
materials directly to a consumer (i.e., to a manufacturer or other person using
lubricating oils in its own machinery and equipment and not for resale) that
sale is a retail sale of hard-to-dispose material. The wholesaler therefore
becomes a "hard-to-dispose material retailer" and subject to tax for that sale.
When making such sale, the wholesaler cannot charge the tax to its customer
and/or separately state the tax on its customer's invoice since the law
provides for the tax to be separately stated on the invoice only in the case of
a sale to a hard-to-dispose material retailer.
D. Application to Collect Tax
1. Each hard-to-dispose material wholesaler
must apply to the tax administrator for authorization to collect the tax upon a
form provided by the tax administrator. No application fee is required. Once
the application is approved and processed, the wholesaler will be issued a
certificate with a number which will authorize it to collect the tax.
E. Returns
1. On or before the twenty-fifth (25th) day
of the month, the hard-to-dispose material wholesaler must file a return along
with payment for all taxes imposed under the law for the previous calendar
month. Where the wholesaler has a liability for tax as a hard-to-dispose
material retailer under the law, there will be no requirement to file a
separate hard-to-dispose material retail tax return. In such case, the direct
retail sales are to be added to the sales to retailers and entered as a total
quantity on 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.
