[Adopted 6-10-1999, effective 6-10-1999 (Ch. II, § 8,
2-08-08, of the 1991 Code)]
The Tax Assessor is hereby authorized to phase out, over a ten-year period, the stock-in-trade or inventory tax of wholesalers and retailers. The rate schedule to be implemented by the Tax Assessor is set forth in § 247-29 of this article.
As used in this article, the following terms
shall have the meanings indicated:
Shall have the same meaning as defined in R.I.G.L. § 44-3-40.
Shall have the same meaning as defined in R.I.G.L. § 44-3-29.
The rate schedule for the ten-year phase out
of the wholesale and retail inventory tax shall be as follows:
|
Year
|
Maximum Tax Rate
|
|---|---|
|
FY 1999
|
Present tax rate
|
|
FY 2000
|
Ninety percent (90%) of FY 1999 rate
|
|
FY 2001
|
80% of FY 1999 rate
|
|
FY 2002
|
70% of FY 1999 rate
|
|
FY 2003
|
60% of FY 1999 rate
|
|
FY 2004
|
50% of FY 1999 rate
|
|
FY 2005
|
40% of FY 1999 rate
|
|
FY 2006
|
30% of FY 1999 rate
|
|
FY 2007
|
20% of FY 1999 rate
|
|
FY 2008
|
10% of FY 1999 rate
|
|
FY 2009
|
No tax
|
In the event that a wholesaler sold inventory
or stock-in-trade both at wholesale and retail in the preceding calendar
year, the Tax Assessor shall assess on the same basis as a retailer's
inventory or stock-in-trade as of December 31 of that year, to the
extent permitted by applicable law, notwithstanding any freeze of
assessed valuation or exemption permitted pursuant to R.I.G.L. § 44-5-12(c),
that proportion of inventory or stock-in-trade of the wholesaler which
shall be equal to the percentage of the wholesaler's total sales during
the preceding calendar year that were at retail. For the purposes
of this section, sales at retail shall not include sales to employees
of the wholesaler or to employees of its affiliates. If retail sales
are less than 1% of total sales during the year, it shall be deemed
that no sales were made at retail during the year. All sales of a
wholesaler to a customer which is an affiliated entity shall be deemed
to be retail sales for the purposes of this section if more than half
the dollar volume of the sales of the affiliated entity is made within
the Town of Glocester. For purposes of this section, a wholesaler
shall be considered affiliated with customers if it controls, or is
under common control with, the customers.
In the event that a wholesaler or retailer subject
to the inventory tax commences operations within the Town of Glocester
after fiscal year 1999, the Tax Assessor shall determine what would
have been the value of the inventory as of December 1998, adjusting
the inventory value to fiscal year 1999 using the changes in the Consumer
Price Index - All Urban Consumers (CPI-UC) published by the Bureau
of Labor Statistics of the United States Department of Labor.
This article shall also apply to automobile
dealers as defined in R.I.G.L. § 31-5-5.
