RI tax madness

The "emergency" is an end run. It comes up to the legislature in October. I
wrote this letter to the providence journal:

This is why businesses don't want to be in Rhode Island

Rhode Island's Division of Taxation recently put into effect an "emergency
regulation" that states that if a "non-commercial" (business or private)
aircraft flies between two points in the state, stays overnight, or lands here
more than three times in one month, the aircraft is subject to a use tax equal
to 7% of the aircraft's value. The motivation is apparently to reap a tax
windfall from business aircraft using Quonset, Westerly and Green Airports, as
these aircraft are typically worth several million dollars. The regulation also
snares private aircraft bringing tourism dollars into Block Island and Newport
(each of these airports has hundreds of out of state arrivals each month).
Rather than providing the intended effect, the regulation causes pilots and
businesses to avoid Rhode Island rather than risk a substantial lien. One pilot
on the Cherokee Pilot's Association Chat sums it up saying: "If I had to go
there, I'd fly to CT, rent a car, do my business in RI without even refueling,
and send the rulers of RI a receipt for the money they contributed to CT" rather
than risking a substantial lien. Once again, the state is chasing away business
that would generate far more taxes than the meager collections that will result
from this ill-conceived regulation. When are our leaders going to wake up and
realize that the reason companies are not locating here is because it is far too
expensive to do business here?


Ron McKinnon wrote:

"Ron Rosenfeld" wrote in message
...
On Thu, 28 Aug 2003 15:08:31 -0400, Ray Andraka wrote:

I also saw the article on avweb this morning. Being a Rhode Island
based pilot, I am deeply troubled by this. I have spent a bit of time
today trying to find the legislation that enacts this, and so far have
not
found it. If you have a bill or resolution number, I could use that when
I call my rep to bitch about it. We did have a bill in the legislature
to
repeal sales and use taxes on aircraft related matters here in the state
to help encourage business. This news is diametrically opposed to
what had been proposed in the bill earlier this year.

http://www.rules.state.ri.us/rules/r...DOTAX_2510.pdf

Interesting. This document raises a number of questions in my mind, such
as:

This document specifies the effective date as April 02, 2003. Has this
been in force since then? If so, why are we just aware of it now?, and if
not, can the state impose a new tax retroactively? (It would seem
to be unconstitutional, US Constitution, article 9 ..."No bill of attainder
or ex post facto law shall be passed.")

I'm also thinking that charging the tax on aircraft relocated to RI,
from some other state, is effectively a 'tax or duty laid on articles
exported from another state', which would also seem to be
denied by the US Constitution (article 9, also).

What is the 'emergency' justification? Is this justification
within the purview of Tax Administrator?

What legal/public process is required in order to cause such a regulation
to come into effect? Did this occur? Can a new tax be imposed without
legislative or public input? What kind of notice period is required for
such a new tax? Or is that the 'emergency' - an end-run around the
nuisance of a public process?

--
--Ray Andraka, P.E.
President, the Andraka Consulting Group, Inc.
401/884-7930 Fax 401/884-7950
email
http://www.andraka.com

"They that give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
-Benjamin Franklin, 1759