R.I. Gen. Laws § 44-13-1 — Domestic corporations subject to tax — “Gross earnings” defined — Deductions

(a) Every corporation enumerated in § 44-13-4, incorporated under the laws of this state, shall annually pay a tax or excise to
the state for the privilege of existing as a corporation during any part of the preceding
calendar year. The tax shall be in addition to any tax upon its real estate and tangible
personal property locally or otherwise assessed and shall be measured by its gross
earnings, determined as provided, for the preceding calendar year or for the portion
of the year that the corporation has been incorporated and shall be computed at the
rates prescribed in § 44-13-4; provided, that the Narragansett Pier Railroad Company, a corporation incorporated
under the laws of the state of Rhode Island, shall not be subject to any tax imposed
by the provisions of this chapter in any year until and unless the net receipts of
the railroad applicable to dividends or other form of distribution of corporate earnings
shall in the year amount to a sum that is not less than four percent (4%) of the aggregate
valuation of the property of the railroad as determined by the public utility administrator.
(b) “Gross earnings” includes all income of the same types as are classified as operating
revenues by the public utilities control authority in the uniform systems of accounts
prescribed by the authority for operations, whether or not the corporation is regulated
by the public utilities control authority, except those subject to the Rhode Island
business corporation tax, within the tax year and, with respect to each company, all
income classified in the uniform systems of accounts as income from merchandising,
jobbing, and contract work, income from nonutility operations and revenues from transfer,
sale, or lease of tangible, intangible, or real property not devoted to utility operation,
and receipts from the sale of residuals and other by-products obtained in connection
with the production of gas, electricity, or steam. No deductions shall be allowed
from the gross earnings for any commission, rebate, or other payment, except a refund
resulting from an error or overcharge, and those specifically mentioned in § 44-13-5, and in the case of every corporation subject to tax under § 44-13-4(4), fifty percent (50%) of all amounts paid during the period July 1, 1987 to June 30,
1988 and one hundred percent (100%) of all amounts paid during the period July 1,
1988 and thereafter by a corporation to another corporation for connecting fees, switching
charges, and carrier access charges shall be included in the gross earnings of the
company to which they are paid and shall be deducted from the gross earnings of the
paying company.