R.I. Gen. Laws § 44-19-10.1 — Prepayment of sales tax on cigarettes

(a) Every distributor and dealer licensed pursuant to chapter 20 of this title shall pay,
as a prepayment for the taxes imposed by chapter 18 of this title, a tax on cigarettes
possessed for sale or use in this state and upon which the distributor or dealer is
required to affix cigarette stamps pursuant to chapter 20 of this title. The tax shall
be computed annually by multiplying the minimum price of standard brands of cigarettes
in effect as of April 1, 2005 and each April 1 thereafter, by the tax rate imposed
by §§ 44-18-18 and 44-18-20. The minimum price of standard brands of cigarettes shall be determined in accordance
with chapter 6 of title 13 and the regulations promulgated by the tax administrator. The tax shall be prepaid
at the time the distributor or dealer purchases such stamps from the tax administrator.
However, the tax administrator may, in his or her discretion, permit a licensed distributor
or licensed dealer to pay for the prepayment within thirty (30) days after the date
of purchase, provided that a bond satisfactory to the tax administrator in an amount
not less than the prepayment due shall have been filed with the tax administrator
conditioned upon payment for the prepayment of sales tax. The tax administrator shall
keep accurate records of all stamps sold to each distributor and dealer.
(b) The provisions of § 44-20-12 relating to the use of stamps to evidence payment of the tax imposed by chapter 20
of this title shall be applicable to the prepayment requirement of the sales/use tax
imposed by this section. Provided, however, no sales/use tax is required to be prepaid
on sales of cigarettes sold to the United States, its agencies and instrumentalities
or the armed forces of the United States, this state (including any city, town, district
or other political subdivision) and any other organization qualifying as exempt under
§ 44-18-30(5).
(c) Except as otherwise provided in this section, all other provisions of chapters 18
and 19 of this title applicable to administration and collection of sales/use tax
shall apply to the prepayment requirement pursuant to this section.
(d) All taxes paid pursuant to this section are conclusively presumed to be a direct tax
on the retail consumer, precollected for the purpose of convenience and facility only.