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Rhode Island General Laws — Title 44 (Taxation)

R.I. Gen. Laws § 44-30-71.3

Sale of real property by nonresidents — Withholding requirements

Official textwebserver.rilegislature.govlast amended

# (a)

In a sale of real property and associated tangible personal property owned by a nonresident, the buyer shall deduct and withhold on the payments an amount equal to six percent (6%) of the total payment to nonresident individuals, estates, partnerships, or trusts, and seven percent (7%) of the total payment to nonresident corporations. For purposes of this section, a “nonresident corporation” is a corporation that is neither incorporated in this state nor authorized by the secretary of state or board of bank incorporation to do business in this state.

# (b)

“Total payment” means the net proceeds of the sale actually paid to the nonresident seller, including the fair market value of any property to be transferred to the seller.

# (c)

Every buyer subject to the withholding, deduction, and payment provisions of this section shall be liable for all amounts withheld, or required to be withheld, and the amount required to be withheld under the provisions of this section shall, until remitted, constitute a lien upon the property of the owner.

# (d)

The buyer shall remit all monies deducted and withheld pursuant to subsection (a) of this section to the tax administrator within three (3) banking days of the date of closing on forms prescribed by the tax administrator. Interest provisions of § 44-1-7 shall be applicable to this section.

# (e)

Payments upon which monies were deducted and withheld pursuant to subsection (a) of this section shall be deemed to have been paid to the tax administrator on behalf of the person from whom it was withheld and the person shall be credited with having paid that amount for the taxable year beginning in that calendar year.

# (f)

The closing attorney, lending institution, and real estate agent or broker in any transaction governed by the provisions of this section is not subject to the withholding, deduction, or payment provisions of this section.

# (g)

All forms prescribed by the tax administrator that require recording in the land evidence records shall include the name of the sellers and the street address of the property.

# (h)

Notwithstanding any other provision of this section to the contrary, a lien created by the provisions of this section shall cease to be a lien upon or enforceable against real estate upon the expiration of a period of ten (10) years from and after the date of the sale of real property and associated tangible personal property that gave rise to the lien.

Amendment history

History of Section. P.L. 1991, ch. 44, art. 33, § 1; P.L. 1994, ch. 172, § 1; P.L. 1995, ch. 248, § 1; P.L. 2019, ch. 175, § 1; P.L. 2019, ch. 235, § 1.

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In this chapter (40 sections)
  1. 44-30-31 · Nonresident husband and wife
  2. 44-30-32 · Rhode Island income of a nonresident individual
  3. 44-30-33 · Apportionment
  4. 44-30-34 · Nonresident partners
  5. 44-30-35 · Rhode Island income of a nonresident estate or trust
  6. 44-30-36 · Share of a nonresident estate, trust, or beneficiary in…
  7. 44-30-37 · Credit to trust beneficiary receiving accumulation…
  8. 44-30-51 · Returns and liabilities
  9. 44-30-52 · Time and place for filing returns and paying tax
  10. 44-30-53 · Signing of returns and other documents
  11. 44-30-54 · Change of resident status during year
  12. 44-30-55 · Declarations of estimated tax
  13. 44-30-56 · Payments of estimated tax
  14. 44-30-57 · Extensions of time
  15. 44-30-58 · Requirements concerning returns, notices, records, and…
  16. 44-30-59 · Report of change in federal taxable income
  17. 44-30-60 · Change of election
  18. 44-30-71 · Requirement of withholding tax from wages
  19. 44-30-71.1 · Voluntary withholding of tax from military retirement…
  20. 44-30-71.2 · Withholding of tax from lottery, pari-mutuel betting,…
  21. 44-30-71.3 · Sale of real property by nonresidents — Withholding…
  22. 44-30-71.4 · Employee leasing companies — Payroll companies
  23. 44-30-72 · Withholding agreements
  24. 44-30-73 · Information statement for employee
  25. 44-30-74 · Credit for tax withheld
  26. 44-30-75 · Employer’s return and payment of withheld taxes
  27. 44-30-76 · Employer’s liability for withheld taxes — Violations —…
  28. 44-30-77 · Employer’s failure to withhold
  29. 44-30-78 · Filing annual reconciliation of tax withheld
  30. 44-30-81 · Notice of deficiency
  31. 44-30-82 · Assessment date
  32. 44-30-83 · Limitations on assessment
  33. 44-30-84 · Interest on underpayment
  34. 44-30-85 · Additions to tax and civil penalties
  35. 44-30-85.1 · Electronic filing of withholding tax returns and penalties
  36. 44-30-86 · Overpayment
  37. 44-30-87 · Limitations on credit or refund
  38. 44-30-87.1 · Net operating loss — Limitation
  39. 44-30-88 · Interest on overpayment
  40. 44-30-89 · Administrative petition
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