10.1 Purpose

1. This regulation implements R.I. Gen. Laws Chapters 44-18 et seq. and 44-19 et seq. These Chapters provide for Sales and Use Taxes Liability and Computation, and Sales and Use Taxes Enforcement and Collection, in regard to taxation of film rentals.

10.2 Authority

1. This regulation is promulgated pursuant to R.I. Gen. Laws Chapters 44-18 et seq. and 44-19 et seq. as amended. These rules have been prepared in accordance with the requirements of R.I. Gen. Laws Chapter 44-1 et seq. and R.I. Gen. Laws § 44-19-33.

10.3 Application

1. The terms and provisions of these rules and regulations shall be liberally construed to permit the Department of Revenue to effectuate the purposes of R.I. Gen. Laws Chapters 44-18 et seq. and 44-19 et seq. and other applicable state laws and regulations.

10.4 Severability

1. If any provision of these rules and regulations or the application thereof to any person or circumstances is held invalid by a court of competent jurisdiction, the validity of the remainder of the rules and regulations shall not be affected thereby.

10.5 Film Rentals

1. The use tax does not apply to the consideration charged by out-of-state motion picture film distributors for the rentals of motion picture film made by them to a person in the business of operating a motion picture house or drive-in theatre in Rhode Island.