Rhode Island § 44-20.3-3 § 44-20.3-3. Interest and penalties. [Effective April 1, 2026.]

Rhode Island Statutes

§ 44-20.3-3 — § 44-20.3-3. Interest and penalties. [Effective April 1, 2026.]

Rhode Island § 44-20.3-3

Title 44Taxation

Ch. 44-20.3Kratom and Kratom Products Tax [Effective April 1, 2026.]

This text of Rhode Island § 44-20.3-3 (§ 44-20.3-3. Interest and penalties. [Effective April 1, 2026.]) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 44-20.3-3 (2026).

Text

§ 44-20.3-3. Interest and penalties. [Effective April 1, 2026.]
(a) Failure to pay the kratom and kratom products tax to the state, or any amount of tax
            required to be paid to the state, shall result in interest at the annual rate provided
            by § 44-1-7 from the date on which the tax or amount of the tax required to be collected became
            due and payable to the state until date of payment.
         
(b) Failure to file tax returns or to pay tax. In the case of failure:
         
(1) To file. The tax return on or before the prescribed date, unless it is shown that the failure
            is due

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§ 44-20.3-3. Interest and penalties. [Effective April 1, 2026.]

(a) Failure to pay the kratom and kratom products tax to the state, or any amount of tax required to be paid to the state, shall result in interest at the annual rate provided by § 44-1-7 from the date on which the tax or amount of the tax required to be collected became due and payable to the state until date of payment.

(b) Failure to file tax returns or to pay tax. In the case of failure:

(1) To file. The tax return on or before the prescribed date, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax required to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for payment and by the amount of any credit against the tax which may properly be claimed upon the return.

(2) To pay. The amount shown as tax on the return on or before the prescribed date for payment of the tax unless it is shown that the failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on the return ten percent (10%) of the amount of the tax.

(c) Negligence. If any part of a deficiency is due to negligence or intentional disregard of the Rhode Island general laws or rules or regulations under this chapter (but without intent to defraud), five percent (5%) of that part of the deficiency shall be added to the tax.

(d) Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that part of the deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts imposed by subsections (a) and (b) of this section.

(e) Additions and penalties treated as tax. The additions to the tax and civil penalties provided by this section shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as taxes.

(f) Bad checks. If any check or money order in payment of any amount receivable under this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered the check, upon notice and demand by the tax administrator or his or her delegate, in the same manner as tax, an amount equal to one percent of the amount of the check, except that if the amount of the check is less than five hundred dollars ($500), the penalty under this section shall be five dollars ($5.00). This subsection shall not apply if the person tendered the check in good faith and with reasonable cause to believe that it would be duly paid.

(g) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever is greater.