§ 44-30-71.2 - Withholding of tax from lottery and pari-mutuel betting winnings. - Rhode Island Statutes

SECTION 44-30-71.2

   § 44-30-71.2  Withholding of tax fromlottery and pari-mutuel betting winnings. – (a) The director of lotteries shall deduct and withhold from the prize money ofany person winning a prize from the state lottery a tax computed in such amanner as to result, so far as practicable, in an amount substantiallyequivalent to the tax reasonably estimated to be due resulting from theinclusion in the individual's Rhode Island income of his or her prize moneyreceived during the calendar year. The method of determining the amount to bewithheld shall be prescribed by regulations of the tax administrator, whichregulations and amounts shall be based upon the federal rules, regulations andprocedures.

   (b) Every licensee conducting or operating events upon whichpari-mutuel betting is allowed shall deduct and withhold from the winnings ofany person a tax computed in such manner as to result, so far as practicable,in an amount substantially equivalent to the tax reasonably estimated to be dueresulting from the inclusion in the individual's Rhode Island income of his orher winnings received during the calendar year. The method of determining theamount to be withheld shall be prescribed by regulations of the taxadministrator, which regulations and the amounts shall be based upon thefederal rules, regulations and procedures.