Rhode Island 2024 Regular Session

Rhode Island Senate Bill S2067

Introduced
1/12/24  

Caption

Amends modifications to income tax for residents to now include an exemption for a foreign service officer's pension.

Impact

The enactment of S2067 would result in a notable alteration in how Rhode Island calculates taxable income for certain residents, thereby affecting state revenue. It specifically targets a demographic of public servants, enhancing the appeal of Rhode Island as a place of residence for foreign service officers, who may be deterred by state taxation on their pensions. By excluding these pension incomes, the bill not only provides financial relief but also promotes retention and attraction of skilled workers in government sectors.

Summary

Bill S2067, introduced by Senator V. Susan Sosnowski, aims to amend Rhode Island's personal income tax laws by providing an exemption for pension benefits received by foreign service officers. The bill proposes that these pensions, which are typically included in the federal adjusted gross income, be subtracted from the state tax liability starting from tax years beginning on January 1, 2025. This change reflects a growing recognition of service individuals and their unique circumstances after serving abroad, potentially aiding in their financial stability during retirement.

Contention

Despite its potential benefits, the bill may encounter opposition regarding fiscal implications. Critics could argue that the state cannot afford to lose further tax revenue amidst budgetary constraints. Furthermore, there may be concerns about fairness, as this tax exemption solely applies to foreign service officers, which could lead to viewpoints that question the equity of differentiating between public servants. The legislative debate may focus on evaluating the balance between supporting public service members and maintaining a robust state tax system.

Companion Bills

No companion bills found.

Previously Filed As

RI H6107

Residential Renewable Energy System Tax Credit

RI H5624

Personal Income Tax

RI H5807

Personal Income Tax

RI H5393

Personal Income Tax

RI S0084

Personal Income Tax

RI H5468

Personal Income Tax

RI S0021

Personal Income Tax

RI H5145

Personal Income Tax

RI S0246

Personal Income Tax

RI S0529

Personal Income Tax

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