2023 -- H 5806
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LC000235
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO TAXATION -- PERSONAL INCOME TAX
Introduced By: Representatives Casey, Newberry, J. Brien, Phillips, Costantino, P.
Morgan, Place, Solomon, and O'Brien
Date Introduced: February 22, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby 1
amended by adding thereto the following section: 2
44-30-12.1. Out-of-state pension benefits. 3
(a) A resident of the State of Rhode Island who collects a pension that originates in another 4
state which collects income tax, may have that portion of their pension to which they contributed, 5
and said contribution having been already taxed by the state in which it was earned, exempted from 6
any income tax imposed in Rhode Island; provided, the taxpayer, or the taxpayer's surviving spouse 7
as provided in subsection (b) of this section, furnishes to the division of taxation a statement, on 8
letterhead of the state institution to which said contributions were made, of the total contributions 9
made by the taxpayer to their pension. The exemption shall be credited against the total amount 10
contributed by the taxpayer until the total amount of the taxpayer's pension contribution has been 11
reached. 12
(b) In the event of the taxpayer's death, the exemption shall cease; provided, however, if a 13
taxpayer's surviving spouse receives a reduced amount of the deceased taxpayer's pension, then in 14
such event, the surviving spouse shall be eligible to receive the exemption. The exemption shall 15
terminate upon the earlier of: 16
(1) The death of the surviving spouse; or 17
(2) The limit of the total pension contributions made by the deceased taxpayer has been 18
reached. 19
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(c) The exemption contained in this section shall only occur if the taxpayer has not used 1
the exemption when residing in another state. 2
SECTION 2. This act shall take effect upon passage. 3
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LC000235
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LC000235 - Page 3 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- PERSONAL INCOME TAX
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This act would exempt Rhode Island residents and their surviving spouse from state 1
taxation of certain pension benefits that originate from, and were taxed in another state up to the 2
amount of the total pension contributions made by the deceased taxpayer. 3
This act would take effect upon passage. 4
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LC000235
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