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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- H 5806 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000235 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO TAXATION -- PERSONAL INCOME TAX |
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| 16 | 16 | | Introduced By: Representatives Casey, Newberry, J. Brien, Phillips, Costantino, P. |
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| 17 | 17 | | Morgan, Place, Solomon, and O'Brien |
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| 18 | 18 | | Date Introduced: February 22, 2023 |
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| 19 | 19 | | Referred To: House Finance |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby 1 |
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| 24 | 24 | | amended by adding thereto the following section: 2 |
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| 25 | 25 | | 44-30-12.1. Out-of-state pension benefits. 3 |
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| 26 | 26 | | (a) A resident of the State of Rhode Island who collects a pension that originates in another 4 |
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| 27 | 27 | | state which collects income tax, may have that portion of their pension to which they contributed, 5 |
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| 28 | 28 | | and said contribution having been already taxed by the state in which it was earned, exempted from 6 |
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| 29 | 29 | | any income tax imposed in Rhode Island; provided, the taxpayer, or the taxpayer's surviving spouse 7 |
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| 30 | 30 | | as provided in subsection (b) of this section, furnishes to the division of taxation a statement, on 8 |
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| 31 | 31 | | letterhead of the state institution to which said contributions were made, of the total contributions 9 |
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| 32 | 32 | | made by the taxpayer to their pension. The exemption shall be credited against the total amount 10 |
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| 33 | 33 | | contributed by the taxpayer until the total amount of the taxpayer's pension contribution has been 11 |
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| 34 | 34 | | reached. 12 |
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| 35 | 35 | | (b) In the event of the taxpayer's death, the exemption shall cease; provided, however, if a 13 |
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| 36 | 36 | | taxpayer's surviving spouse receives a reduced amount of the deceased taxpayer's pension, then in 14 |
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| 37 | 37 | | such event, the surviving spouse shall be eligible to receive the exemption. The exemption shall 15 |
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| 38 | 38 | | terminate upon the earlier of: 16 |
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| 39 | 39 | | (1) The death of the surviving spouse; or 17 |
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| 40 | 40 | | (2) The limit of the total pension contributions made by the deceased taxpayer has been 18 |
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| 41 | 41 | | reached. 19 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC000235 - Page 2 of 3 |
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| 45 | 45 | | (c) The exemption contained in this section shall only occur if the taxpayer has not used 1 |
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| 46 | 46 | | the exemption when residing in another state. 2 |
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| 47 | 47 | | SECTION 2. This act shall take effect upon passage. 3 |
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| 48 | 48 | | ======== |
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| 49 | 49 | | LC000235 |
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| 50 | 50 | | ======== |
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| 51 | 51 | | |
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| 52 | 52 | | |
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| 53 | 53 | | LC000235 - Page 3 of 3 |
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| 54 | 54 | | EXPLANATION |
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| 55 | 55 | | BY THE LEGISLATIVE COUNCIL |
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| 56 | 56 | | OF |
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| 57 | 57 | | A N A C T |
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| 58 | 58 | | RELATING TO TAXATION -- PERSONAL INCOME TAX |
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| 59 | 59 | | *** |
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| 60 | 60 | | This act would exempt Rhode Island residents and their surviving spouse from state 1 |
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| 61 | 61 | | taxation of certain pension benefits that originate from, and were taxed in another state up to the 2 |
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| 62 | 62 | | amount of the total pension contributions made by the deceased taxpayer. 3 |
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| 63 | 63 | | This act would take effect upon passage. 4 |
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| 64 | 64 | | ======== |
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| 65 | 65 | | LC000235 |
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| 66 | 66 | | ======== |
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