Rhode Island 2023 Regular Session

Rhode Island House Bill H6171 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 6171
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7	7	LC002562
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- PERSONAL INCOME TAX -- CAPITAL GAINS
16	16	Introduced By: Representatives Ajello, Kislak, Speakman, Alzate, Potter, and Cruz
17	17	Date Introduced: March 17, 2023
18	18	Referred To: House Finance
19	19
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Sections 44-30-2.6 and 44-30-2.7 of the General Laws in Chapter 44-30 1
23	23	entitled "Personal Income Tax" are hereby amended to read as follows: 2
24	24	44-30-2.6. Rhode Island taxable income — Rate of tax. 3
25	25	(a) “Rhode Island taxable income” means federal taxable income as determined under the 4
26	26	Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-5
27	27	deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax 6
28	28	Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 7
29	29	2001 (EGTRRA), and as modified by the modifications in § 44-30-12. 8
30	30	(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on 9
31	31	or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island 10
32	32	taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five 11
33	33	and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 12
34	34	and thereafter of the federal income tax rates, including capital gains rates and any other special 13
35	35	rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately 14
36	36	prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); 15
37	37	provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable 16
38	38	year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal 17
39	39	Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a 18
40	40	taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or 19
41	41
42	42
43	43	LC002562 - Page 2 of 22
44	44	her personal income tax liability. 1
45	45	(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative 2
46	46	minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island 3
47	47	alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by 4
48	48	multiplying the federal tentative minimum tax without allowing for the increased exemptions under 5
49	49	the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 6
50	50	Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 7
51	51	2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product 8
52	52	to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s 9
53	53	Rhode Island alternative minimum tax. 10
54	54	(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption 11
55	55	amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by 12
56	56	the tax administrator in the manner prescribed for adjustment by the commissioner of Internal 13
57	57	Revenue in 26 U.S.C. § 1(f). 14
58	58	(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode 15
59	59	Island taxable income shall be determined by deducting from federal adjusted gross income as 16
60	60	defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island 17
61	61	itemized-deduction amount and the Rhode Island exemption amount as determined in this section. 18
62	62	(A) Tax imposed. 19
63	63	(1) There is hereby imposed on the taxable income of married individuals filing joint 20
64	64	returns and surviving spouses a tax determined in accordance with the following table: 21
65	65	If taxable income is: The tax is: 22
66	66	Not over $53,150 3.75% of taxable income 23
67	67	Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 24
68	68	Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 25
69	69	Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 26
70	70	Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 27
71	71	(2) There is hereby imposed on the taxable income of every head of household a tax 28
72	72	determined in accordance with the following table: 29
73	73	If taxable income is: The tax is: 30
74	74	Not over $42,650 3.75% of taxable income 31
75	75	Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 32
76	76	Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 33
77	77	Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 34
78	78
79	79
80	80	LC002562 - Page 3 of 22
81	81	Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 1
82	82	(3) There is hereby imposed on the taxable income of unmarried individuals (other than 2
83	83	surviving spouses and heads of households) a tax determined in accordance with the following 3
84	84	table: 4
85	85	If taxable income is: The tax is: 5
86	86	Not over $31,850 3.75% of taxable income 6
87	87	Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 7
88	88	Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 8
89	89	Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 9
90	90	Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 10
91	91	(4) There is hereby imposed on the taxable income of married individuals filing separate 11
92	92	returns and bankruptcy estates a tax deter- mined in accordance with the following table: 12
93	93	If taxable income is: The tax is: 13
94	94	Not over $26,575 3.75% of taxable income 14
95	95	Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 15
96	96	Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 16
97	97	Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 17
98	98	Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 18
99	99	(5) There is hereby imposed a taxable income of an estate or trust a tax determined in 19
100	100	accordance with the following table: 20
101	101	If taxable income is: The tax is: 21
102	102	Not over $2,150 3.75% of taxable income 22
103	103	Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 23
104	104	Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 24
105	105	Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 25
106	106	Over $10,450 $737.50 plus 9.90% of the excess over $10,450 26
107	107	(6) Adjustments for inflation. 27
108	108	The dollars amount contained in paragraph (A) shall be increased by an amount equal to: 28
109	109	(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; 29
110	110	(b) The cost-of-living adjustment determined under section (J) with a base year of 1993; 30
111	111	(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making 31
112	112	adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall 32
113	113	be determined under section (J) by substituting “1994” for “1993.” 33
114	114	(B) Maximum capital gains rates. 34
115	115
116	116
117	117	LC002562 - Page 4 of 22
118	118	(1) In general. 1
119	119	If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax 2
120	120	imposed by this section for such taxable year shall not exceed the sum of: 3
121	121	(a) 2.5% of the net capital gain as reported for federal income tax purposes under section 4
122	122	26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 5
123	123	(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 6
124	124	§ 1(h)(1)(c). 7
125	125	(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 8
126	126	U.S.C. § 1(h)(1)(d). 9
127	127	(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 10
128	128	§ 1(h)(1)(e). 11
129	129	(2) For tax years beginning on or after January 1, 2010 2024, the a tax in addition to the 12
130	130	income tax otherwise imposed shall be imposed on net capital gain gains shall be determined under 13
131	131	in accordance with the provisions of subdivision 44-30-2.6(c)(2)(A) § 44-30-2.7. 14
132	132	(C) Itemized deductions. 15
133	133	(1) In general. 16
134	134	For the purposes of section (2), “itemized deductions” means the amount of federal 17
135	135	itemized deductions as modified by the modifications in § 44-30-12. 18
136	136	(2) Individuals who do not itemize their deductions. 19
137	137	In the case of an individual who does not elect to itemize his deductions for the taxable 20
138	138	year, they may elect to take a standard deduction. 21
139	139	(3) Basic standard deduction. 22
140	140	The Rhode Island standard deduction shall be allowed in accordance with the following 23
141	141	table: 24
142	142	Filing status Amount 25
143	143	Single $5,350 26
144	144	Married filing jointly or qualifying widow(er) $8,900 27
145	145	Married filing separately $4,450 28
146	146	Head of Household $7,850 29
147	147	(4) Additional standard deduction for the aged and blind. 30
148	148	An additional standard deduction shall be allowed for individuals age sixty-five (65) or 31
149	149	older or blind in the amount of $1,300 for individuals who are not married and $1,050 for 32
150	150	individuals who are married. 33
151	151	(5) Limitation on basic standard deduction in the case of certain dependents. 34
152	152
153	153
154	154	LC002562 - Page 5 of 22
155	155	In the case of an individual to whom a deduction under section (E) is allowable to another 1
156	156	taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of: 2
157	157	(a) $850; 3
158	158	(b) The sum of $300 and such individual’s earned income; 4
159	159	(6) Certain individuals not eligible for standard deduction. 5
160	160	In the case of: 6
161	161	(a) A married individual filing a separate return where either spouse itemizes deductions; 7
162	162	(b) Nonresident alien individual; 8
163	163	(c) An estate or trust; 9
164	164	The standard deduction shall be zero. 10
165	165	(7) Adjustments for inflation. 11
166	166	Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount 12
167	167	equal to: 13
168	168	(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied 14
169	169	by 15
170	170	(b) The cost-of-living adjustment determined under section (J) with a base year of 1988. 16
171	171	(D) Overall limitation on itemized deductions. 17
172	172	(1) General rule. 18
173	173	In the case of an individual whose adjusted gross income as modified by § 44-30-12 19
174	174	exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the 20
175	175	taxable year shall be reduced by the lesser of: 21
176	176	(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 22
177	177	over the applicable amount; or 23
178	178	(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for 24
179	179	such taxable year. 25
180	180	(2) Applicable amount. 26
181	181	(a) In general. 27
182	182	For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the 28
183	183	case of a separate return by a married individual) 29
184	184	(b) Adjustments for inflation. 30
185	185	Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: 31
186	186	(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by 32
187	187	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 33
188	188	(3) Phase-out of Limitation. 34
189	189
190	190
191	191	LC002562 - Page 6 of 22
192	192	(a) In general. 1
193	193	In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, 2
194	194	the reduction under section (1) shall be equal to the applicable fraction of the amount which would 3
195	195	be the amount of such reduction. 4
196	196	(b) Applicable fraction. 5
197	197	For purposes of paragraph (a), the applicable fraction shall be determined in accordance 6
198	198	with the following table: 7
199	199	For taxable years beginning in calendar year The applicable fraction is 8
200	200	2006 and 2007 ⅔ 9
201	201	2008 and 2009 ⅓ 10
202	202	(E) Exemption amount. 11
203	203	(1) In general. 12
204	204	Except as otherwise provided in this subsection, the term “exemption amount” means 13
205	205	$3,400. 14
206	206	(2) Exemption amount disallowed in case of certain dependents. 15
207	207	In the case of an individual with respect to whom a deduction under this section is allowable 16
208	208	to another taxpayer for the same taxable year, the exemption amount applicable to such individual 17
209	209	for such individual's taxable year shall be zero. 18
210	210	(3) Adjustments for inflation. 19
211	211	The dollar amount contained in paragraph (1) shall be increased by an amount equal to: 20
212	212	(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by 21
213	213	(b) The cost-of-living adjustment determined under section (J) with a base year of 1989. 22
214	214	(4) Limitation. 23
215	215	(a) In general. 24
216	216	In the case of any taxpayer whose adjusted gross income as modified for the taxable year 25
217	217	exceeds the threshold amount shall be reduced by the applicable percentage. 26
218	218	(b) Applicable percentage. 27
219	219	In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the 28
220	220	threshold amount, the exemption amount shall be reduced by two (2) percentage points for each 29
221	221	$2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 30
222	222	exceeds the threshold amount. In the case of a married individual filing a separate return, the 31
223	223	preceding sentence shall be applied by substituting ‘‘$1,250’’ for ‘‘$2,500.’’ In no event shall the 32
224	224	applicable percentage exceed one hundred percent (100%). 33
225	225	(c) Threshold Amount. 34
226	226
227	227
228	228	LC002562 - Page 7 of 22
229	229	For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with 1
230	230	the following table: 2
231	231	Filing status Amount 3
232	232	Single $156,400 4
233	233	Married filing jointly of qualifying widow(er) $234,600 5
234	234	Married filing separately $117,300 6
235	235	Head of Household $195,500 7
236	236	(d) Adjustments for inflation. 8
237	237	Each dollar amount contained in paragraph (b) shall be increased by an amount equal to: 9
238	238	(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by 10
239	239	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 11
240	240	(5) Phase-out of limitation. 12
241	241	(a) In general. 13
242	242	In the case of taxable years beginning after December 31, 2005, and before January 1, 14
243	243	2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which 15
244	244	would be the amount of such reduction. 16
245	245	(b) Applicable fraction. 17
246	246	For the purposes of paragraph (a), the applicable fraction shall be determined in accordance 18
247	247	with the following table: 19
248	248	For taxable years beginning in calendar year The applicable fraction is 20
249	249	2006 and 2007 ⅔ 21
250	250	2008 and 2009 ⅓ 22
251	251	(F) Alternative minimum tax. 23
252	252	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 24
253	253	subtitle) a tax equal to the excess (if any) of: 25
254	254	(a) The tentative minimum tax for the taxable year, over 26
255	255	(b) The regular tax for the taxable year. 27
256	256	(2) The tentative minimum tax for the taxable year is the sum of: 28
257	257	(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus 29
258	258	(b) 7.0 percent of so much of the taxable excess above $175,000. 30
259	259	(3) The amount determined under the preceding sentence shall be reduced by the alternative 31
260	260	minimum tax foreign tax credit for the taxable year. 32
261	261	(4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so 33
262	262	much of the federal alternative minimum taxable income as modified by the modifications in § 44-34
263	263
264	264
265	265	LC002562 - Page 8 of 22
266	266	30-12 as exceeds the exemption amount. 1
267	267	(5) In the case of a married individual filing a separate return, subparagraph (2) shall be 2
268	268	applied by substituting “$87,500” for $175,000 each place it appears. 3
269	269	(6) Exemption amount. 4
270	270	For purposes of this section "exemption amount" means: 5
271	271	Filing status Amount 6
272	272	Single $39,150 7
273	273	Married filing jointly or qualifying widow(er) $53,700 8
274	274	Married filing separately $26,850 9
275	275	Head of Household $39,150 10
276	276	Estate or trust $24,650 11
277	277	(7) Treatment of unearned income of minor children 12
278	278	(a) In general. 13
279	279	In the case of a minor child, the exemption amount for purposes of section (6) shall not 14
280	280	exceed the sum of: 15
281	281	(i) Such child's earned income, plus 16
282	282	(ii) $6,000. 17
283	283	(8) Adjustments for inflation. 18
284	284	The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount 19
285	285	equal to: 20
286	286	(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by 21
287	287	(b) The cost-of-living adjustment determined under section (J) with a base year of 2004. 22
288	288	(9) Phase-out. 23
289	289	(a) In general. 24
290	290	The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount 25
291	291	equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income 26
292	292	of the taxpayer exceeds the threshold amount. 27
293	293	(b) Threshold amount. 28
294	294	For purposes of this paragraph, the term “threshold amount” shall be determined with the 29
295	295	following table: 30
296	296	Filing status Amount 31
297	297	Single $123,250 32
298	298	Married filing jointly or qualifying widow(er) $164,350 33
299	299	Married filing separately $82,175 34
300	300
301	301
302	302	LC002562 - Page 9 of 22
303	303	Head of Household $123,250 1
304	304	Estate or Trust $82,150 2
305	305	(c) Adjustments for inflation 3
306	306	Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: 4
307	307	(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by 5
308	308	(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. 6
309	309	(G) Other Rhode Island taxes. 7
310	310	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 8
311	311	subtitle) a tax equal to twenty-five percent (25%) of: 9
312	312	(a) The Federal income tax on lump-sum distributions. 10
313	313	(b) The Federal income tax on parents' election to report child's interest and dividends. 11
314	314	(c) The recapture of Federal tax credits that were previously claimed on Rhode Island 12
315	315	return. 13
316	316	(H) Tax for children under 18 with investment income. 14
317	317	(1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of: 15
318	318	(a) The Federal tax for children under the age of 18 with investment income. 16
319	319	(I) Averaging of farm income. 17
320	320	(1) General rule. At the election of an individual engaged in a farming business or fishing 18
321	321	business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: 19
322	322	(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 20
323	323	1301]. 21
324	324	(J) Cost-of-living adjustment. 22
325	325	(1) In general. 23
326	326	The cost-of-living adjustment for any calendar year is the percentage (if any) by which: 24
327	327	(a) The CPI for the preceding calendar year exceeds 25
328	328	(b) The CPI for the base year. 26
329	329	(2) CPI for any calendar year. 27
330	330	For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer 28
331	331	price index as of the close of the twelve (12) month period ending on August 31 of such calendar 29
332	332	year. 30
333	333	(3) Consumer price index. 31
334	334	For purposes of paragraph (2), the term “consumer price index” means the last consumer 32
335	335	price index for all urban consumers published by the department of labor. For purposes of the 33
336	336	preceding sentence, the revision of the consumer price index that is most consistent with the 34
337	337
338	338
339	339	LC002562 - Page 10 of 22
340	340	consumer price index for calendar year 1986 shall be used. 1
341	341	(4) Rounding. 2
342	342	(a) In general. 3
343	343	If any increase determined under paragraph (1) is not a multiple of $50, such increase shall 4
344	344	be rounded to the next lowest multiple of $50. 5
345	345	(b) In the case of a married individual filing a separate return, subparagraph (a) shall be 6
346	346	applied by substituting “$25” for $50 each place it appears. 7
347	347	(K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer 8
348	348	entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to 9
349	349	a credit against the Rhode Island tax imposed under this section: 10
350	350	(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.] 11
351	351	(2) Child and dependent care credit; 12
352	352	(3) General business credits; 13
353	353	(4) Credit for elderly or the disabled; 14
354	354	(5) Credit for prior year minimum tax; 15
355	355	(6) Mortgage interest credit; 16
356	356	(7) Empowerment zone employment credit; 17
357	357	(8) Qualified electric vehicle credit. 18
358	358	(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, 19
359	359	a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island 20
360	360	tax imposed under this section if the adopted child was under the care, custody, or supervision of 21
361	361	the Rhode Island department of children, youth and families prior to the adoption. 22
362	362	(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits 23
363	363	provided there shall be no deduction based on any federal credits enacted after January 1, 1996, 24
364	364	including the rate reduction credit provided by the federal Economic Growth and Tax 25
365	365	Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be 26
366	366	reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax 27
367	367	purposes shall determine the Rhode Island amount to be recaptured in the same manner as 28
368	368	prescribed in this subsection. 29
369	369	(N) Rhode Island earned-income credit. 30
370	370	(1) In general. 31
371	371	For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-32
372	372	income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent 33
373	373	(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode 34
374	374
375	375
376	376	LC002562 - Page 11 of 22
377	377	Island income tax. 1
378	378	For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer 2
379	379	entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit 3
380	380	equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the 4
381	381	amount of the Rhode Island income tax. 5
382	382	For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-6
383	383	income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half 7
384	384	percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the 8
385	385	Rhode Island income tax. 9
386	386	For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-10
387	387	income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) 11
388	388	of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 12
389	389	income tax. 13
390	390	(2) Refundable portion. 14
391	391	In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this 15
392	392	section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall 16
393	393	be allowed as follows. 17
394	394	(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable 18
395	395	earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-19
396	396	income credit exceeds the Rhode Island income tax. 20
397	397	(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) 21
398	398	refundable earned-income credit means one hundred percent (100%) of the amount by which the 22
399	399	Rhode Island earned-income credit exceeds the Rhode Island income tax. 23
400	400	(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs 24
401	401	(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years 25
402	402	thereafter for inclusion in the statute. 26
403	403	(3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode 27
404	404	Island taxable income” means federal adjusted gross income as determined under the Internal 28
405	405	Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-29
406	406	30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 30
407	407	44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 31
408	408	44-30-2.6(c)(3)(C). 32
409	409	(A) Tax imposed. 33
410	410	(I) There is hereby imposed on the taxable income of married individuals filing joint 34
411	411
412	412
413	413	LC002562 - Page 12 of 22
414	414	returns, qualifying widow(er), every head of household, unmarried individuals, married individuals 1
415	415	filing separate returns and bankruptcy estates, a tax determined in accordance with the following 2
416	416	table: 3
417	417	RI Taxable Income RI Income Tax 4
418	418	Over But not over Pay + % on Excess on the amount over 5
419	419	$ 0 - $ 55,000 $ 0 + 3.75% $ 0 6
420	420	55,000 - 125,000 2,063 + 4.75% 55,000 7
421	421	125,000 - 5,388 + 5.99% 125,000 8
422	422	(II) There is hereby imposed on the taxable income of an estate or trust a tax determined in 9
423	423	accordance with the following table: 10
424	424	RI Taxable Income RI Income Tax 11
425	425	Over But not over Pay + % on Excess on the amount over 12
426	426	$ 0 - $ 2,230 $ 0 + 3.75% $ 0 13
427	427	2,230 - 7,022 84 + 4.75% 2,230 14
428	428	7,022 - 312 + 5.99% 7,022 15
429	429	(B) Deductions: 16
430	430	(I) Rhode Island Basic Standard Deduction. 17
431	431	Only the Rhode Island standard deduction shall be allowed in accordance with the 18
432	432	following table: 19
433	433	Filing status: Amount 20
434	434	Single $7,500 21
435	435	Married filing jointly or qualifying widow(er) $15,000 22
436	436	Married filing separately $7,500 23
437	437	Head of Household $11,250 24
438	438	(II) Nonresident alien individuals, estates and trusts are not eligible for standard 25
439	439	deductions. 26
440	440	(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 27
441	441	purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 28
442	442	dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. 29
443	443	The term “applicable percentage” means twenty (20) percentage points for each five thousand 30
444	444	dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable 31
445	445	year exceeds one hundred seventy-five thousand dollars ($175,000). 32
446	446	(C) Exemption Amount: 33
447	447	(I) The term “exemption amount” means three thousand five hundred dollars ($3,500) 34
448	448
449	449
450	450	LC002562 - Page 13 of 22
451	451	multiplied by the number of exemptions allowed for the taxable year for federal income tax 1
452	452	purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same 2
453	453	as it does in 26 U.S.C. § 151 and 26 U.S.C. § 152 just prior to the enactment of the Tax Cuts and 3
454	454	Jobs Act (Pub. L. No. 115-97) on December 22, 2017. 4
455	455	(II) Exemption amount disallowed in case of certain dependents. In the case of an 5
456	456	individual with respect to whom a deduction under this section is allowable to another taxpayer for 6
457	457	the same taxable year, the exemption amount applicable to such individual for such individua l’s 7
458	458	taxable year shall be zero. 8
459	459	(III) Identifying information required. 9
460	460	(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be 10
461	461	allowed under this section with respect to any individual unless the Taxpayer Identification Number 11
462	462	of such individual is included on the federal return claiming the exemption for the same tax filing 12
463	463	period. 13
464	464	(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event 14
465	465	that the Taxpayer Identification Number for each individual is not required to be included on the 15
466	466	federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer 16
467	467	Identification Number must be provided on the Rhode Island tax return for the purpose of claiming 17
468	468	said exemption(s). 18
469	469	(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 19
470	470	purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 20
471	471	dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term 21
472	472	“applicable percentage” means twenty (20) percentage points for each five thousand dollars 22
473	473	($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 23
474	474	exceeds one hundred seventy-five thousand dollars ($175,000). 24
475	475	(E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-25
476	476	2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount 26
477	477	equal to: 27
478	478	(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) 28
479	479	and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by; 29
480	480	(II) The cost-of-living adjustment with a base year of 2000. 30
481	481	(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is 31
482	482	the percentage (if any) by which the consumer price index for the preceding calendar year exceeds 32
483	483	the consumer price index for the base year. The consumer price index for any calendar year is the 33
484	484	average of the consumer price index as of the close of the twelve-month (12) period ending on 34
485	485
486	486
487	487	LC002562 - Page 14 of 22
488	488	August 31, of such calendar year. 1
489	489	(IV) For the purpose of this section the term “consumer price index” means the last 2
490	490	consumer price index for all urban consumers published by the department of labor. For the purpose 3
491	491	of this section the revision of the consumer price index that is most consistent with the consumer 4
492	492	price index for calendar year 1986 shall be used. 5
493	493	(V) If any increase determined under this section is not a multiple of fifty dollars ($50.00), 6
494	494	such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a 7
495	495	married individual filing separate return, if any increase determined under this section is not a 8
496	496	multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple 9
497	497	of twenty-five dollars ($25.00). 10
498	498	(F) Credits against tax. 11
499	499	(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on 12
500	500	or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be 13
501	501	as follows: 14
502	502	(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit 15
503	503	pursuant to subparagraph 44-30-2.6(c)(2)(N). 16
504	504	(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided 17
505	505	in § 44-33-1 et seq. 18
506	506	(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax 19
507	507	credit as provided in § 44-30.3-1 et seq. 20
508	508	(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to 21
509	509	other states pursuant to § 44-30-74. 22
510	510	(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit 23
511	511	as provided in § 44-33.2-1 et seq. 24
512	512	(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture 25
513	513	production tax credit as provided in § 44-31.2-1 et seq. 26
514	514	(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of 27
515	515	the federal child and dependent care credit allowable for the taxable year for federal purposes; 28
516	516	provided, however, such credit shall not exceed the Rhode Island tax liability. 29
517	517	(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for 30
518	518	contributions to scholarship organizations as provided in chapter 62 of title 44. 31
519	519	(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable 32
520	520	as if no withholding were required, but any amount of Rhode Island personal income tax actually 33
521	521	deducted and withheld in any calendar year shall be deemed to have been paid to the tax 34
522	522
523	523
524	524	LC002562 - Page 15 of 22
525	525	administrator on behalf of the person from whom withheld, and the person shall be credited with 1
526	526	having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable 2
527	527	year of less than twelve (12) months, the credit shall be made under regulations of the tax 3
528	528	administrator. 4
529	529	(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in 5
530	530	RI wavemaker fellowship program as provided in § 42-64.26-1 et seq. 6
531	531	(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in 7
532	532	§ 42-64.20-1 et seq. 8
533	533	(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode 9
534	534	Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq. 10
535	535	(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter, 11
536	536	unused carryforward for such credit previously issued shall be allowed for the historic 12
537	537	homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already 13
538	538	issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits 14
539	539	under the historic homeownership assistance act. 15
540	540	(2) Except as provided in section 1 above, no other state and federal tax credit shall be 16
541	541	available to the taxpayers in computing tax liability under this chapter. 17
542	542	44-30-2.7. Capital gains rates for assets held more than five (5) years. Capital gains 18
543	543	rates for assets held more than one year. 19
544	544	(a) All capital assets purchased prior to January 1, 2002 and sold on or after January 1, 20
545	545	2007 the effective date of this section, shall be deemed to have a holding period beginning January 21
546	546	1, 2002 greater than one year. For tax years beginning in 2007 and ending prior to January 1, 2010 22
547	547	2024, the capital gains rate for assets held more than five (5) years one year shall be as follows: 23
548	548	(i) 0.83% 0.00% of the net capital gain as reported for federal income tax purposes under 24
549	549	26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 25
550	550	(ii) 1.67% 0.00% of the net capital gain as reported for federal income tax purposes under 26
551	551	26 U.S.C. § 1(h)(1)(c). 27
552	552	(iii) 2.08% two percent (2.0%) of the net capital gain as reported for federal income tax 28
553	553	purposes under 26 U.S.C. § 1(h)(1)(d). 29
554	554	(iv) 2.33% two percent (2.0%) of the net capital gain as reported for federal income tax 30
555	555	purposes under 26 U.S.C. § 1(h)(1)(e). 31
556	556	SECTION 2. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby 32
557	557	amended by adding thereto the following section: 33
558	558	44-30-2.7.1. Capital gains rates for investment management services interest. 34
559	559
560	560
561	561	LC002562 - Page 16 of 22
562	562	(a) For purposes of this section: 1
563	563	(1) "Investment management services" means providing a substantial quantity of any of 2
564	564	the following services, directly or indirectly, to a partnership, S corporation or any type of business 3
565	565	entity: 4
566	566	(i) Advising the partnership, S corporation, or business entity as to the advisability of 5
567	567	investing in, purchasing, or selling any specified asset; 6
568	568	(ii) Managing, acquiring, or disposing of any specified asset; 7
569	569	(iii) Arranging financing with respect to acquiring specified assets; or 8
570	570	(iv) Any activity in support of any service described in this section. 9
571	571	(2) "Specified asset" means securities (as defined in 26 U.S.C. §1061(c)(3) of the Internal 10
572	572	Revenue Code, as amended), real estate held for rental or investment, interests in partnerships, 11
573	573	commodities (as defined in 26 U.S.C. §1061(e)(2) of the Internal Revenue Code, as amended), or 12
574	574	options or derivative contracts with respect to any of the foregoing. 13
575	575	(b) Income from investment management services shall be subject to a nineteen percent 14
576	576	(19%) "carried interest fairness fee" payable to the State of Rhode Island until such time as the 15
577	577	department of revenue has notified the general assembly that the United States Congress has passed 16
578	578	and the President of the United States has signed legislation having an identical effect with this 17
579	579	section applicable to such income earned in all of the states and territories. 18
580	580	(c) A partner or shareholder shall not be deemed to be providing investment management 19
581	581	services if at least eighty percent (80%) of the average fair market value of the specified assets of 20
582	582	the partnership, S corporation or other business entity during the taxable year consists of real estate. 21
583	583	(d) This section shall take effect upon enactment by the states of Connecticut, New Jersey 22
584	584	and Massachusetts of legislation having an identical effect with this section. If the states of 23
585	585	Connecticut, New Jersey and Massachusetts shall have already enacted such legislation, this section 24
586	586	shall take effect upon passage; provided that, the department of revenue shall notify the general 25
587	587	assembly of the enactment of such legislation by the states of Connecticut, New Jersey and 26
588	588	Massachusetts in furtherance of effectuating the provisions of this section. 27
589	589	SECTION 3. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 28
590	590	adding thereto the following chapter: 29
591	591	CHAPTER 71 30
592	592	THE NON-OWNER OCCUPIED PROPERTY TAX 31
593	593	44-71-1. Short title. 32
594	594	This chapter shall be known and may be cited as the "Non-Owner Occupied Property Tax". 33
595	595	44-71-2. Purpose. 34
596	596
597	597
598	598	LC002562 - Page 17 of 22
599	599	(a) The state funds cities and towns pursuant to chapter 13 of title 45. 1
600	600	(b) There is a compelling state interest in protecting the tax base of its cities and towns. 2
601	601	(c) There are numerous non-owner occupied residential properties throughout the cities 3
602	602	and towns of Rhode Island assessed at values over one million dollars ($1,000,000). 4
603	603	(d) The existence of such properties within a city or town has an impact on the value of 5
604	604	real property within the cities and towns and the tax base within these cities and towns. 6
605	605	(e) Non-owner occupied properties sometimes place a greater demand on essential state, 7
606	606	city or town services such as police and fire protection than do occupied properties comparably 8
607	607	assessed for real estate tax purposes. 9
608	608	(f) The residents of non-owner occupied properties are not vested with a motive to maintain 10
609	609	such properties. 11
610	610	(g) The owners of non-owner occupied properties do not always contribute a fair share of 12
611	611	the costs of providing the foregoing essential state, city or town services financed in part by real 13
612	612	estate tax revenues, which revenues are solely based on the assessed value of properties. 14
613	613	(h) Some properties are deliberately left vacant by their owners in the hope that real estate 15
614	614	values will increase, thereby enabling the owners to sell these properties at a substantial profit 16
615	615	without making any of the necessary repairs or improvements to the property. 17
616	616	(i) The non-owner occupation of such property whether for profit speculation, tax benefit, 18
617	617	or any other purposes is the making use of that property and as such, is a privilege incident to the 19
618	618	ownership of the property. 20
619	619	(j) Owners of non-owner occupied properties must be encouraged to use the properties in 21
620	620	a positive manner to stop the spread of deterioration, to increase the stock of viable real estate 22
621	621	within a city or town, and to maintain real estate values within communities. 23
622	622	(k) Owners of non-owner occupied properties must be required, through a state’s power to 24
623	623	tax, to pay a fair share of the cost of providing certain essential state services to protect the public 25
624	624	health, safety, and welfare. 26
625	625	(l) For all of the reasons stated within this section, the purpose of this chapter is to impose 27
626	626	a statewide tax upon non-owner occupied residential property assessed at a value of one million 28
627	627	dollars ($1,000,000) or more. 29
628	628	44-71-3. Definitions. 30
629	629	The following words and phrases as used in this chapter have the following meanings: 31
630	630	(1) “Administrator” means the tax administrator within the department of revenue. 32
631	631	(2) “Assessed value” means the assessed value of the real estate as returned by the tax 33
632	632	assessor of the city or town where the property is located. 34
633	633
634	634
635	635	LC002562 - Page 18 of 22
636	636	(3) “Non-owner occupied” means that the residential property is not occupied by the owner 1
637	637	of the property for a majority of the privilege year. A seasonal or vacation occupancy is deemed 2
638	638	non-owner occupied residency for the purposes of this chapter. 3
639	639	(4) “Non-owner occupied tax” means the assessment imposed upon the non-owner 4
640	640	occupied residential property assessed at one million dollars ($1,000,000) or more pursuant to this 5
641	641	chapter. 6
642	642	(5) “Person” means any individual, corporation, company, association, partnership, joint 7
643	643	stock association, and the legal successor thereof or any other entity or group organization against 8
644	644	which a tax may be assessed. 9
645	645	(6) “Taxable year” means July 1 through June 30. 10
646	646	44-71-4. Imposition of tax. 11
647	647	The tax administrator is empowered to impose a tax upon the privilege of utilizing property 12
648	648	as non-owner occupied residential property within the state during any privilege year commencing 13
649	649	with the privilege year beginning July 1, 2023 and every tax year thereafter. The non-owner 14
650	650	occupied tax shall be in addition to any other taxes authorized by the general or public laws. 15
651	651	44-71-5. Exemptions. 16
652	652	This act does not supersede any applicable exemption in the general or public laws; 17
653	653	provided, however, that the tax administrator shall be provided with the alleged basis for that 18
654	654	exemption in writing and may reject said alleged exemption if he/she deems said exemption is not 19
655	655	applicable. 20
656	656	44-71-6. Rate of tax. 21
657	657	The tax authorized by this chapter shall be measured by the assessed value of the real estate: 22
658	658	(1) At the rate of five dollars ($5.00) for each one thousand dollars ($1,000) or fractional 23
659	659	part of the assessed value on properties worth at least one million dollars ($1,000,000) but less than 24
660	660	two million dollars ($2,000,000); 25
661	661	(2) At the rate of six dollars ($6.00) for each one thousand dollars ($1,000) or fractional 26
662	662	part of the assessed value on properties worth at least two million dollars ($2,000,000). 27
663	663	44-71-7. Returns. 28
664	664	(a) The tax imposed by this chapter shall be due and payable in four (4) equal installments. 29
665	665	The first installment shall be paid on or before September 15 of the taxable year, the second 30
666	666	installment shall be paid on or before December 15 of the taxable year, the third installment shall 31
667	667	be paid on or before March 15 of the taxable year, and fourth installment shall be paid on or before 32
668	668	June 15 of the taxable year. 33
669	669	(b) The tax administrator is authorized to adopt rules, pursuant to this chapter, relative to 34
670	670
671	671
672	672	LC002562 - Page 19 of 22
673	673	the form of the return and the data that it shall contain for the correct computation of the imposed 1
674	674	tax. All returns shall be signed by the taxpayer or by its authorized representative, subject to the 2
675	675	pains and penalties of perjury. If a return shows an overpayment of the tax due, the tax administrator 3
676	676	shall refund or credit the overpayment to the taxpayer. 4
677	677	(c) The tax administrator, for good cause shown, may extend the time within which a 5
678	678	taxpayer is required to file a return. If the return is filed during the period of extension, no penalty 6
679	679	or late filing charge shall be imposed for failure to file the return at the time required by this chapter; 7
680	680	however, the taxpayer shall be liable for interest as prescribed in this chapter. Failure to file the 8
681	681	return during the period for the extension shall void the extension. 9
682	682	44-71-8. Set-off for delinquent payment of tax. 10
683	683	If a taxpayer shall fail to pay a tax within thirty (30) days of its due date, the tax 11
684	684	administrator may request any agency of state government making payments to the taxpayer to set-12
685	685	off the amount of the delinquency against any payment due the taxpayer from the agency of state 13
686	686	government and remit the sum to the tax administrator. Upon receipt of the set-off request from the 14
687	687	tax administrator, any agency of state government is authorized and empowered to set-off the 15
688	688	amount of the delinquency against any payment or amounts due the taxpayer. The amount of set-16
689	689	off shall be credited against the tax due from the taxpayer. 17
690	690	44-71-9. Tax on available information – Interest on delinquencies – Penalties – 18
691	691	Collection powers. 19
692	692	If any taxpayer shall fail to file a return within the time required by this chapter, or shall 20
693	693	file an insufficient or incorrect return, or shall not pay the tax imposed by this chapter when it is 21
694	694	due, the tax administrator shall assess the tax upon the information as may be available, which shall 22
695	695	be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7, from the 23
696	696	date when the tax should have been paid. If any part of the tax not paid is due to negligence or 24
697	697	intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount 25
698	698	of the determination shall be added to the tax. The tax administrator shall collect the tax with 26
699	699	interest in the same manner and with the same powers as are prescribed for collection of taxes in 27
700	700	this title. 28
701	701	44-71-10. Claims for refund – Hearing upon denial. 29
702	702	(a) Any taxpayer subject to the provisions of this chapter, may file a claim for refund with 30
703	703	the tax administrator at any time within two (2) years after the tax has been paid. If the tax 31
704	704	administrator determines that the tax has been overpaid, he or she shall make a refund with interest 32
705	705	from the date of overpayment. 33
706	706	(b) Any taxpayer whose claim for refund has been denied may, within thirty (30) days from 34
707	707
708	708
709	709	LC002562 - Page 20 of 22
710	710	the date of the mailing by the administrator of the notice of the decision, request a hearing and the 1
711	711	administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the 2
712	712	taxpayer. 3
713	713	44-71-11. Hearing by tax administrator on application. 4
714	714	Any taxpayer aggrieved by the action of the tax administrator in determining the amount 5
715	715	of any tax or penalty imposed under the provisions of this chapter may apply to the tax 6
716	716	administrator, within thirty (30) days after the notice of the action is mailed to the taxpayer, for a 7
717	717	hearing relative to the tax or penalty. The tax administrator shall fix a time and place for the hearing 8
718	718	and shall so notify the taxpayer. Upon the hearing, the tax administrator shall correct manifest 9
719	719	errors, if any, disclosed at the hearing and thereupon assess and collect the amount lawfully due 10
720	720	together with any penalty or interest thereon. 11
721	721	44-71-12. Appeals. 12
722	722	(a) In any appeal from the imposition of the tax set forth in this chapter, the tax 13
723	723	administrator shall find in favor of an appellant who shows that the property assessed: 14
724	724	(1) Was actively occupied by the owner during the privilege year for more than six (6) 15
725	725	months; or 16
726	726	(2) Was exempt pursuant to the general laws or public laws from the imposition of the tax 17
727	727	set forth in this chapter. 18
728	728	(b) Appeals from administrative orders or decisions made pursuant to any provisions of 19
729	729	this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s 20
730	730	right to appeal under this section shall be expressly made conditional upon prepayment of all 21
731	731	surcharges, interest, and penalties unless the taxpayer moves for and is granted an exemption from 22
732	732	the prepayment requirement pursuant to § 8-8-26. If the court, after appeal, holds that the taxpayer 23
733	733	is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in 24
734	734	§ 44-1-7.1. 25
735	735	44-71-13. Taxpayer records. 26
736	736	Every taxpayer shall: 27
737	737	(1) Keep records as may be necessary to determine the amount of its liability under this 28
738	738	chapter, including, but not limited to: rental agreements, payments for rent, bank statements for 29
739	739	payment of residential expenses, utility bills, and any other records establishing residency or non-30
740	740	residency. 31
741	741	(2) Preserve those records for the period of three (3) years following the date of filing of 32
742	742	any return required by this chapter, or until any litigation or prosecution under this chapter is finally 33
743	743	determined. 34
744	744
745	745
746	746	LC002562 - Page 21 of 22
747	747	(3) Make those records available for inspection by the administrator or his/her authorized 1
748	748	agents, upon demand, at reasonable times during regular business hours. 2
749	749	44-71-14. Rules and regulations. 3
750	750	The tax administrator is authorized to make and promulgate rules, regulations, and 4
751	751	procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for 5
752	752	the proper administration of this chapter and to carry out the provisions, policies, and purposes of 6
753	753	this chapter. 7
754	754	44-71-15. Severability. 8
755	755	If any provision of this chapter or the application of this chapter to any person or 9
756	756	circumstances is held invalid, that invalidity shall not affect other provisions or applications of the 10
757	757	chapter that can be given effect without the invalid provision or application, and to this end the 11
758	758	provisions of this chapter are declared to be severable. It is declared to be the legislative intent that 12
759	759	this chapter would have been adopted had those provisions not been included or that person, 13
760	760	circumstance, or time period been expressly excluded from its coverage. 14
761	761	SECTION 4. All sections of this act, except for Section 2, shall take effect on January 1, 15
762	762	2024, and Section 2 shall take effect on July 1, 2023. 16
763	763	========
764	764	LC002562
765	765	========
766	766
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768	768	LC002562 - Page 22 of 22
769	769	EXPLANATION
770	770	BY THE LEGISLATIVE COUNCIL
771	771	OF
772	772	A N A C T
773	773	RELATING TO TAXATION -- PERSONAL INCOME TAX -- CAPITAL GAINS
774	774	***
775	775	This act would change the capital gain tax rates and reduce the holding period of assets 1
776	776	from five (5) years to one year. This act would also impose capital gains tax rates for investment 2
777	777	management services interest as well as a non-owner occupied property tax on residential properties 3
778	778	assessed in excess of one million dollars ($1,000,000). 4
779	779	All Sections of this act, except for Section 2, would take effect on January 1, 2024, and 5
780	780	Section 2 would take effect on July 1, 2023. 6
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782	782	LC002562
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