Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0233 Compare Versions

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

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5	5	2023 -- S 0233
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7	7	LC001013
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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: Senators Kallman, Cano, Acosta, Miller, Valverde, Lauria, Bell, and
17	17	Mack
18	18	Date Introduced: February 16, 2023
19	19	Referred To: Senate Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Sections 44-30-2.6 and 44-30-2.7 of the General Laws in Chapter 44-30 1
24	24	entitled "Personal Income Tax" are hereby amended to read as follows: 2
25	25	44-30-2.6. Rhode Island taxable income — Rate of tax. 3
26	26	(a) “Rhode Island taxable income” means federal taxable income as determined under the 4
27	27	Internal Revenue Code, 26 U.S.C. § 1 et seq., not including the increase in the basic, standard-5
28	28	deduction amount for married couples filing joint returns as provided in the Jobs and Growth Tax 6
29	29	Relief Reconciliation Act of 2003 and the Economic Growth and Tax Relief Reconciliation Act of 7
30	30	2001 (EGTRRA), and as modified by the modifications in § 44-30-12. 8
31	31	(b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on 9
32	32	or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island 10
33	33	taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-five 11
34	34	and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year 2002 12
35	35	and thereafter of the federal income tax rates, including capital gains rates and any other special 13
36	36	rates for other types of income, except as provided in § 44-30-2.7, which were in effect immediately 14
37	37	prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); 15
38	38	provided, rate schedules shall be adjusted for inflation by the tax administrator beginning in taxable 16
39	39	year 2002 and thereafter in the manner prescribed for adjustment by the commissioner of Internal 17
40	40	Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or after January 1, 2006, a 18
41	41	taxpayer may elect to use the alternative flat tax rate provided in § 44-30-2.10 to calculate his or 19
42	42
43	43
44	44	LC001013 - Page 2 of 22
45	45	her personal income tax liability. 1
46	46	(c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative 2
47	47	minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode Island 3
48	48	alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by 4
49	49	multiplying the federal tentative minimum tax without allowing for the increased exemptions under 5
50	50	the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal form 6251 6
51	51	Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%) for tax year 7
52	52	2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing the product 8
53	53	to the Rhode Island tax as computed otherwise under this section. The excess shall be the taxpayer’s 9
54	54	Rhode Island alternative minimum tax. 10
55	55	(1) For tax years beginning on or after January 1, 2005, and thereafter, the exemption 11
56	56	amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by 12
57	57	the tax administrator in the manner prescribed for adjustment by the commissioner of Internal 13
58	58	Revenue in 26 U.S.C. § 1(f). 14
59	59	(2) For the period January 1, 2007, through December 31, 2007, and thereafter, Rhode 15
60	60	Island taxable income shall be determined by deducting from federal adjusted gross income as 16
61	61	defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island 17
62	62	itemized-deduction amount and the Rhode Island exemption amount as determined in this section. 18
63	63	(A) Tax imposed. 19
64	64	(1) There is hereby imposed on the taxable income of married individuals filing joint 20
65	65	returns and surviving spouses a tax determined in accordance with the following table: 21
66	66	If taxable income is: The tax is: 22
67	67	Not over $53,150 3.75% of taxable income 23
68	68	Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150 24
69	69	Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500 25
70	70	Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850 26
71	71	Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700 27
72	72	(2) There is hereby imposed on the taxable income of every head of household a tax 28
73	73	determined in accordance with the following table: 29
74	74	If taxable income is: The tax is: 30
75	75	Not over $42,650 3.75% of taxable income 31
76	76	Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650 32
77	77	Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100 33
78	78	Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350 34
79	79
80	80
81	81	LC001013 - Page 3 of 22
82	82	Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700 1
83	83	(3) There is hereby imposed on the taxable income of unmarried individuals (other than 2
84	84	surviving spouses and heads of households) a tax determined in accordance with the following 3
85	85	table: 4
86	86	If taxable income is: The tax is: 5
87	87	Not over $31,850 3.75% of taxable income 6
88	88	Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850 7
89	89	Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100 8
90	90	Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850 9
91	91	Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700 10
92	92	(4) There is hereby imposed on the taxable income of married individuals filing separate 11
93	93	returns and bankruptcy estates a tax deter- mined in accordance with the following table: 12
94	94	If taxable income is: The tax is: 13
95	95	Not over $26,575 3.75% of taxable income 14
96	96	Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575 15
97	97	Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250 16
98	98	Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925 17
99	99	Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850 18
100	100	(5) There is hereby imposed a taxable income of an estate or trust a tax determined in 19
101	101	accordance with the following table: 20
102	102	If taxable income is: The tax is: 21
103	103	Not over $2,150 3.75% of taxable income 22
104	104	Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150 23
105	105	Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000 24
106	106	Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650 25
107	107	Over $10,450 $737.50 plus 9.90% of the excess over $10,450 26
108	108	(6) Adjustments for inflation. 27
109	109	The dollars amount contained in paragraph (A) shall be increased by an amount equal to: 28
110	110	(a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by; 29
111	111	(b) The cost-of-living adjustment determined under section (J) with a base year of 1993; 30
112	112	(c) The cost-of-living adjustment referred to in subparagraphs (a) and (b) used in making 31
113	113	adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall 32
114	114	be determined under section (J) by substituting “1994” for “1993.” 33
115	115	(B) Maximum capital gains rates. 34
116	116
117	117
118	118	LC001013 - Page 4 of 22
119	119	(1) In general. 1
120	120	If a taxpayer has a net capital gain for tax years ending prior to January 1, 2010, the tax 2
121	121	imposed by this section for such taxable year shall not exceed the sum of: 3
122	122	(a) 2.5% of the net capital gain as reported for federal income tax purposes under section 4
123	123	26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 5
124	124	(b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 6
125	125	§ 1(h)(1)(c). 7
126	126	(c) 6.25% of the net capital gain as reported for federal income tax purposes under 26 8
127	127	U.S.C. § 1(h)(1)(d). 9
128	128	(d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C. 10
129	129	§ 1(h)(1)(e). 11
130	130	(2) For tax years beginning on or after January 1, 2010 2024, the a tax in addition to the 12
131	131	income tax otherwise imposed shall be imposed on net capital gain gains shall be determined under 13
132	132	in accordance with the provisions of subdivision 44-30-2.6(c)(2)(A) § 44-30-2.7. 14
133	133	(C) Itemized deductions. 15
134	134	(1) In general. 16
135	135	For the purposes of section (2), “itemized deductions” means the amount of federal 17
136	136	itemized deductions as modified by the modifications in § 44-30-12. 18
137	137	(2) Individuals who do not itemize their deductions. 19
138	138	In the case of an individual who does not elect to itemize his deductions for the taxable 20
139	139	year, they may elect to take a standard deduction. 21
140	140	(3) Basic standard deduction. 22
141	141	The Rhode Island standard deduction shall be allowed in accordance with the following 23
142	142	table: 24
143	143	Filing status Amount 25
144	144	Single $5,350 26
145	145	Married filing jointly or qualifying widow(er) $8,900 27
146	146	Married filing separately $4,450 28
147	147	Head of Household $7,850 29
148	148	(4) Additional standard deduction for the aged and blind. 30
149	149	An additional standard deduction shall be allowed for individuals age sixty-five (65) or 31
150	150	older or blind in the amount of $1,300 for individuals who are not married and $1,050 for 32
151	151	individuals who are married. 33
152	152	(5) Limitation on basic standard deduction in the case of certain dependents. 34
153	153
154	154
155	155	LC001013 - Page 5 of 22
156	156	In the case of an individual to whom a deduction under section (E) is allowable to another 1
157	157	taxpayer, the basic standard deduction applicable to such individual shall not exceed the greater of: 2
158	158	(a) $850; 3
159	159	(b) The sum of $300 and such individual’s earned income; 4
160	160	(6) Certain individuals not eligible for standard deduction. 5
161	161	In the case of: 6
162	162	(a) A married individual filing a separate return where either spouse itemizes deductions; 7
163	163	(b) Nonresident alien individual; 8
164	164	(c) An estate or trust; 9
165	165	The standard deduction shall be zero. 10
166	166	(7) Adjustments for inflation. 11
167	167	Each dollar amount contained in paragraphs (3), (4) and (5) shall be increased by an amount 12
168	168	equal to: 13
169	169	(a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988, multiplied 14
170	170	by 15
171	171	(b) The cost-of-living adjustment determined under section (J) with a base year of 1988. 16
172	172	(D) Overall limitation on itemized deductions. 17
173	173	(1) General rule. 18
174	174	In the case of an individual whose adjusted gross income as modified by § 44-30-12 19
175	175	exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the 20
176	176	taxable year shall be reduced by the lesser of: 21
177	177	(a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12 22
178	178	over the applicable amount; or 23
179	179	(b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable for 24
180	180	such taxable year. 25
181	181	(2) Applicable amount. 26
182	182	(a) In general. 27
183	183	For purposes of this section, the term “applicable amount” means $156,400 ($78,200 in the 28
184	184	case of a separate return by a married individual) 29
185	185	(b) Adjustments for inflation. 30
186	186	Each dollar amount contained in paragraph (a) shall be increased by an amount equal to: 31
187	187	(i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by 32
188	188	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 33
189	189	(3) Phase-out of Limitation. 34
190	190
191	191
192	192	LC001013 - Page 6 of 22
193	193	(a) In general. 1
194	194	In the case of taxable year beginning after December 31, 2005, and before January 1, 2010, 2
195	195	the reduction under section (1) shall be equal to the applicable fraction of the amount which would 3
196	196	be the amount of such reduction. 4
197	197	(b) Applicable fraction. 5
198	198	For purposes of paragraph (a), the applicable fraction shall be determined in accordance 6
199	199	with the following table: 7
200	200	For taxable years beginning in calendar year The applicable fraction is 8
201	201	2006 and 2007 ⅔ 9
202	202	2008 and 2009 ⅓ 10
203	203	(E) Exemption amount. 11
204	204	(1) In general. 12
205	205	Except as otherwise provided in this subsection, the term “exemption amount” means 13
206	206	$3,400. 14
207	207	(2) Exemption amount disallowed in case of certain dependents. 15
208	208	In the case of an individual with respect to whom a deduction under this section is allowable 16
209	209	to another taxpayer for the same taxable year, the exemption amount applicable to such individual 17
210	210	for such individual's taxable year shall be zero. 18
211	211	(3) Adjustments for inflation. 19
212	212	The dollar amount contained in paragraph (1) shall be increased by an amount equal to: 20
213	213	(a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by 21
214	214	(b) The cost-of-living adjustment determined under section (J) with a base year of 1989. 22
215	215	(4) Limitation. 23
216	216	(a) In general. 24
217	217	In the case of any taxpayer whose adjusted gross income as modified for the taxable year 25
218	218	exceeds the threshold amount shall be reduced by the applicable percentage. 26
219	219	(b) Applicable percentage. 27
220	220	In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the 28
221	221	threshold amount, the exemption amount shall be reduced by two (2) percentage points for each 29
222	222	$2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 30
223	223	exceeds the threshold amount. In the case of a married individual filing a separate return, the 31
224	224	preceding sentence shall be applied by substituting ‘‘$1,250’’ for ‘‘$2,500.’’ In no event shall the 32
225	225	applicable percentage exceed one hundred percent (100%). 33
226	226	(c) Threshold Amount. 34
227	227
228	228
229	229	LC001013 - Page 7 of 22
230	230	For the purposes of this paragraph, the term ‘‘threshold amount’’ shall be determined with 1
231	231	the following table: 2
232	232	Filing status Amount 3
233	233	Single $156,400 4
234	234	Married filing jointly of qualifying widow(er) $234,600 5
235	235	Married filing separately $117,300 6
236	236	Head of Household $195,500 7
237	237	(d) Adjustments for inflation. 8
238	238	Each dollar amount contained in paragraph (b) shall be increased by an amount equal to: 9
239	239	(i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by 10
240	240	(ii) The cost-of-living adjustment determined under section (J) with a base year of 1991. 11
241	241	(5) Phase-out of limitation. 12
242	242	(a) In general. 13
243	243	In the case of taxable years beginning after December 31, 2005, and before January 1, 14
244	244	2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which 15
245	245	would be the amount of such reduction. 16
246	246	(b) Applicable fraction. 17
247	247	For the purposes of paragraph (a), the applicable fraction shall be determined in accordance 18
248	248	with the following table: 19
249	249	For taxable years beginning in calendar year The applicable fraction is 20
250	250	2006 and 2007 ⅔ 21
251	251	2008 and 2009 ⅓ 22
252	252	(F) Alternative minimum tax. 23
253	253	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 24
254	254	subtitle) a tax equal to the excess (if any) of: 25
255	255	(a) The tentative minimum tax for the taxable year, over 26
256	256	(b) The regular tax for the taxable year. 27
257	257	(2) The tentative minimum tax for the taxable year is the sum of: 28
258	258	(a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus 29
259	259	(b) 7.0 percent of so much of the taxable excess above $175,000. 30
260	260	(3) The amount determined under the preceding sentence shall be reduced by the alternative 31
261	261	minimum tax foreign tax credit for the taxable year. 32
262	262	(4) Taxable excess. For the purposes of this subsection the term “taxable excess” means so 33
263	263	much of the federal alternative minimum taxable income as modified by the modifications in § 44-34
264	264
265	265
266	266	LC001013 - Page 8 of 22
267	267	30-12 as exceeds the exemption amount. 1
268	268	(5) In the case of a married individual filing a separate return, subparagraph (2) shall be 2
269	269	applied by substituting “$87,500” for $175,000 each place it appears. 3
270	270	(6) Exemption amount. 4
271	271	For purposes of this section "exemption amount" means: 5
272	272	Filing status Amount 6
273	273	Single $39,150 7
274	274	Married filing jointly or qualifying widow(er) $53,700 8
275	275	Married filing separately $26,850 9
276	276	Head of Household $39,150 10
277	277	Estate or trust $24,650 11
278	278	(7) Treatment of unearned income of minor children 12
279	279	(a) In general. 13
280	280	In the case of a minor child, the exemption amount for purposes of section (6) shall not 14
281	281	exceed the sum of: 15
282	282	(i) Such child's earned income, plus 16
283	283	(ii) $6,000. 17
284	284	(8) Adjustments for inflation. 18
285	285	The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount 19
286	286	equal to: 20
287	287	(a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied by 21
288	288	(b) The cost-of-living adjustment determined under section (J) with a base year of 2004. 22
289	289	(9) Phase-out. 23
290	290	(a) In general. 24
291	291	The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount 25
292	292	equal to twenty-five percent (25%) of the amount by which alternative minimum taxable income 26
293	293	of the taxpayer exceeds the threshold amount. 27
294	294	(b) Threshold amount. 28
295	295	For purposes of this paragraph, the term “threshold amount” shall be determined with the 29
296	296	following table: 30
297	297	Filing status Amount 31
298	298	Single $123,250 32
299	299	Married filing jointly or qualifying widow(er) $164,350 33
300	300	Married filing separately $82,175 34
301	301
302	302
303	303	LC001013 - Page 9 of 22
304	304	Head of Household $123,250 1
305	305	Estate or Trust $82,150 2
306	306	(c) Adjustments for inflation 3
307	307	Each dollar amount contained in paragraph (9) shall be increased by an amount equal to: 4
308	308	(i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by 5
309	309	(ii) The cost-of-living adjustment determined under section (J) with a base year of 2004. 6
310	310	(G) Other Rhode Island taxes. 7
311	311	(1) General rule. There is hereby imposed (in addition to any other tax imposed by this 8
312	312	subtitle) a tax equal to twenty-five percent (25%) of: 9
313	313	(a) The Federal income tax on lump-sum distributions. 10
314	314	(b) The Federal income tax on parents' election to report child's interest and dividends. 11
315	315	(c) The recapture of Federal tax credits that were previously claimed on Rhode Island 12
316	316	return. 13
317	317	(H) Tax for children under 18 with investment income. 14
318	318	(1) General rule. There is hereby imposed a tax equal to twenty-five percent (25%) of: 15
319	319	(a) The Federal tax for children under the age of 18 with investment income. 16
320	320	(I) Averaging of farm income. 17
321	321	(1) General rule. At the election of an individual engaged in a farming business or fishing 18
322	322	business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of: 19
323	323	(a) The Federal averaging of farm income as determined in IRC section 1301 [26 U.S.C. § 20
324	324	1301]. 21
325	325	(J) Cost-of-living adjustment. 22
326	326	(1) In general. 23
327	327	The cost-of-living adjustment for any calendar year is the percentage (if any) by which: 24
328	328	(a) The CPI for the preceding calendar year exceeds 25
329	329	(b) The CPI for the base year. 26
330	330	(2) CPI for any calendar year. 27
331	331	For purposes of paragraph (1), the CPI for any calendar year is the average of the consumer 28
332	332	price index as of the close of the twelve (12) month period ending on August 31 of such calendar 29
333	333	year. 30
334	334	(3) Consumer price index. 31
335	335	For purposes of paragraph (2), the term “consumer price index” means the last consumer 32
336	336	price index for all urban consumers published by the department of labor. For purposes of the 33
337	337	preceding sentence, the revision of the consumer price index that is most consistent with the 34
338	338
339	339
340	340	LC001013 - Page 10 of 22
341	341	consumer price index for calendar year 1986 shall be used. 1
342	342	(4) Rounding. 2
343	343	(a) In general. 3
344	344	If any increase determined under paragraph (1) is not a multiple of $50, such increase shall 4
345	345	be rounded to the next lowest multiple of $50. 5
346	346	(b) In the case of a married individual filing a separate return, subparagraph (a) shall be 6
347	347	applied by substituting “$25” for $50 each place it appears. 7
348	348	(K) Credits against tax. For tax years beginning on or after January 1, 2001, a taxpayer 8
349	349	entitled to any of the following federal credits enacted prior to January 1, 1996, shall be entitled to 9
350	350	a credit against the Rhode Island tax imposed under this section: 10
351	351	(1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5.] 11
352	352	(2) Child and dependent care credit; 12
353	353	(3) General business credits; 13
354	354	(4) Credit for elderly or the disabled; 14
355	355	(5) Credit for prior year minimum tax; 15
356	356	(6) Mortgage interest credit; 16
357	357	(7) Empowerment zone employment credit; 17
358	358	(8) Qualified electric vehicle credit. 18
359	359	(L) Credit against tax for adoption. For tax years beginning on or after January 1, 2006, 19
360	360	a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode Island 20
361	361	tax imposed under this section if the adopted child was under the care, custody, or supervision of 21
362	362	the Rhode Island department of children, youth and families prior to the adoption. 22
363	363	(M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits 23
364	364	provided there shall be no deduction based on any federal credits enacted after January 1, 1996, 24
365	365	including the rate reduction credit provided by the federal Economic Growth and Tax 25
366	366	Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be 26
367	367	reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax 27
368	368	purposes shall determine the Rhode Island amount to be recaptured in the same manner as 28
369	369	prescribed in this subsection. 29
370	370	(N) Rhode Island earned-income credit. 30
371	371	(1) In general. 31
372	372	For tax years beginning before January 1, 2015, a taxpayer entitled to a federal earned-32
373	373	income credit shall be allowed a Rhode Island earned-income credit equal to twenty-five percent 33
374	374	(25%) of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode 34
375	375
376	376
377	377	LC001013 - Page 11 of 22
378	378	Island income tax. 1
379	379	For tax years beginning on or after January 1, 2015, and before January 1, 2016, a taxpayer 2
380	380	entitled to a federal earned-income credit shall be allowed a Rhode Island earned-income credit 3
381	381	equal to ten percent (10%) of the federal earned-income credit. Such credit shall not exceed the 4
382	382	amount of the Rhode Island income tax. 5
383	383	For tax years beginning on or after January 1, 2016, a taxpayer entitled to a federal earned-6
384	384	income credit shall be allowed a Rhode Island earned-income credit equal to twelve and one-half 7
385	385	percent (12.5%) of the federal earned-income credit. Such credit shall not exceed the amount of the 8
386	386	Rhode Island income tax. 9
387	387	For tax years beginning on or after January 1, 2017, a taxpayer entitled to a federal earned-10
388	388	income credit shall be allowed a Rhode Island earned-income credit equal to fifteen percent (15%) 11
389	389	of the federal earned-income credit. Such credit shall not exceed the amount of the Rhode Island 12
390	390	income tax. 13
391	391	(2) Refundable portion. 14
392	392	In the event the Rhode Island earned-income credit allowed under paragraph (N)(1) of this 15
393	393	section exceeds the amount of Rhode Island income tax, a refundable earned-income credit shall 16
394	394	be allowed as follows. 17
395	395	(i) For tax years beginning before January 1, 2015, for purposes of paragraph (2) refundable 18
396	396	earned-income credit means fifteen percent (15%) of the amount by which the Rhode Island earned-19
397	397	income credit exceeds the Rhode Island income tax. 20
398	398	(ii) For tax years beginning on or after January 1, 2015, for purposes of paragraph (2) 21
399	399	refundable earned-income credit means one hundred percent (100%) of the amount by which the 22
400	400	Rhode Island earned-income credit exceeds the Rhode Island income tax. 23
401	401	(O) The tax administrator shall recalculate and submit necessary revisions to paragraphs 24
402	402	(A) through (J) to the general assembly no later than February 1, 2010, and every three (3) years 25
403	403	thereafter for inclusion in the statute. 26
404	404	(3) For the period January 1, 2011, through December 31, 2011, and thereafter, “Rhode 27
405	405	Island taxable income” means federal adjusted gross income as determined under the Internal 28
406	406	Revenue Code, 26 U.S.C. § 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-29
407	407	30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to subparagraph 30
408	408	44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant to subparagraph 31
409	409	44-30-2.6(c)(3)(C). 32
410	410	(A) Tax imposed. 33
411	411	(I) There is hereby imposed on the taxable income of married individuals filing joint 34
412	412
413	413
414	414	LC001013 - Page 12 of 22
415	415	returns, qualifying widow(er), every head of household, unmarried individuals, married individua ls 1
416	416	filing separate returns and bankruptcy estates, a tax determined in accordance with the following 2
417	417	table: 3
418	418	RI Taxable Income RI Income Tax 4
419	419	Over But not over Pay + % on Excess on the amount over 5
420	420	$ 0 - $ 55,000 $ 0 + 3.75% $ 0 6
421	421	55,000 - 125,000 2,063 + 4.75% 55,000 7
422	422	125,000 - 5,388 + 5.99% 125,000 8
423	423	(II) There is hereby imposed on the taxable income of an estate or trust a tax determined in 9
424	424	accordance with the following table: 10
425	425	RI Taxable Income RI Income Tax 11
426	426	Over But not over Pay + % on Excess on the amount over 12
427	427	$ 0 - $ 2,230 $ 0 + 3.75% $ 0 13
428	428	2,230 - 7,022 84 + 4.75% 2,230 14
429	429	7,022 - 312 + 5.99% 7,022 15
430	430	(B) Deductions: 16
431	431	(I) Rhode Island Basic Standard Deduction. 17
432	432	Only the Rhode Island standard deduction shall be allowed in accordance with the 18
433	433	following table: 19
434	434	Filing status: Amount 20
435	435	Single $7,500 21
436	436	Married filing jointly or qualifying widow(er) $15,000 22
437	437	Married filing separately $7,500 23
438	438	Head of Household $11,250 24
439	439	(II) Nonresident alien individuals, estates and trusts are not eligible for standard 25
440	440	deductions. 26
441	441	(III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 27
442	442	purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 28
443	443	dollars ($175,000), the standard deduction amount shall be reduced by the applicable percentage. 29
444	444	The term “applicable percentage” means twenty (20) percentage points for each five thousand 30
445	445	dollars ($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable 31
446	446	year exceeds one hundred seventy-five thousand dollars ($175,000). 32
447	447	(C) Exemption Amount: 33
448	448	(I) The term “exemption amount” means three thousand five hundred dollars ($3,500) 34
449	449
450	450
451	451	LC001013 - Page 13 of 22
452	452	multiplied by the number of exemptions allowed for the taxable year for federal income tax 1
453	453	purposes. For tax years beginning on or after 2018, the term “exemption amount” means the same 2
454	454	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
455	455	Jobs Act (Pub. L. No. 115-97) on December 22, 2017. 4
456	456	(II) Exemption amount disallowed in case of certain dependents. In the case of an 5
457	457	individual with respect to whom a deduction under this section is allowable to another taxpayer for 6
458	458	the same taxable year, the exemption amount applicable to such individual for such individua l’s 7
459	459	taxable year shall be zero. 8
460	460	(III) Identifying information required. 9
461	461	(1) Except as provided in § 44-30-2.6(c)(3)(C)(II) of this section, no exemption shall be 10
462	462	allowed under this section with respect to any individual unless the Taxpayer Identification Number 11
463	463	of such individual is included on the federal return claiming the exemption for the same tax filing 12
464	464	period. 13
465	465	(2) Notwithstanding the provisions of § 44-30-2.6(c)(3)(C)(I) of this section, in the event 14
466	466	that the Taxpayer Identification Number for each individual is not required to be included on the 15
467	467	federal tax return for the purposes of claiming a personal exemption(s), then the Taxpayer 16
468	468	Identification Number must be provided on the Rhode Island tax return for the purpose of claiming 17
469	469	said exemption(s). 18
470	470	(D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode Island 19
471	471	purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five thousand 20
472	472	dollars ($175,000), the exemption amount shall be reduced by the applicable percentage. The term 21
473	473	“applicable percentage” means twenty (20) percentage points for each five thousand dollars 22
474	474	($5,000) (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year 23
475	475	exceeds one hundred seventy-five thousand dollars ($175,000). 24
476	476	(E) Adjustment for inflation. The dollar amount contained in subparagraphs 44-30-25
477	477	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
478	478	equal to: 27
479	479	(I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-2.6(c)(3)(B) 28
480	480	and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000, multiplied by; 29
481	481	(II) The cost-of-living adjustment with a base year of 2000. 30
482	482	(III) For the purposes of this section, the cost-of-living adjustment for any calendar year is 31
483	483	the percentage (if any) by which the consumer price index for the preceding calendar year exceeds 32
484	484	the consumer price index for the base year. The consumer price index for any calendar year is the 33
485	485	average of the consumer price index as of the close of the twelve-month (12) period ending on 34
486	486
487	487
488	488	LC001013 - Page 14 of 22
489	489	August 31, of such calendar year. 1
490	490	(IV) For the purpose of this section the term “consumer price index” means the last 2
491	491	consumer price index for all urban consumers published by the department of labor. For the purpose 3
492	492	of this section the revision of the consumer price index that is most consistent with the consumer 4
493	493	price index for calendar year 1986 shall be used. 5
494	494	(V) If any increase determined under this section is not a multiple of fifty dollars ($50.00), 6
495	495	such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the case of a 7
496	496	married individual filing separate return, if any increase determined under this section is not a 8
497	497	multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower multiple 9
498	498	of twenty-five dollars ($25.00). 10
499	499	(F) Credits against tax. 11
500	500	(I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on 12
501	501	or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be 13
502	502	as follows: 14
503	503	(a) Rhode Island earned-income credit: Credit shall be allowed for earned-income credit 15
504	504	pursuant to subparagraph 44-30-2.6(c)(2)(N). 16
505	505	(b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided 17
506	506	in § 44-33-1 et seq. 18
507	507	(c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax 19
508	508	credit as provided in § 44-30.3-1 et seq. 20
509	509	(d) Credit for income taxes of other states. Credit shall be allowed for income tax paid to 21
510	510	other states pursuant to § 44-30-74. 22
511	511	(e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax credit 23
512	512	as provided in § 44-33.2-1 et seq. 24
513	513	(f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture 25
514	514	production tax credit as provided in § 44-31.2-1 et seq. 26
515	515	(g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of 27
516	516	the federal child and dependent care credit allowable for the taxable year for federal purposes; 28
517	517	provided, however, such credit shall not exceed the Rhode Island tax liability. 29
518	518	(h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for 30
519	519	contributions to scholarship organizations as provided in chapter 62 of title 44. 31
520	520	(i) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable 32
521	521	as if no withholding were required, but any amount of Rhode Island personal income tax actually 33
522	522	deducted and withheld in any calendar year shall be deemed to have been paid to the tax 34
523	523
524	524
525	525	LC001013 - Page 15 of 22
526	526	administrator on behalf of the person from whom withheld, and the person shall be credited with 1
527	527	having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable 2
528	528	year of less than twelve (12) months, the credit shall be made under regulations of the tax 3
529	529	administrator. 4
530	530	(j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested in 5
531	531	RI wavemaker fellowship program as provided in § 42-64.26-1 et seq. 6
532	532	(k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in 7
533	533	§ 42-64.20-1 et seq. 8
534	534	(l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode 9
535	535	Island new qualified jobs incentive program credit as provided in § 44-48.3-1 et seq. 10
536	536	(m) Historic homeownership assistance act: Effective for tax year 2017 and thereafter, 11
537	537	unused carryforward for such credit previously issued shall be allowed for the historic 12
538	538	homeownership assistance act as provided in § 44-33.1-4. This allowance is for credits already 13
539	539	issued pursuant to § 44-33.1-4 and shall not be construed to authorize the issuance of new credits 14
540	540	under the historic homeownership assistance act. 15
541	541	(2) Except as provided in section 1 above, no other state and federal tax credit shall be 16
542	542	available to the taxpayers in computing tax liability under this chapter. 17
543	543	44-30-2.7. Capital gains rates for assets held more than five (5) years. Capital gains 18
544	544	rates for assets held more than one year. 19
545	545	(a) All capital assets purchased prior to January 1, 2002 and sold on or after January 1, 20
546	546	2007 the effective date of this section, shall be deemed to have a holding period beginning January 21
547	547	1, 2002 greater than one year. For tax years beginning in 2007 and ending prior to January 1, 2010 22
548	548	2024, the capital gains rate for assets held more than five (5) years one year shall be as follows: 23
549	549	(i) 0.83% 0.00% of the net capital gain as reported for federal income tax purposes under 24
550	550	26 U.S.C. § 1(h)(1)(a) and 26 U.S.C. § 1(h)(1)(b). 25
551	551	(ii) 1.67% 0.00% of the net capital gain as reported for federal income tax purposes under 26
552	552	26 U.S.C. § 1(h)(1)(c). 27
553	553	(iii) 2.08% two percent (2.0%) of the net capital gain as reported for federal income tax 28
554	554	purposes under 26 U.S.C. § 1(h)(1)(d). 29
555	555	(iv) 2.33% two percent (2.0%) of the net capital gain as reported for federal income tax 30
556	556	purposes under 26 U.S.C. § 1(h)(1)(e). 31
557	557	SECTION 2. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby 32
558	558	amended by adding thereto the following section: 33
559	559	44-30-2.7.1. Capital gains rates for investment management services interest. 34
560	560
561	561
562	562	LC001013 - Page 16 of 22
563	563	(a) For purposes of this section: 1
564	564	(1) "Investment management services" means providing a substantial quantity of any of 2
565	565	the following services, directly or indirectly, to a partnership, S corporation or any type of business 3
566	566	entity: 4
567	567	(i) Advising the partnership, S corporation, or business entity as to the advisability of 5
568	568	investing in, purchasing, or selling any specified asset; 6
569	569	(ii) Managing, acquiring, or disposing of any specified asset; 7
570	570	(iii) Arranging financing with respect to acquiring specified assets; or 8
571	571	(iv) Any activity in support of any service described in this section. 9
572	572	(2) "Specified asset" means securities (as defined in 26 U.S.C. §1061(c)(3) of the Internal 10
573	573	Revenue Code, as amended), real estate held for rental or investment, interests in partnerships, 11
574	574	commodities (as defined in 26 U.S.C. §1061(e)(2) of the Internal Revenue Code, as amended), or 12
575	575	options or derivative contracts with respect to any of the foregoing. 13
576	576	(b) Income from investment management services shall be subject to a nineteen percent 14
577	577	(19%) "carried interest fairness fee" payable to the State of Rhode Island until such time as the 15
578	578	department of revenue has notified the general assembly that the United States Congress has passed 16
579	579	and the President of the United States has signed legislation having an identical effect with this 17
580	580	section applicable to such income earned in all of the states and territories. 18
581	581	(c) A partner or shareholder shall not be deemed to be providing investment management 19
582	582	services if at least eighty percent (80%) of the average fair market value of the specified assets of 20
583	583	the partnership, S corporation or other business entity during the taxable year consists of real estate. 21
584	584	(d) This section shall take effect upon enactment by the states of Connecticut, New Jersey 22
585	585	and Massachusetts of legislation having an identical effect with this section. If the states of 23
586	586	Connecticut, New Jersey and Massachusetts shall have already enacted such legislation, this section 24
587	587	shall take effect upon passage; provided that, the department of revenue shall notify the general 25
588	588	assembly of the enactment of such legislation by the states of Connecticut, New Jersey and 26
589	589	Massachusetts in furtherance of effectuating the provisions of this section. 27
590	590	SECTION 3. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 28
591	591	adding thereto the following chapter: 29
592	592	CHAPTER 71 30
593	593	THE NON-OWNER OCCUPIED PROPERTY TAX 31
594	594	44-71-1. Short title. 32
595	595	This chapter shall be known and may be cited as the "Non-Owner Occupied Property Tax". 33
596	596	44-71-2. Purpose. 34
597	597
598	598
599	599	LC001013 - Page 17 of 22
600	600	(a) The state funds cities and towns pursuant to chapter 13 of title 45. 1
601	601	(b) There is a compelling state interest in protecting the tax base of its cities and towns. 2
602	602	(c) There are numerous non-owner occupied residential properties throughout the cities 3
603	603	and towns of Rhode Island assessed at values over one million dollars ($1,000,000). 4
604	604	(d) The existence of such properties within a city or town has an impact on the value of 5
605	605	real property within the cities and towns and the tax base within these cities and towns. 6
606	606	(e) Non-owner occupied properties sometimes place a greater demand on essential state, 7
607	607	city or town services such as police and fire protection than do occupied properties comparably 8
608	608	assessed for real estate tax purposes. 9
609	609	(f) The residents of non-owner occupied properties are not vested with a motive to maintain 10
610	610	such properties. 11
611	611	(g) The owners of non-owner occupied properties do not always contribute a fair share of 12
612	612	the costs of providing the foregoing essential state, city or town services financed in part by real 13
613	613	estate tax revenues, which revenues are solely based on the assessed value of properties. 14
614	614	(h) Some properties are deliberately left vacant by their owners in the hope that real estate 15
615	615	values will increase, thereby enabling the owners to sell these properties at a substantial profit 16
616	616	without making any of the necessary repairs or improvements to the property. 17
617	617	(i) The non-owner occupation of such property whether for profit speculation, tax benefit, 18
618	618	or any other purposes is the making use of that property and as such, is a privilege incident to the 19
619	619	ownership of the property. 20
620	620	(j) Owners of non-owner occupied properties must be encouraged to use the properties in 21
621	621	a positive manner to stop the spread of deterioration, to increase the stock of viable real estate 22
622	622	within a city or town, and to maintain real estate values within communities. 23
623	623	(k) Owners of non-owner occupied properties must be required, through a state’s power to 24
624	624	tax, to pay a fair share of the cost of providing certain essential state services to protect the public 25
625	625	health, safety, and welfare. 26
626	626	(l) For all of the reasons stated within this section, the purpose of this chapter is to impose 27
627	627	a statewide tax upon non-owner occupied residential property assessed at a value of one million 28
628	628	dollars ($1,000,000) or more. 29
629	629	44-71-3. Definitions. 30
630	630	The following words and phrases as used in this chapter have the following meanings: 31
631	631	(1) “Administrator” means the tax administrator within the department of revenue. 32
632	632	(2) “Assessed value” means the assessed value of the real estate as returned by the tax 33
633	633	assessor of the city or town where the property is located. 34
634	634
635	635
636	636	LC001013 - Page 18 of 22
637	637	(3) “Non-owner occupied” means that the residential property is not occupied by the owner 1
638	638	of the property for a majority of the privilege year. A seasonal or vacation occupancy is deemed 2
639	639	non-owner occupied residency for the purposes of this chapter. 3
640	640	(4) “Non-owner occupied tax” means the assessment imposed upon the non-owner 4
641	641	occupied residential property assessed at one million dollars ($1,000,000) or more pursuant to this 5
642	642	chapter. 6
643	643	(5) “Person” means any individual, corporation, company, association, partnership, joint 7
644	644	stock association, and the legal successor thereof or any other entity or group organization against 8
645	645	which a tax may be assessed. 9
646	646	(6) “Taxable year” means July 1 through June 30. 10
647	647	44-71-4. Imposition of tax. 11
648	648	The tax administrator is empowered to impose a tax upon the privilege of utilizing property 12
649	649	as non-owner occupied residential property within the state during any privilege year commencing 13
650	650	with the privilege year beginning July 1, 2023 and every tax year thereafter. The non-owner 14
651	651	occupied tax shall be in addition to any other taxes authorized by the general or public laws. 15
652	652	44-71-5. Exemptions. 16
653	653	This act does not supersede any applicable exemption in the general or public laws; 17
654	654	provided, however, that the tax administrator shall be provided with the alleged basis for that 18
655	655	exemption in writing and may reject said alleged exemption if he/she deems said exemption is not 19
656	656	applicable. 20
657	657	44-71-6. Rate of tax. 21
658	658	The tax authorized by this chapter shall be measured by the assessed value of the real estate: 22
659	659	(1) At the rate of five dollars ($5.00) for each one thousand dollars ($1,000) or fractional 23
660	660	part of the assessed value on properties worth at least one million dollars ($1,000,000) but less than 24
661	661	two million dollars ($2,000,000); 25
662	662	(2) At the rate of six dollars ($6.00) for each one thousand dollars ($1,000) or fractional 26
663	663	part of the assessed value on properties worth at least two million dollars ($2,000,000). 27
664	664	44-71-7. Returns. 28
665	665	(a) The tax imposed by this chapter shall be due and payable in four (4) equal installments. 29
666	666	The first installment shall be paid on or before September 15 of the taxable year, the second 30
667	667	installment shall be paid on or before December 15 of the taxable year, the third installment shall 31
668	668	be paid on or before March 15 of the taxable year, and fourth installment shall be paid on or before 32
669	669	June 15 of the taxable year. 33
670	670	(b) The tax administrator is authorized to adopt rules, pursuant to this chapter, relative to 34
671	671
672	672
673	673	LC001013 - Page 19 of 22
674	674	the form of the return and the data that it shall contain for the correct computation of the imposed 1
675	675	tax. All returns shall be signed by the taxpayer or by its authorized representative, subject to the 2
676	676	pains and penalties of perjury. If a return shows an overpayment of the tax due, the tax administrator 3
677	677	shall refund or credit the overpayment to the taxpayer. 4
678	678	(c) The tax administrator, for good cause shown, may extend the time within which a 5
679	679	taxpayer is required to file a return. If the return is filed during the period of extension, no penalty 6
680	680	or late filing charge shall be imposed for failure to file the return at the time required by this chapter; 7
681	681	however, the taxpayer shall be liable for interest as prescribed in this chapter. Failure to file the 8
682	682	return during the period for the extension shall void the extension. 9
683	683	44-71-8. Set-off for delinquent payment of tax. 10
684	684	If a taxpayer shall fail to pay a tax within thirty (30) days of its due date, the tax 11
685	685	administrator may request any agency of state government making payments to the taxpayer to set-12
686	686	off the amount of the delinquency against any payment due the taxpayer from the agency of state 13
687	687	government and remit the sum to the tax administrator. Upon receipt of the set-off request from the 14
688	688	tax administrator, any agency of state government is authorized and empowered to set-off the 15
689	689	amount of the delinquency against any payment or amounts due the taxpayer. The amount of set-16
690	690	off shall be credited against the tax due from the taxpayer. 17
691	691	44-71-9. Tax on available information – Interest on delinquencies – Penalties – 18
692	692	Collection powers. 19
693	693	If any taxpayer shall fail to file a return within the time required by this chapter, or shall 20
694	694	file an insufficient or incorrect return, or shall not pay the tax imposed by this chapter when it is 21
695	695	due, the tax administrator shall assess the tax upon the information as may be available, which shall 22
696	696	be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7, from the 23
697	697	date when the tax should have been paid. If any part of the tax not paid is due to negligence or 24
698	698	intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount 25
699	699	of the determination shall be added to the tax. The tax administrator shall collect the tax with 26
700	700	interest in the same manner and with the same powers as are prescribed for collection of taxes in 27
701	701	this title. 28
702	702	44-71-10. Claims for refund – Hearing upon denial. 29
703	703	(a) Any taxpayer subject to the provisions of this chapter, may file a claim for refund with 30
704	704	the tax administrator at any time within two (2) years after the tax has been paid. If the tax 31
705	705	administrator determines that the tax has been overpaid, he or she shall make a refund with interest 32
706	706	from the date of overpayment. 33
707	707	(b) Any taxpayer whose claim for refund has been denied may, within thirty (30) days from 34
708	708
709	709
710	710	LC001013 - Page 20 of 22
711	711	the date of the mailing by the administrator of the notice of the decision, request a hearing and the 1
712	712	administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the 2
713	713	taxpayer. 3
714	714	44-71-11. Hearing by tax administrator on application. 4
715	715	Any taxpayer aggrieved by the action of the tax administrator in determining the amount 5
716	716	of any tax or penalty imposed under the provisions of this chapter may apply to the tax 6
717	717	administrator, within thirty (30) days after the notice of the action is mailed to the taxpayer, for a 7
718	718	hearing relative to the tax or penalty. The tax administrator shall fix a time and place for the hearing 8
719	719	and shall so notify the taxpayer. Upon the hearing, the tax administrator shall correct manifest 9
720	720	errors, if any, disclosed at the hearing and thereupon assess and collect the amount lawfully due 10
721	721	together with any penalty or interest thereon. 11
722	722	44-71-12. Appeals. 12
723	723	(a) In any appeal from the imposition of the tax set forth in this chapter, the tax 13
724	724	administrator shall find in favor of an appellant who shows that the property assessed: 14
725	725	(1) Was actively occupied by the owner during the privilege year for more than six (6) 15
726	726	months; or 16
727	727	(2) Was exempt pursuant to the general laws or public laws from the imposition of the tax 17
728	728	set forth in this chapter. 18
729	729	(b) Appeals from administrative orders or decisions made pursuant to any provisions of 19
730	730	this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s 20
731	731	right to appeal under this section shall be expressly made conditional upon prepayment of all 21
732	732	surcharges, interest, and penalties unless the taxpayer moves for and is granted an exemption from 22
733	733	the prepayment requirement pursuant to § 8-8-26. If the court, after appeal, holds that the taxpayer 23
734	734	is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in 24
735	735	§ 44-1-7.1. 25
736	736	44-71-13. Taxpayer records. 26
737	737	Every taxpayer shall: 27
738	738	(1) Keep records as may be necessary to determine the amount of its liability under this 28
739	739	chapter, including, but not limited to: rental agreements, payments for rent, bank statements for 29
740	740	payment of residential expenses, utility bills, and any other records establishing residency or non-30
741	741	residency. 31
742	742	(2) Preserve those records for the period of three (3) years following the date of filing of 32
743	743	any return required by this chapter, or until any litigation or prosecution under this chapter is finally 33
744	744	determined. 34
745	745
746	746
747	747	LC001013 - Page 21 of 22
748	748	(3) Make those records available for inspection by the administrator or his/her authorized 1
749	749	agents, upon demand, at reasonable times during regular business hours. 2
750	750	44-71-14. Rules and regulations. 3
751	751	The tax administrator is authorized to make and promulgate rules, regulations, and 4
752	752	procedures not inconsistent with state law and fiscal procedures as he or she deems necessary for 5
753	753	the proper administration of this chapter and to carry out the provisions, policies, and purposes of 6
754	754	this chapter. 7
755	755	44-71-15. Severability. 8
756	756	If any provision of this chapter or the application of this chapter to any person or 9
757	757	circumstances is held invalid, that invalidity shall not affect other provisions or applications of the 10
758	758	chapter that can be given effect without the invalid provision or application, and to this end the 11
759	759	provisions of this chapter are declared to be severable. It is declared to be the legislative intent that 12
760	760	this chapter would have been adopted had those provisions not been included or that person, 13
761	761	circumstance, or time period been expressly excluded from its coverage. 14
762	762	SECTION 4. All sections of this act, except for Section 2, shall take effect on January 1, 15
763	763	2024, and Section 2 shall take effect on July 1, 2023. 16
764	764	========
765	765	LC001013
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767	767
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769	769	LC001013 - Page 22 of 22
770	770	EXPLANATION
771	771	BY THE LEGISLATIVE COUNCIL
772	772	OF
773	773	A N A C T
774	774	RELATING TO TAXATION -- PERSONAL INCOME TAX -- CAPITAL GAINS
775	775	***
776	776	This act would change the capital gain tax rates and reduce the holding period of assets 1
777	777	from five (5) years to one year. This act would also impose capital gains tax rates for investment 2
778	778	management services interest as well as a non-owner occupied property tax on residential properties 3
779	779	assessed in excess of one million dollars ($1,000,000). 4
780	780	All Sections of this act, except for Section 2, would take effect on January 1, 2024, and 5
781	781	Section 2 would take effect on July 1, 2023. 6
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783	783	LC001013
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