Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0259 Compare Versions

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

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5	5	2023 -- S 0259
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7	7	LC000950
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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 -- ESTATE AND TRANSFER TAXES--LIABILITY AND
16	16	COMPUTATION
17	17	Introduced By: Senators Paolino, Rogers, de la Cruz, F. Lombardi, Gallo, Picard,
18	18	Pearson, and Tikoian
19	19	Date Introduced: February 16, 2023
20	20	Referred To: Senate Finance
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 44-22-1.1 of the General Laws in Chapter 44-22 entitled "Estate and 1
25	25	Transfer Taxes — Liability and Computation" is hereby amended to read as follows: 2
26	26	44-22-1.1. Tax on net estate of decedent. 3
27	27	(a)(1) For decedents whose death occurs on or after January 1, 1992, but prior to January 4
28	28	1, 2002, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent 5
29	29	as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death 6
30	30	taxes allowed by 26 U.S.C. § 2011. 7
31	31	(2) For decedents whose death occurs on or after January 1, 2002, but prior to January 1, 8
32	32	2010, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent 9
33	33	as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death 10
34	34	taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001; provided, however, 11
35	35	that the tax shall be imposed only if the net taxable estate shall exceed six hundred seventy-five 12
36	36	thousand dollars ($675,000). Any scheduled increase in the unified credit provided in 26 U.S.C. § 13
37	37	2010 in effect on January 1, 2001, or thereafter, shall not apply. 14
38	38	(3) For decedents whose death occurs on or after January 1, 2010, and prior to January 1, 15
39	39	2015, a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent 16
40	40	as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death 17
41	41	taxes allowed by 26 U.S.C. § 2011 as it was in effect as of January 1, 2001; provided, however, 18
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45	45	that the tax shall be imposed only if the net taxable estate shall exceed eight hundred and fifty 1
46	46	thousand dollars ($850,000); provided, further, beginning on January 1, 2011, and each January 1 2
47	47	thereafter until January 1, 2015, said amount shall be adjusted by the percentage of increase in the 3
48	48	Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States 4
49	49	Department of Labor Statistics determined as of September 30 of the prior calendar year; said 5
50	50	adjustment shall be compounded annually and shall be rounded up to the nearest five dollar ($5.00) 6
51	51	increment. Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on 7
52	52	January 1, 2003, or thereafter, shall not apply. 8
53	53	(4) For decedents whose death occurs on or after January 1, 2015, a tax is imposed upon 9
54	54	the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to 10
55	55	transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. 11
56	56	§ 2011, as it was in effect as of January 1, 2001; provided, however, that a Rhode Island credit shall 12
57	57	be allowed against any tax so determined in the amount of sixty-four thousand four hundred 13
58	58	($64,400). Any scheduled increase in the unified credit provided in 26 U.S.C. § 2010 in effect on 14
59	59	January 1, 2003, or thereafter, shall not apply; provided, further, beginning on January 1, 2016, and 15
60	60	each January 1 thereafter, said Rhode Island credit amount under this section shall be adjusted by 16
61	61	the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as 17
62	62	published by the United States Department of Labor Statistics determined as of September 30 of 18
63	63	the prior calendar year; said adjustment shall be compounded annually and shall be rounded up to 19
64	64	the nearest five dollar ($5.00) increment. 20
65	65	(5) For decedents whose death occurs on or after January 1, 2024, a tax is imposed upon 21
66	66	the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to 22
67	67	transfer. The tax shall be imposed only if the net taxable estate shall exceed three million six 23
68	68	hundred thousand dollars ($3,600,000); provided, further, beginning on January 1, 2025, and each 24
69	69	January 1, thereafter, said amount shall be increased by one million dollars ($1,000,000). 25
70	70	(b) If the decedent’s estate contains property having a tax situs not within the state, then 26
71	71	the tax determined by this section is reduced to an amount determined by multiplying the tax by a 27
72	72	fraction whose numerator is the gross estate excluding all property having a tax situs not within the 28
73	73	state at the decedent’s death and whose denominator is the gross estate. In determining the fraction, 29
74	74	no deductions are considered and the gross estate is not reduced by a mortgage or other 30
75	75	indebtedness for which the decedent’s estate is not liable. 31
76	76	(c)(1) The terms “gross taxable estate,” “federal gross estate” or “net taxable estate” used 32
77	77	in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context 33
78	78	in the laws of the United States, unless a different meaning is clearly required by the provisions of 34
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82	82	this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the 1
83	83	Internal Revenue Code or other laws of the United States means the Internal Revenue Code of 2
84	84	1954, 26 U.S.C. § 1 et seq. 3
85	85	(2) For decedents whose death occurs on or after January 1, 2002, the terms “gross taxable 4
86	86	estate” “federal gross estate” or “net taxable estate” used in this chapter or chapter 23 of this title 5
87	87	has the same meaning as when used in a comparable context in the laws of the United States, unless 6
88	88	a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title. 7
89	89	Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws 8
90	90	of the United States means the Internal Revenue Code of 1954, 26 U.S.C. § 1 et seq., as they were 9
91	91	in effect as of January 1, 2001, unless otherwise provided. 10
92	92	(d) All values are as finally determined for federal estate tax purposes. 11
93	93	(e) Property has a tax situs within the state of Rhode Island: 12
94	94	(1) If it is real estate or tangible personal property and has actual situs within the state of 13
95	95	Rhode Island; or 14
96	96	(2) If it is intangible personal property and the decedent was a resident. 15
97	97	SECTION 2. This act shall take effect upon passage. 16
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104	104	EXPLANATION
105	105	BY THE LEGISLATIVE COUNCIL
106	106	OF
107	107	A N A C T
108	108	RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES--LIABILITY AND
109	109	COMPUTATION
110	110	***
111	111	This act would increase the net taxable estate exemption to three million six hundred 1
112	112	thousand dollars ($3,600,000) on January 1, 2024. This act would also increase the exemption by 2
113	113	one million dollars ($1,000,000) on January 1 per year thereafter. 3
114	114	This act would take effect upon passage. 4
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