Rhode Island 2025 Regular Session

Rhode Island House Bill H5754 Compare Versions

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

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5	5	2025 -- H 5754
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7	7	LC001097
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
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: Representatives Costantino, Santucci, Phillips, Baginski, Shallcross
18	18	Smith, and Casey
19	19	Date Introduced: February 26, 2025
20	20	Referred To: House 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, 2026, 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 four million dollars 23
68	68	($4,000,000). The tax is a sum equal to the maximum credit for state death taxes allowed by 26 24
69	69	U.S.C. § 2011, as it was in effect as of January 1, 2001; provided, however, that a Rhode Island 25
70	70	credit shall be allowed against any tax so determined. Any scheduled increase in the unified credit 26
71	71	provided in 26 U.S.C. § 2010 in effect on January 1, 2003, or thereafter, shall not apply; provided, 27
72	72	further, beginning on January 1, 2027, and each January 1 thereafter, said Rhode Island credit 28
73	73	amount under this section shall be adjusted by the percentage of increase in the Consumer Price 29
74	74	Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor 30
75	75	Statistics determined as of September 30 of the prior calendar year; said adjustment shall be 31
76	76	compounded annually and shall be rounded up to the nearest five dollar ($5.00) increment. 32
77	77	(b) If the decedent’s estate contains property having a tax situs not within the state, then 33
78	78	the tax determined by this section is reduced to an amount determined by multiplying the tax by a 34
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82	82	fraction whose numerator is the gross estate excluding all property having a tax situs not within the 1
83	83	state at the decedent’s death and whose denominator is the gross estate. In determining the fraction, 2
84	84	no deductions are considered and the gross estate is not reduced by a mortgage or other 3
85	85	indebtedness for which the decedent’s estate is not liable. 4
86	86	(c)(1) The terms “gross taxable estate,” “federal gross estate” or “net taxable estate” used 5
87	87	in this chapter or chapter 23 of this title has the same meaning as when used in a comparable context 6
88	88	in the laws of the United States, unless a different meaning is clearly required by the provisions of 7
89	89	this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of this title to the 8
90	90	Internal Revenue Code or other laws of the United States means the Internal Revenue Code of 9
91	91	1954, 26 U.S.C. § 1 et seq. 10
92	92	(2) For decedents whose death occurs on or after January 1, 2002, the terms “gross taxable 11
93	93	estate” “federal gross estate” or “net taxable estate” used in this chapter or chapter 23 of this title 12
94	94	has the same meaning as when used in a comparable context in the laws of the United States, unless 13
95	95	a different meaning is clearly required by the provisions of this chapter or chapter 23 of this title. 14
96	96	Any reference in this chapter or chapter 23 of this title to the Internal Revenue Code or other laws 15
97	97	of the United States means the Internal Revenue Code of 1954, 26 U.S.C. § 1 et seq., as they were 16
98	98	in effect as of January 1, 2001, unless otherwise provided. 17
99	99	(d) All values are as finally determined for federal estate tax purposes. 18
100	100	(e) Property has a tax situs within the state of Rhode Island: 19
101	101	(1) If it is real estate or tangible personal property and has actual situs within the state of 20
102	102	Rhode Island; or 21
103	103	(2) If it is intangible personal property and the decedent was a resident. 22
104	104	SECTION 2. This act shall take effect upon passage. 23
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111	111	EXPLANATION
112	112	BY THE LEGISLATIVE COUNCIL
113	113	OF
114	114	A N A C T
115	115	RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- LIABILITY AND
116	116	COMPUTATION
117	117	***
118	118	This act would increase the net taxable estate exemption to four million dollars 1
119	119	($4,000,000) for deaths that occur on or after January 1, 2026. 2
120	120	This act would take effect upon passage. 3
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