Authorizes the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one week amnesty period. Also reinstates a suspended driver’s license upon payment in full.
Impact
The implementation of this bill is expected to positively impact the state's revenue by incentivizing individuals and businesses to settle their outstanding tax obligations without the added burden of additional financial penalties. By facilitating a temporary amnesty period, the state hopes to recoup lost revenue and improve overall tax compliance. This measure could also alleviate some financial stress for taxpayers who have been unable to pay their taxes in the past, thus promoting greater financial stability among residents.
Summary
House Bill 6239, introduced in January 2025, amends the Rhode Island Tax Amnesty Act of 2017. This bill specifically authorizes the tax administrator to waive interest and penalties for delinquent taxes if these are paid in full during a designated one-week amnesty period. This is intended to encourage tax compliance by providing relief to individuals and businesses who may be struggling with outstanding tax obligations. Furthermore, the bill stipulates that individuals with a driver’s license suspended due to unpaid taxes will have their licenses reinstated upon the complete payment of these delinquent taxes.
Contention
While the bill is primarily focused on providing relief, it may also bring about discussions regarding its fairness and the efficacy of tax amnesty programs. Critics may argue that such programs could encourage a pattern of non-compliance, where taxpayers delay payment in anticipation of future amnesty periods. Furthermore, there may be concerns about how readily the regulations will be enforced and whether the one-week time frame for the amnesty is sufficient for all taxpayers to take advantage of the offer.
Removes the exemption from taxation granted to Bryant University located in Smithfield, RI subjecting the university to full taxation unless, the university and the town of Smithfield reach an agreement on payment in lieu of taxes on or before 6/30/24.
Removes the exemption from taxation granted to Bryant University located in Smithfield, RI subjecting the university to full taxation unless, the university and the town of Smithfield reach an agreement on payment in lieu of taxes on or before 6/30/24.