Imposes a wealth tax on Rhode Island individuals and entities at a rate of one percent (1%) of worldwide wealth.
Impact
The bill, if enacted, is expected to have significant implications for state laws surrounding taxation. It would amend Title 44 by establishing Chapter 72 under which the wealth tax would be governed. Residents would be required to report their worldwide wealth annually, with returns due by April 15th each year. Moreover, the bill outlines various exemptions, such as for non-financial intangible assets, ensuring that not all forms of wealth are subject to taxation under this new framework. The revenue generated from this tax would be allocated accordingly as prescribed by subsequent legislative acts.
Summary
House Bill 6290 proposes the implementation of a wealth tax in Rhode Island, imposing a taxation rate of one percent (1%) on an individual's or entity's worldwide wealth, starting January 1, 2026, for taxes due in 2027. The bill is aimed at addressing economic disparities by taxing wealth rather than income, thereby targeting individuals with significant financial assets, including cash, stocks, and other investments defined as financial intangible assets. The wealth tax aims to generate revenue for state initiatives while attempting to create a fairer economic landscape for residents.
Contention
Despite its intention, the wealth tax has raised concerns among various stakeholders, particularly regarding the enforcement and administrative burden it may introduce. Critics argue that the wealth tax could lead to complexities in compliance and have a chilling effect on investment and economic growth. Additionally, the bill includes provisions for penalties related to misstatements of wealth, escalating audit requirements over time, which could impose further strain on the Department of Revenue. This aspect of the bill has been a point of contention in legislative discussions, with advocates urging for clarity and fairness in its application.
Creates the Rhode Island baby bond trust to provide investment funds to children born to families with public health insurance or no insurance living in Rhode Island.
Creates the Rhode Island baby bond trust to provide investment funds to children born to families with public health insurance or no insurance living in Rhode Island.
Exempts from taxation the real and tangible personal property of Wildlife Rehabilitators Association of Rhode Island (Wildlife Clinic of Rhode Island), a Rhode Island domestic nonprofit corporation, located in North Kingstown, Rhode Island.
Exempts from taxation the real and tangible personal property of Wildlife Rehabilitators Association of Rhode Island (Wildlife Clinic of Rhode Island), a Rhode Island domestic nonprofit corporation, located in North Kingstown, Rhode Island.
Exempts from taxation the real and tangible personal property of Rhode Island Coalition Against Domestic Violence, a Rhode Island domestic nonprofit corporation, located in Warwick, Rhode Island.