RI
Rhode Island Senate Bill S0451

Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0451

Introduced
2/26/25  

Caption

Exempts the sale of Bitcoin from state income tax, if such sale is valued at less than one thousand dollars ($1,000).

Impact

If enacted, S0451 would significantly impact the state's income tax laws regarding digital currency, which reflects a growing trend to adapt tax codes to modern financial practices. The exemption from taxation on small Bitcoin transactions offers a progressive approach to digital currencies, potentially positioning Rhode Island as a more favorable environment for cryptocurrency-related business operations. However, the bill clearly distinguishes the state tax exemption from federal tax obligations, indicating that state and federal tax frameworks regarding cryptocurrency may evolve in different directions.

Summary

S0451 is a legislative act introduced in the Rhode Island General Assembly that aims to amend the current personal income tax laws specifically regarding Bitcoin transactions. The bill proposes that any sale of Bitcoin by individuals or businesses based in Rhode Island will be exempt from state taxation if the total value of such sales is less than one thousand dollars per day. This measure is intended to encourage the use of digital currency by minimizing the tax implications for small transactions involving Bitcoin. The proposed limit allows for up to ten tax-exempt sales within a thirty-day period, promoting the currency's usage and acceptance in smaller amounts among residents and businesses.

Contention

Notably, the bill's provisions may arise as points of contention among legislators and within public discussions about taxation fairness and regulation in the cryptocurrency space. Critics may argue that such exemptions could lead to revenue losses for the state, particularly if the usage of Bitcoin expands significantly as a medium of exchange. Furthermore, there could be concerns regarding the regulatory oversight of compliance, record-keeping, and the actual realization of tax revenue from larger-scale Bitcoin transactions that do exceed the set limits.

Companion Bills

No companion bills found.

Previously Filed As

RI S2068

Exempts the trade-in value of pickup trucks weighing fourteen thousand pounds (14,000 lbs.) or less from sales and use tax.

RI H7128

Exempts the trade-in value of trucks weighing fourteen thousand pounds (14,000 lbs.) or less and motorcycles from the sales and use tax.

RI S2172

Increases the minimum veterans' exemption from one thousand dollars ($1,000) to six thousand dollars ($6,000) with respect to municipal taxes.

RI H7383

Increases the minimum veterans’ exemption from one thousand dollars ($1,000) to five thousand dollars ($5,000) with respect to municipal taxes.

RI S2358

Increases the amount of exemption from sales tax for clothing including footwear from two hundred fifty dollars ($250) to five hundred dollars ($500). Effective July 1, 2023.

RI S2051

Exempts reusable bags from the state sales tax.

RI S2575

Establishes a child tax credit of one thousand dollars ($1,000) per dependent.

RI H7924

Establishes a child tax credit of one thousand dollars ($1,000) per dependent.

RI S2856

Exempts from the sales and use tax the sale of beer and malt beverages at retail.

RI H7277

Exempts from the sales and use tax the sale of beer and malt beverages at retail.

Similar Bills

No similar bills found.