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 bill is positioned to alleviate financial pressure on individuals and businesses that are behind on their taxes. By waiving additional costs associated with delinquency, the bill could prompt a higher rate of compliance with tax obligations. This initiative is expected to boost state revenue by incentivizing timely payments and reducing the backlog of outstanding tax debts. Furthermore, the provision to reinstate suspended drivers' licenses upon full payment is an important aspect that seeks to assist taxpayers in regaining their driving privileges, thereby facilitating their mobility and greater participation in the workforce.
Summary
Bill S0656 proposes amendments to the Rhode Island Tax Amnesty Act of 2017, focusing on providing a framework for the waiver of interest and penalties on delinquent taxes. This legislation allows that, if delinquent taxes are fully paid during a designated one-week amnesty period, the tax administrator can waive any outstanding interest and penalties. This provision aims to encourage taxpayers with delinquencies to come forward and settle their debts without incurring additional financial burdens related to interest and penalties.
Contention
While the bill generally frames itself as a supportive measure for taxpayers, potential points of contention may arise regarding the implications of such waivers on overall state revenue. Critics may argue that waiving interest and penalties could create a precedent that discourages timely tax payments or seems to favor certain groups over others. Additionally, discussions may focus on the effectiveness of the one-week amnesty period, with some lawmakers potentially advocating for a longer duration or more frequent opportunities for amnesty to allow more residents to benefit from the program.
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.