Rhode Island Senate Bill S0657

Rhode Island 2025 Regular Session

• Introduced: 3/7/25
• Refer: 3/7/25

Caption

Authorizes the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one week amnesty period.

Impact

If enacted, S0657 would have significant implications for state taxation policy, particularly for those taxpayers who have accrued delinquent taxes. The bill proposes to reduce the interest rate on these taxes by 25%, thus incentivizing timely payment and attempting to recover tax revenues that might otherwise remain unpaid. Additionally, the establishment of a weekly amnesty period could lead to a surge in tax revenue during the specified timeframe, allowing the tax administrator to clear a backlog of delinquent accounts.

Summary

Bill S0657 is an amendment to the Rhode Island Tax Amnesty Act of 2017, introduced to allow the state's tax administrator to waive interest and penalties on delinquent taxes, provided that they are paid in full during a one-week amnesty period designated each fiscal year. The proposed legislation aims to facilitate tax collection by encouraging taxpayers who are behind on their payments to settle their debts without incurring additional financial penalties. This initiative is designed as a means of improving the state's revenue collection while providing a financial incentive for taxpayers to comply with their obligations.

Contention

Debate around S0657 may arise from differing perspectives on the efficacy and fairness of tax amnesty programs. Proponents may argue that such programs alleviate the burden on taxpayers and improve overall compliance rates by reducing the penalties associated with late payments. In contrast, critics may contend that waiving penalties undermines the responsibility to pay taxes on time and could encourage future noncompliance. Additionally, there may be concerns related to how these amnesty periods are structured and communicated, particularly in ensuring that they benefit the intended taxpayers without complicating the state's fiscal health.