2019 -- H 5606

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LC000757

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION - COMPLIANCE OF PUBLIC EMPLOYEES WITH STATE

INCOME TAX

     Introduced By: Representatives Cortvriend, Carson, Fogarty, Canario, and Tanzi

     Date Introduced: February 27, 2019

     Referred To: House Finance

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-69-3 of the General Laws in Chapter 44-69 entitled

"Compliance of Public Employees With State Income Tax Act" is hereby amended to read as

follows:

     44-69-3. Administration.

     (a) The department of administration and all political subdivisions shall, not later than

August 1, 2014, and August 1 of each year thereafter, provide to the tax administrator a list of all

public employees as of the preceding July 1 and such identifying information as may be required

by the tax administrator. Such list and information shall be used by the tax administrator

exclusively for the purpose of collection of income taxes due to the state of Rhode Island.

     (b) The tax administrator shall, not later than December 1, 2014, and December 1 of each

year thereafter, notify any public employee who is not in compliance with the income tax laws of

this state. Such notification shall include:

     (1) A statement that the employee will be subject to mandatory garnishment of wages by

the state controller, unless the taxpayer is deemed by the tax administrator to be in compliance

with the income tax laws of this state;

     (2) The reasons that the taxpayer is considered to be out of compliance with the income

tax laws of this state, including a statement of the amount of any tax, penalties and interest due, or

a list of the tax years for which income tax returns have not been filed, as required by law;

     (3) An explanation of the rights of the taxpayer and the procedures which must be

followed by the taxpayer in order to come into compliance with the income tax laws of this state;

and

     (4) Such other information as may be deemed necessary by the tax administrator.

     (c) A public employee who has entered into and is abiding by a payment agreement, or

who has requested relief as an innocent spouse, which request is pending or has been granted,

shall be deemed to be in compliance with the state income tax laws for purposes of this section.

     (d) If the tax administrator notifies a public employee who is not in compliance with the

income tax laws of this state as required in this section and such public employee does not

respond to such notification or fails to come into compliance with the income tax laws of this

state after an assessment has been made final or after the tax administrator determines that every

reasonable effort has been made to assist the public employee to come into compliance with the

income tax laws of this state, the tax administrator shall so notify the state controller or political

subdivision, which shall commence mandatory garnishment of the public employee's wages and

shall notify the employee of the reason for such action. If a public employee, who has been

previously reported by the tax administrator to a state agency or the political subdivision as being

out of compliance, comes into compliance, the tax administrator shall immediately notify the

state controller or the political subdivision. Neither a state agency or the political subdivision nor

an appointing authority shall be held liable for any action with respect to a public employee

pursuant to the provisions of this section.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - COMPLIANCE OF PUBLIC EMPLOYEES WITH STATE

INCOME TAX

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     This act would eliminate the requirement that political subdivisions provide a list of all

public employees to the tax administrator by August 1 of each year as of July 1 of preceding year.

     This act would take effect upon passage.

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