A N A C T
RELATING TO TAXATION
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby amended by adding thereto the following section:
44-30-2.7 Capital gains rate for assets held more than five years. -- All capital assets purchased prior to January 1, 2002 and sold on or after January 1, 2007, shall be deemed to have a holding period beginning January 1, 2002. For tax years beginning in 2007, the capital gains rate for assets held more than five (5) years shall be eight and one-third percent (8.33%) of the federal capital gains rate(s) which were in effect prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Beginning in tax year 2008 and thereafter, the capital gains rate for assets held more than five (5) years shall be zero percent (0%).
SECTION 2. This act shall take effect upon passage.