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STATE OF RHODE ISLAND
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IN GENERAL ASSEMBLY
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JANUARY SESSION, A.D. 2013
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____________
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A N A C T
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RELATING TO TAXATION -- FRANCHISE TAX
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Introduced By: Representatives Newberry, Chippendale, Trillo, and Giarrusso
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Date Introduced: January 30, 2013
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Referred To: House Finance
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It is enacted by the General Assembly as follows:
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1-1
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SECTION 1. Section 44-12-1 of the General Laws in Chapter 44-12 entitled "Franchise
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1-2
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Tax" is hereby repealed.
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1-3
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44-12-1. Tax imposed -- Corporations liable -- Credit for tax on income -- Reduced
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1-4
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rate where no business done. -- (a) Every corporation, joint-stock company, or association
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1-5
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incorporated in this state or qualified to do business in this state, whether or not doing business
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1-6
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for profit, all referred to in this section under the term "corporation", except those enumerated in
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1-7
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section 44-12-11, shall pay an annual franchise tax to the state upon its authorized capital stock of
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1-8
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two dollars fifty cents ($2.50) for each ten thousand dollars ($10,000) or fractional part, or the
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1-9
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sum of five hundred dollars ($500), whichever is greater.
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1-10
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(b) In the case of corporations liable to a tax under chapter 11 of this title, only the
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1-11
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amount by which the franchise tax exceeds the tax payable under that chapter shall be assessed.
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1-12
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(c) If a corporation shall show by supplemental affidavit attached to the prescribed return
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1-13
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and signed in the manner provided for each return that it has not, at any time during its preceding
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1-14
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taxable year, been engaged within the state in any business activities, it shall only pay an annual
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1-15
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franchise tax upon its authorized capital stock at the following rates: five hundred dollars ($500)
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1-16
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where the stock does not exceed one million dollars ($1,000,000); and the further sum of twelve
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1-17
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dollars fifty cents ($12.50) for each additional one million dollars ($1,000,000) or fractional part
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1-18
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of the stock.
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1-20
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SECTION 2. This act shall take effect upon passage.
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LC00520
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EXPLANATION
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BY THE LEGISLATIVE COUNCIL
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OF
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A N A C T
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RELATING TO TAXATION -- FRANCHISE TAX
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***
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3-1
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This act would eliminate the franchise fee paid annually by corporations.
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3-2
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This act would take effect upon passage.
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LC00520
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