2024 -- S 2355

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LC004494

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     

     Introduced By: Senators Murray, Lawson, Euer, Cano, Ciccone, Britto, Acosta, Gu,
Mack, and Bissaillon

     Date Introduced: February 12, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby

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amended by adding thereto the following section:

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     44-30-2.12. Surtax on millionaires.

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     (a) For the tax year ending December 31, 2025, and every December 31 thereafter, there

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is hereby imposed on the taxable income of married individuals filing joint returns, qualifying

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widow(er), every head of household, unmarried individuals, married individuals filing separate

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returns and bankruptcy estates, a surtax of three percent (3%) on Rhode Island taxable income over

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one million dollars ($1,000,000).

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     (b) The tax imposed in subsection (a) of this section is in addition to the personal income

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tax imposed in § 44-30-2.6.

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     (c) The tax imposed in subsection (a) of this section is on taxable income net of

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modifications, the standard deduction, and exemptions as specified in § 44-30-2.6.

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     (d) Any personal income tax collected in accordance with this section shall be deposited

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into a restricted receipt account and shall only be expended on the following:

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     (1) Affordable, reliable, and quality child care and early learning programs;

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     (2) Quality public education;

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     (3) Affordable public colleges and universities;

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     (4) The repair and maintenance of roads and bridges; and

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     (5) Public transportation.

 

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     (e) Beginning with the fiscal year 2026 budget and then annually thereafter, within a month

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of the enactment of the annual state budget, the division of taxation shall report annually to the

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general assembly identifying the amount of surtax revenue collected pursuant to subsection (a) of

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this section and the manner in which the collected surtax revenue was distributed in accordance

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with subsection (d) of this section, and shall set aside ten percent (10%) of the surtax collections in

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an indirect costs recovery account.

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     SECTION 2. This act shall take effect on January 1, 2025 and shall not apply retroactively.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

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     This act would impose a Rhode Island personal income surtax of three percent (3%) on

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taxable income over one million dollars ($1,000,000), with the existing three-bracket personal

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income tax structure remaining in place. This surtax would be imposed on taxable income after all

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modifications, standard deductions, and exemptions have been applied.

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     This act would also require that the tax revenue collected from this surtax be placed into a

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restricted receipts account to be used for affordable, reliable, and quality child care and early

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learning programs; quality public education; affordable public colleges and universities; the repair

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and maintenance of roads and bridges; and public transportation. The division of taxation would

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annually report to the general assembly as to the amount collected and distributed.

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     This act would take effect on January 1, 2025 and shall not apply retroactively.

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