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 | |
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Introduced By: Senators Murray, Lawson, Euer, Cano, Ciccone, Britto, Acosta, Gu, | |
Date Introduced: February 12, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby |
2 | amended by adding thereto the following section: |
3 | 44-30-2.12. Surtax on millionaires. |
4 | (a) For the tax year ending December 31, 2025, and every December 31 thereafter, there |
5 | is hereby imposed on the taxable income of married individuals filing joint returns, qualifying |
6 | widow(er), every head of household, unmarried individuals, married individuals filing separate |
7 | returns and bankruptcy estates, a surtax of three percent (3%) on Rhode Island taxable income over |
8 | one million dollars ($1,000,000). |
9 | (b) The tax imposed in subsection (a) of this section is in addition to the personal income |
10 | tax imposed in § 44-30-2.6. |
11 | (c) The tax imposed in subsection (a) of this section is on taxable income net of |
12 | modifications, the standard deduction, and exemptions as specified in § 44-30-2.6. |
13 | (d) Any personal income tax collected in accordance with this section shall be deposited |
14 | into a restricted receipt account and shall only be expended on the following: |
15 | (1) Affordable, reliable, and quality child care and early learning programs; |
16 | (2) Quality public education; |
17 | (3) Affordable public colleges and universities; |
18 | (4) The repair and maintenance of roads and bridges; and |
19 | (5) Public transportation. |
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1 | (e) Beginning with the fiscal year 2026 budget and then annually thereafter, within a month |
2 | of the enactment of the annual state budget, the division of taxation shall report annually to the |
3 | general assembly identifying the amount of surtax revenue collected pursuant to subsection (a) of |
4 | this section and the manner in which the collected surtax revenue was distributed in accordance |
5 | with subsection (d) of this section, and shall set aside ten percent (10%) of the surtax collections in |
6 | an indirect costs recovery account. |
7 | 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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1 | This act would impose a Rhode Island personal income surtax of three percent (3%) on |
2 | taxable income over one million dollars ($1,000,000), with the existing three-bracket personal |
3 | income tax structure remaining in place. This surtax would be imposed on taxable income after all |
4 | modifications, standard deductions, and exemptions have been applied. |
5 | This act would also require that the tax revenue collected from this surtax be placed into a |
6 | restricted receipts account to be used for affordable, reliable, and quality child care and early |
7 | learning programs; quality public education; affordable public colleges and universities; the repair |
8 | and maintenance of roads and bridges; and public transportation. The division of taxation would |
9 | annually report to the general assembly as to the amount collected and distributed. |
10 | This act would take effect on January 1, 2025 and shall not apply retroactively. |
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