2024 -- S 3152

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LC006255

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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 -- TAXATION OF BANKS

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: June 09, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-14 of the General Laws entitled "Taxation of Banks" is hereby

amended by adding thereto the following section:

     44-14-14.6. Allocation and apportionment method of income election.

     Notwithstanding any other provisions of the general laws, for taxable years beginning on

or after January 1, 2025, any banking institution whose business activities are taxable within and

without this state, may elect the allocation and apportionment method for income provided in §44-

14-14.1. The election shall be made by filing the form prescribed by the tax administrator with the

annual return required by § 44-14-6. The portion of net income apportioned to Rhode Island for a

banking institution making this election shall be determined by multiplying total net income by the

receipts factor provided in § 44-14-14.3.

     SECTION 2. This act shall take effect on January 1, 2025.

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LC006255

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- TAXATION OF BANKS

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     This act would provide banks with an election to use the allocation and apportionment

method of income for purposes of taxation.

     This act would take effect on January 1, 2025.

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LC006255

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