2025 -- S 0182

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LC001105

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     Introduced By: Senators Gallo, DiPalma, Tikoian, LaMountain, Murray, and Lawson

     Date Introduced: February 07, 2025

     Referred To: Senate Finance

     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:

     44-30-71.5. Voluntary withholding of tax from mutual fund individual retirement

accounts.

     (a) The tax administrator may enter into agreements with a mutual fund company to allow

for the withholding from required minimum distributions subject to Rhode Island personal income

tax of a resident individual, an amount substantially equivalent to the tax reasonably estimated to

be due resulting from the inclusion in the resident’s Rhode Island income of the resident’s

distributions received during any calendar year.

     (b) The method of determining the amount to be withheld shall be prescribed by regulations

of the tax administrator, with due regard to the withholding exemptions of the resident.

     (c) The provisions of this section shall apply only to a resident who so elects to have the

withholding effected.

     SECTION 2. This act shall take effect upon passage.

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LC001105

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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 allow a resident taxpayer to elect to have state taxes withheld from

distributions from a mutual fund individual retirement account.

     This act would take effect upon passage.

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