Bill > S0779

This bill establishes a new wealth tax in Rhode Island, beginning January 1, 2026, that will require residents to pay a 1% tax on their worldwide wealth, with some important exemptions and detailed provisions. The tax applies to both natural persons and artificial persons (like corporations), and covers a wide range of financial and intangible assets, including cash, investments, stocks, bonds, cryptocurrencies, trademarks, patents, and other similar property. Residents must file annual tax returns by April 15th reporting their taxable worldwide wealth, with the first returns due in 2027. The bill provides a substantial exemption of up to $25 million in financial intangible assets for individual taxpayers, and excludes certain types of assets like nonfinancial intangible assets, U.S. government obligations, and property already subject to ad valorem taxation. The legislation includes comprehensive definitions of key terms, administrative procedures for filing and payment, penalties for late or incorrect filings, and provisions for innocent spouse relief. The bill also mandates that the state's department of revenue conduct audits of at least 10% of registered taxpayers in 2026, increasing to 20% by 2028, and includes a provision that any ambiguities in the law should be construed in favor of applying the tax. The bill is designed to create a new source of tax revenue by targeting the wealth of Rhode Island residents and entities.

Budget and Finance

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