Bill > H6290

This bill introduces a comprehensive wealth tax in Rhode Island targeting individuals and entities with a 1% tax rate on worldwide wealth, beginning January 1, 2026, with taxes first due in 2027. The bill provides detailed definitions of key terms like "worldwide wealth," which includes the fair market value of intangible assets owned or controlled by residents, and establishes complex rules for determining residency and tax liability. Residents include both individuals physically present in Rhode Island for more than 183 days and artificial entities (like corporations) domiciled in the state. The tax includes significant exemptions, such as up to $25 million in financial intangible assets, nonfinancial intangible assets, and certain government-related obligations. The bill outlines extensive administrative provisions, including requirements for electronic tax filing, penalties for late or incorrect submissions, and a mechanism for innocent spouse relief. Taxpayers can claim credits for similar wealth taxes paid to other states, and the state plans to conduct increasing levels of audits (from 10% to 20% of registered taxpayers) to ensure compliance. The bill also includes a rule of construction favoring tax application in cases of ambiguity and a severability clause to protect the overall legislation if any specific provision is challenged legally.

Budget and Finance

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