Bill > H7312

This bill, effective upon passage, amends Rhode Island's estate tax law to increase the threshold for when the tax is imposed. Specifically, for individuals who die on or after January 1, 2027, their estate will only be subject to the state estate tax if the "net taxable estate" – essentially, the value of the deceased person's assets minus debts and certain deductions – exceeds fifteen million dollars ($15,000,000). This new exemption amount is significantly higher than previous thresholds, meaning fewer estates will be subject to this tax. The bill also clarifies that the tax calculation will continue to be based on the federal estate tax laws as they existed on January 1, 2001, and that any increases to the federal unified credit, which is a deduction against estate tax, will not apply to Rhode Island's tax.